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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Colorado realtor files counter suit against Fannie Mae

A real estate broker in Denver has filed a counter claim in response to a lawsuit against her, which was levied by Fannie Mae. According to reports, a contract with the broker, who received assignments from the federally-sponsored company, was terminated, and the company filed the lawsuit to affirm that the termination was lawful. In her response and counter claim, the broker asserts that the termination of her contract occurred as a result of her attempt to notify Fannie Mae of a number of alleged ethics issues.

The broker attributes a decline in the number of assignments she received from the company and the eventual termination of the contract to her decision to report suspected fraud. She asserted that she was one of the top brokers for Fannie Mae and received 20 to 30 assignments at time. However, after she noticed another firm received over 100 listings, she suspected fraud and reported it to the company.

In the counter claim, the broker asserts that the termination of her contract was unlawful. Her attorney asserts that her actions were protected under the False Claims Act, which prohibits retaliation against individuals who report violations of the act’s provisions.

The loss of the contract with Fannie Mae dramatically affected the woman’s business. While the contract was in effect, she had 13 employees, but her business has since dwindled to two workers since its termination in June 2013.

Business litigation may be complex and involve a number of considerations. An attorney who is familiar with business law might be able to help clients with commercial litigation.

Source: Denver Business Journal, “Colorado Realtor accuses Fannie Mae of hiding fraud“, Dennis Huspeni, January 27, 2014

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