CLASS ACTION CASE EXPOSES THE SINGLE LARGEST MORTGAGE
FRAUD CASE IN MARYLAND’S HISTORY
In perhaps one of the most egregious and single largest mortgage schemes in
Maryland’s history, two Prince George’s families joined together today to file a
class action against six known and several unknown defendants. The case, Proctor
et al. v. Metropolitan Money Store Corp et al., was filed in the Circuit Court of
Prince George’s County, Maryland.
The complaint seeks to enforce the rights of hundreds of Maryland
homeowners facing foreclosure from unscrupulous predators who illegally acquired
interests in the homeowner’s properties. The complaint alleges that the Defendants
took advantage of vulnerable homeowners in violation of emergency Legislation
known as the Protection of Homeowners in Foreclosure Act (“PHIFA”), which was
unanimously passed by the Maryland legislature, and made effective immediately
upon the Governor’s signature in May 2005. In furtherance of the scheme, the
complaint alleges that various real estate professionals (i.e. a mortgage broker, two
title companies, and others) tricked the homeowners, who were cash poor but equity
rich, in their properties to convey their equity over to third parties—believed to be
in the millions of dollars.
While this matter seeks to recover damages for the homeowner victims, the
complaint indicates that criminal investigations are also underway at the state and
federal levels.