The prominent foreclosure law firm Rosicki, Rosicki & Associates has reached a settlement with the U.S. Attorney’s Office for the Southern District of New York on Tuesday, over allegations it bilked the federally-sponsored mortgage banker Fannie Mae by falsely inflating bills to the mortgage servicing companies for which it worked.

The settlement resolves the civil fraud suit brought by Manhattan prosecutors under the False Claims Act. The government alleged that Rosicki under two affiliates generated false and inflated bills for foreclosure and eviction expenses. Those inflated expenses were then submitted to and paid for by the Federal National Mortgage Association.

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