Foreclosure Rescue Operators Try To Dodge Liability For Alleged Sale Leaseback, Equity Stripping Scam, Despite Binding Settlement Agreements

A recent court ruling by the District of Columbia Court of Appeals describes an attempt made by a couple of notorious D.C.-area foreclosure rescue operators(1) to wiggle their way out of out-of-court settlement agreements that they entered into with several equity stripping victims. The agreements were originally entered into after the victims brought suit against them.(2)

For the facts of the case, and the court's ruling, see Dyer v. Bilaal, 983 A.2d 349; 2009 D.C. App. LEXIS 573 (D.C. Ct. of App. 2009).

(1) Dennis Dyer, Vincent Abell, Modern Management Company, Marta Bertola, and other defendants.

(2) Six homeowners brought suit against the operators alleging fraud and other torts as well as violations of state and federal lending laws and consumer protection laws. The homeowners were allegedly offered bogus sale leasebacks arrangements that purported to help save their homes from foreclosure. Instead of merely signing loan documents in connection with what the homeowners thought was a mortgage refinance, they unwittingly transferred title to their homes for a fraction of their value and became tenants. See this CBS Evening News Report interviewing two of the victims of this foreclosure rescue scam.

In an unrelated case, a jury verdict of more than $3 million had been returned against three of the defendants in an almost identical suit brought by the same lawyers who were representing the plaintiffs in this case. See Wilson v. Abell, et al., Docket No. 04-7270 (D.C. Super. Ct., jury verdict March 27, 2007); a decsription of the facts in this case can be found in Appellate Brief: Wilson v. Modern Management, et al. (available online courtesy of Legal Aid Society of the District of Columbia). See also: Media Coverage Not New For D.C.-Area Foreclosure Rescue Operator.