Frank A. Rubino , ESQ.

FEDERAL AND INTERNATIONAL CRIMINAL DEFENSE

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Allegations made against bank in mortgage fraud case

In a surprising turn of events, a well-known bank has become implicated in a big money mortgage fraud case. The man making the allegations of fraud against the bank has now filed a massive $3 million lawsuit in Florida's Palm Beach County Circuit Court. It claims that the bank used fraudulent means to get the man and his wife to mortgage the homes they owned. One was in Raleigh, North Carolina, and the other two were both in Florida. He says that the bank presented an investment scheme that was portrayed as having minimal risk while being a great wealth-building opportunity.

The case is attracting a particular amount of interest because the man making the accusations is a high-profile professional hockey coach. His past successes in his work have included leading a team to a Stanley Cup victory. In his suit, he says that he was approached by a subsidiary of the bank that focuses on securities. According to his statement, they gave him a 12-page proposal asserting that he could safely leverage all of the equity available in each of his properties.

The proposal communicated that doing so would result in securing multiple high-interest loans. It went on, according to the allegations, to say that the money from those loans would be invested in sound though high-risk investments.

The overall deal was supposed to increase the net worth of the man and his wife from $48 million to $22 million across 30 years.

However, the complaint says, the proposal's projections relied on over-inflated valuations of the properties. It failed to generate sufficient revenue to cover the interest on the loans, and was such a disaster that there was a loss of principal for the couple also.

Mortgage fraud cases affect individuals and financial institutions in states like Florida every year. Cases of mortgage fraud should be thoroughly investigated to make clear determinations of the facts that will influence court decisions.

Source: Philly.com, "Laviolettes sue Bank of America alleging fraud in mortgage proposal" Frank Seravalli, Oct. 06, 2013

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Frank A. Rubino, Esq.
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