On November 30, 2016, a unanimous jury found Allied Home Mortgage entities (“Allied”) and Allied’s CEO Jim C. Hodge, liable for violating the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) in connection with fraudulent misconduct in connection with the Federal Housing Administration’s mortgage insurance program.  Allied  and Hodge were found liable for operating undisclosed branch offices that originated FHA loans that were then attributed to the ID numbers of branches approved by the FHA mortgage insurance program.  Allied also was found to have underwritten and certified at least 1,192 loans that did not meet FHA program guidelines designed to ensure borrowers would not default on their loans.  The jury found that Hodge falsely certified that Allied was in compliance with FHA program standards and personally directed employees to falsify quality control reports.  The jury awarded the United States a total of nearly $93 million in damages, including over $7 million against Hodge.  United States v. Allied Home Mortgage Corp., No. 4-12-cv-02676 (S.D. Tex.). DOJ Press Release