Relators Didn't Uncover Bankruptcy Trustee's Fraud: Judge

Law360, New York (February 6, 2013, 3:06 PM EST) -- A Washington federal judge on Tuesday dismissed a qui tam False Claims Act suit brought by a couple alleging a former bankruptcy trustee defrauded the U.S. government through an illegal kickback scheme in connection with property sales in bankruptcy proceedings, saying the relators did not uncover the fraud. 

U.S. District Judge James L. Robart said that the court lacks subject matter jurisdiction to hear the FCA suit because individual plaintiffs Paramjeet and Sunita Malhotra did not have true knowledge of any fraudulent conduct against trustee Robert...
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