U.S. v. Anchor Mortgage Corp.

Federal 7th Circuit Court
Civil Court
False Claims Act
Case Number: 
Nos. 10-3122 et al. Cons.
Decision Date: 
March 21, 2013
Federal District: 
N.D. Ill., E. Div.
Affirmed and reversed in part and remanded
Record contained sufficient evidence to support Dist. Ct.’s finding that defendants-corporation and its CEO made false statements when applying for federal guarantees of 11 property loans, where record showed that employee of corporation was aware that certificates submitted with loan applications contained false statements regarding source of borrowers’ down payments, and that CEO had paid referral fees in contravention to representations made to govt. However, Dist. Ct. erred in assessing treble damages arising out of instant violation of False Claims Act by failing to subtract amount that govt. realized upon sale of repossessed property from money paid by govt. to lenders before tripling resulting net figure.