Insured Loan Programs

The False Claims Act prohibits false claims made to obtain federally guaranteed loans.  Through various programs, the United States government insures, loans provided for specific purposes such as small business expenses, mortgages, and education costs.  As such, false claims made to federal loan programs, such as the Small Business Association (SBA) or the Federal Housing Authority (FHA), may violate the False Claims Act.

The False Claims Act has been enforced against recipients, intermediaries, and participating lenders of federal loans for falsifying loan documents, inflating reported program costs, or otherwise disregarding the applicable regulations and loan requirements under federal programs.

In recent years, the federal government has increased its support for insured loan programs, largely in response to unstable economic conditions.  Increased funding and new programs addressed a wide range of interests including energy efficiency, small businesses and start-ups, disaster relief, education, housing, and veterans issues.  Fraudulent actions and false statements made in connection with such loan programs implicate the core purpose of the False Claims Act to protect the integrity of government funds by encouraging individuals with knowledge of fraudulent activity to come forward and seek recovery of government funds lost to fraud under the whistleblower, or qui tam, provisions of the False Claims Act.

Small Business Administration

Federal Housing Authority

<<< Back to Types of Fraud