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Mortgage Fraud Lawsuits – Fourth-Quarter 2011 Mortgage Litigation Index

Mortgage Fraud Lawsuits
Fourth-Quarter 2011 Mortgage Litigation Index

Big cases involving mortgage fraud, flipping, identity theft and inflated appraisals where a lender employee is involved..

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Date of Activity Link to Story
Investors Savings Bank Keybank, N.A. Superior Court of New Jersey, Appellate Division $1,338,750 Judgment awarded to plaintiff in lawsuit against fraudulent borrower just before borrower refinanced loan with defendant. Appeal filed. INVESTORS SAVINGS BANK, Plaintiff-Respondent, v. KEYBANK NATIONAL ASSOCIATION, Defendant-Appellant, and DENIS KELLIHER, Defendant A-0404-10T2 na 10/31/2011 www.mortgagedaily.com/LitigationTitle031712.asp
Wachovia Mortgage Corporation Vaca California Court of Appeal na Case dismissal affirmed by appeals court. Wife claimed ex-spouse used fraud to qualifty for a loan. Vaca v. Wachovia Mortgage Corporation Cal.Rptr.3d —-, 2011 WL 3659938 na na www.mortgagedaily.com/LitigationTitle100911.asp
Joshua Brown, John Sweetland, Brian Arrington, Brian Frank, Linda Defeo and Bruce Namenson na Suffolk Superior Court $12,500,000, Brown was convicted, co-defendants pleaded guilty. Sentencing was scheduled for Nov. 10. na na na 11/10/2011 www.mortgagedaily.com/LitigationCriminal103111.asp
Daniel J. Nichter na Franklin County (Ohio) $26,000 Guilty plea. na na Dec. 2010 Nov. 2011 www.mortgagedaily.com/MctFraudAppraiser011412.asp
First American Corp., eAppraiseIT LLC State of New York Supreme Court of the State of New York, County of New York na Court ruled that state can process with lawsuit. THE PEOPLE OF THE STATE OF NEW YORK by ANDREW M. CUOMO, Attorney General of the State of New York, Plaintiff, -against- FIRST AMERICAN CORPORATION and FIRST AMERICAN EAPPRAISEIT, Defendants.
10-16502 9/30/2011 11/22/2011 www.mortgagedaily.com/LitigationAppraisal021312.asp
Wells Fargo & Co., GreenPoint Mortgage Funding Inc. Pelayo Duran CIRCUIT COURT OF THE 11th JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA GENERAL JURISDICTION DIVISION $100,000,000 Plaintiff alleges that defendant’s mortgage broker lured him in through an ad, then switched him to a subprime loan with GreenPoint PELAYO M. DURAN, Plaintiff, v. GREENPOINT MORTGAGE FUNDING, INC., a Foreign Corporation, WELLS FARGO & COMPANY a Foreign Corporation; WELLS FARGO BANK N.A., a Foreign Corporation, WELLS FARGO HOME MORTGAGE, INC., an inactive Florida Corporation, CINDY SIERRA and LEE A. ROSENTHAL, Personally; WELLS FARGO BANK N.A., AS TRUST ADMINISTRATOR FOR CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.; ADJUSTABLE RATE MORTGAGE TRUST 2005-5, ADJUSTABLE RATE MORTGAGE-BACKED PASS-THROUGH CERTIFICATES, SERIES 2005-5; TRUSTEE, INVESTORS 1-1000 IN AND FOR THE TRUST, MERSCORP, INC., a Foreign Corporation; MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., a subsidiary of MERSCORP., INC., a Delaware Corporation, Defendants 09-03703 CA (01) na 10/4/2011 www.mortgagedaily.com/LitigationMbs102511.asp
CoreLogic Valuation Service as successor company to eAppraiseIT  Federal Deposit Insurance Corp. on behalf of WaMu U.S. District Court for the Central District of California $129,000,000 Four of six claims dismissed. na na 5/9/2011 Nov. 2011 www.mortgagedaily.com/LitigationAppraisal021312.asp
Lender Processing Services Inc. Federal Deposit Insurance Corp. on behalf of WaMu U.S. District Court for the Central District of California $154,529,000 Order issued by judge limiting the FDIC’s claims to breach of the contract and granting LPS’ motion to dismiss the regulator’s claims of gross negligence, single business enterprise and joint venture claims. na na 5/10/2011 11/2/2011 www.mortgagedaily.com/LitigationAppraisal021312.asp, www.mortgagedaily.com/MctLawsuitLps110611.asp
David Findel na na $11,994,000 Defendant sentenced to 2 years  in prison for bankruptcy fraud following a 63-month sentence for mortgage and secondary fraud. na na na 12/12/2011 www.mortgagedaily.com/LitigationCriminal122011.aspwww.mortgagedaily.com/LitigationCriminal103111.asp
Allied Home Mortgage Corp., Allied Home Mortgage Capital Corp., Jim C. Hodge, and Jeanne L. Stell United States of America U.S. District Court for the Southern District of New York $1,197,000,000 Complaint filed based on HUD allegations tied to FHA lending. The lawsuit seeks damages and civil penalties under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. United States of America, Plaintiff-Intervenor, -against- Allied Home Mortgage Corp., Allied Home Mortgage Capital Corp., Jim C. Hodge, and Jeanne L. Stell; United States of America ex rel. Peter Belli, Plaintiff, -against- Allied Home Mortgage Capital Corporation, Defendant. 11 Civ. 05443 (VM) 11/1/2011 na www.mortgagedaily.com/LawsuitAlliedVsHud111511.aspwww.mortgagedaily.com/LawsuitAlliedHud110111.aspwww.mortgagedaily.com/LawsuitAlliedVsHud110711.asp
Shaun Donovan, Secretary, United States Department of Housing and Urban Development, and The United States Department of Housing and Urban Development Allied Home Mortgage Corp., Allied Home Mortgage Capital Corp., Jim C. Hodge, and Jeanne L. Stell U.S. District Court for the Southern District of Texas na Motion for a preliminary injunction preventing FHA suspension granted. Plaintiff successfully argued that the mortgagee that caused FHA losses was separate from the current operating entity and that its suspension would have consequences that can’t be reversed. Allied Home Mortgage Corp. and James C. Hodge, Plaintiffs, v. Shaun Donovan, Secretary, United States Department of Housing and Urban Development, and The United States Department of Housing and Urban Development, Defendants 4:11-cv-03864 11/2/2011 11/15/2011 www.mortgagedaily.com/LawsuitAlliedVsHud111511.aspwww.mortgagedaily.com/LawsuitAlliedVsHud110711.aspwww.mortgagedaily.com/LawsuitAlliedVsHud110811.asp
Wiley C. Chandler, Andrew B. Katakis, Donald M. Parker, Anthony B. Joachim and W. Theodore Longley (10 total) United States of America U.S. District Court for the Eastern District of California na Indictment of five defendants accused of scheming to rig bids at public real estate auctions from September 2008 until October 2009. They also allegedly fraudulently acquired titles to some auctioned properties and diverted money to co-conspirators. na na 12/7/2011 na www.mortgagedaily.com/LitigationCriminal122011.aspwww.mortgagedaily.com/LitigationCriminal122011.aspwww.mortgagedaily.com/LitigationCriminal030612.asp
Aaron Hand na na $100,000,000 Indictment of defendant who was already incarcerated for mortgage fraud over trying to pay a hitman to kill one of the witnesses in his fraud trial na na 10/6/2011 na www.mortgagedaily.com/LitigationCriminal103111.asp
Anthony Moya na na $269,722 Defendant pled guilty to obtaining loans for unqualified borrowers and misappropriating $269,722. Indictment against wife dismissed. na na na Dec. 2011 www.mortgagedaily.com/LitigationCriminal122011.aspwww.mortgagedaily.com/LitigationCriminal122011.asp
Anthony Pagilone Colorado’s 10th Judicial District Attorney’s Office na $350,000 Defendant’s trial was called off while the Pueblo District Attorney’s office changes the criminal complaint., After charges filed alleging defendant obtained a mortgage without homeowner’s knowledge, judge ruled  that the charge was filed after five-year statute of limitations expired. na na Nov. 2010 Dec. 2011 www.mortgagedaily.com/LitigationCriminal103111.aspwww.mortgagedaily.com/LitigationCriminal122011.asp
Randolph Branham, Chris Cadenhead, Jackie T. Fair, Jane M. McDonald and Larry J. Malone United States of America U.S. District Court for the Northern District of Florida $1,200,000 Defendants have pled guilty to bribery tied to Southwest Georgia Farm Credit, ACA. na na na na www.mortgagedaily.com/LitigationCriminal122011.aspwww.mortgagedaily.com/LitigationCriminal122011.asp
Robert G. Cusic United States of America na $80,000 Defendant admitted that he conspired to make people believe they were being criminally investigated, mostly by the Internal Revenue Service, and his special relationship with an IRS special agent could make their problems go away at a cost of $20,000. na na na 11/28/2011 www.mortgagedaily.com/LitigationCriminal122011.aspwww.mortgagedaily.com/LitigationCriminal122011.asp
Welton Kalani, Stephen Balino United States of America na $227,000 Guilty convictions. na na na Dec. 2011 www.mortgagedaily.com/LitigationCriminal030612.aspwww.mortgagedaily.com/LitigationCriminal030612.asp
Jerry J. Williams, Thomas B. Hebble, Angel P. Guerzon, Francesco “Frank” Mileto na na na Hebble, Guerzon and Lileto sentenced in case tied to failure of Orion Bank. na na March 2011 10/26/2011 www.mortgagedaily.com/LitigationCriminal103111.asp
S. Pope Cleghorn Jr., Russell T. Long na na $2,800,000 Cleghorn was senteced to 6 years for accepting kickbacks to approve two loans for $2.8 million. Long was also sentenced. na na na 11/18/2011 www.mortgagedaily.com/LitigationCriminal122011.asp
Joseph W. Traxler United States of America U.S. District Court for the District of Minnesota $20,000,000 Centennial Mortgage and Funding CFO pleads guilty. na na na 10/27/2011 www.mortgagedaily.com/MctPleaCentennial102711.asp
Gregory T. Smith, Roger Saunders na na $2,165,043 Smith was sentenced to 30 months in prison for fraudulent loan documents, forging signatures, and falsifying title insurance policies. Saunders entered guilty plea. na na na 9/22/2011 www.mortgagedaily.com/LitigationCriminal103111.asp
James Alberino, Leo Desire, Primary Mortgage Resources Inc., Leo Desire and 17 other defendants  Commonwealth of Massachusetts Suffolk Superior Court $70,000 Alberino banned from acting as a closing attorney or title agent in any real estate transaction in the state for knowingly and willfully engaged in unfair and deceptive conduct na na 3/1/2007 na www.mortgagedaily.com/LitigationForeclosureFirms112111.asp

3rd quarter 2011 mortgage fraud lawsuits

2nd quarter 2011 mortgage fraud lawsuits

1st quarter 2011 mortgage fraud lawsuits

4th quarter 2010 mortgage fraud lawsuits

3rd quarter 2010 mortgage fraud lawsuits

2nd quarter 2010 mortgage fraud lawsuits

1st quarter 2010 mortgage fraud lawsuits

4th-quarter 2009 mortgage fraud lawsuits

3rd-quarter 2009 mortgage fraud lawsuits

2nd-quarter 2009 mortgage fraud lawsuits

1st-quarter 2009 mortgage fraud lawsuits

4th-quarter 2008 mortgage fraud lawsuits

3rd-quarter 2008 mortgage fraud lawsuits

2nd-quarter 2008 mortgage fraud lawsuits

1st-quarter 2008 mortgage fraud lawsuits

full-year 2007 mortgage fraud lawsuits

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