Thursday, June 28, 2007

Atlanta Lender Files Suit Against 26 Defendant for Alleged Warehouse Line Fraud

Regions Bank, an Alabama Corporation dba Regions Funding, Atlanta, Georgia, filed suit against the following defendants alleging for a large mortgage fraud scheme wherein the defendants, headed by Toby Groves, principal of Groves Funding Group, Inc., attempted to obtain and/or did obtain, mortgages under false pretenses and converted the funds for personal use:

Groves Funding Corporation, an Ohio corporation;

Groves Funding Group, Inc., an Ohio corporation;

Home Loan Funding Corporation;

Real Estate Benefit Plan;

Best Title Solutions, Inc., a Florida corporation;

Classic Title Agency, Inc., an Ohio corporation;

Classic Title Agency, LLC, an Ohio limited liability company;

Pyramid II Janitorial Supplies and Equipment, Inc., a Florida corporation;

Pyramid America, LLC, an Ohio limited liability company;

Toby L. Groves, Individually;

Kevin Moore, individually;

Janice Saur, individually;

Monique L. McDowell, individually;

Carey Cole, individually;

Jennifer Tulles, individually;

James Cergol, individually;

Steven C. Gittinger, individually;

Terrance C. Monnie, individually;

Erin Giles, individually

Jackie Tucker, individually;

Harvey Rollings, individually;

Timothy Lynch, individually;

Susan Lynch, individually;

Samuel D. Burnette, individually;

Stormy Wilder, individually;

Rick L. Goldie, individually and as trustee of the Goldenrod Trust.

The complaint alleges that Groves and his co-conspirators intentionally supplied false documents, which included requests for funding, to Regions for purposes of obtaining monies from a revolving warehouse line of credit.  The loans for which the defendants sought funding were allegedly fictitious.  Regions, in response to a request for funding, would advance funds directly to defendants’ settlement agents to be disbursed solely in connection with the origination of a previously designated mortgage loan.  However, once defendants were in control of the monies, the funds were forwarded to Groves or other entities for the benefit of Groves.  The loans were then never moved off the warehouse line.

mortgage fraud

1. I have been dismissed from this case.

   Posted by  on  06/24  at  11:15 AM

2. I have been cleared of any wrong doing from this case and was a victim of fraud.  A judge in Georgia cleared my name and released me from all claims.

   Posted by  on  09/03  at  04:26 AM

3. Samuel D. Burnett has been cleared of all charges

   Posted by  on  01/13  at  01:31 PM

4. Subdivisions that have been plagued with proven loan fraud cases are suffering severe colateral damage to innocent home sellers and home builders. The Pinery West Subdivision in Parker, Colo. has a large fraud case pending on approximately 40 homes and that incident is financially destroying many other sellers.  The Federal Government should mandate special leniency to innocent mortgage holders from Federally Insured Lenders for collaterally damaged subdivisions.

   Posted by  on  08/19  at  08:33 AM