Utah mortgage lender Academy Mortgage Corporation (“Academy”) has agreed to pay $38.5 million to settle allegations that it fraudulently underwrote mortgages insured by the Federal Housing Administration (“FHA”).
The alleged mortgage fraud was brought to light after a former Academy underwriter, Gwen Thrower, filed a whistleblower lawsuit claiming that Academy engaged in an underwriting process that falsely certified compliance with underwriting requirements, disregarding FHA regulations. Under the terms of the settlement, Academy will pay nearly $40 million to the United States, and Thrower will receive an $11,511,500 reward for exposing the fraudulent conduct.
If you are aware of fraud against the United States government, you could be eligible to receive a reward of 15%-25% of any amount recovered by the government for courageously exposing misconduct through a False Claims Act (“qui tam”) lawsuit. Call my office to schedule a FREE CONSULTATION with a Seattle whistleblower attorney.
As an experienced qui tam attorney, I can listen to the facts of your case, explain your legal options for pursuing a False Claims Act lawsuit, and tenaciously fight to expose fraud while seeking to protect you from retaliation.
What is a False Claims Act Lawsuit?
The False Claims Act is a federal law that allows private citizens (often referred to as “relators”) to file lawsuits on behalf of the government (often referred to as a qui tam lawsuit). If successful, the whistleblower may be entitled to an award (generally between 15% to 25% of the amount recovered by the government) for reporting fraud and initiating legal action. The Department of Justice has recovered billions of dollars from lenders accused of knowingly violating FHA mortgage underwriting requirements, resulting in millions of dollars in whistleblower awards.
How Did Academy Mortgage Corporation Commit Mortgage Fraud Against the Government?
According to the Department of Justice, Academy was accused of improperly underwriting mortgages insured by the FHA from 2008 to 2017. Consequently, these fraudulent practices resulted in the government later paying insurance claims on loans that were improperly originated.
According to Principal Deputy Assistant Attorney General Brian M. Boynton, “lenders that knowingly cause the government to guarantee loans that are materially deficient put both homeowners and the public fisc at risk.”[1] Further, Boynton elaborated that the Academy settlement “is a result of the relator’s [whistleblower’s] efforts to develop this case in litigation and complements the departments’ actions to prevent abuse of government programs designed to foster home ownership.”[2]
Want To Expose Fraud Being Committed Against the Government? Schedule A Free Consultation with Experienced False Claims Act Lawyer Steve Teller.
If you have knowledge regarding a business or individual that fraudulently underwrote mortgages (or defrauded the government in another manner), I invite you to call my office to schedule a free consultation to learn about your options for filing a False Claims Act lawsuit. Under a qui tam lawsuit, those reporting fraud against the federal government may be eligible for a substantial reward from recovered funds.
At Teller Law, I advance all costs of a False Claims Act lawsuit, so you will not need to come out of pocket for fees and expenses. Additionally, you will not need to pay any legal fees for my representation, as I only receive a fee for my efforts as determined by a court in accordance with the False Claims Act statute and applicable regulations. Call my office today to schedule a free consultation to learn more about your legal options for exposing misconduct against the government.
[1] Academy Mortgage Corporation Agrees to Pay $38.5 Million to Settle False Claims Act Allegations Related to Mortgages Insured by the Federal Housing Administration, The United States Department of Justice, Academy Mortgage Corporation Agrees to Pay $38.5 Million to Settle False Claims Act Allegations Related to Mortgages Insured by the Federal Housing Administration | OPA | Department of Justice.
[2] Id.