Fifth Third Bank pays $85 million to settle False Claims Act case on mortgages

The United States Department of Justice announced today that Fifth Third Bank will pay $85 million to the federal government to settle claims under the False Claims Act (“FCA”) relating to the Bank’s practices in connection with loans insured by the Federal Housing Administration (FHA).

The whistleblower,George Mann a former chief appraiser at the Bank, who alleged commercial and residential mortgage violations, including fraudulent appraisal practices, resulting in major losses to the federal government. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions permit private parties to sue on behalf of the United States when they believe an individual or company has submitted false claims for government funds. The whistleblowers were represented by Kenney & McAfferty.

Jeffrey Newman represents whistleblowers.