The Corporate World - Written by Beasley Allen on Wednesday, December 14, 2011 9:20 - 0 Comments

Federal Government Sues Allied Home Mortgage For Lending Fraud

The U.S. Department of Justice has filed suit against Allied Home Mortgage Capital Corp and two top executives over fraudulent lending practices that have cost the government more than $834 million of insurance . In the Complaint, filed in the U.S. District Court in Manhattan, the Justice Department said Allied profited for years as one of the nation’s largest Federal Housing Administration lenders by “engaging in reckless mortgage lending, flouting the requirements of the FHA mortgage insurance program, and repeatedly lying about its compliance.”

Other Defendants in the are Allied Chief Executive Jim Hodge, and Executive Vice President Jeanne Steel. The seeks triple damages under the federal False Act as well as civil penalties and other remedies. You may recall that the government has also charged Deutsche Bank AG with fraud in a . The bank was accused of misleading the FHA into insuring risky mortgages. Deutsche Bank has sought to dismiss that which seeks $1 billion in damages.

Source: Insurance Journal



Leave a Reply

Comment

Comments are moderated and generally will be posted if they are on-topic and not abusive.

Powered by WP Hashcash

Recent Settlements - Feb 9, 2012 7:09 - 0 Comments

Settlement In BTSI Defect Case

More In Recent Settlements


Product Liability - Sep 4, 2014 13:13 - 0 Comments

Lawsuit Against Volkswagen Passat To Be Tried

More In Product Liability


Recalls Update - Sep 4, 2014 11:03 - 0 Comments

Peanut And Almond Butters Recalled For Salmonella Risk

More In Recalls Update