Gold Bank Qui Tam Case $16 Million Federal False Claims Act Litigation
Former Gold Bank Branch in Enid, Oklahoma
Late in 2004 Mitchell DeClerck successfully recovered $16 Million for you and other American Taxpayers under an action it filed in 2002 using the Federal False Claims Act ("FCA") against Gold Bank.
Gold Bank fraudulently induced hundreds of financially stressed farmers and ranchers to borrow money from it using the United States Department of Agriculture's ("USDA") guaranteed loan program. Under this program the USDA guaranteed repayment of Gold Bank's loan and provided an interest subsidy to the farmers.
Importantly, the USDA required Gold Bank to give the farmers all of the subsidy but Gold Bank routinely skimmed half of the money it got from the Government for the farmers.
Gold Bank explained its scheme to farmers like this: "The Government gives us the money for the subsidy. You get half. We keep half."
The former Enid branch of Gold Bank is pictured at the left. Gold Bank no longer does business there.
The case was filed in 2002 in the United States District Court for the Western District of Oklahoma. The False Claims Act was originally known as the Lincoln Law when enacted in 1863 to fight fraud on the Union Army by unscrupulous defense contractors during the American Civil War.
The False Claims Act is one of Mitchell DeClerck's areas of concentrations in which it has achieved major success. At the time the Gold Bank Case was settled, it was on the list of the Top 100 Recoveries in the 140 year history of the False Claims Act.