Regions Settles FCA Suit Over Alleged $2.4M TARP Fraud

Law360, New York (September 24, 2012, 4:12 PM EDT) -- Regions Financial Corp. on Friday settled whistleblowers' False Claims Act allegations that it undervalued a promissory note by at least $2.4 million in order to qualify for money under the Troubled Asset Relief Program and then lied to investigators about its need for government assistance.

The Alabama-based lender declined to comment, and counsel for the relators declined to disclose the terms of the deal, which stemmed from accusations that Regions sold the note for about half its true market price so it could claim inflated losses...
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