KO&L is counsel in Lester v. Percudani and Acre v. Chase Manhattan Mortgage Corp., two lawsuits pending in the United States District Court for the Middle District of Pennsylvania. These actions are brought on behalf of homeowners who defrauded into purchasing overpriced homes in the Poconos Mountains. Defendants include the developer, the appraiser, mortgage brokers, the lending bank (Chase Manhattan Mortgage) and others. The case involves issues of overvalued houses, fraud in the inducement, Chase Manhattan Mortgage Corporation’s failure to comply with internal and industry guidelines for mortgage lending. Plaintiffs assert federal racketeering claims, state consumer protection claims and fraud claims. On March 21, 2008, the Court denied defendants’ motion for summary judgment and a copy of the decision can be viewed by clicking here. The case is now proceeding to trial.
