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: False Claims Act - Qui Tam

Calif. Attorney General will use FCA to fight mortgage fraud

By Phillips & Cohen LLP

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California Attorney General Kamala Harris has vowed to use the state's False Claims Act to go after mortgage fraud scammers.

The new Mortgage Fraud Strike Force will have three teams. The corporate fraud team will target misconduct involving investments and securities tied to subprime mortgages, as well as false or fraudulent claims made to the state with respect to these securities.

A consumer enforcement team will focus on predatory lending, unfair business practices in originating loans, deceptive marketing, and loan modification and foreclosure consultant scams. The criminal enforcement team will prosecute criminal frauds, including fraudulent investment and money laundering schemes related to mortgage lending or foreclosure relief.

Harris said, ?We are prepared to use it [the state's False Claims Act] in a way that will look at all those who have made false statements or misled investors of any nature ? be they individuals, institutions or municipalities."

Full post as published by False Claims Act - Qui Tam on May 24, 2011 (boomark / email).

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