Bank of America Whistleblower Has Setback in False Records Suit

A whistleblower suit alleging Bank of America Corp. submitted false records to receive funding under a mortgage assistance program from the US government should be dismissed, a federal magistrate judge recommended.

Whistleblower Scott R. Johnston alleged Bank of America violated the False Claims Act by falsely reporting to the government that the company provided financial assistance to mortgage borrowers under a program helping low-to-moderate income households make down payments on homes.

But Johnston failed to sufficiently allege Bank of America presented a false claim to a government official, US Magistrate Judge Joe L. Webster of the US District Court for ...