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US Government Suing Deutsche Bank for Mortgage Fraud

Sean Gallup/Getty Images(NEW YORK) -- The U.S. government filed a lawsuit against Deutsche Bank on Tuesday, accusing the German-based bank of mortgage fraud.

According to the lawsuit, the bank repeatedly misrepresented the quality of its home loans in order to collect money from a government mortgage insurance program.

"This lawsuit sends them and other lenders the message that they cannot get away with lies and recklessness," said U.S. Attorney Preet Bharara, who filed the civil lawsuit in federal court in Manhattan.  "They cannot casually assign the prospect of being caught to the cost of doing business."

The federal government now wants Deutsche Bank to pay back the money it had to pay in insurance claims when homeowners fell behind on their mortgage payments.  The total amount in damages could surpass $1 billion.

Copyright 2011 ABC News Radio

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