A recent group of Federal Housing Administration settlements with lenders serve as a reminder that False Claims Act lawsuits are not going away any time soon. FCA claims typically involve allegations that a person or entity has defrauded the government. There are severe penalties and damages available under the False Claims Act and related statutes. In the mortgage context, claims can be asserted against lenders that sell loans insured by the government since the lender attests that every one of those loans has been originated in accordance with all applicable laws and standards. Thus, nearly any violation of federal lending laws can leave a lender susceptible to FCA lawsuits for federally insured loans.
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Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide.
Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.