October 25, 2017 / 12:00 PM / a year ago

7th Circuit overturns false claims judgment against Illinois attorney

A federal appeals court has overturned a $10 million judgment against an Illinois attorney and mortgage executive accused of making false claims to qualify for federal mortgage insurance, saying a lower court used the wrong standard in finding him responsible for the government’s losses.

In a decision on Monday, a unanimous three-judge panel of the 7th U.S. Circuit Court of Appeals ruled that the federal government will have to show that alleged falsehoods by the attorney, Robert Luce, were the proximate, or direct cause of losses it suffered when mortgages it insured defaulted.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2yP9LdA

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