IBERIABANK agrees to pay over $11.6M in settlement - KAIT Jonesboro, AR - Region 8 News, weather, sports

IBERIABANK agrees to pay over $11.6M in settlement

(Source: Pablo) (Source: Pablo)
WASHINGTON, DC (KAIT) -

A bank has agreed to pay millions to the United States to resolve allegations of false claims.

According to a news release Friday from the Department of Justice, IBERIABANK agreed to pay $11,692,149 to resolve allegations that they violated the False Claims Act.

The bank reportedly violated the act by "falsely certifying they were complying with Federal requirements in order to obtain insurance on mortgage loans from the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD)."

As part of the settlement, the bank admitted to the following:

  • Between Jan. 1, 2005, and Dec. 31, 2014, IBERIABANK certified for FHA insurance mortgage loans that did not meet HUD underwriting and origination requirements and were, therefore, ineligible for FHA mortgage insurance under the DE program.
  • Between 2005 and 2014, IBERIABANK paid incentive payments to underwriters and others who performed underwriting activities.
  • Between 2005 and 2014, IBERIABANK did not timely self-report material violations of HUD requirements. 
  • As a result of IBERIABANK’s conduct and omissions, HUD insured loans approved by the Bank that were not eligible for FHA mortgage insurance under the DE Program and that HUD would not otherwise have insured.  HUD subsequently incurred losses when it paid insurance claims on those loans.

IBERIABANK Corporation is headquartered in Lafayette, Louisiana and has branches in Arkansas and across the Southeast.

Two whistleblowers formerly working for the bank in Little Rock filed the lawsuit. They will receive a 20 percent share of the recovery.

To read the entire release from the Department of Justice, click here.

Copyright 2017 KAIT. All rights reserved.

Watch Region 8 News On Demand: On your Desktop | On your Mobile device

Region 8 News App - Install or update on your: iPhone | Android

  • Region 8 News</span><a class="customMoreLink" href="/Global/category.asp?C=4391" target="_top">More >></a>Region 8 NewsMore>>

  • Arkansas legislative task force to study tax overhaul ideas

    Arkansas legislative task force to study tax overhaul ideas

    Thursday, May 24 2018 6:00 PM EDT2018-05-24 22:00:11 GMT
    Thursday, May 24 2018 6:06 PM EDT2018-05-24 22:06:06 GMT
    (Source: KAIT)(Source: KAIT)
    (Source: KAIT)(Source: KAIT)

    Arkansas lawmakers will study a variety of proposals to change the state's individual income and corporate income tax laws.

    Arkansas lawmakers will study a variety of proposals to change the state's individual income and corporate income tax laws.

  • Highway commission green lights several NEA road projects

    Highway commission green lights several NEA road projects

    Thursday, May 24 2018 3:38 PM EDT2018-05-24 19:38:57 GMT
    Thursday, May 24 2018 5:44 PM EDT2018-05-24 21:44:48 GMT
    (Source: KAIT)(Source: KAIT)
    (Source: KAIT)(Source: KAIT)

    The Arkansas State Highway Commission recently green-lighted several road improvement projects throughout Region 8.

    The Arkansas State Highway Commission recently green-lighted several road improvement projects throughout Region 8.

  • Colleges enter agreement to help fill need for teachers

    Colleges enter agreement to help fill need for teachers

    Thursday, May 24 2018 3:36 PM EDT2018-05-24 19:36:43 GMT
    Thursday, May 24 2018 4:36 PM EDT2018-05-24 20:36:03 GMT
    (Source: KAIT)(Source: KAIT)
    (Source: KAIT)(Source: KAIT)

    The two colleges in Batesville are working together to try and solve the problem of a teacher shortage in rural Arkansas, including Independence County. 

    The two colleges in Batesville are working together to try and solve the problem of a teacher shortage in rural Arkansas, including Independence County. 

Powered by Frankly