Multiple Issues Addressed By Recent Ruling On Defendants' Motions To Dismiss Filed In Sale Leaseback, Equity Stripping Litigation

A U.S. District Court in Maryland recently issued a ruling addressing motions to dismiss filed by multiple defendants relating to a slew of charges brought in a civil RICO case filed by the victim of a sale leaseback, equity stripping racket.

In his lawsuit, the victim alleged fraud and civil conspiracy to commit fraud, violations of the District of Columbia Home Equity Protection Act, District of Columbia Consumer Protection Procedures Act, violation of the Federal Racketeer Influenced and Corrupt Organizations Act, unjust enrichment; breach of contract, rescission, unconscionability, failure of consideration, declaratory judgment/quiet title.

The named defendants in the lawsuit were the sale leaseback peddlers, straw buyers, closing agent, and the banks who funded the scam.

For the reasons set forth in a rather exhaustive (and exhausting) ruling (which may make for interesting reading for attorneys that are involved in litigation efforts to undo these rackets), the court granted in part, and denied in part, the motions to dismiss filed by the various defendants.

For the ruling, see Day v. DB Capital Group, LLC, No. DKC 10-1658 (D. Md., March 11, 2011).