Arizona Fed Judge Sedwick Sustains Borrower's Action for Fraud adv MERS, BAC, Millenium et al

AZ Ct Sustains Action for Fraud SCAN1516_000

We thought we’d be required to wait longer for a decision like this in Arizona. The decision is not particularly novel. The Borrower sued for misrepresentation and the “lender” defended on all the usual grounds that usually either freezes the case or ends up bouncing the Borrower out of court. Judge Sedwick felt the lawsuit filed by the borrower was sufficient to state a cause of action and will let the case go forward. That means discovery. And Discovery is what pretender lenders don’t want. The surprise is that this was in Arizona.

Borrower alleged kickbacks, false representations, fraudulent concealment, accounting, breach of fiduciary duty, constructive fraud and quiet title. Motion to Dismiss was denied despite the fact that the defendants invoked the statute of limitations, with the Judge construing the complaint to say that the Plaintiff filed within 6 months of finding out about the misrepresentation. It remains to be seen how significant this decision from the trial court will be. Other Judges on the same bench may not agree.

Posted in bubble, Corruption, Eviction, securities fraud |