Mortgage Daily Logo
mortgage news from industry experts

Broker Sued for Faxing

Broker Sued for Faxing

Pioneer Mortgage accused of TCPA violation

December 16, 2004


Unwanted faxes that pitch a product or service are like Internet Spam and telemarketing calls — a typically unwanted part of doing business in an office environment.But an Indiana mortgage brokerage that apparently persisted in faxing a technology company has been hit with a lawsuit.

Pellegrino & Associates of Fort Wayne, Ind., has filed suit in Allen County Superior Court against Pioneer Mortgage, also of Fort Wayne.

The suit accuses Pioneer Mortgage of breaking the federal Telephone Consumer Protection Act, which is designed to crack down on unwarranted telemarketing calls and faxes, said Indiana lawyer Michael McIlree, who filed the suit on behalf of Pellegrino & Associates.

“It’s pretty much like harassment,” McIlree said in a phone interview with “We made the allegations in the complaint…to stop that sort of activity.

“I don’t think a lot of mortgage companies engage” in sending unwanted faxes,” McIlree said. “But people should be aware there are things out there they can not do.”

Pioneer Mortgage founder and owner Gerald King did not return a phone call to comment. The company has not yet formally responded to the lawsuit, McIlree said.

The company’s Web site proclaims that “King founded the company on a referral basis of strictly word of mouth.”

According to the lawsuit he is trying to build his company by faxing offers for low interest mortgage loans to Pellegrino and other businesses.

McIlree said that between April and August Pellegrino received four unsolicited faxes from Pioneer. Because the faxes contained graphics and bold headlines the messages ate up lots of toner and ink.

McIlree said the messages “waste resources.”

McIlree said similar suits have been filed in other states. “We have case law from various jurisdictions,” he said.

Pellegrino & Associates is seeking unspecified damages and wants a judge to grant an injunction against Pioneer Mortgage that prevents the company from sending any more faxes.

McIlree is also seeking more defendants and wants to certify his case as a class action suit.

To assist on the case a high-powered Chicago law firm — Edelman, Combs, Latturner & Goodwin LLC — has been brought in.

According to the firm’s Internet Web site, it practices almost exclusively in consumer protection and class action law.

Earlier this year the firm filed suit against a California advertising agency known for sending unwanted faxes on behalf of its retail business clients.

“Right now this case is in the preliminary stage,” McIlree said. “We trying to prevent (these) things from happening.”

Patrick Crowley is a political reporter and columnist and former business writer for The Cincinnati Enquirer. Email Patrick at:

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts