Monday, October 18, 2010

Flood Of Suits Tagging GMAC With 'Robo-Signer' Charges Appears Imminent; Ohio Man Charges Bank w/ Consumer Law Violations; Lawyer Has 10 More Coming

In Newark, Ohio, the Newark Advocate reports:
  • The inevitable legal response to allegations of fraud on foreclosure documents reached Licking County on Friday with a Johnstown man's lawsuit against GMAC Mortgage and one of its employees.

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  • Michael A. Fox, [of] Johnstown, claims in his complaint that GMAC violated the Ohio Consumer Protection Sales Practices Act, committed common law fraud, abuse of process and civil conspiracy in seeking to foreclose on his 22-acre horse farm.

  • In his complaint, filed in Common Pleas Court, Fox seeks at least $25,000 in compensatory damages and $25,000 in a civil penalty, plus undetermined punitive damages that his attorney said will be 2 percent of GMAC's 2009 gross revenue.

  • The complaint states that Jeffrey Stephan, who signed Fox's foreclosure assignment Jan. 26, 2009, also testified in a Florida state foreclosure case that he signed 10,000 affidavits and assignments in a month without knowledge of the cases or verifying the accuracy of the information.(1)

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  • The complaint likely will become part of a class-action lawsuit, [Fox's attorney John] Sherrod said, as many similar cases will be filed throughout Ohio and across the country. "I'll be filing 10 more in a week or so,"(2) Sherrod said. "There should be some (of those) in Licking County."

For more, see Johnstown man sues GMAC Mortgage, alleges fraud in foreclosure process.

In related stories, see:

(1) Go here for additional Jeffrey Stephan testimony from a deposition in a Maine foreclosure case.

(2) Why stop at ten??? Just set the photocopier on '99' and have at it!

posted by Home Equity Theft Reporter at 4:02 AM