False Claims and FIRREA Practice Resources

BuckleySandler’s False Claims and FIRREA practice consolidates our already substantial experience with the False Claims Act (FCA), Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), and Program Fraud Civil Remedies Act (PFCRA) with our industry-leading regulatory experience with the Government-Sponsored Enterprises (GSEs), and various government agencies and government-run programs, including the Federal Housing Finance Agency (FHFA), the Department of Housing and Urban Development (HUD), the Federal Housing Administration, Veteran’s Affairs, and Treasury, as well as the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The powerful combination of industry expertise and substantive FCA, FIRREA, and PFCRA experience uniquely positions us to navigate on behalf of our clients the intricacies involved in the recent financial civil fraud enforcement initiatives.

BuckleySandler’s False Claims and FIRREA practice attorneys are on the leading edge of FCA, FIRREA, and PFCRA trends and developments affecting the financial services industry. Our partner Andrew W. Schilling is the former chief of the Civil Division of the U.S. Attorney's Office for the Southern District of New York (S.D.N.Y.) where he helped lead the first wave of False Claims Act and FIRREA cases filed against financial services companies.

Our representations also include management of issues ancillary to the underlying HUD actions, such as communicating with investors, managing employee concerns, and developing public relations initiatives. Finally, our extensive experience with FHA’s complex program rules allow us to efficiently conduct proactive internal reviews that assist mortgagees with identifying risk areas and ameliorating identified deficiencies prior to any action by HUD or DOJ.

Our attorneys have recently represented clients in FCA, FIRREA, and PFCRA matters such as:

An investigation by the SDNY regarding FHA Direct Endorsement Lender Program
An investigation by the SDNY regarding sale of loans to Fannie Mae and Freddie Mac
Joint investigation by the Department of Justice Civil Division Commercial Litigation Branch Fraud Section and HUD Office of Inspector General (OIG) regarding Direct Endorsement Guidelines underwriting
A joint action against a mortgage servicer by the Department of Justice and HUD OIG for violations of HUD’s FHA servicing requirements
A state law qui tam and RICO action brought against a mortgage industry participant
A joint action by the U.S. Attorney’s Office and HUD alleging violations of FHA’s Direct Endorsement Guidelines, including in the underwriting and late endorsement of loans
Multiple representations of mortgage lenders in connection with responding to National Servicing Center desk reviews, Homeownership Center audits, Mortgagee Review Board investigations and actions, and HUD OIG subpoenas

BuckleySandler's False Claims Act and FIRREA team will provide regular updates via client alerts, the InfoBytes Blog, webinars, and in-person meetings to help clients anticipate and react to FCA and FIRREA suits brought against financial services companies.

Key Financial Fraud Enforcement Statutes

What is the False Claims Act?
What is the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)?
What is the Program Fraud Civil Remedies Act (PFCRA)?

Recent FCA/FIRREA Cases

U.S. v. McGraw-Hill Companies, Inc., et al. (C.D. Cal.) – pending, along with several parallel state actions
U.S. v. Deutsche Bank & MortgageIt (S.D.N.Y.) – Settled for $202.5 million
U.S. v. CitiMortgage, Inc. (S.D.N.Y.) – Settled for $158.3 million
U.S. v. Flagstar Bank (S.D.N.Y.) – Settled for $132.8 million
U.S. v. Allied Home Mortgage Co. (S.D.N.Y.) – pending
U.S. v. Bank of America/Countrywide (E.D.N.Y.) – Bank of America agreed to pay $1 billion, as part of the DOJ/State AGs national servicer global settlement
U.S. v. Luce (N.D. Ill.) – pending
U.S. v. Buy-a-Home, LLC, et al. (S.D.N.Y.) – Lawsuit pending, 10 of 14 defendants have settled; lender defendants paid $1.2 million
U.S. v. Wells Fargo (S.D.N.Y.) – pending
U.S. ex rel. O'Donnell v. Bank of America (S.D.N.Y.) – pending
U.S. v. Bank of New York Mellon (S.D.N.Y.) – pending
U.S. v. First Bank of Delaware (ED.Pa.) – Settled for $15.5 million

Articles

A Financial Institution's Fraud on Itself Triggers FIRREA (Law360)
Little Known Statute May Breathe New Life Into False Claims Act Cases Against Financial Institutions (Thomson Reuters Accelus)
FCA Allows Treble Damages - 'But Treble What?' (Law360)
Finally, 8 Factors Governing FIRREA Civil Penalty Awards (Law360)
U.S. Using Subpoenas Under 1989 Act as New Tool to Probe Financial Firms (Reuters Financial Regulatory Forum)
How the DOJ is Adapting in the War Against Financial Fraud (Law360)
Whistle-Blower Bounties May Encourage Residential Mortgage-Backed Securities Fraud Reporting (Westlaw Journal: Bank and Lender Liability)
Understanding FIRREA's Reach: When Does Fraud "Affect" a Financial Institution? (BNA's Banking Report)
Mortgage Litigation and the False Claims Act (Thomson Reuters News and Insight)
FCA, FHA Lending, and US v. Deutsche Bank (Law360)

Blog Posts & Special Alerts

Webinars

United States v. S&P: DOJ's Latest Fraud Suit Underscores the Importance of Understanding FIRREA, Its Reach, and Its Limitations (February 21, 2013)
The Evolution of the False Claims Act and FIRREA Enforcement (November 16, 2012)
From False Claims Act to FIRREA: The Government's Expanding Enforcement Arsenal Against Financial Institutions (July 26, 2012)
The False Claims Act and FHA Lending: What Does U.S. v. Deutsche Bank Mean for You? (May 11, 2011)

Other News

BuckleySandler Continues Expansion with Addition of Andrew W. Schilling