The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the Office of the United States Attorney, Civil Division, of the Eastern District of North Carolina with a review of loans allegedly improperly originated by Numerica Mortgage, LLC. Numerica was a Federal Housing Administration (FHA) direct endorsement mortgagee. The allegations originated with the office of the North Carolina Commissioner of Banks, which referred the matter to OIG. The assigned assistant United States attorney (AUSA) filed a civil case using the False Claims Act and common law.
On September 24, 2013, the U.S. Attorney’s office notified OIG that defendant Leo Thomas had executed a settlement agreement to resolve the complaint. The defendant denied all liability for the alleged wrongdoing and settled any civil liability in the matter solely to save the time and expense of defending the proposed civil actions. For cash payments totaling $115,000 over 5 years, the settlement agreement resolved the Government’s complaint.