JPMorgan Chase Settles Whistleblower Lawsuit for $614 Million
March 20, 2014
March 20, 2014 — When large corporations file false claims
with the government, the ride to greater profits is taken on the backs of American taxpayers. Many company insiders who learn about unscrupulous scams to bilk the government wonder what they can do to stop the practice. The federal False Claims Act gives whistleblowers the power to file suit for the government in federal court. To reward informants willing to notify the government, the qui tam provisions of the Act entitle them to share in any recovery.
False Claims Act Lawsuit Alleged that JPMC Submitted Ineligible Loans to FHA and VA
JPMorgan Chase (JPMC), a New York-based bank and financial services company, has consented to pay $614 million to resolve a False Claims Act lawsuit alleging that the bank originated and underwrote mortgage loans it knew were non-compliant and ineligible for insurance coverage and guarantees backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).
In settlement of the whistleblower lawsuit, JPMC admitted that it approved thousands of FHA loans and hundreds of VA loans that did not satisfy agency underwriting requirements and were therefore ineligible for FHA or VA insurance. The practice, which began in 2002, went on for over ten years. According to the U.S. Justice Department
, JPMC uncovered over 500 defective loans when it conducted its own internal investigation, but then chose not to tell the FHA and the VA about the loans that never should have been forwarded to the FHA and VA for insurance in the first place. As a result of JPMC’s false certifications that its loans were FHA- or VA-qualified, the FHA and VA suffered substantial losses when the loans defaulted and the FHA and VA had to cover the insured losses.
Collaborating with the Government to End False Claims Act Violations
The whistleblower lawyers with Waters & Kraus
understand that many insider employees feel intimidated or pressured to keep the lid on schemes to cheat the government. We’ve helped many other informants in your situation. Contact us
by email or phone our False Claims Act lawyers at 855.784.0268. With offices in the Washington D.C. area, as well as California and Texas, we’re here to guide you through the qui tam process.