FKB's Mike Furman and Evon Idahosa obtain defense verdict for real estate attorney in multi-party mortgage fraud case in Westchester County Supreme Court. 4/27/11

FKB's A. Michael Furman and R. Evon Idahosa obtain a defense verdict in a multi-party mortgage fraud case following a two-week Westchester County Supreme Court bench trial before Justice Alan Scheinkman in January 2011. FKB's clients, a Westchester County based real estate practice and attorney, were retained in May 2004 to represent a hard money lender in its purchase of two properties in Westchester County. Following the transaction, the sellers alleged that the August 2004 transaction was not intended to be a conveyance, but instead a loan which was to facilitate an unrelated business venture in the Congo, Africa which turned out to be a "419" scam.

In an effort to void the transaction and obtain title to their properties, the sellers commenced a malpractice/fraud based action in Westchester County Supreme Court against FKB's clients, the transaction's broker and various other parties which subsequently obtained the property following a series of transactions. The plaintiffs alleged that they were defrauded into the "sale", which they contended was, in any event, usurious and as such, void. Prior to the trial, FKB filed a dispositive motion which resulted in the dismissal of all twelve (12) causes of action against FKB's clients. However, the decision afforded the plaintiffs an opportunity to replead, which resulted in the fraud based allegations against the Firm's clients.

Following a two-week trial wherein FKB argued that the plaintiffs failed to establish the requisite elements of their fraud based claim, Justice Scheinkman, by Order dated April 19, 2011, wholly adopted FKB's arguments in finding that the plaintiffs' claims were unsubstantiated, resulting in a defense verdict. Click here for a copy of Justice Scheinkman's of the 43-page decision.

To obtain more information about the decision or FKB's capabilities, please do not hesitate to contact A. Michael Furman or R. Evon Idahosa.

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