Maryland Foreclosure Rescue, Equity Stripping Class Action Lawsuit Moved To Federal Court
- "A class action lawsuit seeking to recover millions of dollars in home equity allegedly bilked from hundreds of distressed homeowners in Maryland, Virginia and Washington was shifted to federal court yesterday, broadening its scope to multiple jurisdictions. [...] The lawsuit alleges violations of federal racketeering and real estate settlement laws and seeks unspecified damages for equity allegedly stolen from homeowners who thought they were being rescued from foreclosure. Under federal law those amounts can be tripled. It also charges the defendants with money laundering to evade taxes. [...] Filed on behalf of three Prince George's County families, the new lawsuit covers everyone who was tricked into conveying the title of their properties, not just those in foreclosure, said Phillip R. Robinson, executive director of Civil Justice. "It's just bigger than what we thought it was initially," he said. "Referrals come in every day. We're just getting inundated with calls." His office received two referrals yesterday alone from the Maryland attorney general's office, he said."
Reportedly, the state, as well as federal agencies, including the FBI and Secret Service, have been investigating Metropolitan Money Store, who appears out of business.
For more, see Federal court gets home-equity suit (Md. case grows into class action seeking recovery of homes swindled from owners). (If link doesn't work, go here.)
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