Cityside Pays $4.3 Million To Settle HUD False Claims Act

Cityside Management Settles False Claims Act Charges By HUD

Cityside Management, a National Association of Mortgage Field Services (NAMFS) Member, agreed to pay $4.3 Million to settle False Claims Act allegations against they by the U.S. Attorney’s Office for the Eastern District of California and the Office of the Inspector General of US Department of Housing and Urban Development (HUD).

Ben Lane, HousingWire’s Senior Financial Reporter, wrote,

According to the U.S. Attorney’s Office and HUD-OIG, Cityside Management paid the $4.3 million to settle charges that it violated the False Claims Act by “improperly billing” HUD for work supposedly done by Cityside’s subcontractors.

The agencies stated that Cityside had a contract with HUD to perform various property preservation services on houses that HUD had foreclosed on in the wake of the financial crisis.

We will have more on this fast breaking story as it unfolds.

 

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