California AG’s Mortgage Fraud Strike Force to Use State False Claims Act
In a speech delivered on Monday, May 24, 2011, California Attorney General Kamala Harris promised that her newly-formed Mortgage Fraud Strike Force would employ the state’s “robust” False Claims Act to hold those who commit mortgage fraud accountable.
“We are prepared to use it in a way that will look at all those who have made false statements or misled investors of any nature – be they individuals, institutions or municipalities,” Harris announced at a news conference held in Los Angeles. She further stated that the Strike Force will “work to safeguard the homeowner at every step of the process – from origination of a loan to its securitization.”
Attorney General Harris’s announcement marks the beginning of a new frontier in False Claims Act litigation nationwide. California has been hard-hit by the financial and housing crises, with foreclosure filings against 500,000 homes state-wide last year alone, and its employment of the state False Claims Act to combat mortgage fraud could prove to be a model in other jurisdictions with similar concerns.
For more information see: http://www.scpr.org/news/2011/05/24/harris-promises-use-false-claims-act-mortgage-frau/