false claims act News

Lance Armstrong Seeks Dismissal of False Claims Lawsuit

Lance Armstrong, the former champion cyclist, asked a judge to throw out a lawsuit claiming he defrauded the U.S. by using banned substances in violation of his team’s contract with the U.S. Postal Service. Armstrong, in papers submitted yesterday in …

State Farm Appeals Katrina Fraud Ruling in Mississippi

State Farm Fire and Casualty Co. is asking a judge to void a jury’s finding that the company defrauded the government involving a policyholder claim after Hurricane Katrina. Motions filed in U.S. District Court in Gulfport, Miss., also seek a …

Judge: U.S. Can Sue Bank of America Over Toxic Mortgages Under FIRREA

A federal judge ruled on Wednesday that the United States can pursue parts of a civil lawsuit against Bank of America Corp. over its sale of toxic mortgages to Fannie Mae and Freddie Mac, boosting a largely untested legal theory …

Jury Finds State Farm Defrauded Flood Insurance Program

A federal jury in Mississippi has found that State Farm Fire and Casualty Co. avoided covering a policyholder’s wind losses by blaming the damage on storm surge, which is covered by federal flood insurance. The verdict came in a whistleblower …

Mortgage Lender Charged with Defrauding Government Insurer

The United States last Thursday sued a New York mortgage company it said defrauded the federal government into insuring poor quality home loans, costing taxpayers millions of dollars. In a civil lawsuit filed in Manhattan federal court, the U.S. Department …

Hanford Nuclear Contractor Settles Lawsuit For $1.1M

A contractor at the Hanford nuclear plant in Washington has agreed to pay $1.1 million to settle a lawsuit filed by the Justice Department claiming the company used federal money to lobby for new government customers for a first responder …

Whistleblower Says BofA Defrauded Home Loan Remodification Program

Bank of America NA prevented homeowners from receiving mortgage-loan modifications under a federal program in order to avoid millions of dollars in losses while benefiting from financial incentives for participating in the program, according to a complaint unsealed in federal …

Citigroup Mortgage Insurance Whistleblower: ‘I Have No Regrets’

It wasn’t Sherry Hunt’s original intent to go public on the shoddy quality control at a mortgage unit at Citigroup Inc., her employer since 2004. But by March 2011, as it became apparent to her that the problems were getting …

Kentucky Lawmaker Wants Whistleblower Law to Combat Fraud

Kentucky Speaker of the House Greg Stumbo said he will file legislation to give whistleblowers strong financial incentive to step forward if state tax dollars are being misused. Stumbo, a Democrat, said his False Claims Act would root out fraud …

Citigroup to Pay $158M in Whistleblower Fraud Claim Over Insurance for Mortgages

Citigroup Inc. has agreed to pay $158.3 million to settle U.S. civil claims that it defrauded the government into insuring thousands of risky home loans made by its CitiMortgage unit. Wednesday’s settlement resolves claims under the federal False Claims Act …