Feds fine Capmark $3.9 million over loan misrepresenations

Michael P. Tremoglie Feb. 13, 2012, 3:14pm

A Horsham, Pa. real estate finance company, Capmark Finance, will pay the federal government $3.9 million in fines to settle a case involving two out-of-state nursing homes.

The Department of Justice (DOJ) announced the settlement on Feb. 10.

A suit had been filed in the Central District of California, accusing Capmark of misrepresenting the creditworthiness of the facilities - one located in Canoga Park, Calif. and the other in Ghent, N.Y.

The U.S. Housing and Urban Development agency insured the loans based upon misrepresentations, the DOJ indicated in a press release. The companies both defaulted, which caused a loss to the taxpayer.

“Today’s action should be a reminder to all FHA mortgage lenders," said Helen Kanovsky, HUD’s general counsel. Attesting to things you know to be false is not only lying, it is against the law and there will be consequences."

Capmark went bankrupt in 2009.

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