US Staves Off Appeal in Tort Suit Based on FDIC’s Sale of Loans

The federal government remains immune from claims by the former owners of a Chicago-area grocery store chain that the Federal Deposit Insurance Corp. “knowingly sold forged loan documents” and published misleading information about the owners, the Seventh Circuit said in a dismissal.

George and Maria Dernis have spent more than a decade pursuing claims that the FDIC sold fraudulent notes after Premiere Bank collapsed.

But the Dernises failed to timely exhaust their administrative remedies for most of the claims, and their one valid claim was barred by the Federal Tort Claims Act’s intentional tort exemption, Judge David F. Hamilton said ...