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U.S. Files Suit Against Allied for Over $800 Million in Fraudulent Claims

The U.S. has filed a civil mortgage fraud lawsuit against Allied Home Mortgage Capital Corporation, its affiliate, Allied Home Mortgage Corporation, Allied President and CEO Jim Hodge, and Executive Vice President Jeanne Stell. Under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the U.S. Government seeks damages and civil penalties for hidden misconduct in terms of residential mortgage lending practices. Until now, the Federal Housing Administration (FHA) has paid $834 million in insurance claims for fraudulent mortgages originated and certified by Allied—which are now in default.

Read more at: http://www.empirestatenews.net/News/20111102-3.html

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