United States, ex rel., Charles W. Houpt v. Wells Fargo Bank, N.A.

Houpt brought a claim against Wells Fargo Bank under the Federal False Claims Act. After the United States declined to intervene, Houpt proceeded with the case as a Relator. At issue were allegations of false certifications by the bank when it obtained a pre-liquidation SBA guarantee in May of 2010 and a failure of the bank to repay the guarantee payment to the SBA when the bank received the liquidated funds in March of 2014. The District Court dismissed the case on summary judgment, by finding that a three-year statute of limitations applied under 31 U.S.C. § 3731(b)(2). Houpt appealed to the Ninth Circuit, which upheld the District Court’s interpretation of the statute of limitations. The District Court also held that no disputed fact existed as to whether the bank had reimbursed the SBA in March of 2014. The questions presented are:

1. Whether the Ninth Circuit erred in holding that a three year statute of limitations applied when this Court has settled Circuit court conflicts by finding that the ten year statute of limitations under 31 U.S.C. § 3731(b)(2) would apply for Relator pursued FCA claims where the government has not intervened.

2. Whether the bank’s failure to comply with any of the strict reporting and accountability provisions of 13 CFR § 120.524(a) and (b) documenting its liquidation process including the repayment of an SBA guarantee payment raises material issues of fact as to whether it engaged in fraudulent conduct.