The Impact of the Fraud Enforcement and Recovery Act of 2009 on the Civil False Claims Act

    8 July 2009

    The Fraud Enforcement and Recovery Act of 2009 (FERA), P.L. 111-21, was signed into law by President Obama on May 20. Prior to its passage, most of the public scrutiny of FERA focused on its provisions that reclassified mortgage lenders as financial institutions and expanded federal criminal liability for mortgage fraud, securities fraud and major fraud against the U.S. involving Troubled Asset Relief Program (TARP) funds. In fact, FERA was passed to improve “enforcement of mortgage fraud, securities and commodities fraud, financial institution fraud, and other frauds related to federal assistance and relief programs, for the recovery of funds lost to these frauds, and for other purposes.”