JP Morgan to Repay US Taxpayers More than Half-Billion for False Claims Violation - East Idaho News
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JP Morgan to Repay US Taxpayers More than Half-Billion for False Claims Violation

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GETTY 020414 JPMorganChase?  SQUARESPACE CACHEVERSION=1391595094437STAN HONDA/AFP/Getty Images(WASHINGTON) —  Another Wall Street firm will have to write a big check to the government for breaking the law. This one will cost JP Morgan Chase more than a half-billion dollars.  

The financial services company will pay $614 million for violating the False Claims Act by knowingly underwriting non-compliant mortgages that received federal insurance coverage from the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA) and the Federal Housing Administration (FHA).    

The Wall Street firm admitted that for more than a decade they had violated the federal False Claims Act. Now, according to a Justice Department release, the more than half-billion dollar fines will help pay back U.S. taxpayers.

“The resolution announced today is a product of the Justice Department’s continuing efforts to hold accountable those whose conduct contributed to the financial crisis,” Associate Attorney General Tony West said Tuesday.  “This settlement recovers wrongfully claimed funds for vital government programs that give millions of Americans the opportunity to own a home and sends a clear message that we will take appropriately aggressive action against financial institutions that knowingly engage in improper mortgage lending practices.”

The Justice Department plans to continue to pursue and hold accountable financial institutions who employ “irresponsible mortgage lending” practices that “[undermine] the housing market and cost the taxpayers millions of dollars.”

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