FIRREA is a financial fraud statute that has been on the books for decades, and is fast-becoming a valuable weapon in the Department of Justice’s efforts to combat alleged financial fraud. FIRREA’s reach is broader than other civil fraud statutes available to the government, making it an especially powerful tool.
- It allows civil liability for violations of any of 14 enumerated criminal statutes, including mail and wire fraud;
- It allows for whistleblower recovery, and the potential for significant monetary penalties for the government;
- It has a 10 year statute of limitations; and
- Unlike the False Claims Act, there need not be a link between government funds and the alleged fraud; instead, the fraud need only affect a federally-insured financial institution, which arguably can include the defendant institution.