The Justice Department sued a Chicago banking company Thursday, accusing it of submitting false insurance claims on defaulted student loans.

The suit, filed in U.S. District Court in Chicago, charges that Corus Bankshares violated the Federal False Claims Act by seeking reimbursement for thousands of defaulted loans that "were not serviced in accordance with federal regulations."

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.