Skip to main content

Syracuse underwriter to pay government nearly $679,000 to resolve fraud allegations

Dec 10, 2009

Robert Corp, a mortgage underwriter in Syracuse, N.Y., has agreed to pay the United States close to $679,000 to settle allegations that he defrauded the U.S. Department of Housing & Urban Development (HUD), the Justice Department has announced. This settlement resolves Corp's liability under the False Claims Act, a federal statute that imposes triple damages and penalties for false claims made in connection with federal government programs. The Justice Department filed suit against Corp in May 2008, alleging that he made false statements to HUD on an application for government insurance of a mortgage loan used to refinance the existing debt of Brylin Hospitals, a psychiatric and substance abuse hospital in Buffalo, N.Y. The mortgage insurance program authorizes HUD to guarantee mortgage loans used to refinance debt held by hospitals and other healthcare facilities. Corp allegedly overstated Brylin Hospitals' existing debt in order to obtain a larger refinance loan, and HUD was required to pay more in mortgage insurance claims as a result of Corp's allegedly false statements. "Mortgage fraud is a top priority for this administration," said Tony West, Assistant Attorney General for the Department of Justice's Civil Division. "We will aggressively pursue both individuals and corporations who defraud federal mortgage insurance programs, which are so important to this economy." Assistant Attorney General West noted that his case was a collaborative effort involving the Justice Department's Civil Division, HUD's Office of General Counsel - Office of Program Enforcement, and HUD's Office of the Inspector General in Buffalo, New York. "We have no tolerance for those who try to cheat the Federal Housing Administration or the taxpayer," said FHA Commissioner David H. Stevens. "It's not just about protecting the financial health of the FHA insurance fund -- this is about protecting each and every hospital and healthcare facility that looks to the FHA for safe and secure mortgage financing." For more information, visit www.hud.gov.
About the author
Published
Dec 10, 2009
In Wake Of NAR Settlement, Dual Licensing Carries RESPA, Steering Risks

With the NAR settlement pending approval, lenders hot to hire buyers' agents ought to closely consider all the risks.

A California CRA Law Undercuts Itself

Who pays when compliance costs increase? Borrowers.

CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

Fannie Mae Weeds Out "Prohibited or Subjective" Appraisal Language

The overall occurrence rate for these violations has gone down, Fannie Mae reports.

Arizona Bans NTRAPS, Following Other States

ALTA on a war path to ban the "predatory practice of filing unfair real estate fee agreements in property records."

Kentucky Legislature Passes Bill Banning NTRAPS

The new law prohibits the recording of NTRAPS in property records, creates penalties if NTRAPS are recorded, and provides for the removal of NTRAPS currently in place.