Fifth Third Mortgage Co. v. Kaufman

Federal 7th Circuit Court
Civil Court
Fraud
Citation
Case Number: 
No.18-3295
Decision Date: 
August 9, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in entering judgment in favor of plaintiff-bank in action against defendant-attorney, alleging that defendant committed fraud by facilitating sales of condominiums by straw purchasers, who made misrepresentations on loans applications that allowed members of scheme to pocket mortgage proceeds without paying anything on properties. While plaintiff claimed that he was not aware of mortgage fraud scheme, others testified that defendant knew that buyers were part of scheme, and that defendant was aware about misrepresentations in loan applications. Moreover, while defendant asserted that as owner of title company that closed on said properties, he could not be personally liable for torts committed as member of title company, record showed that defendant participated in scheme as both owner of title company and as attorney for sellers, and that plaintiff could pursue instant action against defendant for defendant’s own individual acts. Ct. further rejected defendant’s claim that attorney cannot aid and abet client’s fraud as matter of law.