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WESTCHESTER FALSE CLAIMSWESTCHESTER FALSE CLAIMSCASECASE

Early in 2009, the Honorable Denise Cote, a highly-respected federal judge, found as a matter of law that Westchester County had “utterly failed” to meet its affirmatively furthering fair housing (“AFFH”) obligations during the false claims period (2000-06), and that each and all of Westchester’s certifications that it had or would AFFH were “false or fraudulent.”

Faced with certain defeat on the remaining question of whether its false representations were made in reckless disregard or deliberate ignorance of their truth or falsity, Westchester decided to settle the case.

The overall financial scope of the settlement -- $62.5 million – represents a sum greater than all of the community development and related funding that Westchester received from federal government during the false claims period.

Most importantly, Westchester is no longer able to ignore either the residential racial segregation that continues to plague it, nor the municipal resistance to affordable housing development that stymies the possibility of changing those patterns.

Westchester False Claims / Desegregation Press

A compiliation of some of the extensive media coverage of the case, the Settlement Order, and (prospective) implementation.

Fact Sheet on Key Elements of the Settlement

If implemented properly, this settlement will mark the end of unchecked residential racial segregation in Westchester County.

Federal Judge: Westchester Made False Claims To U.S. Over 6-Year Period

Excerpts from Decision Granting Center's Partial Summary Judgment Motion

Some key elements of the Court's decision finding that the County "utterly failed" to meet its affirmatively furthering fair housing obligations and repeatedly submitted claims to the government that were "false or fraudulent."

Final Westchester Attempt to Excuse its Misconduct Rejected (PDF - 37.02 KB)

Westchester tried to argue that the federal government was not hurt by the County's fraud because the government got the "benefit" of the County performing the non-AFFH requirements of its grants.  The Court, in a decision dated April 24, 2009 (2009 WL 1108517) firmly rejected this argument:  "Accepting Westchester's proffered argument that because the grants may have been administered in accordance with other program requirements, the damages to the government are mitigated, would essentially write the requirement to AFFH out of the statutes and regulations. Thus, in the circumstances of this case, Westchester's damages cannot be reduced by reference to the alleged 'benefit' it provided to HUD by administering the grant funds at issue."

Decision Establishing that Westchester's False Claims Were "Material" as a Matter of Law (PDF - 36.59 KB)

The Court's April 22nd decision granting the Center's motion to find that Westchester's certifications (already found to be false) were "material" as a matter of law to its receipt of the funding at issue.  The citation is 2009 WL1110572.

Decision on Motion to Dismiss (PDF - 70.63 KB)

The July, 2007 federal court decision denying the County's motion to dismiss.  The citation is 495 F.Supp.2d 375 (S.D.N.Y. 2007).

Denial of Immediate Appeal of Decision Granting Partial Judgment Against Westchester (PDF - 50.84 KB)

April 9, 2009 decision denying the County's attempt to appeal the decision immediately and get the trial delayed.  Among other things, the decision stated that "the defendant has also repeatedly mischaracterized the [opinion granting partial judgment against the County.]"  [page 7, fn. 3]  The County's prediction of a "stream of follow-on lawsuits," the Court also wrote, depends at least on several things occurring, including "the defendant and other jurisdictions not taking their requirements to affirmatively further fair housing seriously and being unwilling to reform their practices..."  [page 8]

Decision on Motion to Certify Interlocutory Appeal (PDF - 26.36 KB)

The August 2007 federal court decision denying Westchester's motion to certify for interlocutory appeal the denial of its motion to dismiss.  The citation is 2007 WL 2402997 (S.D.N.Y., August 22, 2007).

Complaint (PDF - 233.34 KB)

The complaint, originally filed under seal in April, 2006.

Some Westchester filings

Read some of the positions that the County took during the litigation.