Whistleblowers’ Milwaukee Housing Fraud Suit Thrown Out Again

Milwaukee again won dismissal of a False Claims Act suit alleging that the city failed to satisfy obligations in order to receive funding from the federal government to support housing programs.

Whistleblowers James Dieter and Karen Schwenke failed to adequately tie instances of alleged misconduct to specific statutory or regulatory provisions, Judge J.P. Stadtmueller of the US District Court for the Eastern District of Wisconsin said in an Oct. 27 order dismissing the suit with prejudice.

The suit alleged that Milwaukee made certifications to the US Department of Housing and Urban Development to comply with federal anti-discrimination laws to reduce ...