Big Bank Files Mortgage Racketeering Suit Against Individual Borrowers
A major international bank has filed an unusual federal civil racketeering lawsuit in Seattle against a mortgage broker, an escrow agent–and 10 couples.
It contends that they conspired to defraud ING Bank of $6 million by falsifying mortgage applications, reports the Seattle Times. However, the couples say that they, too, are victims in the case, not perpetrators.
Ordinarily, any such racketeering claim is made by a borrower against a lender, rather than vice-versa, partner John Devlin of Lane Powell tells the newspaper.
“This is very rare,” says Devlin. “Depending on the success of this suit, it may become more prevalent.”
As discussed in an earlier ABAJournal.com post, similar racketeering claims were made against multiple attorneys named as defendants in a lawsuit recently filed by the New Jersey attorney general.
Related coverage:
ABAJournal.com: “Business Booming for Lawyers Who Help Homeowners Facing Foreclosure”
