On
According to the DOJ allegations,
These acts allegedly violated FIRREA. FIRREA, a useful tool to prosecutors, provides for civil causes of action based on criminal conduct, such as bank or wire fraud. Among other things, FIRREA allows the government to collect financial penalties without having to meet the heavy burden of proof beyond a reasonable doubt required for a criminal conviction. Monetary penalties under FIRREA range from
Since the 2008 housing crisis, FIRREA has often been invoked in relation to mortgages and mortgage-backed securities. The application here, charging misrepresentations to banks, fuels industry expectations that FIRREA may be used in connection with Paycheck Protection Program (PPP) fraud.
After an investigation of an undisclosed length of time,
This case provides another example of the government's efforts to hold a corporation to account for the actions of its employees in the absence of criminal prosecution.
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