Capmark, Feds Reach $4M Deal To End FCA Suit

Law360, Washington (January 25, 2012, 3:57 PM EST) -- The reorganized Capmark Finance LLC on Monday asked a Delaware bankruptcy judge to approve a $3.9 million settlement resolving the federal government's allegations that Capmark knowingly submitted a false mortgagor's certification to the U.S. Department of Housing and Urban Development.

The U.S. sued Capmark in June 2009, claiming Capmark's certification falsely said the mortgagor had no unpaid obligations in order to secure federal mortgage insurance benefits. The suit seeks treble damages amounting to roughly $75 million. Capmark filed for bankruptcy in October 2009.

Under the settlement...
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