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Banking Law

Vets Loan Fraud Claim Against Mortgage Investors Corp. Revived

Jan. 15, 2021, 4:49 PM

Mortgage Investors Corp. must again face whistleblowers’ False Claims Act suit alleging the company falsely certified to the VA that it only charged permissible fees under a veterans mortgage loan program, the Eleventh Circuit ruled Friday.

The U.S. District Court for the Northern District of Georgia improperly found that mortgage brokers Victor E. Bibby and Brian J. Donnelly didn’t satisfy the FCA materiality standard, the U.S. Court of Appeals for the Eleventh Circuit said.

There is sufficient evidence to support a finding of materiality required by Universal Health Services Inc. v. United States ex rel. Escobar, under which courts...

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