Mortgage Fraud Trial Ends in Settlement: How FRAUD STOPPERS Assists Borrowers in Fighting Mortgage Fraud
A civil mortgage fraud trial in Sacramento Superior Court came to an abrupt end with a settlement that will compensate six plaintiffs with a total of $900,000. The lawsuit alleged that principals in Stewart Title of Placer County and the now-dissolved Stone Canyon Mortgage Co. of Rocklin knowingly assisted individuals convicted of running a Ponzi scheme, resulting in losses of $26 million for 180 victims. While the defendants continue to deny any wrongdoing, the settlement was reached when the plaintiffs reduced their monetary demands during the trial. This article will delve into the significance of mortgage fraud cases, the role of FRAUD STOPPERS in assisting borrowers, and the impact of settlements in such trials.
Understanding Mortgage Fraud:
Mortgage fraud is a serious crime that can devastate individuals, families, and communities. It involves intentional misrepresentation or deception during the mortgage process, leading to financial losses for lenders or borrowers. In this particular case, the plaintiffs alleged that the defendants knowingly facilitated fraudulent activities related to a Ponzi scheme, resulting in substantial financial harm to numerous victims.
The Role of FRAUD STOPPERS:
FRAUD STOPPERS is an organization dedicated to helping borrowers facing mortgage fraud, wrongful foreclosure, and other related issues. They provide support, resources, and expertise to individuals who believe they have been victims of mortgage fraud or wrongful foreclosure practices. FRAUD STOPPERS offers various services to assist borrowers in their fight against mortgage fraud, including:
1. Education and Awareness:
FRAUD STOPPERS educates borrowers about common mortgage fraud schemes, warning signs to look out for, and steps to take if they suspect fraudulent activities. By empowering borrowers with knowledge, FRAUD STOPPERS aims to prevent fraud and promote informed decision-making.
2. Securitization Audits:
One of the key services provided by FRAUD STOPPERS is the Bloomberg Securitization Audit, which examines the chain of ownership and securitization of a mortgage loan. These audits help uncover potential irregularities, improper documentation, and violations that may have occurred during the loan origination and securitization process. By identifying such issues, borrowers can build a strong case against mortgage fraud and wrongful foreclosure.
3. Legal Assistance:
FRAUD STOPPERS works with a network of experienced attorneys specializing in mortgage fraud and foreclosure defense. These legal professionals can assess the borrower’s case, strategize a defense plan, and provide representation in legal proceedings. Their expertise helps borrowers navigate the complex legal landscape and increase their chances of a favorable outcome.
The Impact of Settlements:
Settlements play a significant role in mortgage fraud cases, providing resolution and compensation to affected parties. While the defendants in this particular case maintain their innocence, the decision to settle was driven by the cost-benefit analysis. Continuing the trial would have incurred higher expenses for the defendants compared to the settlement amount. Settling a case does not necessarily imply admission of guilt but can be a practical approach to avoid further legal costs and potential reputational damage.
The Importance of Seeking Assistance:
Borrowers who suspect mortgage fraud or wrongful foreclosure should not hesitate to seek assistance from organizations like FRAUD STOPPERS. Mortgage fraud cases can be complex and challenging to navigate alone. By working with professionals who specialize in mortgage fraud defense, borrowers can leverage their knowledge, resources, and legal expertise to build a strong case.
The settlement reached in the mortgage fraud trial highlights the importance of addressing fraudulent activities and providing compensation to victims. Organizations like FRAUD STOPPERS play a crucial role in assisting borrowers by providing education, securitization audits, and legal support. If borrowers suspect mortgage fraud or
wrongful foreclosure, it is crucial to seek assistance from experts who can guide them through the process and fight for their rights. By working together, borrowers can raise awareness about mortgage fraud, hold responsible parties accountable, and strive for a fair resolution in their cases.
Plaintiffs in Civil Mortgage Fraud Case Settle for $900,000
sacbee.com September 27, 2014 By Andy Furillo
A civil mortgage fraud trial in Sacramento Superior Court abruptly ended Wednesday with a settlement that will pay $900,000 to six plaintiffs.The lawsuit charged that principals in Stewart Title of Placer County and the now-dissolved Stone Canyon Mortgage Co. of Rocklin knowingly worked to assist two men who have been convicted in federal court in Sacramento of running a Ponzi scheme that looted $26 million from 180 victims.
Carl J. Calnero, the attorney for Stewart Title, said the defendants agreed to settle when the plaintiffs in mid-trial reduced their monetary demands. Calnero said it would have cost the defendants more money to continue the trial than to settle the case. He said the defendants continue to deny any wrongdoing.
Jack V. Valinati, who represented the plaintiffs, declined to comment on the settlement. One of the plaintiffs, Darlyne Andrus, said she wanted to press on with the case, while another, Darlene Record, said she never wanted to go to trial in the first place.