On March 5, 2009, the Senate Judiciary Committee decided to attach the False Claims Act amendments to FERA, the Fraud Enforcement and Recovery Act of 2009. FERA proposes to make it easier for the federal government to prosecute mortgage industry fraud.
FERA works to make sure that private mortgage companies are liable for fraud under federal law. Some argue that private companies can be reached under current laws and that FERA is redundant; others point to increased ease and greater sentences as being just two benefits of a more narrowly focused piece of legislation.
FERA addresses concerns about fraud associated with TARP, the Troubled Asset Relief Program, as well. A prime sponsor of FERA, Senator Chuck Grassley of Iowa has been voicing concerns about loose oversight of TARP funds since fall of 2008. Fraud associated with TARP funds can result in up to a million dollars in fines and sentences of up to 30 years.
Attaching the False Claims Act amendments to FERA provides a much needed boost to the effort to update the highly successful 20 year old legislation. Amendments to the FCA can only help return much needed dollars to the United States Treasury.
To learn more about FERA, see Fraud Enforcement and Recovery Act, S.386, 111th Cong. Sec. 2(d)-(e)(2009).
Friday, March 6, 2009
Subscribe to:
Posts (Atom)
Posts
