Wells Fargo Can't Evade Mortgage Fraud Suit, DC Circ. Says
By Erica Teichert
Law360, Washington (June 10, 2014, 1:15 PM ET) -- The D.C. Circuit on Tuesday rejected Wells Fargo & Co.'s bid to free itself from a False Claims Act suit and mortgage fraud claims that it alleged were settled when it paid $5 billion as part of a nationwide mortgage settlement, saying the bank had misread the scope of the agreement.
In a unanimous per curiam opinion, the three-judge panel determined that Wells Fargo's $5 billion contribution to the overall $25 billion mortgage settlement cannot prevent the Federal Housing Administration from pursuing its own FCA suit...