Pennsylvania lender accused of fraud and misrepresentation

By Noddy A. Fernandez | Oct 24, 2017

PHILADELPHIA — Stockholders of a Canadian company are suing operators of a Pennsylvania lending firm, alleging fraud and unjust enrichment involving a real estate loan.

Gary Stevens, Linda Stevens and 1174365 Alberta LTD filed a complaint on Oct. 11 in the U.S. District Court for the Eastern District of Pennsylvania against American Escrow & Settlement Services LLC, Elias Correa, Alan Feldman, Bernard Feldman and others for alleged violation of Racketeer Influenced and Corrupt Organizations Act (RICO).

According to the complaint, the plaintiffs allege that in October 2014, they were referred to the enterprise of the defendants to refinance mortgage loans on a property they were developing through their corporation. Despite performing all duties required to get a loan, the defendants allegedly caused delays, requiring additional fees until the lender moved to foreclose on the property, the complaint said. 

The plaintiffs blame the defendants for allegedly proposing loan transactions that were a sham to induce borrowers to advance substantial lender fees. The defendants also made false representations, concealed information and engaged in repeated acts of mail and wire fraud, the complaint said.

The plaintiffs request a trial by jury and seek award of compensatory and punitive damages, prejudgment interest, attorneys' fees, litigation expenses and other relief the court deems proper. They are represented by Howard Langer, Edward Diver and Peter Leckman of Langer Grogan & Diver PC in Philadelphia.

U.S. District Court for the Eastern District of Pennsylvania Case number 2:17-cv-04529-PD

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Langer Grogan & Diver PC U.S. District Court for the Eastern District of Pennsylvania

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