The U.S. Attorney’s office in Chicago has reached an $11 million settlement with Corus Bankshares, Inc. and one of its subsidiaries for defrauding the federal government by filing false insurance claims on defaulted student loans.

Prosecutors say Chicago-based Corus Bankshares and Corus Bank, Inc. failed to verify over a required 180-day period that a process of contacting the borrower and collecting the money had been done before filing to collect the money from the government.

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