Syracuse, New York – Robert Corp, a mortgage underwriter has agreed to pay the United States about an amount of $679,000 to settle allegations that he defrauded the U.S Department of Housing and Urban Development (HUD).

The settlement resolves Corp’s liability under the False Claims Act, a federal statute that enforces triple damages and penalties for false claims made in connection with federal government programs.

The Justice Department filed suit against Corp in May 2008, charging that he made false statements to HUD regarding an application for government insurance of a mortgage loan used to refinance the existing debt of Brylin Hospitals, a psychiatric and substance abuse hospital in Buffalo, New York. The mortgage insurance program authorizes HUD to guarantee mortgage loans used to refinance debt held by hospitals and other health care facilities. Corp allegedly overstated Brylin Hospitals’ existing debt in order to obtain a larger refinance loan, and HUD was required to pay more in mortgage insurance claims as a result of Corp’s allegedly false statements.