News and Press Releases

The United States Sues Reunion Mortgage and its Owner, President, and Designated Broker under the False Claims Act

May 23, 2013

SAN FRANCISCO – The United States filed a civil complaint against Reunion Mortgage and its Owner, President and Designated Broker, David Thayer, under the False Claims Act, 31 U.S.C. §§ 3729-3733, United States Attorney Melinda Haag announced. The complaint seeks treble damages and civil penalties in connection with Reunion Mortgage’s participation in the Federal Housing Administration’s (“FHA”) Direct Endorsement Lender Program.

The complaint alleges that Reunion Mortgage and Thayer approved twelve loans and falsely certified that the loans met the U.S. Housing and Urban Development’s (“HUD”) requirements and were eligible for FHA insurance. The complaint further alleges that Reunion Mortgage and Thayer knew that the company’s underwriters routinely failed to perform basic due diligence, failed to verify information in the loan file that bore directly on the borrower’s ability to make payments on the mortgage, and repeatedly certified mortgage loans that contained serious defects and departures from HUD’s underwriting standards. The twelve loans defaulted and FHA paid more than $1.63 million in insurance claims as a result.

U.S. Attorney Melinda Haag said: “As alleged, Reunion Mortgage and David Thayer turned out bad loans and lied about their compliance with HUD requirements. This Office will continue its work to hold the perpetrators of mortgage fraud accountable.”

Ila C. Deiss is the Assistant U.S. Attorney who is handling the case with the assistance of Financial Fraud Investigator Michael Zehr, Contract Paralegal Sarah Oldridge, and HUD Forensic Auditor Seda Mangassarian. The case is the result of an investigation by HUD’s Office of the Inspector General’s Civil Fraud Division, and is part of HUD's High Default Lender Initiative.

(Reunion Complaint )
























Return to Top

United States Attorneys 225th Anniversary
USAO Homepage
USAO Briefing Room
Stay Connected with Twitter
Justice 101
Northern California Most Wanted
Investor Fraud Summit

Bay Area Prescription Drug Abuse Summit
May 7, 2014

Investor Fraud Summit

Investor Fraud Summit
October 9, 2012

Bay Area Stop Bullying Summit

September 14, 2012

Victim Witness Assistance

Making sure that victims of federal crimes are treated with compassion, fairness and respect.

Financial Fraud Enforcement Task Force

Financial Fraud Enforcement Task Force

Community Outreach

Giving Back to the Community through a variety of venues & initiatives.

Law Enforcement Coordinating Committee

Training and seminars for Federal, State, and Local Law Enforcement Agencies.