Mortgage Company Employees Accused Of Stealing Refinancing Proceeds Intended To Pay Off Existing Lien; Leaves Customer With Ruined Credit, Unpaid Debt

In New Orleans, Louisiana, The Times Picayune reports:

• A lawsuit filed in civil district court in New Orleans accuses a loan originator and branch manager at Allied Home Mortgage Capital Corp. of stealing money during a mortgage refinance and then conspiring with their employer to cover it up.

• The suit contains sensational allegations against Allied employees Terri-Lynn Killett and branch manager Shane Smith, who purportedly had money wired to a personal bank account that was supposed to be used to pay off a mortgage for customer Sarada LeBourgeois. LeBourgeois asserts that their actions ruined her credit, stuck her with a mortgage on a home she no longer owns and sullied her reputation in the real estate community, where she works as a marketing manager for a home warranty company.

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• Allied Home Mortgage has moved to have the case transferred to federal district court in New Orleans, an action that LeBourgeois and her attorneys oppose.(1)

For more, see Lawsuit alleges that loan originator stole money from a client.

Go here, Go here, Go here, Go here, and Go here for other stories of trust account / escrow account theft of funds.

(1) Attempting to transfer a state court case to federal court is commonly used as a tactic by some defendants in civil cases to forum-shop for a friendlier venue, as well as to delay, discourage, and make more expensive, meritorious lawsuits for aggrieved plaintiffs. See:

• Erroneous Removal As A Tool For Silent Tort Reform: An Empirical Analysis Of Fee Awards And Fraudulent Joinder,
• Judge Says Firm Must Explain ‘Fraudulent’ Removals or Pony Up $25K (go here for court ruling / memorandum opinion),
• Moving Cases From State To Federal Court: A Defense Ploy To Make Filing Suit More Costly, Burdensome On Individual Plaintiffs? EscrowRipOffKappa