Vivint Smart Homes Inc. to pay $3.2 million to resolve allegations of false statements
Topics: VIVINT SMART HOMES
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) imposes civil penalties on any person or entity that violates certain predicate federal statutes.
Vivint is a provider of smart home monitoring services and frequently obtains new
ustomers through door-to-door sales by Vivint sales representatives. The United States contended that, from 2017 to 2020, certain Vivint sales representatives used their personal funds to cover the cost of initial financing payments on behalf of Vivint customers who sought financing to purchase Vivint’s products, while making false and misleading statements to the federally insured financial institution providing the financing that made it appear as if the borrowers had funded the initial payments.
The allegations resolved by the settlement were initially provided to the United States in a declaration submitted under the Financial Institutions Anti-Fraud Enforcement Act, which provides for rewards to eligible declarants who provide information about potential FIRREA violations.
The declarant’s share of the recovery in this matter has not yet been determined. ■