JPMorgan Whistleblower Gets $63.9M

Keith Edwards, the whistleblower who provided tips that led to JPMorgan & Chase’s $614 million False Claims Act settlement, will receive $63.9 million as his portion of the settlement, the Chicago Tribune reported last week.  Edwards was formerly an employee of JPMorgan.

JPMC admitted that, for more than a decade, it approved thousands of Federal Housing Administration (FHA) loans and hundreds of Veterans Affairs (VA) loans that were not eligible for FHA or VA insurance because they did not meet applicable agency underwriting requirements. JPMC further admitted that it failed to inform the FHA and the VA when its own internal reviews discovered more than 500 defective loans that never should have been submitted for FHA and VA insurance. 

JPMC also falsely certified that loans it originated and underwrote were qualified for FHA and VA insurance and guarantees. As a consequence of JPMC’s misrepresentations, both the FHA and the VA incurred substantial losses when unqualified loans failed and caused the FHA and VA to cover the associated losses.

The lawsuit was originally filed by Edwards under the whistleblower provisions of the False Claims Act. The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.