Posted: June 13, 2016

False Certifications of Compliance With Banking Laws Does Not Support False Claims Act Claims

On May 5, 2016, the Second Circuit issued a decision in Bishop v. Wells Fargo, 15‐2449, affirming a decision by the EDNY that alleged false certifications of “compliance with various banking laws and regulations when” borrowing “money at favorable rates from the Federal Reserve’s discount window” did not “constitute legally false claims under the” False Claims Act, explaining:

As this Court has long recognized, the FCA was not designed to reach every kind of fraud practiced on the Government. Even assuming the relators’ accusations of widespread fraud are true, they have not plausibly connected those accusations to express or implied false claims submitted to the government for payment, as required to collect the treble damages and other statutory penalties available under the FCA.

(Internal quotations and citations omitted).

Posted in EDNY, False Claims Act
View posts