US Drops FCA Claim In Wells Fargo Mortgage Fraud Suit

Law360, New York (April 30, 2013, 1:05 PM EDT) -- Government lawyers on Monday withdrew part of a False Claims Act suit accusing Wells Fargo Bank NA of defrauding the U.S. Department of Housing and Urban Development by concealing the poor quality of mortgages, trimming a sweeping complaint the bank has denounced as unfair.

The dropped count — one of 11 in a suit launched last year — alleged that Wells Fargo breached the FCA’s so-called reverse false claims section by making bogus statements so it could evade a duty to indemnify HUD against mortgage losses....
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