DOJ, HUD Clarify Use of False Claims Act


Posted To: MND NewsWire

The U.S. Departments of Justice (DOJ) and Housing and Urban Development (HUD) issued a joint Memorandum of Understanding (MOU) on Monday setting out the appropriate use of the False Claims Act (FCA). The FCA, also known as the Lincoln Law, was enacted in 1863 by a Congress concerned that companies supplying goods during the Civil War were defrauding the Army. The law provides that any person who knowingly submits false claims to the government is liable for double the government’s damages plus a fine. Since then the law has been amended to permit treble damages and fines in the range of $5,000 to $10,000. The FCA has been invoked by in litigation against mortgage lenders arising out of practices prior to the housing crisis. HUD Secretary Ben Carson said the MOU it is a clear outline of FHA…(read more)

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