THE PRACTICE

Fannie, Freddie and the False Claims Act

Despite a recent Ninth Circuit decision, the law still applies to government-sponsored entity cases.

, The National Law Journal

   | 1 Comments

Despite a recent Ninth Circuit decision, the law still applies to government-sponsored entity cases.

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What's being said

  • Brian Mahany, Esq.

    Horrible pleadings lead to horrible results. Relator‘s counsel had three opportunities to properly amend its complaint and use the appropriate section of the statute. Unfortunately, even though they amended the complaint multiple times, they continued to try and smash a round peg in a square hole.Some defense lawyers claim that this case (Aurora Loan Services) shows that fraud against Fannie and Freddie is off limits to the False Claims Act. That is not what the court said, however. The trial court and the relator‘s counsel got it wrong. The 9th Circuit, however, got it right. Unfortunately, many lawyers have not read the opinion. (Kudos to Anne Hayes Hartman of the National Law Journal for getting it right!)We love Fannie and Freddie FCA cases and continue to accept them.

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