A whistleblower who uncovered a mortgage fraud scheme has helped the government recover $24.9 million. According to the Department of Justice press release, a mortgage underwriter allegedly approved ineligible loans that later defaulted. These mortgages were part of the Federal Housing Administration’s (FHA) mortgage insurance program and their default lead to substantial losses for the federal government. Lenders under this program are required to comply with certain FHA rules intended to avoid default, in order to qualify for the program.
The whistleblower who uncovered this scheme filed an action under the False Claims Act (FCA). The FCA allows whistleblowers who uncover fraud against the government to file a lawsuit and attempt to recover the lost assets. Under the FCA, whistleblowers are also entitled to receive share of any recovery. Here, the whistleblower will receive $ 4,980,000 of the total $24.9 million recovery.
Many states also have similar laws that allow whistleblowers to defend state assets.
If you have uncovered fraud against the government contact the whistleblower lawyers at Miller Law Group today for a free and confidential consultation. You can also set up your consultation by calling us at (919) 348-4361. To learn more about whistleblower law, click here.
The settlement discussed above is based on allegations only. No determination of liability has been made.