Government Seeks Nearly $2.5 Billion in Fraud Damages in Suit Against Allied Mortgage Capital
A civil mortgage fraud lawsuit has been filed against Houston, Texas-based Allied Mortgage Capital Corporation, its affiliate, Allied Home Mortgage Corporation, as well as Allied’s President and Chief Executive Officer Jim Hodge and EVP Jeanne L. Stell by the federal government, seeking damages and civil penalties under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) for nearly a decade of concealed misconduct in connection with the residential mortgage lending practices of the firm, one of the nation’s largest privately-held mortgage lenders.