Financial Industry Fraud
What is a False Claims Act violation within the Financial Industry?
False Claims Act (“FCA”) violations occur when financial companies that contract with the government commit fraud under financial industry laws such as the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”). FIRREA was enacted after the savings and loan crisis of the 1980s. It enhances the regulatory and enforcement powers of the federal financial institution’s regulatory agencies. Whistleblowers expose fraud related to these institutions in qui tam lawsuits. Many recent examples of financial fraud have shown how supposed reputable companies such as Goldman Sachs and Merrill Lynch have allegedly defrauded the government.
If you have knowledge of possible financial fraud by your company or reasonably suspect such fraud, timely reporting is critical. To speak with a skilled and experienced attorney, please can call us at (877) 789-9707 for a free consultation, or complete the online form on this site to request any information and speak with a knowledgeable attorney. Our whistleblower lawyers review your case and guide you every step of the way to ensure maximum recovery. They also ensure the vigorous defense to any corporate retaliation.
Recent examples of FCA violations have spanned the gamut. They include companies that defrauded the Federal Reserve’s Term-Asset-backed Securities Loan Program (“TALF”) when they offshored their functions. Other examples of recent FCA violations include companies that mispriced their services to the government or falsified their applications. Related to these applications, certain companies have also used kickbacks to rid the bidding process when obtaining government business (such as municipal bonds). When these actions drive up the cost for the government they essentially create a loss.
When the government loses, so do taxpayers. If the government agency and the United States Department of Justice (or state Attorney General or County Counsel) decline to intervene and allow the whistleblower to independently litigate the case, the relator whistleblower’s share is 20-25 percent of the government’s settlement or verdict (monetary recovery). If the government decides to intervene and litigate the case (which occurs approximately 20% of the time), the relator whistleblower’s share is decreased to 15-20 percent of the government’s settlement or verdict.
See our other website pages for related financial violation examples under the Sarbanes-Oxley Act (“SOX”) and the Dodd-Frank Wall Street Reform and Consumer Protections Act of 2010 (“Dodd-Frank Act”). Each of these laws and the agencies that administer them also includes whistleblower programs as well as whistleblower retaliation protections.