Mortgage Lawsuit spurred on by the False Claims Act

4 05 2011

The False Claims Act of 1863 was created to hold accountable anyone who makes a fraudulent claim to the United States.

This week, the False Claim Act provided the reasoning that the US Attorney sued Deutsche Bank. The case will decide whether the bank did indeed make federally insured mortgage loans without doing the due diligence of checking on the accuracies of loan applicants. The Deutsche Bank repeatedly defended itself during the financial crisis of 2008, explaining that it had checked those details.

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