Lender Found Liable For Role In Broker's Forgery Scam That Mortgaged 70-Year Old Woman's Home Out From Under Her

From a press release from the law office of Orange County, California attorney Douglas J. Pettibone:

• 70-year-old Arizona resident Mona Dobben stands up and takes down a 20-billion-dollar Mortgage Company by winning a $100,000.00 judgment which includes punitive damages. American Home Mortgage (AHM) was found liable for aiding and abetting a fraud perpetrated on Dobben by an unlicensed real estate broker (In Re: American Home Mortgage Holdings, et al.; United States Bankruptcy Court District of Delaware; Case No: 07-11047 (CSS)).

• Dobben is represented by Orange County attorney Douglas J. Pettibone who alleges Dobben is victim of loan fraud by an unlicensed real estate broker and convicted felon Patrick Downey. According to Pettibone, Downey stole Dobben's identity, forged Dobben's signature and submitted false loan documents to AHM without Dobben's knowledge. Trial Judge Christopher Sontchi said, "It shocks the conscious of the court what went on here".(1)

• After Dobben received foreclosure notices from AHM she discovered the fraud and contacted AHM for help who turned a deaf ear and never responded. AHM then filed Bankruptcy. In the bankruptcy court Dobben claimed AHM aided and abetted the fraud perpetrated upon her by Downey and that her claim against AHM should not be discharged in the AHM bankruptcy.

For more, see Mortgage Company Liable for Aiding and Abetting Real Estate Broker Fraud (70-year-old Arizona resident, Mona Dobben stands up and takes down a 20-billion-dollar Mortgage Company by winning a $100,000.00 judgment which includes punitive damages).

(1) Reportedly, Judge Sontchi awarded actual damages of $32,000.00. However, given Dobben's deteriorating credit score and the clear emotional distress displayed in the courtroom, the court granted her treble damages. The total award was a judgment in the amount of $100,000. Following the trial AHM immediately appealed the judgment. The appeal is currently pending.