Whistleblower Suit Nets Millions Against Company Overbilling For Foreclosures

Foreclosure company "added additional charges to the costs charged by independent contractors and otherwise took actions that increased costs and expenses."

Back in June, Foreclosurepedia reported upon how the US Department of Justice was Intervening in a matter pertaining to foreclosure expenses being overbilled. It read like a textbook case of the Kelly Brown whistleblower suit which was put on ice several years ago. Rosicki, Rosicki & Associates (RRA), based out of New York, used their subsidiaries Enterprise Process Service and Paramount Land to defraud Fannie Mae and the Department of Veterans Affairs (VA) out of millions of dollars. I want that to sink in, for just a moment, in light of the spending spree by Nationstar ongoing to buy out firms such as Assurant Field Asset Services.

RRA, time and again, overcharged Fannie Mae and the VA the entities for foreclosure services as part of a settlement with the US Department of Justice. Here is how HousingWire put it,

 [T]he law firm was accused of using third-party vendors to perform the majority of the work in question, applying “exponential” markups to the services performed, and billing Fannie Mae for the work, knowing that the government-sponsored enterprise would repay the firm for the services.

According to the complaint, the submission of those “fraudulently inflated expenses” caused Fannie Mae to pay out “millions of dollars” in falsely inflated foreclosure expenses.

In the Settlement, all parties admitted that from 2009 – 2018, “[…] added additional charges to the costs charged by independent contractors and otherwise took actions that increased costs and expenses.” For those of us in the Foreclosurepedia Nation, this has been business as usual for three decades under the National Association of Mortgage Field Services (NAMFS).

The original Intervener brief is below

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