July 15, 2014

15 July 2014

Federal Prosecutors Continue to Seek Hefty Fraud Penalties Under FIRREA

As we blogged previously, Federal prosecutors are increasingly pressing claims under the Savings and Loan crisis-era Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), as they continue to pursue alleged misconduct by financial institutions in the run-up to the 2008 crash. Often brought in conjunction with FCA claims, FIRREA gives prosecutors a much longer (10 year) statute of limitations, as well as more lenient burdens of proof. This trend continues with Citigroup’s $7 billion settlement announced Monday, which included a $4 billion FIRREA civil fine.

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