On September 14, 2017, United States District Court Judge George C. Hanks Jr. of the Southern District of Texas ordered the Allied Home Mortgage Entities (“Allied”) to pay $296 million for FCA violations for which it had previously been held liable.  In November 30, 2016, a unanimous jury found 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 relating to the Federal Housing Administration’s mortgage insurance program.  The jury awarded the United States a total of nearly $93 million in damages, including over $7 million against Hodge.  Under the FCA, damages are trebled and there is a per-violation penalty.  FIRREA also provides a penalty of up to $1.1 million per violation.  The FCA penalty totaled $12.95 million and the FIRREA penalty totaled $6.6 million.  Hodge is liable for over $25 million in damages and penalties  U.S. v Allied Home Mortgage Corp., No. 4-12-cv-02676 (S.D. Tex.).

DOJ Press Release