Citi Closes Door On DOJ's Reckless-Mortgage Suit For $158M
By Lana Birbrair
Law360, New York (February 15, 2012, 4:12 PM ET) -- Citigroup Inc. on Wednesday agreed to pay $158.3 million in a False Claims Act suit that federal prosecutors in New York simultaneously launched and settled, accusing a subsidiary of defrauding the U.S. Department of Housing and Urban Development through its residential mortgage lending business.
U.S. District Judge Victor Marrero approved the settlement, which follows the $25 billion secured in a separate settlement last week with five of the nation's largest mortgage servicers, including Citigroup. The agreement ends a suit in which federal prosecutors alleged that for...