7th Circ. Overturns $2.7M FCA Award Against Mortgage Firm

Law360, New York (March 22, 2013, 4:06 PM EDT) -- The Seventh Circuit on Thursday reversed a $2.7 million award against a mortgage company that allegedly lied when it applied for federal loan guarantees, saying a trial judge incorrectly calculated treble damages under the False Claims Act.

The appeals court agreed with Anchor Mortgage Corp. that U.S. District Judge Matthew F. Kennelly should recalculate damages under a method known as “net trebling” rather than the “gross trebling” approach he used to punish the company and CEO John Munson for making false statements. The decision brings the...
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