November 30, 2016

A Houston jury found the entities formerly known as Allied Home Mortgage Capital Corp., Allied Home Mortgage Corp., and their president and chief executive officer Jim C. Hodge liable for violating the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) relating to mortgage fraud.  After a five-week trial, the jury awarded the United States roughly $93 million in damages, including more than $7 million against Hodge.  The allegations originated in a whistleblower lawsuit filed by former Allied manager Peter Belli under the qui tam provisions of the False Claims Act.  He will receive a yet-to-be determined whistleblower award from the proceeds of the government’s recovery.  Whistleblower Insider

Tagged in: FCA Federal, FIRREA, Housing and Mortgage Fraud, Whistleblower Case, Whistleblower Rewards,