(CN) - Capmark Finance, a Pennsylvania-based commercial mortgage lender, will pay Uncle Sam $3.9 million to settle claims it made false statements on the construction of nursing homes insured by the Department of Housing and Urban Development.
Prosecutors accused Capmark of lying about borrowers' creditworthiness in two loan applications, to induce HUD to insure the loans, both of which defaulted. The nursing homes were Canoga Care Center in Canoga Park, Calif., and Hudson Valley Care Center in Ghent, N.Y..
Capmark filed for bankruptcyprotection in 2009, shortly after the complaint was filed.
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