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IN THE UNITED STATES DISTICT COURT

FOR THE DISTRICT OF ARIZONA
CHRISTOPHER STOLLER, )
)
)
Plaintiff, )
)
v. ) No. 2:12C!1"#$
)
%AN& OF NE' (OR& )ELLON TRUST CO., )
a finan*ial in+tit,tion, )
RO%ERT P. &ELL(, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
1ERALD L. HASSELL, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
THO)AS P. 1I%%ONS, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
CARL &RASI&, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
%AN& OF A)ERICA, )
a finan*ial in+tit,tion, )
'ALTER E. )ASSE(, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
2OE PRICE, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
%RIAN T. )O(NIHAN, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
COUNTR('IDE %AN& N.A., )
2OHN HALL 3 ASSOCIATES, )
RECONSTRUCT CO)PAN(, N.A., )
a N4va-a *o50o5ation )
%R(AN CA!E, LLP, an A5i6ona la7 fi58, )
STE!EN R. S)ITH, an Illinoi+ atto5n4., )
)ICHAEL 'ERICH, an Illinoi+ atto5n4., )
THOSE CALLA'A(S PC., an A5i6ona )
05of4++ional *o50o5ation, )
2OANN CALLA'A(, in-ivi-,all. an- in /45 )
offi*ial *a0a*it., )
2OSEPH CALLA'A(, in-ivi-,all. an- in /i+ )
offi*ial *a0a*it., )
&ELL( CALLA'A(, in-ivi-,all. an- in /i+ )
offi*ial *a0a*it., )
THO)AS, THO)AS 3 )AR&SON, P.C., )
!ERIFIED CO)PLAINT FOR
DECLARATOR( AND IN2UNCTI!E
RELIEF AND DA)A1ES FRO)
RAC&ETEERIN1, CONSPIRAC( TO
EN1A1E IN A PATTERN OF
RAC&ETEERIN1 ACTI!IT(, AND
RELATED CLAI)S9
2UR( DE)ANDED:
1: U.S.C. 1;<1 et seq.9
1: U.S.C. 1;<=
>Civil RICO R484-i4+)9 an-,
Civil an- Politi*al Ri?/t+
>4na*t4- @. Con?54++ S04*ifi*
R4+45vation+)
in pari materia 7it/ t/4
S,0548a*. Cla,+4 in t/4
U.S. Con+tit,tion an- Civil Ri?/t+
Ca+4
an A5i6ona 05of4++ional *o50o5ation, )
NEAL %. THO)AS, E+A,i54, in-ivi-,all. an- )
in /i+ offi*ial *a0a*it., )
LEONARD STREET, in-ivi-,all., )
DONNA STREET, in-ivi-,all., )
STEPHEN E. STERRET, in-ivi-,all., )
%ETT( L. STERRETT, in-ivi-,all., )
THE LA' FIR) OF )ILES, %AUER, )
%ER1STRO) 3 'INTERS LLP., 4t. al.,)
in-ivi-,all. an- in t/4i5 offi*ial *a0a*iti4+., )
SHERRIFF 2OE ARPAIO, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., an- )
2OHN DOES 1 1#, )
)
D4f4n-ant+. )
NOTICE OF FILIN1
TO: Atta*/4- S45vi*4 Li+t
PLEASE TAKE NOTICE that on 2,n4 11, 2#12, there was filed with the Clerk of the
Court, Sandra Day O’Connor Courthouse, !" #$ #ashin%ton Street, Ste$ "&!, SPC", Phoeni',
A( )*!!&, the atta+hed, 1) !ERIFIED CO)PLAINT FOR DECLARATOR( AND IN2UNCTI!E
RELIEF AND DA)A1ES FRO) RAC&ETEERIN1, CONSPIRAC( TO EN1A1E IN A PATTERN OF
RAC&ETEERIN1 ACTI!IT(, AND RELATED CLAI)S$
I +ertify that the fore%oin% was -ailed .ia first +lass -ail on BBBBBBBBBBBBBBBB, 2#12,
to the /arties listed, with the 0$S$ Postal Ser.i+e with /ro/er /osta%e /re/aid$

Aaron Penna
Attorney for Plaintiff
*"1! #$ Sunnyside A.enue
Chi+a%o, IL 1!1&!
23145 64)71!!1
SER!ICE LIST
8o9ert P$ Kelly
:erald L$ ;assell
Tho-as P$ :i99ons
Carl Krasik
<ank of New =ork >ellon Trust Co$
"!" <ar+lay Street, 6 #est
New =ork, New =ork, "!3)1,
3!! #est >onroe Street
Chi+a%o, Illinois 1!1!1
#alter E$ >assey
?oe Pri+e
<rian T$ >oynihan
<ank of A-eri+a@Countrywide Ainan+ial
"!! N$ Tryon Street
Charlotte, North Carolina, 3)3**
?$ <er%stro-, EsB$
D$ >iles, EsB$
8$ <auer
A$ #inter
K$ >+Clenahan
>$ Do-eyer
T$ Cros9y
L$ ?aBueC
D$ Carter
:$ Corena
#$ 8ash
8$ ?un%
D$ Pha-
K$ Nielson
>$ <raun
;$ Seyed 7 Ali
8$ N%uyen
?$ :araedian
T$ >orlan
K$ #e99
<$ Tran
A$ :haEar
C$ ?ones
>$ See9a+h
>iles, <auer, <er%stro- F #inters LLP$
33!! Paseo Derde Pkwy$, Ste 3*!
;enderson, ND )6!*3
Neal <$ Tho-as, EsB$
Tho-as, Tho-as F >arkson, P$C$
34!! N$ Central A.enue, Ste )!!
Phoeni', A( )*!!7"")*
Leonard Street
Donna Street
4)1"1 North "*
th
Lane
New 8i.er, A( )*!)47)!**
Sheriff ?oe Ar/aio
>ari+o/a County Sheriff’s Offi+e
"!! #est #ashin%ton
Suite "6!!
Phoeni', A( )*!!&
Ste.en 8$ S-ith
>i+hael #eri+h
<ryan Ca.e LLP
"1" N$ Clark Street, Ste &!!
Chi+a%o, IL 1!1!"
8e+onstru+t Co-/any, N$A$
3&)! Perfor-an+e Dri.e
8i+hardson, TG 4*!)3
?ohn ;all F Asso+iates
""3"" N$ Tatu- <l.d
Suite 3!!
Phoeni', A( )*!3)
Those Callaways
"3") N$ 4"
st
Street
S+ottsdale, A( )*3*
8o9ert # Shely
<ryan Ca.e LLP
3 N Central A.e$, Ste$ 33!!
Phoeni', A( )*!!7!1
Ste/hen E$ Sterret
<etty L$ Sterrett
"!11* East <lue Sky Dri.e
S+ottsdale, A( )*3137)64!
IN THE UNITED STATES DISTICT COURT
FOR THE DISTRICT OF ARIZONA
CHRISTOPHER STOLLER, )
)
)
Plaintiff, )
)
v. ) No. 2:12C!1"#$
)
%AN& OF NE' (OR& )ELLON TRUST CO., )
a finan*ial in+tit,tion, )
RO%ERT P. &ELL(, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
1ERALD L. HASSELL, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
THO)AS P. 1I%%ONS, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
CARL &RASI&, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
%AN& OF A)ERICA, )
a finan*ial in+tit,tion, )
'ALTER E. )ASSE(, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
2OE PRICE, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
%RIAN T. )O(NIHAN, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., )
COUNTR('IDE %AN& N.A., )
2OHN HALL 3 ASSOCIATES, )
RECONSTRUCT CO)PAN(, N.A., )
a N4va-a *o50o5ation )
%R(AN CA!E, LLP, an Illinoi+ la7 fi58, )
STE!EN R. S)ITH, an Illinoi+ atto5n4., )
)ICHAEL 'ERICH, an Illinoi+ atto5n4., )
THOSE CALLA'A(S PC., an A5i6ona )
05of4++ional *o50o5ation, )
2OANN CALLA'A(, in-ivi-,all. an- in /45 )
offi*ial *a0a*it., )
2OSEPH CALLA'A(, in-ivi-,all. an- in /i+ )
offi*ial *a0a*it., )
&ELL( CALLA'A(, in-ivi-,all. an- in /i+ )
offi*ial *a0a*it., )
THO)AS, THO)AS 3 )AR&SON, P.C., )
!ERIFIED CO)PLAINT FOR
DECLARATOR( AND IN2UNCTI!E
RELIEF AND DA)A1ES FRO)
RAC&ETEERIN1, CONSPIRAC( TO
EN1A1E IN A PATTERN OF
RAC&ETEERIN1 ACTI!IT(, AND
RELATED CLAI)S9
2UR( DE)ANDED:
1: U.S.C. 1;<1 et seq.9
1: U.S.C. 1;<=
>Civil RICO R484-i4+)9 an-,
Civil an- Politi*al Ri?/t+
>4na*t4- @. Con?54++ S04*ifi*
R4+45vation+)
in pari materia 7it/ t/4
S,0548a*. Cla,+4 in t/4
U.S. Con+tit,tion an- Civil Ri?/t+
Ca+4
an A5i6ona 05of4++ional *o50o5ation, )
NEAL %. THO)AS, E+A,i54, in-ivi-,all. an- )
in /i+ offi*ial *a0a*it., )
LEONARD STREET, in-ivi-,all., )
DONNA STREET, in-ivi-,all., )
STEPHEN E. STERRET, in-ivi-,all., )
%ETT( L. STERRETT, in-ivi-,all., )
THE LA' FIR) OF )ILES, %AUER, )
%ER1STRO) 3 'INTERS LLP., 4t. al.,)
in-ivi-,all. an- in t/4i5 offi*ial *a0a*iti4+., )
SHERRIFF 2OE ARPAIO, )
in-ivi-,all. an- in /i+ offi*ial *a0a*it., an- )
2OHN DOES 1 1#, )
)
D4f4n-ant+. )
!ERIFIED CO)PLAINT FOR DECLARATOR( AND IN2UNCTI!E RELIEF
AND DA)A1ES FRO) RAC&ETEERIN1, CONSPIRAC( TO EN1A1E IN
A PATTERN OF RAC&ETEERIN1 ACTI!IT(, AND RELATED CLAI)S
CO)ES NO' Plaintiff, Christo/her Stoller 2HStollerI5, a 1&7year old disa9led /erson,
and in-ate at the Di'on Corre+tional Center in Di'on, Illinois, throu%h his a%ent, Leo Stoller
"
2HPlaintiff’s A%entI5 and 9y and throu%h Plaintiff’s attorney, Aaron Penna, and in su//ort of this
Co-/laint states as follows,
NATURE OF ACTION
"$ Plaintiff and@or Plaintiff’s A%ent, 9rin%s this a+tion /ursuant to the 8a+keteerin%
Influen+ed and Corru/t Or%aniCations A+t, ") 0$S$C$ J "61" et seB$, the Truth in Lendin% A+t, "*
0$S$C$ J "1!" et seB$, and /ursuant to state law to re+o.er da-a%es sustained as a result of a
+ontinuin% ra+keteerin% /attern and /ra+ti+e of unlawful, unfair, de+e/ti.e and fraudulent a+ts
and o-issions arisin% out of a -ort%a%e fore+losure s+he-e, in.ol.in% failure to /ro.ide loan
-edi+ations, fore+losin% without noti+e, ro9o7si%ners e'e+utin% /hony land trust a%ree-ents and
"
Leo Stoller, Christo/her Stoller’s 9rother has the /ower, as Plaintiff’s a%ent, to +o--en+e and liti%ate this a+tion
on Plaintiff’s 9ehalf, throu%h a Power of Attorney %ranted 9y Christo/her Stoller to hi- 2see a true and +orre+t +o/y
of the atta+hed Power of Attorney, -arked as EC/i@it "# to this Co-/laint5$
deeds, 9rin%in% fraudulent for+i9le detainer a+tions without noti+e a%ainst sha- defendants and
/rose+utin% fraudulent for+i9le detainer a+tions 9efore state +ourt Eud%es when, the +ourt had no
Eurisdi+tion, sin+e the +ase had 9een re-o.ed to federal +ourt$
INTRODUCTION
3$ This is a +i.il a+tion for 8ICO re-edies authoriCed 9y the federal statutes at ")
0$S$C$ "61" et seq.K for de+laratory and inEun+ti.e reliefK for a+tual, +onseBuential and e'e-/lary
da-a%esK and for all other relief whi+h this honora9le Court dee-s Eust and /ro/er under all
+ir+u-stan+es whi+h ha.e o++asioned this initial +o-/laint$ See ") 0$S$C$ JJ "612a5 and 2+5
2HCi.il 8ICOI5$
&$ The /ri-ary +ause of this a+tion is a wides/read +ri-inal enter/rise, and
-ort%a%e fore+losure fraud$ The Defendants are en%a%ed in a /attern of ra+keteerin% a+ti.ity
a+ross State lines, and a +ons/ira+y to en%a%e in ra+keteerin% a+ti.ity in.ol.in% nu-erous 8ICO
/redi+ate a+ts, whi+h ha.e not 9een /re.iously /led 9y the Plaintiff in any other +o-/laint$
$ The /redi+ate a+ts alle%ed here +luster around a /attern of +ri-inal -ort%a%e
fore+losure fraud, Hro9oI si%nature on a deed2s5, fraudulent trustee sales of /ro/erty without
noti+e, filin% fraudulent for+i9le detainer a+tion 2>ari+o/a Case No$ !6)3!5, under the +olor of
law, a%ainst a sha- /arty, 8ae 8i9adeneira 2H8i9adeneiraI5, and seiCin% /ro/erty unlawfully$
The /ro/erties whi+h are the su9Ee+t of this liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4,
A5i6ona, :D2<2 2hereinafter referred to as Pro/erty "5, 1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4,
A5i6ona, :D2<2 2hereinafter referred to as Pro/erty 35, 1#<<D E. %l,4 SE. D5iv4, S*ott+-al4,
A5i6ona, :D2<2 2hereinafter referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45,
A5i6ona, :D#:$:#DD 2hereinafter referred to as Pro/erty 5 2Pro/erty "7, +olle+ti.ely,
hereinafter referred to as the HPro/ertiesI and@or HPlaintiff’s Pro/ertiesI5$ Plaintiffs knew or
should ha.e known that 8i9adeneira was not in /ossession of Pro/erty 3 when the fraudulent
for+i9le detainer a+tion 2>ari+o/a County Case No$ CD73!"!7!6)3!5 was 9rou%ht forth$
Pro/erty 3, Pro/erty &, and Pro/erty were fraudulently sold, without noti+e to the Plaintiff and
the trust deeds of said /ro/erties were si%ned 9y ro9o7si%ners, who had no authority to si%n the
deeds, and unlawfully and fraudulently transferred the /ro/erties fro- the Christo/her Stoller
Pension and Profit Sharin% Plan 2HCSPPSPI5$ Defendants, Those Callaways, and their attorney,
Neal Tho-as, then listed the unlawfully fore+losed /ro/erty for sale 9y usin% a fraudulent trustee
deed e'e+uted 9y an unauthoriCed ro9o7s%iner2s5$
*$ It is a -atter of /u9li+ re+ord that <ank of New =ork, <ank of A-eri+a and
Countrywide Ainan+ial ha.e used ro9o7si%ners to si%n deeds in order to transfer /ro/erties
unlawfully$
1$ The /ri-ary o9Ee+ti.e of the enter/rise’s /attern of ra+keteerin% a+ti.ity is to
de/ri.e /ro/erty owners throu%hout the state of AriCona and the nation of their /ro/erty ri%hts,
infli+tin% se.ere and sustain e+ono-i+ hardshi/ u/on Plaintiff and other /ro/erty owners$
4$ The Aederal 8ICO /redi+ate a+ts are /art of the o.erall +ons/ira+y and for- the
/attern of ra+keteerin% a+ti.ity alle%ed herein, e.g. -ail fraud, 9ank fraud, and wire fraud 2see ")
0$S$C$ JJ "&", "&& and "&5$ Defendants used the 0$S$ -ails, and wires to a++o-/lish their
fraudulent s+he-e$
)$ >ails were a +riti+al /art and used 2a5 to send +usto-ers 9illin% state-ents, whi+h
in+luded the de+e/ti.e .aria9le interest rate 295 to soli+it and a+Buire the -ort%a%es and, 2+5 to
send threatenin% letters to fore+lose, e.i+t, and +an+el loans$ Ea+h su+h use of the -ails in
furtheran+e of the s+he-es +onstitutes -ail fraud, in .iolation of ") 0$S$C$ J "&", a
Hra+keteerin% a+ti.ityI within the -eanin% of ") 0$S$C$ J "61"2"5$
6$ The interstate wires were si-ilarly used to soli+it +usto-ers and to /ro-ise loan
-odifi+ations in furtheran+e of Defendant’s fraudulent s+he-e and ea+h use +onstitutes wire
fraud in .iolation of ") 0$S$C$ J "&&, is a Hra+keteerin% a+ti.ityI within the -eanin% of 0$S$C$
J "61"2"5$
"!$ The a+ts of ra+keteerin% a+ti.ity, +onsistin% at least in the +ontinuin% -ailin%s to
and fro- thousands of +usto-ers, 9oth the Plaintiff and, u/on knowled%e and 9elief, -any
others, +onstitute a H/atternI within the -eanin% of ") 0$S$C$ J "61"2*5$
""$ Plaintiff has 9een inEured in his /ro/erty as a result of Defendant’s .iolation of ")
0$S$C$ J "612+5, 9y his re+ei/t of the de+e/ti.e -ailin%s, soli+itations, and threatenin% letters,
a-on% other ways, and is thus entitled to re+o.er threefold the da-a%es he has sustained /lus the
+osts of this suit, in+ludin% a reasona9le attorney’s fee$
!ENUE AND 2URISDICTION
"3$ This honora9le Su/erior Court has ori%inal Eurisdi+tion /ursuant to the +i.il 8ICO
re-edies at ") 0$S$C$ "61, and the holdin%s of the 0$S$ Su/re-e Court in Tafflin .$ Le.itt, 6&
0$S$ ** 2"66!5$
"&$ Defendants +aused inEury to Plaintiff, whi+h o++urred within >ari+o/a County,
AriCona, out of whi+h this Co-/laint arises$
"$ This Court has Eurisdi+tion o.er this a+tion /ursuant to 3) 0$S$C$ J "&&", "*
0$S$C$ J "1! et seB$, and ") 0$S$C$ J "61" et seB$, and has su//le-ental Eurisdi+tion o.er the
state law +lai-s /ursuant to 3) 0$S$C$ J "&14$
"*$ Denue lies in this Distri+t /ursuant to the /ro.isions of 3) 0$S$C$ J "&6"295 and
") 0$S$C$ J "61*2a5 in that Defendants ha.e transa+ted 9usiness of a su9stantial and +ontinuous
+hara+ter in this Distri+t, Defendants are su9Ee+t to /ersonal Eurisdi+tion in this distri+t, and a
su9stantial /art of the e.ents or o-issions %i.in% rise to these +lai-s o++urred in this Distri+t$
Additionally, the ends of Eusti+e reBuire that Defendants 9e 9rou%ht 9efore the Court /ursuant to
") 0$S$C$ J "61*295$
"1$ This +lai- in.ol.es real /ro/erty title in whi+h the a-ount in +ontro.ersy e'+eeds
L3!,!!!,!!!K therefore, Eurisdi+tion is /ro/er$
"4$ A++ordin%ly, Eurisdi+tion and .enue are /ro/er in this Court$
PARTIES
")$ Plaintiff, C;8ISTOP;E8 STOLLE8, 137years old, is a disa9led in-ate at the
Di'on Corre+tional Center in Illinois, and at all ti-es herein -entioned, and is hereinafter
referred to as HPlaintiffI or HStollerI$ Plaintiff is a +itiCen of the state of Illinois$
Defendants Directly Involved in Scheme to Defraud
"6$ Defendant, <ANK OA NE# =O8K >ELLON T80ST CO$, 2also referred to as
H<N=I5 is at all ti-es herein -entioned, a finan+ial institution, or%aniCed and e'istin% under the
laws of the 0nited States of A-eri+a, with its /rin+i/al /la+e of 9usiness lo+ated at "!" <ar+lay
Street, 6 #est, New =ork, New =ork, "!3)1, and transa+tin% 9usiness throu%hout the state of
AriCona$
3!$ Defendant, 8O<E8T P$ KELL= 2HKellyI5, indi.idually and in his offi+ial
+a/a+ity, u/on infor-ation and 9elief, is at all ti-es herein -entioned, the Chair-an and Chief
E'e+uti.e Offi+er of <N=, and is in +har%e of <N=, and all of the offi+ers, a%ents, ser.ants and
e-/loyees under his +ontrol$ Defendant, 8o9ert P$ Kelly, is lia9le in his indi.idual +a/a+ity and
under the do+trine of respondeat superior.
3"$ Defendant, :E8ALD L$ ;ASSELL 2H;assellI5, indi.idually and in his offi+ial
+a/a+ity, u/on infor-ation and 9elief, is at all ti-es herein -entioned, the President of <N=, and
is in +har%e of <N= and all of the offi+ers, a%ents, ser.ants and e-/loyees under his +ontrol$
Defendant, :erald L$ ;assell, is lia9le in his indi.idual +a/a+ity and under the do+trine of
respondeat superior.
33$ Defendant, T;O>AS P$ :I<<ONS 2H:i99onsI5, indi.idually and in his offi+ial
+a/a+ity, u/on infor-ation and 9elief, is at all ti-es herein -entioned, Chief Ainan+ial Offi+er of
<N= and is in +har%e of <N=, and all of the offi+ers, a%ents, ser.ants and e-/loyees under his
+ontrol$ Defendant, Tho-as P$ :i99ons, is lia9le in his indi.idual +a/a+ity and under the
do+trine of respondeat superior.
3&$ Defendant, CA8L K8ASIK 2HKrasikI5, indi.idually and in his offi+ial +a/a+ity,
u/on infor-ation and 9elief, is at all ti-es herein -entioned, :eneral Counsel for <N= and
ad.ises and +onsults with Defendants, 8o9ert P$ Kelly, :erald L$ ;assell, Tho-as P$ :i99ons,
and +ons/ired with the- to de/ri.e the Plaintiff of his due /ro+ess and eBual /rote+tion ri%hts as
stated in this Co-/laint$ Defendant, Carl Krasik, is lia9le in his indi.idual +a/a+ity and under
the do+trine of respondeat superior.
3$ Defendant, <ANK OA A>E8ICA, 2also referred to as H<OAI5 u/on infor-ation
and 9elief, is at all ti-es herein -entioned, is a finan+ial institution, or%aniCed and e'istin% under
the laws of the 0nited States of A-eri+a, with its /rin+i/al /la+e of 9usiness lo+ated at "!! N$
Tryon Street, Charlotte, North Carolina, 3)3**, and transa+tin% 9usiness throu%hout the state of
AriCona$
3*$ Defendant, #ALTE8 E$ >ASSE= 2H>asseyI5, indi.idually and in his offi+ial
+a/a+ity, u/on infor-ation and 9elief, is at all ti-es herein -entioned, Chair-an of <OA, and is
in +har%e of <OA, and all of the offi+ers, a%ents, ser.ants and e-/loyees under his +ontrol$
Defendant, #alter E$ >assey, is lia9le in his indi.idual +a/a+ity and under the do+trine of
respondeat superior.
31$ Defendant, ?OE P8ICE 2HPri+eI5, indi.idually and in his offi+ial +a/a+ity, u/on
infor-ation and 9elief, is at all ti-es herein -entioned, Chief Ainan+ial Offi+er of <OA, and is
in +har%e of <OA, and all of the offi+ers, a%ents, ser.ants and e-/loyees under his +ontrol$
Defendant, ?oe Pri+e, is lia9le in his indi.idual +a/a+ity and under the do+trine of respondeat
superior.
34$ Defendant, <8IAN T$ >O=NI;AN 2H>oynihanI5, indi.idually and in his
offi+ial +a/a+ity, u/on infor-ation and 9elief, is at all ti-es herein -entioned, President and
Chief E'e+uti.e Offi+er of <OA, and is in +har%e of <OA, and all of the offi+ers, a%ents,
ser.ants and e-/loyees under his +ontrol$ Defendant, <rian T$ >oynihan, is lia9le in his
indi.idual +a/a+ity and under the do+trine of respondeat superior.
3)$ Defendant, CO0NT8=#IDE AINANCIAL <ANK, N$A$ 2also referred to as
HCountrywideI and@or HCountrywide Ainan+ialI5, Countrywide has 9een /ur+hased 9y <OA, and
u/on infor-ation and 9elief, is at all ti-es herein -entioned, is a finan+ial institution, or%aniCed
and e'istin% under the laws of the 0nited States of A-eri+a, with its /rin+i/al /la+e of 9usiness
lo+ated at "!! N$ Tryon Street, Charlotte, North Carolina, 3)3**, and transa+tin% 9usiness
throu%hout the state of AriCona$
36$ Defendant, ?O;N ;ALL F ASSOCIATES, ?ohn ;all F Asso+iates is a real
estate a%en+y lo+ated at ""3"" N$ Tatu- <l.d, M3*!, Phoeni', AriCona, )*!3) 2also +an 9e
referred to as H8S> CAPITAL A0NDIN: LLC$ F T8IE CONS0LTIN:, LLCI and@or
HT;OSE CALLA#A=SI5$
&!$ Defendant, 8ECONST80CT CO>PAN=, N$A$ 2H8e+onstru+tI5, u/on
infor-ation and 9elief, is at all ti-es herein -entioned, is a Ne.ada Cor/oration, or%aniCed and
e'istin% under the laws of the 0nited States of A-eri+a, with its /rin+i/al /la+e of 9usiness
lo+ated at "!! N$ Tryon Street, Charlotte, North Carolina, 3)3**, and transa+tin% 9usiness
throu%hout the state of AriCona$
&"$ Defendant, <8=AN CADE LLP, u/on infor-ation and 9elief, is at all ti-es
herein -entioned, is an AriCona law fir-, with its /rin+i/al /la+e of 9usiness at 3 N$ Central
A.enue, Ste 33!!, Phoeni', AriCona )*!!$
&3$ Defendant, STEDEN 8$ S>IT; 2HS-ithI5, u/on infor-ation and 9elief, is at all
ti-es herein -entioned, is an Illinois attorney e-/loyed 9y the law fir- of <ryan Ca.e LLP,
with his /rin+i/al /la+e of 9usiness at "1" N$ Clark Street, Suite &!!, Chi+a%o, Illinois, 1!1!"
&&$ Defendant, >IC;AEL #E8IC; 2H#eri+hI5, u/on infor-ation and 9elief, is at
all ti-es herein -entioned, is an Illinois attorney, with his /rin+i/al /la+e of 9usiness at "1" N$
Clark Street, Suite &!!, Chi+a%o, Illinois, 1!1!"$
&$ Defendants, ?OANN CALLA#A=, ?OSEP; CALLA#A= and KELL=
CALLA#A=, u/on infor-ation and 9elief, at all ti-es herein -entioned, are the owners and
-ana%ers of a real estate fir- known as T;OSE CALLA#A=S PC, with its /rin+i/al /la+e of
9usiness at "3") N$ 4"
st
Street, S+ottsdale, AriCona )*3*$
&*$ Defendant, the law fir- of T;O>AS, T;O>AS F >A8KSON, P$C$, and
attorney, NEAL <$ T;O>AS 2HTho-asI5, indi.idually and his offi+ial +a/a+ity, lo+ated at 34!!
N$ Central A.enue, Ste )!!, Phoeni', AriCona )*!!$
&1$ Defendants, LEONA8D ST8EET and DONNA ST8EET, as indi.iduals,
/ur+hased Pro/erty , lo+ated at 4)1"1 North "*
th
Lane, New 8i.er, A( )*!)47)!**, at a
fraudulent fore+losure sale$
&4$ Defendants, STEP;EN E$ STE88ET and <ETT= L$ STE88ETT, as indi.iduals,
/ur+hased Pro/erty &, lo+ated at "!11* East <lue Sky Dri.e, S+ottsdale, A( )*3137)64!, at a
fraudulent fore+losure sale$
&)$ Defendant, the law fir- of >ILES, <A0E8, <E8:ST8O> F #INTE8S LLP$,
and the followin% attorneys, Defendants, D$ >iles, ?$ <er%stro-, 8$ <auer, A$ #inter, K$
>+Clenahan, >$Do-eyer ,T$ Cros9y, L$ ?aBueC, D$ Carter, :$ Corena, #$ 8ash, 8$ ?un%, D$
Pha-, K$ Nielson, >$ <raun, ;$ Seyed7Ali, 8$ N%uyen, ?$ :aedian, T$ >orlan, K$ #e99, <$ Tran,
A$ :haEar, C$ ?ones, and >$ See9a+h, indi.idually and in their offi+ial +a/a+ity, lo+ated at 33!!
Paseo Derde Parkway, Suite 3*!, ;enderson, Ne.ada, )6!*3$
&6$ Defendant, S;E88IAA ?OE A8PAIO, u/on infor-ation and 9elief, is at all ti-es
herein -entioned indi.idually and in his offi+ial +a/a+ity at the of the >ari+o/a County Sheriff’s
Offi+e lo+ated at "!! #est #ashin%ton Street, Suite "6!!, Phoeni', A( )*!!&$
!$ This a+tion is also 9rou%ht a%ainst ?O;N DOES " throu%h "!, whi+h -ay in+lude
Defendants’ lawyers, /rede+essors, /artners, asso+iates, a%ents, e-/loyees, affiliates, and
su9sidiaries, whi+h hereafter are also in+luded in the ter- HDefendantsI$ Plaintiff is i%norant of
the true na-es and +a/a+ities of Defendants sued herein as ?O;N DOES " throu%h "! in+lusi.e,
and therefore sues these Defendants 9y su+h fi+titious na-es$ Plaintiff will add their na-es to
this +o-/laint to alle%e their true na-es and +a/a+ities when as+ertained$
"$ Plaintiff 9elie.es and thereon alle%es that, at all ti-es herein -entioned, ea+h of
the re-ainin% Defendants and was at all ti-es a+tin% within the /ur/ose and s+o/e of su+h
relationshi/, or alternati.ely, while /ur/ortin% to a+t within the /ur/ose and s+o/e of su+h
relationshi/, e'+eeded said authority, or alternati.ely, while /ur/ortin% to a+t to further the
/ur/ose of said relationshi/, instead en%a%ed in self7dealin% and a+ted to har- said relationshi/,
or alternati.ely, +olluded and +ons/ired with other Defendants, or all of the-, in the har-s here
alle%ed$
3$ The 8ICO Enter/rise 2the HEnter/riseI5 in+ludes all /ersons and entities that were
or are asso+iated7in7fa+t in the -arketin% and finan+in% of -ort%a%es, fore+losin% on -ort%a%es,
listin% fore+losed /ro/erties for re7sale and sellin% fore+losed /ro/erties, +ontra+ts, ho-e loans,
%enerated 9y <OA@Countrywide Ainan+ial, its offi+ers, dire+tors, e-/loyees, and@or a%ents,
attorneys, <OA and its offi+ers, dire+tors, e-/loyees, and@or a%ents@attorneys$
&$ At all ti-es rele.ant hereto, Defendants were -e-9ers of and@or e-/loyed 9y or
asso+iated7in7fa+t with an Enter/rise en%a%ed in interstate +o--er+e and a+ti.ities whi+h
su9stantially affe+ted interstate or forei%n +o--er+e, as that ter- is defined 9y ") 0$S$C$ J
"61"25$
$ Defendants, as -ore fully set forth a9o.e, /er.erted and a9used their /ositions in
the Enter/rise, and o/erated the affairs of that Enter/rise, throu%h a /attern of ra+keteerin%
a+ti.ity in order to a++o-/lish their fraudulent -ort%a%e fore+losure s+he-e$
%AC&1ROUND AND FACTUAL ALLE1ATIONS RELATIN1 TO THE ENTERPRISE
*$ The Enter/rise shares the +o--on /ur/ose of, 2a5 identifyin% .ulnera9le /otential
ho-e owners and tar%etin% the- for -ort%a%es and ho-e loans and %eneratin% -ort%a%es with
the intent to defraud /otential -ort%a%ors and e.entually unlawfully fore+lose on their
/ro/ertiesK 295 %eneratin% relatin% ho-e loans for the /ur/ose of unlawfully o9tainin% the
/ro+eeds and unreasona9le fees asso+iated with the ho-e loans and se+ond -ort%a%esK and, 2+5
assi%nin% and sellin% -ort%a%es on the se+ondary -ort%a%e -arket in order to o9tain funds and
a.oid the risk of non7/ay-ent 9y 9orrowers after they’d dis+o.ered they are .i+ti-s of a
-ort%a%e loan s+a-, then unlawfully fore+losin% on the /ro/erties, %eneratin% fraudulent trust
deeds e'e+uted 9y unauthoriCed ro9o7si%ners, e.i+tin% the owners and@or renters without /ro/er
noti+e, re7sellin% the /ro/erties to third7/arties, re7finan+in% the /ro/erties and unlawfully
fore+losin% and@or resellin% the /ro/erties to third7/arties$
1$ The Enter/rise also has and had an e'isten+e and e+ono-i+ %oal se/arate fro- the
/attern of ra+keteerin% a+ti.ity in that Defendants,
2a5 <N=, was at ti-es /ur/ortin% to en%a%e in the le%iti-ate 9usiness of le%al
a+ti.ity of finan+in% ho-es and /ur+hasin% fore+losed /ro/erties,
295 8o9ert P$ Kelly, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity of
-ana%in% <N=,
2+5 :erald L$ ;assell, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity of
-ana%in% <N=,
2d5 Tho-as <$ :i9son, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity of
-ana%in% <N=,
2e5 Carl Krasik, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity of
-ana%in% <N=,
2f5 <OA, was at ti-es /ur/ortin% to en%a%e in the le%iti-ate 9usiness and
le%al a+ti.ity of %rantin% -ort%a%es to /otential ho-eowners,
2%5 #alter E$ >assey, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity of
-ana%in% <OA,
2h5 ?oel Pri+e, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity of -ana%in%
<OA,
2i5 <rian T$ >onynihan, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity of
-ana%in% <OA,
2E5 Countrywide Ainan+ial, was at ti-es /ur/ortin% to en%a%e in le%al a+ti.ity
and %rantin% -ort%a%es to /otential ho-eowners,
2k5 ?ohn ;all F Asso+$, was at ti-es /ur/ortin% to en%a%e in the le%iti-ate
9usiness and le%al a+ti.ity of in.est-ents and /ur+hasin%@sellin% real
estate,
2l5 8e+onstru+t Co$, was at ti-es /ur/ortin% to en%a%e in the le%iti-ate
9usiness and le%al a+ti.ity of fore+losin% on ho-eowners,
2-5 <ryan Ca.e LLP, was at ti-es /ur/ortin% to 9e en%a%ed in the le%iti-ate
9usiness and le%al a+ti.ity of a law fir-,
2n5 Ste.en 8$ S-ith, an Illinois attorney e-/loyed 9y <ryan Ca.e LLP, was at
ti-es /ur/ortin% to en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity of
/erfor-in% le%al ser.i+es for his +lients as a -e-9er of the <ryan Ca.e
LLP law fir-,
2o5 >i+hael #eri+h, an Illinois attorney e-/loyed 9y <ryan Ca.e LLP, was at
ti-es /ur/ortin% to en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity of
/erfor-in% le%al ser.i+es for his +lients as a -e-9er of the <ryan Ca.e
LLP law fir-,
2/5 Those Callaways, PC, an AriCona /rofessional +or/oration, was at ti-es
/ur/ortin% to en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity of a real
estate 9rokera%e fir-,
2B5 ?oann Callaway, an e-/loyee of Those Callaways, PC, was at ti-es
/ur/ortin% to en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity as a real
estate 9roker,
2r5 ?ose/h Callaway, an e-/loyee of Those Callaways, PC, was at ti-es
/ur/ortin% to en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity as a real
estate 9roker,
2s5 Kelly Callaway, an e-/loyee of Those Callaways, PC, was at ti-es
/ur/ortin% to en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity as a real
estate 9roker,
2t5 Tho-as, Tho-as F >arkson, P$C$, was at ti-es /ur/ortin% to 9e en%a%ed
in the le%iti-ate 9usiness and le%al a+ti.ity of a law fir-,
2u5 Neal <$ Tho-as, EsBuire, an AriCona attorney, was at ti-es /ur/ortin% to
en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity of /erfor-in% le%al
ser.i+es for his +lients as a -e-9er of the Tho-as, Tho-as F >arkson
P$C$, law fir-, and,
2.5 The law fir- of >iles, <auer, <er%stro- F #inters, LLP, and its
e-/loyees@a%ents who are na-ed herein, was at ti-es /ur/ortin% to
en%a%e in the le%iti-ate 9usiness and le%al a+ti.ity of a law fir-
s/e+ialiCin% in re/resentin% finan+ial institutions in fore+losure
/ro+eedin%s$
4$ The Enter/rise has@had an as+ertaina9le stru+ture, and a +ontinuity of stru+ture
and /ersonnel$ On infor-ation and 9elief, Defendants >onynihan, Pri+e, and >assey, de.ised
and dire+ted the -ort%a%e fore+losure s+he-e with the a%ree-ent and /arti+i/ation of attorneys
S-ith, #eri+h and their law fir- <ryan Ca.e LLP, with the a%ree-ent and /arti+i/ation of <N=
offi+ers Kelly, ;assell, :i9son, and Krassek, as well as, 8e+onstru+t, Those Callaways PC, ?oann
Callaway, ?ose/h Callaway, and Kelly Callaway, the >iles, <auer et$al, law fir- and its
e-/loyees, as well as other indi.iduals not na-ed as defendants herein$ >iles has +ons/ired
with its +lients, Defendant <N= and <OA, to defraud the Plaintiff out of his /ro/erty ri%hts$
)$ 0/on infor-ation and 9elief, +ertain -e-9ers of the Enter/rise, in+ludin%
<OA@Countrywide Ainan+ial, 8e+onstru+t, and <N=, had +onstru+ti.e knowled%e that the
-ort%a%es were /redatory and %enerated throu%h a s+he-e to defraud 2see atta+hed a true and
+orre+t +o/ies of Illinois attorney %eneral, Lisa >adi%an’s Co-/laint and >assa+husetts attorney
%eneral, >artha Coakley’s Co-/laint, -ade a /art of hereto, re/led, reallae%ed and reasserted,
-arked as EC/i@it 1 and EC/i@it 2, res/e+ti.ely, in su//ort of the alle%ations raised in this
+o-/laint5$
6$ Neal <$ Tho-as, has +ons/ired with and aided and a9etted, Defendants Those
Callaways, in the +o--ission of the wron%s alle%ed herein and throu%hout$
The Role of the Defendants in The Enterprise
*!$ At all ti-es -aterial hereto, Defendants were and re-ain H/ersonsI as that ter- is
defined 9y ) 0$S$C$ J "61&2&5$ At all ti-es -aterial hereto, Defendants were e-/loyed 9y or
asso+iated with the Enter/rise defined a9o.e and +ondu+ted or /arti+i/ated in the +ondu+t of the
affairs of said Enter/rise$ As su+h, Defendants worked and@or /arti+i/ated with and@or endorsed
the a+tions and de+isions and orders of other /ersons asso+iated with the Enter/rise in order to
a++o-/lish the +o--on /ur/ose of the Enter/rise$
*"$ Defendants’ law fir-s 2<ryan Ca.e LLP and its e-/loyees@attorneys and >iles,
<er%stro- et$ al$, and its e-/loyees@attorneys5 na-ed herein, dire+ted, a//ro.ed, aided, a9etted,
+ounseled and@or indu+ed the +o--ission of said a+ts a%ainst the 0nited States 9y other /ersons
asso+iated7in7fa+t with the Enter/rise in .iolation of ") 0$S$C$ J 3$
*3$ Defendants Kelly, ;assell :i99ons, Krassik, >assey, Pri+e and >onyihan,
dire+ted, a//ro.ed, aided, a9etted, +ounseled and@or indu+ed the +o--ission of said a+ts a%ainst
the 0nited States 9y other /ersons asso+iated7in7fa+t with the Enter/rise in .iolation of ") 0$S$C$
J 3$
*&$ Defendants Those Callaways, ?oann Callaway, ?ose/h Callaway, Kelly Callaway
and their law fir-, Tho-as, Tho-as F >arkson, P$C$ and its attorney, Neal <$ Tho-as, dire+ted,
a//ro.ed, aided, a9etted, +ounseled and@or indu+ed the +o--ission of said a+ts a%ainst the
0nited States 9y other /ersons asso+iated7in7fa+t with the Enter/rise in .iolation of ") 0$S$C$ J
3$ As /art of the on%oin% -ort%a%e fore+losure s+he-e, Those Callaways, and their attorney,
Neal <$ Tho-as, a+ted as a re7sellin% a%ent of fore+losed /ro/erties for their +o7+ons/irators
<OA@Countrywide and <N=$ Currently, Those Callaways ha.e a real estate listin% for Pro/erty
3 and are +urrently atte-/tin% to sell the said /ro/erty, whi+h was unlawfully fore+losed u/on as
well known to Those Callaways 2see atta+hed a true and +orre+t +o/y of the listin%, -arked as
EC/i@it "5$ Plaintiff is seekin% a /reli-inary and@or /er-anent inEun+tion a%ainst Those
Callaways fro- sellin% any of Plaintiff’s Pro/erties 2real estate listin% s/e+ifies Pro/erty 3,
lo+ated at "!1&3 E$ <lue Sky Dri.e, S+ottsdale, AriCona5$
*$ Defendants Those Callaways, ?oann Callaway, ?ose/h Callaway, and Kelly
Callaway /arti+i/ated 9y a+tin% ostensi9ly as a -ort%a%e 9roker and@or real estate a%ent in
.arious transa+tions$ Defendants ?ohn ;all F Asso+iated /arti+i/ated 9y a+tin% as ad.isors and
finan+ial a%ents for Those Callaways in .arious transa+tions$
**$ <OA@Countrywide Ainan+ial a+ted as dis9urse-ent a%ents and /arti+i/ated 9y
a+tin% as the na-ed lender in +ertain transa+tions$ Ea+h of these Defendants /arti+i/ated in the
s+he-e knowin% that the -ort%a%es were o9tained 9y fraudulent -eans, and were o9tained
-erely to re/a+ka%e the -ort%a%es and sell the- to third7/arties as has 9een identified 9y the
A<I, Con%ress and all *! 0$S$ attorney %enerals, as ,nla7f,l 2see atta+hed EC/i@it 1 and
EC/i@it 25$
Racketeering Conspiracy
*1$ As set forth, on or a9out ?anuary ", 3!! throu%h the /resent date, all the listed
Defendants, 9ein% /ersons or other, in +ontrol of and asso+iated with the Enter/rise, whi+h
Enter/rise was en%a%ed in, and the a+ti.ities of whi+h su9stantially affe+ted, interstate
+o--er+e, did unlawfully, willfully and knowin%ly +o-9ine, +onfederate, +ons/ire and a%ree
to%ether and with others to .iolate "), 0$S$C$ J "6132+5 and to +ondu+t and /arti+i/ate, dire+tly
and indire+tly, in the +ondu+t of the affairs of that Enter/rise throu%h a /attern of ra+keteerin%
a+ti.ity, as that ter- is defined in ") 0$S$C$ JJ "61"2"5 and "61"2*5, 9y the +o--ission of
-ulti/le ra+keteerin% a+ts, as set forth 9elow, all in .iolation of ") 0$S$C$ J "6132d5$
*4$ Defendant Countrywide Ainan+ial and@or its a%ents and e-/loyees en%a%ed and
+ons/ired in an on%oin% -ort%a%e fore+losure s+he-e to defraud nu-erous unBualified
/ros/e+ti.e ho-eowners to fraudulently indu+e the- to enter into -ort%a%es whi+h Countrywide
knew or should ha.e known that /otential -ort%a%ers would 9e una9le to /ay or -eet their
finan+ial +o--it-ents in order to resell or re/a+ka%e the- for third7/arty in.estors$ The
/resident of Countrywide Ainan+ial was fined o.er L1! -illion for his fraudulent lendin%
/ra+ti+es$
*)$ Defendant <OA, doin% 9usiness as Countrywide Ainan+ial, would a//roa+h
.i+ti-s of the s+he-e with un9elie.a9le offers to lend -oney for /ros/e+ti.e ho-eowners to
/ur+hase ho-es with an e'tre-ely low .aria9le interest rate and then would in+rease interest
rates and /ay-ents therefore for+in% ho-eowners into fore+losure$ In -any instan+es,
Defendants /ro.ided a loan -odifi+ation for the sole /ur/ose of se+urin% additional fees and
then en%a%e in a fraudulent -ort%a%e fore+losure /ra+ti+e 9y failin% to notify the ho-eowner of
fore+losure, unlawfully seiCin% the /ro/erty, and ha.in% a ro9osi%ner e'e+ute a fraudulent deed
of trust, and then resellin% the /ro/erty to a third7/arty, as was the +ase at 9ar, re%ardin%
Plaintiff’s Pro/erties$
*6$ Defendants -ade nu-erous -isre/resentations to the .i+ti-s, whi+h in+lude
8i9adeneira and Plaintiff’s /rede+essor in interest, indu+in% the- to enter into -ort%a%e
+ontra+ts s/e+ifi+ally with res/e+t to the nature of the interest rates whi+h were to 9e /aid$
Defendants <OA@Countrywide Ainan+ial /arti+i/ated in the s+he-e 9y a//ro.in% fraudulent
-ort%a%es and /re/arin% /hony loan do+u-ents$
The Role of the Defendants in the Conspiracy
1!$ Defendants were e-/loyed 9y or asso+iated with the Enter/rise and assu-ed
roles in the furtheran+e of the +ons/ira+y 9y .irtue of the followin%, 2a5 <OA@Countrywide
tar%eted and soli+ited the Plaintiff’s /rede+essor in interests for -ort%a%es on Pro/erty 3,
Pro/erty &, and Pro/erty K 295 Countrywide Ainan+ial a%reed to a+t as the -ort%a%e lender on
9ehalf of Plaintiff’s /rede+essor in interest and /re/ared the loan a//li+ations and related
do+u-ents knowin% that the transa+tions were fraudulently indu+edK and 2+5 Countrywide
Ainan+ial a%reed to 2i5 a+t as a no-inal ori%inatin% lender, 2ii5 /ro.ide the funds whi+h were the
/ro+eeds of the s+he-e, and 2iii5 assi%n the loans to other /arties knowin% that the loans were
indu+ed 9y fraudK and 2i.5 <OA a%reed to a++e/t the fraudulently indu+ed loans$ In this instan+e
<OA refused to issue loan -odifi+ations$
1"$ Defendant <OA a%reed to sell Pro/erty 3 to +o7+ons/irator <N= for o.er L"
-illion under -arket .alue, /rior to the au+tion date 2au+tion date, Ae9ruary 6, 3!"!5, and not at
an ar-s len%th transa+tion as /art of the s+he-e$
13$ Defendant 8e+onstru+t /arti+i/ated in the +ons/ira+y as a+tin% as an a%ent to
unlawfully fore+lose on Pro/erty 3 9y failin% to /ro.ide any noti+e to Plaintiff and then
+ondu+tin% a fraudulent fore+losure sale, not7at7ar-s7len%th to a +losely related 9ank, +o7
+ons/irator <N=$
1&$ Defendants <N= then +ondu+ted a fraudulent for+i9le detainer a+tion in >ari+o/a
+ounty as outlined in this Co-/laint to unlawfully seiCe +ontrol of Pro/erty 3, 9y na-in% a sha-
tenant and failin% to ser.e an. interested /arty$
1$ Defendants’ <OA and <N= attorneys, aided and a9etted their +lients in
unlawfully fore+losin% on /ro/erties as /art of the on%oin% +ons/ira+y and in /arti+ular
Plaintiff’s Pro/erty 3$
Pattern of Racketeering ctivity
1*$ The /attern of ra+keteerin% a+ti.ity, as defined in ") 0$S$C J "61"2"5 and J "61"
2*5, +onsisted of the a+ts hereinafter set forth, ea+h of whi+h was related to the +o--on /ur/ose
of the Enter/rise$
11$ It was /art of the /attern of ra+keteerin% a+ti.ity that a//ro'i-ately 9etween
?anuary ", 3!! and the /resent, Defendants and their +o7+ons/irators and a%ents unlawfully,
willfully and knowin%ly de.ised and intended to de.ise a s+he-e and artifi+e for o9tainin%
-oney and /ro/erty 9y -eans of false and fraudulent /retenses, re/resentations, and /ro-ises,
and throu%h the +on+eal-ent of -aterial fa+ts relatin% to, 2a5 their intention to soli+it -ort%a%e
loans under false /retenses and to -ake it a//ear to Plaintiff, /rede+essor in interest, that the
loans were reasona9le and le%iti-ateK and, 295 their intention to rea/ su9stantial /rofit fro- the
transa+tions 9y resellin% the loan to third7/arties and e.entually fore+losin% on /ro/erties in
order to allow Those Callwoyas to resell the- throu%h Defendant and their +o7+ons/irators$
14$ Aro- a//ro'i-ately ?anuary ", 3!!, to the /resent, Defendants and their +o7
+ons/irators and a%ents unlawfully, willfully and knowin%ly, and for the /ur/oses of e'e+utin%,
and atte-/tin% to e'e+ute the s+he-e and artifi+e to defraud, as -ore fully des+ri9ed a9o.e, and
for o9tainin% -oney and /ro/erty, did -ake use of interstate wires, in .iolation of ") 0$S$C$ J
"&& 2#ire Araud5, in+ludin%, 9ut not li-ited to sendin% and@or re+ei.in% loan /ro+eeds throu%h
interstate wires and sendin% and@or re+ei.in% +ertain do+u-ents throu%h interstate /hone 2fa'5
lines$
1)$ Ea+h of the aforesaid -ailin%s and wire transfers were -ade in furtheran+e of the
s+he-e to defraud alle%ed in the Co-/laint$ Defendants knew of or authoriCed su+h -ailin%s
and wire transfers and knew that they were -ade in furtheran+e of and for the /ur/ose of
e'e+utin% the s+he-e or were in+idental to an essential /art of the s+he-e$
16$ In addition to the Plaintiff herein, Defendants ha.e +o--itted fraud on other
/arties and unso/histi+ated 9orrowers$ See, e.g., >ason .$ Aieldstone >ort%a%e, No$ !! C !33)
20$S$ Dist$ N$D$ Ill$5K :rutC-a+her .$ New Look ;o-e Ser.i+es, In+$, !3 P 31"" 2Cir+uit Court
of Cook County, Illinois5$ Thousands of additional .i+ti-s ha.e +o-/lained to the AriCona
attorney %eneral’s offi+e and the Illinois attorney %eneral’s offi+e, /ro-/tin% the nationwide
attorney %enerals to sue the Defendants 9ased on their fraudulent fore+losure /ra+ti+es 2see
EC/i@it+ 1 F 2, /ro-/tin% the AriCona attorney to sue <OA5$
4!$ On or a9out >ay 3, 3!!1, Countrywide, as lender, entered a deed of trust on
Pro/erty ", a sin%le7fa-ily residen+e, whi+h in+or/orated an adEusta9le rate rider 2see atta+hed a
true and +orre+t +o/y -arked as EC/i@it =5$
4"$ On or a9out ?uly "3, 3!!1, Countrywide, as lender, entered a deed of trust on
Pro/erty 3, a sin%le7fa-ily residen+e, whi+h in+or/orated an adEusta9le rate rider 2see atta+hed a
true and +orre+t +o/y -arked as EC/i@it D5$
43$ On or a9out ?uly 34, 3!!1, Countrywide, as lender and 9enefi+iary, entered a deed
of trust on Pro/erty &, whi+h in+or/orated an adEusta9le rate rider 2see atta+hed a true and +orre+t
+o/y -arked as EC/i@it <5$
4&$ Countrywide en%a%es in residential -ort%a%e lendin% a+ross the nation and
ArionCa$
4$ Countrywide -arketed and sold loan /rodu+ts that were 9oth finan+ially risky and
diffi+ult for 9orrowers to understand, in+ludin% adEusta9le7rate -ort%a%es, where the interest rate
is adEusted /eriodi+ally in relation to a s/e+ified inde'$
4*$ The Countrywide -ort%a%es se+ured 9y said /ro/erties are adEusta9le rate
-ort%a%es, su9Ee+t to -onthly interest rate adEust-ents, 9ased on the "37-onth a.era%e of the
annual yields on a+ti.ely traded 0nited States Treasury Se+urities adEusted to a +onstant -aturity
of one year as /u9lished 9y the Aederal 8eser.e <oard, added to a fi'ed /er+enta%e known as a
H-ar%inI to the inde'$
41$ The Countrywide -ort%a%es se+ured 9y said /ro/erties are +o-/li+ated -ort%a%e
/rodu+ts whi+h enti+e +onsu-ers 9y offerin% a .ery low HteaserI -onthly /ay-ent 9ased on a
low interest rate, here 3$!!N, 3$3*N, and 3$4*N, res/e+ti.ely, for an introdu+tory /eriod, here
twel.e -onths, after whi+h the /ay-ents are in+reased dra-ati+ally$ 0nlike -ost adEusta9le7rare
loans where the rate +an only +han%e e.ery year or e.ery si' -onths, here the interest rate +an
+han%e e.ery -onth$
44$ Althou%h the first year’s /ay-ents are +al+ulated 9ased on a low interest rate,
after whi+h the -onthly /ay-ents are fi'ed and adEusted annually, the a+tual interest a++ruin% is
9ased on the -onthly adEusta9le rate, leadin% to the situation where the -onthly /ay-ent is
insuffi+ient to +o.er all of the a++rued interest, whi+h un/aid interest is added to the /rin+i/al
a-ount of the loan, resultin% in ne%ati.e a-ortiCation$ Of +ourse, sin+e the first year’s /ay-ents
are 9ased on an interest rate *N to 1N 9elow the a++ruin% interest rate, the /rin+i/al 9alan+e
owed %rows Bui+kly throu%h added un/aid interest$
4)$ The -onthly /ay-ent then is adEusted annually, to .ary no -ore than 4$*N fro-
the /re.ious -onthly /ay-ent, for the first ten years of the loan$ At the tenth year, the /ay-ent
would 9e Hre+astI to 9e fully a-ortiCin%, +ausin% a su9stantial Eu-/ in the /ay-ent a-ount$
46$ ;owe.er, the loan 9alan+e also has a ne%ati.e a-ortiCation +a/ of ""*N of the
ori%inal /rin+i/al of the loan, so that should the /rin+i/al 9alan+e rea+h the +a/, the -onthly
/ay-ent is i--ediately raised to the fully a-ortiCin% le.el 2i.e., all /ay-ents after the date the
+a/ is rea+hed -ust 9e suffi+ient to /ay off the new 9alan+e o.er the re-ainin% life of the loan5,
+ausin% a si%nifi+ant Eu-/ in the -onthly /ay-ent$
)!$ 8e%ulations /ro-ul%ated 9y the Aederal 8eser.e <oard under the Truth in
Lendin% A+t 2HTILAI5 reBuire that a lender /ro.ide a 9orrower with a series of no fewer than
twel.e s/e+ifi+ dis+losures desi%ned to show the 9orrower, as a++urately as /ossi9le, the a+tual
a-ount of the interest rate the loan with +arry, the freBuen+y of rate adEust-ents, and the nature
of the rate adEust-ents, in+ludin% the histori+al /erfor-an+e of the inde' to whi+h the rate is tied$
See "3 C$A$8$ 331$"62952352i O 'ii5$ Defendants failed to /ro.ide Plaintiff’s /rede+essors in
interest with the said dis+losures$
)"$ In 3!!1, a +onsortiu- of federal a%en+ies with lendin% o.ersi%ht res/onsi9ilities
3
issued an Intera%en+y :uidan+e on Nontraditional >ort%a%e Produ+t 8isks that warned of the
3
The Consortiu- in+luded the followin% a%en+ies, De/art-ent of the Treasury, Offi+e of the Co-/troller of the
Curren+y, <oard of :o.ernors of the Aederal 8eser.e Syste-, Aederal De/osit Insuran+e Cor/oration, Offi+e of
Thrift Su/er.ision, and the National Credit 0nion Ad-inistration$ It is /u9lished in the Aederal 8e%ister at,
Intera%en+y :uidan+e on Nontraditional >ort%a%e Produ+t 8isks, 4" Aed$ 8e%$ *)1!6 O *)1")$
dan%ers of this ty/e and other nontraditional -ort%a%e loan /rodu+ts, s/e+ifi+ally notin% the
dan%er of lenders and 9rokers e'tendin% adEusta9le rate -ort%a%es without suffi+ient dis+losure
or with -isleadin% dis+losures re%ardin% the loans’ adEusta9le nature$ See Intera%en+y :uidan+e,
4" Aed$ 8e%$ *)1"& O *)1")$
)3$ In li%ht of the in+reased risks /osed 9y nontraditional -ort%a%e loans, in+ludin%
the -ort%a%e here, the Intera%en+y :uidan+e e-/hasiCed the need to HPeQnsure that +onsu-ers
ha.e suffi+ient infor-ation to +learly understand loan ter-s and asso+iated risks /rior to -akin%
a /rodu+t +hoi+e$I 4" Aed$ 8e%$ at *)1"&$
)&$ On Se/te-9er "6, 3!!), the /rior owners of Pro/erty " Buit +lai-ed all their
ri%ht, title, and interest in said /ro/erty to the CSPPSP 2see atta+hed a true and +orre+t +o/y of
Buit +lai- deed -arked as EC/i@it $5$ On ?anuary "!, 3!!6 CSPPSP assi%ned to Plaintiff and@or
Plaintiff’s A%ent, any +lai-s arisin% or related to said /ro/erty and the ri%ht to /ursue su+h
+lai-s, a%ainst, a-on% others, any finan+ial institutions, 9y Buit +lai- deed and written
a%ree-ent 2see atta+hed a true and +orre+t +o/y of Buit +lai- deed -arked as EC/i@it :5$
)$ On O+to9er "1, 3!!), the /rior owners of Pro/erty & Buit7+lai-ed all their ri%ht,
title, and interest in said /ro/erty to CSPPSP, and assi%ned CSPPSP any +lai-s arisin% or related
to said /ro/erty and the ri%ht to /ursue su+h +lai-s, a%ainst, a-on% others, any finan+ial
institutions, 9y Buit +lai- deed and written a%ree-ent, 2see atta+hed a true and +orre+t +o/y of
Buit +lai- deed and assi%n-ent of +auses of a+tion -arked as EC/i@it ; and EC/i@it 1#,
res/e+ti.ely5$ The CSPPSP assi%ned to Plaintiff and@or Plaintiff’s A%ent any +lai-s arisin% or
relatin% to the Pro/erties 2see atta+hed a true and +orre+t +o/y of assi%n-ent of +auses of a+tion
-arked as EC/i@it 115$
)*$ On O+to9er 3!, 3!!), the /rior owners of Pro/erty 3 Buit7+lai-ed all their ri%ht,
title, and interest in said /ro/erty to the CSPPSP, and assi%ned to the CSPPSP any +lai-s arisin%
or related to said /ro/erty and the ri%ht to /ursue su+h +lai-s, a%ainst, a-on% others, any
finan+ial institutions, 9y Buit +lai- deed and written a%ree-ent 2see atta+hed a true and +orre+t
+o/y of Buit +lai- deed and assi%n-ent of +auses of a+tion -arked as EC/i@it 12 and EC/i@it
1", res/e+ti.ely5$ On Ae9ruary "3, 3!"!, the CSPPSP assi%ned to Plaintiff all +lai-s arisin% or
related to said /ro/erty and the ri%ht to /ursue su+h +lai-s, a%ainst, a-on% others, and any
finan+ial institution, 9y Buit +lai- deed 2see atta+hed a true and +orre+t +o/y of Buit +lai- deed
-arked as EC/i@it 1=5$
)1$ Plaintiff’s A%ent filed a lawsuit in Cook County, Illinois, Case No$ !6 L !"4&),
Leo Stoller v. Countrywide Financial, et. al. This +ase is a se/arate and distin+t +ause of a+tion
fro- this a+tion$ This +ase in.ol.es different /arties and a different +ause of a+tion$
)4$ A noti+e of lis pendens was filed with the 8e+order of Deeds in >ari+o/a County,
+itin% Pro/erty", Pro/erty 3 and Pro/erty & 2see atta+hed true and +orre+t +o/ies of lis pendens
for ea+h /ro/erty -arked as %rou/ EC/i@it 1D5$
))$ The Plaintiff’s A%ent, after filin% the Co-/laint in Case No$ !6 L !"4&), was in
dire+t +onta+t with Defendants, S-ith and #eri+h$ Plaintiff’s A%ent infor-ed these Defendants
that <OA had /la+ed the Pro/erty 3 for fore+losure on De+e-9er 4, 3!!6, De+e-9er "6, 3!!6,
and in ?anuary of 3!"!$ Plaintiff’s A%ent learned of the fore+losure throu%h a real estate 9roker
in AriCona and was ne.er notified for-ally of any fore+losure /ro+eedin%s$
)6$ Plaintiff’s A%ent ad.ised Defendants S-ith and #eri+h that they were en%a%ed in
the unlawful a+Buisition of the su9Ee+t /ro/erty without ad.isin% the Plaintiff of any for-al
fore+losure$ The afore-entioned Defendants had an o9li%ation under the Illinois and AriCona
8ules of Professional Condu+t, Illinois and AriCona law, to -ake sure that the Plaintiff was
lawfully %i.en noti+e of any fore+losure /ro+eedin% takin% /la+e on the Pro/erties whi+h were
the su9Ee+t of the liti%ation in Case No$ !6 L !"4&)$
6!$ Plaintiff’s A%ent ad.ised these Defendants that if the Pro/erties were sold without
due /ro+ess and /ro/er noti+e to the Plaintiff, that would rise to a se/arate and distin+t +ause of
a+tion and that Plaintiff’s A%ent would file a se/arate -ulti7-illion dollar a+tion a%ainst the-
2see atta+hed a true and +orre+t +o/ies of +orres/onden+e sent to and re+ei.ed 9y <ryan
Ca.e@Ste.en 8$ S-ith, -arked as EC/i@it 1<5$
6"$ Plaintiff learned on or a9out Ae9ruary 31, 3!"!, that Pro/erty 3 was unlawfully
sold at au+tion to Defendant, <N=, 9y Defendant, <OA on Ae9ruary 6, 3!"! 2see atta+hed a true
and +orre+t +o/y of trustee’s deed sale -arked as EC/i@it 1$5$
63$ Plaintiff was ne.er %i.en any /rior lawful noti+e of the fore+losure sale takin%
/la+e on Ae9ruary "3, 3!"!, des/ite the fa+t that Defendants, S-ith, #eri+h, and the <ryan Ca.e
LLP law fir- had knowled%e of the /endin% sale of the said real estate, were re/resentin% <ank
of A-eri+a@Countrywide Ainan+ial and 8e+onstru+t Co$, who was +ondu+tin% the sale$
Defendants +on+ealed the fore+losure sale fro- the Plaintiff, in order to unlawfully sell the
/ro/erty to Defendants <ank of New =ork >ellon for F1,11",$D#.## 2One7>illion, One7
;undred, Thirteen7Thousand, Se.en7;undred Aifty and No@"!! Dollars5$
6&$ Pro/erty 3 was sold unlawfully and without noti+e durin% the /enden+y of Case
No$ !6 L !"4&)$ Defendants had an o9li%ation to %i.e /ro/er noti+e to and infor- the Plaintiff
of the /endin% fore+losure sale$ This unlawful fore+losure sale %i.es rise to an entirely new
+ause of a+tion, whi+h is 9ein% 9rou%ht in this new +ase, whi+h is se/arate, and a/art fro- the
/rior Chan+ery +ase in.ol.in% new /arties$
6$ The sale of the Pro/erty 3 was -ade 9y an unlawful trustee deed si%ned 9y a
ro9o7si%ner listin% the seller as 8i9adeneira 2see atta+hed a true and +orre+t +o/y of the >ari+o/a
County Ta' 8e/ort, -arked as EC/i@it 1:)$ 8i9adeneira had HnoI interest in the /ro/erty,
ha.in% /re.iously sold it to CSPPSP$
6*$ At the ti-e of the fore+losure sale, 8i9adeneira was not the owner of the /ro/erty
and any deed transferrin% title fro- a non7owner to a third /arty is .oid ab initio. The owner of
the /ro/erty on Ae9ruary ), 3!"!, was the CSPPSP$
61$ The CSPPSP has assi%ned all +lai-s and +auses of a+tion re%ardin% all his
Pro/erties to Plaintiff’s A%ent under the do+trine of Assi%n-ent of Cause of A+tion 2see atta+hed
EC/i@it 115, as well known to defendants <ank of A-eri+a, Countrywide Ainan+ial Co,
8e+onstru+t Co, Ste.en 8$ S-ith, >i+hael #eri+h, and the law fir- of <ryan Ca.e LLP$
64$ Defendant, <N= unlawfully /ur+hased Pro/erty 3 su9Ee+t to the lis pendens 2see
atta+hed EC/i@it 1D5 and had knowled%e of the /endin% liti%ation in.ol.in% the /ro/erty and
knew or should ha.e known that if they 9ou%ht said /ro/erty, they were on noti+e that they
would 9e sued$ Defendants <ank of A-eri+a, Country #ide Ainan+ial Co$, 8e+onstru+t Co$,
<ryan Ca.e LLP, Ste.en 8$ S-ith, >i+hael #eri+h, <ank of New =ork >ellon entered into a
+ons/ira+y, had an a%ree-ent 9etween the-sel.es to defraud the /ro/erty owner of Pro/erty 3
9y knowin%ly and willfully refusin% to notify the Plaintiff of the fore+losure sale des/ite the fa+t
that the /arties were en%a%ed in liti%ation to%ether in Illinois Case No$ !6 L !"4&) 2transferred
to Chan+ery5 and Defendants were on noti+e$
6)$ Illinois attorney %eneral, Lisa >adi%an, has filed a law suit alon% with * other
attorney %enerals a%ainst Defendant <ank of A-eri+a’s Countrywide Ainan+ial entity for
en%a%in% in de+e/ti.e trade /ra+ti+es and de+ei.in% /ro/erty owners 2see atta+hed EC/i@it 15$
The >assa+husetts attorney %eneral, >artha Coakley, filed a lawsuit a%ainst Defendant, <OA, on
De+e-9er ", 3!"" 2>assa+husetts Su/erior Court, Case No$ ""7&1&, see atta+hed EC/i@it 25,
whi+h are in+or/orated herein 9y referen+e re/led and realle%ed 7 /ara%ra/h 9y /ara%ra/h in
su//ort of this Co-/laint$
66$ Defendants ha.e en%a%ed in a /attern of fraudulent 9usiness /ra+ti+es, de+e/ti.e
trade /ra+ti+es in .iolation of Ci.il 8a+keteerin% Statutes and aided and a9etted 9y <ryan Cra.e
LLC, Ste.en 8 S-ith, >i+hael #eri+h and other un7na-ed attorneys of the <ryan Ca.e law fir-
lo+ated in Phoeni', AriCona and throu%hout the 0nited States$ These Defendants are +har%ed
with -ail and wire fraud in the +o--ission of their fraudulent a+ti.ities outlined a9o.e$ All of
the Defendants entered into an a%ree-ent a-on% the-sel.es to +ons/ire to defraud Illinois
/ro/erty owners, s/e+ifi+ally the Plaintiff, of their /ro/erty ri%hts$
"!!$ The fraudulent +ondu+t +o-/lained of in this Co-/laint is a -atter of /u9li+
re+ord and is nothin% -ore than a +ontinuation of the de+e/ti.e trade /ra+ti+es, fraudulent
+ondu+t, +ons/ira+y, and +i.il ra+keteerin% a+ti.ities that the defendants are known to en%a%e in
as a nor-al and a++e/ted 9usiness /ra+ti+e$ The Defendants, Ste.en 8$ S-ith, >i+hael #eri+h,
<ryan Ca.e LLP are +har%ed with, +ons/ira+y, fraud, +on+eal-ent, .iolations of the Illinois and
AriCona 8ules of Professional Condu+t 8ule )$, aidin% and a9ettin% the Defendants <ank of
A-eri+a, 8e+onstru+t Co, Countrywide Ainan+ial, #alter E$ >assey, ?oe Pri+e and <rian T$
>oynihan with the +o--ission of a tort$
&
"!"$ Defendant <rian >oynihan CEO of Defendant <ank of A-eri+a on ?anuary "&,
3!"! stated under oath, in a hearin% 9efore the Ainan+ial Crisis InBuiry Co--ission in
#ashin%ton D$ C$, and HO.er the +ourse of this 2finan+ial +risis, <ank of A-eri+a5 +aused a lot
of da-a%e$ Ne.er has it 9een +learer how -istakes -ade 9y 2<ank of A-eri+a5R+an affe+t
>ain Street$I 2See atta+hed a true and +orre+t +o/y of arti+le -arked as EC/i@it 1;$5
"!3$ Defendants ha.e ad-itted to ha.in% /arti+i/ated in and +ausin% the +urrent
-ort%a%e +risis$ The Defendant’s initially issued /redatory loans, en%a%ed in de+e/ti.e trade
/ra+ti+es, defrauded -ort%a%ors and now these sa-e Defendants in a +ontinuation of their
on%oin% s+he-e to defraud /ro/erty owners ha.e failed and@or refused to notify the Plaintiff that
Pro/erty 3, whi+h was the su9Ee+t of /endin% liti%ation, was 9ein% unlawfully
fore+losed@au+tioned off to HanotherI 9ank, Defendant New =ork >ellon <ank on Ae9ruary 6,
3!"!$ Defendants S-ith and #eri+h +learly aided and a9etted the other Defendants in
defraudin% and de/ri.in% the Plaintiff of his due /ro+ess and eBual /rote+tion 9y failin% to notify
the Plaintiff or his a%ent of the fore+losure@au+tion of the su9Ee+t Pro/erties$ 0nder any o9Ee+ti.e
standard all of the Defendants are en%a%ed in a +ri-inal enter/rise in .iolation of the Ci.il
8a+keteerin% Statute$
"!&$ The Plaintiff holds ri%ht to a sin%le fa-ily residen+e, Pro/erty ", whi+h was
assi%ned 9y the ori%inal owner, Philli/ P$ Stone 2HStoneI5, to the Plaintiff on Se/te-9er "6, 3!!),
and all +lai-s and +ounter+lai-s asso+iated with this /ro/erty are also assi%ned to the Plaintiff$
&
Illinois A//ellate Court ha.e held that an attorney +an 9e lia9le for aidin% and a9ettin% his +lient in the +o--ission
of a tort See Thornwood Inc., v. Jenner & loc! 3!!& Ill A//$ Le'is "")& 2"
st
Dist$ Se/t 3&5$
Stone utiliCed the ser.i+es of Countrywide, a notoriously de+e/ti.e trade /ra+ti+e institution, to
o9tain finan+in%,
2a5 Durin% the +ourse of the loan ne%otiation and +o-/letion of the loan
a//li+ation, Countrywide, throu%h its a%ents and@or e-/loyees, asked Stone to state his
in+o-e, and Stone a++urately /ro.ided his in+o-e$ Countrywide, howe.er, +hose to
i%nore the fi%ure /ro.ided 9y Stone and instead, Countrywide su9-itted the loan u/on a
fraudulently inflated stated in+o-e fi%ure in order to Bualify Stone for the loan$ Su+h
in+o-e was false, 9ut was su9-itted to their underwritin% de/art-ents 9y their
authoriCed loan re/resentati.es, in+ludin% DOES " throu%h 3!, knowin% that su9-ission
of the loans 9ased u/on that Stone’s a+tual in+o-e would lead to a denial of the
a//li+ation for the loan$ The underwriters at Countrywide did not e'a-ine the /ro.ided
e.iden+e of a+tual in+o-e, +hoosin% instead to use a 9lind eye in order to a//ro.e the
loan$ At all ti-es rele.ant, Countrywide was +o-/letely un+on+erned with the suita9ility
of the loan for Stone, or whether or not he would fail in -akin% /ay-ents as the loan was
desi%ned for resale to 9e se+uritiCed as /art of a /ool of +ollateral of #all Street 9onds
sold for the -ost /art to unwittin% in.estors o.erseas in I+eland, Norway and China$
Thus, the loan underwriters took no a+tion toward +o-/letin% a fully do+u-ented loan
file or .erifi+ation of Stone’s in+o-e$ The -ana%e-ent of Countrywide so instru+ted the
underwriters, as they knew they were takin% no risk and would -ake a lar%e /rofit on
%eneratin% the loan and another lar%e /rofit in sellin% it off to 9e se+uritiCed$
"!$ On or a9out ?uly "3, 3!!1, Countrywide doin% 9usiness as A-eri+a’s #holesale
Lender, as lender, entered a deed of trust on a sin%le fa-ily residen+e, Pro/erty 3, on 9ehalf of
the ori%inal owner, 8i9adeneira 2see atta+hed EC/i@it D5$
"!*$ On or a9out ?uly 34, 3!!1, Countrywide as lender and 9enefi+iary entered a deed
of trust on a sin%le7fa-ily residen+e, Pro/erty &, on 9ehalf of the ori%inal owner, 8i9adeneira
2see atta+hed EC/i@it <5$
"!1$ Countrywide en%a%es in residential -ort%a%e lendin% a+ross the nation and the
state of AriCona$ The Co-/laints filed 9y the Illinois attorney %eneral and the >assa+husetts
attorney %eneral are re7/led, realle%ed herein and -ade an inte%ral /art of the +har%es filed
herein 2see EC/i@it 1 and EC/i@it 2, res/e+ti.ely$5
"!4$ Countrywide -arketed and sold loan /rodu+ts that were 9oth finan+ially risky and
diffi+ult for 9orrowers to understand, in+ludin% adEusta9le7rate -ort%a%es, where the interest rate
is adEusted /eriodi+ally in relation to a s/e+ified inde'$
"!)$ The Countrywide -ort%a%es se+ured 9y said /ro/erties are adEusta9le rate
-ort%a%es, su9Ee+t to -onthly interest rate adEust-ents, 9ased on the "37-onth a.era%e of the
annual yields on a+ti.ely traded 0nited States Treasury Se+urities adEusted to a +onstant -aturity
of one year as /u9lished 9y the Aederal 8eser.e <oard, added to a fi'ed /er+enta%e known as a
H-ar%inI to the inde'$
"!6$ The Countrywide -ort%a%es se+ured 9y said /ro/erties are +o-/li+ated -ort%a%e
/rodu+ts, whi+h enti+e +onsu-ers 9y offerin% a .ery low HteaserI -onthly /ay-ent 9ased on a
low interest rate, here 3$!!N, 3$3*N, and 3$4*N, res/e+ti.ely, for an introdu+tory /eriod, here
twel.e -onths, after whi+h the /ay-ents are in+reased dra-ati+ally$ 0nlike -ost adEusta9le7rare
loans where the rate +an only +han%e e.ery year or e.ery si' -onths, here the interest rate +an
+han%e e.ery -onth$
""!$ Althou%h the first year’s /ay-ents are +al+ulated 9ased on a low interest rate,
after whi+h the -onthly /ay-ents are fi'ed and adEusted annually, the a+tual interest a++ruin% is
9ased on the -onthly adEusta9le rate, leadin% to the situation where the -onthly /ay-ent is
insuffi+ient to +o.er all of the a++rued interest, whi+h un/aid interest is added to the /rin+i/al
a-ount of the loan, resultin% in ne%ati.e a-ortiCation$ Of +ourse, sin+e the first year’s /ay-ents
are 9ased on an interest rate *N to 1N 9elow the a++ruin% interest rate, the /rin+i/al 9alan+e
owed %rows Bui+kly throu%h added un/aid interest$
"""$ The -onthly /ay-ent then is adEusted annually, to .ary no -ore than 4$*N fro-
the /re.ious -onthly /ay-ent, for the first ten years of the loan$ At the tenth year, the /ay-ent
would 9e Hre+astI to 9e fully a-ortiCin%, +ausin% a su9stantial Eu-/ in the /ay-ent a-ount$
""3$ ;owe.er, the loan 9alan+e also has a ne%ati.e a-ortiCation +a/ of ""*N of the
ori%inal /rin+i/al of the loan, so that should the /rin+i/al 9alan+e rea+h the +a/, the -onthly
/ay-ent is i--ediately raised to the fully a-ortiCin% le.el 2i.e., all /ay-ents after the date the
+a/ is rea+hed -ust 9e suffi+ient to /ay off the new 9alan+e o.er the re-ainin% life of the loan5,
+ausin% a si%nifi+ant Eu-/ in the -onthly /ay-ent$
""&$ 8e%ulations /ro-ul%ated 9y the Aederal 8eser.e <oard under the Truth in
Lendin% A+t 2HTILAI5 reBuire that a lender /ro.ide a 9orrower with a series of no fewer than
twel.e s/e+ifi+ dis+losures desi%ned to show the 9orrower, the a+tual a-ount of the interest rate
the loan with +arry, the freBuen+y of rate adEust-ents, and the nature of the rate adEust-ents,
in+ludin% the histori+al /erfor-an+e of the inde' to whi+h the rate is tied$ See "3 C$A$8$
331$"62952352i O 'ii5$
""$ In 3!!1, a +onsortiu- of federal a%en+ies with lendin% o.ersi%ht res/onsi9ilities

issued an Intera%en+y :uidan+e on Nontraditional >ort%a%e Produ+t 8isks that warned of the
dan%ers of this ty/e and other nontraditional -ort%a%e loan /rodu+ts, s/e+ifi+ally notin% the
dan%er of lenders and 9rokers e'tendin% adEusta9le rate -ort%a%es without suffi+ient dis+losure
or with -isleadin% dis+losures re%ardin% the loans’ adEusta9le nature 2see Intera%en+y :uidan+e,
4" Aed$ 8e%$ *)1"& O *)1")5$

The Consortiu- in+luded the followin% a%en+ies, De/art-ent of the Treasury, Offi+e of the Co-/troller of the
Curren+y, <oard of :o.ernors of the Aederal 8eser.e Syste-, Aederal De/osit Insuran+e Cor/oration, Offi+e of
Thrift Su/er.ision, and the National Credit 0nion Ad-inistration$ It is /u9lished in the Aederal 8e%ister at,
Intera%en+y :uidan+e on Nontraditional >ort%a%e Produ+t 8isks, 4" Aed$ 8e%$ *)1!6 O *)1")$
""*$ In li%ht of the in+reased risks /osed 9y nontraditional -ort%a%e loans, in+ludin%
the -ort%a%e here, the Intera%en+y :uidan+e e-/hasiCed the need toHPeQnsure that +onsu-ers
ha.e suffi+ient infor-ation to +learly understand loan ter-s and asso+iated risks /rior to -akin%
a /rodu+t +hoi+e$I 4" Aed$ 8e%$ at *)1"&$
""1$ The Intera%en+y :uidan+e further re+o%niCed the likelihood of /ay-ent sho+k
and e-/hasiCed the need for lendin% institutions to -aintain Bualifi+ation standards that in+lude
a +redi9le analysis of a 9orrower’s +a/a+ity to re/ay the full a-ount of the +redit e'tended at the
fully inde'ed rate, rather than usin% dis+ounted /ay-ents in Bualifyin% 9orrowers$ 4" Aed$ 8e%$
at *)1""$
""4$ On or a9out Se/te-9er "6, 3!!), Stone Buit7+lai-ed all his ri%ht, title, and
interest in Pro/erty " to the CSPPSP and the CSPPSP assi%ned to Plaintiff any +lai-s arisin% or
related to said /ro/erty and the ri%ht to /ursue su+h +lai-s, a%ainst, a-on% others, any finan+ial
institutions, 9y Buit +lai- deed and written a%ree-ent 2see atta+hed EC/i@it+ $, 11, an- 1=5$
"")$ On or a9out O+to9er ", 3!"!, the Plaintiff +onta+ted Countrywide@<ank of
A-eri+a 9y 0$S$ -ail on 9ehalf of Stone, and reBuested a full a++ountin% of any and all -onies
+lai-ed to 9e owed, in referen+e to Loan No$ "&1**&*" for Pro/erty ", /ursuant to the Aair
De9t Colle+tion A+t, "* 0$S$C$ J "1632a52"5, and "* 0$S$C$ J "16"2%52*5$ Countrywide@<ank of
A-eri+a ne.er /ro.ided the Plaintiff with any a++ountin%, in .iolation of the Aair De9t
Colle+tion A+t, "* 0$S$C$ J "1632%52a52"5, and "* 0$S$C$ J "1632%52*5$ This /ro/erty is
+urrently and unlawfully set for a fore+losure sale on ?une ", 3!"3, at "!,!! a$-$ 8e+onstru+t
has /re/ared a fraudulent Deed of Trust, i%norin% that the +urrent owner, CPPSP assi%ned all
+lai-s and ri%hts to Plaintiff and@or Plaintiff’s A%ent$ Plaintiff is seekin% a /reli-inary and
/er-anent inEun+tion fro- 8e+onstru+t and@or <ank of A-eri+a fro- sellin% Plaintiff’s /ro/erty
2see a true and +orre+t +o/y of whi+h is atta+hed hereto and -arked as EC/i@it 2#, Noti+e of
Trustee Sale5$
""6$ On or a9out >ay 3, 3!!1, Stone, o9tained a loan fro- Countrywide for Pro/erty
" 2see atta+hed EC/i@it =5$ Stone was reBuired to state his in+o-e as /art of the initial loan
a//li+ation /ro+esses with Countrywide$ Countrywide did not show Stone what a-ounts were
e.entually stated in res/e+t to his in+o-e in the loan a//li+ations$
"3!$ Countrywide -ade the loan to Stone, des/ite the fa+t that Stone was not Bualified
for the loans 9ased on his a+tual in+o-e$
"3"$ Stone was +learly unBualified for the loans 9ased u/on his a+tual in+o-e, thou%h
the loan was, in fa+t, %i.en 9y Countrywide 9ased u/on Countrywide fraudulently insertin%
inflated fi%ures in their loan a//li+ations, whi+h has 9een esta9lished is a /ra+ti+e of
Countrywide$
"33$ Countrywide was +o-/letely un+on+erned with Stone’s a+tual in+o-e and +hose
to a//ro.e the loan, and used inflated in+o-e fi%ures on the a//li+ations in order to fraudulently
Bualify Stone for the said loan$
"3&$ At all ti-es, Countrywide led Stone into the 9elief that he Bualified for his loan
9ased u/on his a+tual in+o-e, when Countrywide knew or should ha.e known that Stone was
not Bualified$
"3$ Countrywide en%a%ed in de+e/ti.e loan /ra+ti+es as a tool to /er-it a 9roker
and@or itself to /la+e a suffi+ient in+o-e on loan a//li+ations in order to dee- that a 9orrower
su+h as Stone was Bualified for the loan$
"3*$ Countrywide en%a%ed in a /ra+ti+e of a//ro.in% loans without reBuestin%
do+u-entation with the full knowled%e that the -ort%a%or was not Bualified for loan$
"31$ The Stated In+o-e Pro%ra- allowed Countrywide to 9e knowin%ly i%norant of
whether the 9orrowers Bualified for the loan and then su9seBuently -isre/resented to Stone that
he was Bualified for the loan$
"34$ Any and all do+u-ents Stone re+ei.ed also failed to in+lude initial dis+losures and
final dis+losures, whi+h in+lude 8ESPA and TILA dis+losures$ >oreo.er, false TILA dis+losures
were /ro.ided whi+h +on+ealed the true +ost of the loan$
"3)$ On or a9out O+to9er "1, 3!!), 8i9adeneira 2/rior owner of Pro/erty &5, Buit7
+lai-ed all her ri%ht, title, and interest in said /ro/erty to CSPPSP, and assi%ned CSPPSP,
Christo/her Stoller and@or Leo Stoller, any +lai-s arisin% or related to said /ro/erty and the ri%ht
to /ursue su+h +lai-s, a%ainst, a-on% others, any finan+ial institutions, 9y Buit +lai- deed and
written a%ree-ent 2see atta+hed EC/i@it 1#5$ CSPPSP has also assi%ned to Plaintiff and@or
Plaintiff’s A%ent any +lai-s arisin% or related to his Pro/erties$
"36$ On or a9out Se/te-9er ", 3!!6, the Plaintiff +onta+ted Countrywide@<ank of
A-eri+a 9y 0$S$ -ail on 9ehalf of 8i9adeneira, and reBuested a full a++ountin% of any and all
-onies +lai-ed to 9e owed, in referen+e to Loan No$ ""311)"4 for Pro/erty &, /ursuant to the
Aair De9t Colle+tion A+t, "* 0$S$C$ J "1632a52"5, and "* 0$S$C$ J "16"2%52*5$
"&!$ Countrywide@<ank of A-eri+a ne.er /ro.ided the Plaintiff with any a++ountin%,
in .iolation of the Aair De9t Colle+tion A+t, "* 0$S$C$ J "1632%52a52"5, and "* 0$S$C$ J "1632%5
2*5$
"&"$ On or a9out O+to9er 3!, 3!!), 8i9adeneira Buit7+lai-ed all her ri%ht, title, and
interest to CSPPSP, and assi%ned Plaintiff and@or Plaintiff’s A%ent any +lai-s arisin% or related to
said /ro/erty and the ri%ht to /ursue su+h +lai-s, a%ainst, a-on% others, any finan+ial
institutions, 9y Buit +lai- deed and written a%ree-ent 2see atta+hed EC/i@it 125$ Plaintiff and@or
Plaintiff’s A%ent has standin% under the Assi%n-ent of Clai-s Do+trine$
"&3$ On or a9out No.e-9er "*, 3!!6, the Plaintiff +onta+ted Countrywide 9y 0$S$
-ail on 9ehalf of 8i9adeneira, and reBuested a full a++ountin% of any and all -onies +lai-ed to
9e owed, in referen+e to Loan No$ "!6&&!6 for Pro/erty &, /ursuant to the Aair De9t
Colle+tion A+t, "* 0$S$C$ J "1632a52"5, and "* 0$S$C$ J "16"2%52*5, and Countrywide@<ank of
A-eri+a after de-and and written noti+e for a++ountin%, failed and refused to /ro.ide Plaintiff
with any a++ountin%$
"&&$ It is Countrywide@<ank of A-eri+a’s /oli+y to ne.er /ro.ide a /arty with any
a++ountin%, in .iolation of the Aair De9t Colle+tion A+t, "* 0$S$C$ J "1632%52a52"5, and "*
0$S$C$ J "1632%52*5$
"&$ On or a9out O+to9er 3!, 3!!), the /rior owner of Pro/erty &, 8i9adeneira, Buit7
+lai-ed all her ri%ht, title, and interest in said /ro/erty to CSPPSP, and assi%ned CPPSP any
+lai-s arisin% or related to said /ro/erty and the ri%ht to /ursue su+h +lai-s, a%ainst, a-on%
others, any finan+ial institutions, 9y Buit +lai- deed and written a%ree-ent 2see atta+hed EC/i@it
125$ 8i9adeneira has assi%ned to CSPPSP and Christo/her Stoller any +lai-s arisin% or related
to this /ro/erty$ CSPPSP then assi%ned any and all +lai-s to the Pro/erties to Plaintiff and@or
Plaintiff’s A%ent 2see atta+hed EC/i@it 115$ Plaintiff has standin% to sue on 9ehalf of the
afore-entioned Pro/erties$
"&*$ On or a9out >ar+h "*, 3!!6, the Plaintiff +onta+ted ;F8 <lo+k <ank 2H;F8I5
on 9ehalf of 8i9adeneira, and reBuested a full a++ountin% of any and all -onies +lai-ed to 9e
owed, in referen+e to Pro/erty , /ursuant to the Aair De9t Colle+tion A+t, "* 0$S$C$ J "1632a5
2"5, and "* 0$S$C$ J "16"2%52*5$ ;F8 refused to /ro.ide a full a++ountin% in kee/in% with their
unlawful /oli+y to a9stain fro- /ro.idin% Hfull a++ountin%$I
"&1$ Pursuant to the Aair De9t Colle+tion A+t, Plaintiff -ade a de-and on
Countrywide to /ro.ide a++ountin%s on 9ehalf of the Pro/erties$ Plaintiff ad.ised -ort%a%ees of
the Pro/erties to +ease any and all +olle+tion a+ti.ities /endin% the /rodu+tion of a full
a++ountin% for ea+h of the a9o.e /ro/erties 2see /ara%ra/hs 3!6 7 3! of this Co-/laint5$
Plaintiff also reBuested a loan -odifi+ation for the said /ro/erties and was infor-ed that the
Pro/erties had to 9e in delinBuen+y /rior to +onsideration of loan -odifi+ations$ Plaintiff’s
/rede+essor in interest and@or Plaintiff was denied loan -odifi+ations on the said Pro/erties$
"&4$ Countrywide failed to /ro.ide noti+e to the 9orrower and@or the Plaintiff, of
a++eleration of the -ort%a%e /ay-ents /ursuant to the >onthly AdEusta9le 8ate 8iders$
"&)$ On or a9out >ay &!, 3!!6, Plaintiff notified the Trustee that there were o9Ee+tions
to the sale of Pro/erty /ursuant to A$8$S$ J &&7)""2C5$ The Trustee ne.er ser.ed /ro/er noti+e
on the Plaintiff or CSPPSP, nor /osted any lawful noti+e on Pro/erty , nor infor-ed the Plaintiff
in any -anner that a trustee sale was s+heduled to take /la+e on ?une 31, 3!!6, /ursuant to
A$8$S$ J &&7)!6$ Ch$ 1$" 7 Aailure to :i.e Noti+e$
"&6$ Notwithstandin% Plaintiff’s o9Ee+tions to any trustee sale, an unlawful trustee sale
was +ondu+ted on or a9out ?une 3*, 3!!6, and Pro/erty was sold to Leonard Street and Donna
Street for an un+ons+iona9ly low /ri+e$ The Deed of Trust was unlawfully si%ned 9y a Hro9oI
si%ner and was fraudulently /re/ared outside the +hain of title$ The deed is thus .oid ab initio, as
well known to Defendants$
"!$ On or a9out O+to9er 3, 3!!*, 8i9adeneira o9tained a loan fro- ;F8 for
Pro/erty $
""$ On or a9out ?uly "3, 3!!1, 8i9adeneira o9tained a loan fro- Countrywide
Ainan+ial for Pro/erty 3$
"3$ On or a9out ?uly 34, 3!!1, 8i9adeneira o9tained a loan fro- Countrywide
Ainan+ial for Pro/erty &$
"&$ 8i9adeneira was reBuired to state her in+o-e as /art of the initial loan a//li+ation
/ro+esses with Countrywide for Pro/erty 3 and Pro/erty &$ Countrywide Ainan+ial did not show
8i9adeneira what a-ounts were e.entually stated in res/e+t to her in+o-e in the loan
a//li+ations for either /ro/erty$
"$ <ased on the fore%oin%, and the ulti-ate loans re+ei.ed, 8i9adeneira’s de9t to
in+o-e ratio 2HDTII5 was e'+essi.e u/on the re+o--ended industry standard of 3*N, as well7
known to Countrywide Ainan+ial$
"*$ Countrywide -ade the loans to 8i9adeneira des/ite the fa+t that she was not
Bualified for the loans 9ased on her a+tual in+o-e for Pro/erty 3 or Pro/erty &, in kee/in% with
Defendants’ s+he-e to tar%et unBualified /arties for loans that they +ould not afford in order to
set the- u/ for fore+losure$
"1$ Countrywide en%a%ed in de+e/ti.e loan /ra+ti+es and has 9een sued 9y Illinois
Attorney :eneral and fi.e other attorney %enerals for de+e/ti.e loan /ra+ti+es$ Countrywide
/aid an L)$& 9illion dollar settle-ent /redi+ated on their -ort%a%e loan fraud 9usiness$
"4$ The for-er Countrywide Chief E'e+uti.e Offi+er, An%elo >oCilo, was +har%ed
with -ort%a%e loan fraud, de+e/ti.e trade /ra+ti+es, and /aid a L14 -illion fine on or a9out
No.e-9er *, 3!"! to the Se+urities E'+han%e Co--issionK 2a5 it is a -atter of /u9li+ re+ord
that Countrywide Ainan+ial is a fraudulent dis+redited ho-e loan -aker$
")$ 8i9adeneira was +learly unBualified for the loans 9ased u/on her a+tual in+o-e,
thou%h the loans were, in fa+t, %i.en 9y Countrywide 9ased u/on Countrywide fraudulently
insertin% inflated fi%ures in their loan a//li+ations, whi+h has 9een esta9lished is a /ra+ti+e of
Countrywide$
"6$ Countrywide en%a%ed in de+e/ti.e loan /ra+ti+es as a tool to /er-it a 9roker
and@or itself to /la+e a suffi+ient in+o-e on loan a//li+ations in order to dee- that an unBualified
9orrower su+h as 8i9adeneira was eli%i9le for the loan$
"*!$ Countrywide en%a%ed in a /ra+ti+e of a//ro.in% loans without reBuestin%
do+u-entation with the full knowled%e that the -ort%a%or was not Bualified for loans$
"*"$ The Stated In+o-e Pro%ra- allowed Countrywide to 9e knowin%ly i%norant of
whether the 9orrowers Bualified for the loan and then su9seBuently -isre/resented to
8i9adeneira that she was Bualified for the loan$
"*3$ The dis+losures 8i9adeneira re+ei.ed also failed to in+lude any a++urate 8ESPA
and TILA dis+losures$ >oreo.er, false TILA dis+losures were /ro.ided whi+h +on+ealed the true
+ost of the loan, and were fraudulently withheld fro- 8i9adeneira as was Countrywide’s
de+e/ti.e /ra+ti+es$
"*&$ 8i9adeneira was reBuired to state her in+o-e as /art of the initial loan a//li+ation
/ro+esses with ;F8 for Pro/erty $ ;F8 did not show 8i9adeneira what a-ounts were
e.entually stated in res/e+t to her in+o-e in the loans a//li+ations for Pro/erty $
"*$ ;F8 -ade the loan to 8i9adeneira des/ite the fa+t that she was not Bualified for
the loan 9ased on her a+tual in+o-e for the Pro/erty $
"**$ 8i9adeneira was +learly unBualified for the loan 9ased u/on her a+tual in+o-e,
thou%h the loans were, in fa+t, %i.en 9y ;F8 9ased u/on ;F8 fraudulently insertin% inflated
fi%ures in their loan a//li+ation$
"*1$ ;F8 was +o-/letely un+on+erned with 8i9adeneira’s a+tual in+o-e and +hose to
a//ro.e the loan, and used inflated in+o-e fi%ures on the a//li+ation in order to fraudulently
Bualify her for the said loan for Pro/erty $
"*4$ At all ti-es, ;F8 led 8i9adeneira into the 9elief that she Bualified for her loan
9ased u/on her a+tual in+o-e, when ;F8 knew or should ha.e known that 8i9adeneira was not
Bualified for Pro/erty $
"*)$ ;F8 en%a%ed in de+e/ti.e loan /ra+ti+es as a tool to /er-it a 9roker and@or ;F8
itself to /la+e a suffi+ient in+o-e on loan a//li+ation in order to dee- that a 9orrower su+h as
8i9adeneira was Bualified for the loan$
"*6$ ;F8 en%a%ed in a /ra+ti+e of a//ro.in% a loan without reBuestin% do+u-entation
with the full knowled%e that the -ort%a%or was not Bualified for loan$
"1!$ The Stated In+o-e Pro%ra- allowed ;F8 to 9e knowin%ly i%norant of whether
the 9orrowers Bualified for the loan and then su9seBuently -isre/resent to 8i9adeneira that she
was Bualified for the loan$
"1"$ Any and all do+u-ents 8i9adeneira re+ei.ed also failed to in+lude initial
dis+losures and final dis+losures, whi+h in+lude 8ESPA and TILA dis+losures$ >oreo.er, false
TILA dis+losures were /ro.ided whi+h +on+ealed the true +ost of the loan$
"13$ Defendants failed to +o-/ly with A$8$S$ J1!6!1, in+or/oratin% the reBuire-ents
to +o-/ly with a//li+a9le federal dis+losure statutes and re%ulations$
"1&$ In addition to .iolations of the state and federal statutes alle%ed a9o.e, the
+ondu+t of Defendants as set forth herein +onstitutes unfair or de+e/ti.e a+ts of /ra+ti+es,
in+ludin% 9ut not li-ited to lurin% 9orrowers with -isleadin% do+u-ents and failin% to dis+lose
loan ter-s in su+h ti-e and -anner as would /er-it 9orrower to o9tain inde/endent ad.i+e or
undertake adeBuate re.iew to e.aluate the desira9ility of loan ter-s$
"1$ Defendants’ a+tions as set forth a9o.e o++urred in the +ondu+t of trade or
+o--er+e$
"1*$ Defendants’ +ondu+t har-ed their 9orrower, in+ludin%, 9ut not li-ited to 9y the
9orrowers, 9ein% de/ri.ed of the a9ility to adeBuately re.iew their -ort%a%e ter-s, +o-/are the
true +ost of +redit to other /ro/osals, or to sho/ for -ore fa.ora9le ter-s$ This, in turn, +aused
da-a%es in a-ount /aid in e'+ess interest, fees, loss of eBuity, ad.erse effe+ts on +redit ratin%s,
+ul-inatin% in the i-/endin% fore+losures of the Pro/erties, and the ti-e, e'/ense, and stress
in+urred in seekin% to re+tify these /ro9le-s$
"11$ Defendants’ +ondu+t was the /ro'i-ate +ause of inEury to 9orrower$
"14$ The +har%es ha.e arisen out of Defendant’s en%a%in% in a fraudulent trustee sale
of real estate listed in Plaintiff’s +ounter+lai- and in the fraudulent for+i9le detainer 2see a true
and +orre+t +o/y of whi+h is atta+hed hereto and -arked as EC/i@it 215 a+tion filed 9y the
Defendants without due /ro+ess in order to unlawfully seiCe Pro/erty 3, whi+h is the su9Ee+t of
the fraudulent for+i9le detainer$
"1)$ In +arryin% out their fraudulent s+he-e, Defendants and their lawyers en%a%ed in
false swearin%, filin% a fri.olous trustee sale of real estate and filin% a fraudulent for+i9le
detainer a+tion a%ainst 8i9adeneria, a /arty that the Defendants knew was not in /ossession of
Pro/erty 3 that is the underlyin% su9Ee+t of this +ase$ Defendants knew that 8i9adeneira sold
Pro/erty 3 in O+to9er 3!!), to the CSPPSP$ The Defendants filed a false, fraudulent, for+i9le
detainer a+tion to defraud Plaintiff out of his interest in Pro/erty 3$ Defendants +ontinue to
+o--it fraud 9y assertin% that the for+i9le detainer na-in% the HnonI /arty 8i9adeneria, is a
.alid lawful /ro+eedin% when in fa+t all of the Defendants know that the for+i9le detainer filed
a%ainst non /arties was done in order to defraud the Plaintiff, under the +olor of law, of his
interest in the su9Ee+t /ro/erty without due /ro+ess$
"16$ On or a9out O+to9er 3!, 3!!), the owner of the Pro/erty, 8i9adeneria, Buit7
+lai-ed all her ri%ht, title, and interest in Pro/erty 3 to the CSPPSP and on or a9out Ae9ruary "3,
3!"!, the CSPPSP Buit +lai-ed and released unto Plaintiff fore.er all ri%ht title, and interest in
Pro/erty 3 2see atta+hed EC/i@it 11 an- 125$
"4!$ On or a9out Ae9ruary 31, 3!"!, Plaintiff learned that Pro/erty 3 was sold at
au+tion to <N= on Ae9ruary 6, 3!"!$
"4"$ On A/ril ", 3!"!, Plaintiff’s A%ent a//eared 9efore Illinois Cir+uit Court ?ud%e
>ary Ann >ason in an Illinois Law Di.ision +ase, Leo Stoller .$ Countrywide <ank, 2Case No$
!6 L !"4&)5 in a lawsuit in.ol.in% the su9Ee+t /ro/ertyK Defendants, attorneys S-ith and
#eri+h, re/resented Defendants <OA and Countrywide$ Plaintiff +alled attention to the unlawful
trustee sale of the su9Ee+t /ro/erty on Pa%e , at Line "73 and on Pa%e *, at Line "73"$ S-ith
and #eri+h or any other re/resentati.e fro- the <ryan Ca.e law fir-, n4v45 -4ni4- on the
re+ord that the su9Ee+t /ro/erty was unlawfully sold at a Trustee Sale in AriCona without any
/rior noti+e e.er ser.ed u/on the Plaintiff 2see atta+hed true and +orre+t +o/y of the A/ril ",
3!"! Offi+ial Trans+ri/t, -arked as EC/i@it 225$
"43$ A fraudulent trustee deed si%ned 9y an unauthoriCed ro9o7si%nin% listin% the seller
as 8i9adeneira -ade the sale of Pro/erty 3 unlawful, when the owner was the CSPPSP, as well
known to the defendants$
"4&$ At the ti-e of the fore+losure sale, 8i9adeneira, 7a+ not the owner of Pro/erty 3
and any deed transferrin% title fro- a non7owner to a third /arty is .oid ab initio. The owner of
the said /ro/erty on Ae9ruary 6, 3!"!, was the CSPPSP, as well known to ea+h and e.ery
Defendant$ Thus, the for+i9le detainer a+tion 2Case No$ CD 3!"! !6)3!5 later filed 9y the
Defendants na-in% 8i9adeneria was a +lear +ontu-a+ious a+t in .iolation of ") 0$S$C$ J!"235
or 2&5$ Se+ondly, for the Defendants to now +o-e 9efore this +ourt and dire+tly ar%ue that the
fraudulent for+i9le detainer a+tion was a .alid /ro+eedin% knowin% that the Defendants did not
na-e the /ro/er /arties, is a +lear .iolation of dire+t +onte-/t ") 0$S$ C$ J!"2"5$
"4$ The CSPPSP was the lawful owner of the su9Ee+t /ro/erty on the date that <OA
sold the Pro/erty to <N=, whi+h was in .iolation of ")$ 0$S$C$ J!"235 or 2&5, as well known to
ea+h of the Defendants$
"4*$ The Buit +lai- deed issued to CSPPSP re/resented su/erior title 9e+ause it +a-e
fro- the +hain of title$ The Defendants’ trustee deed for Pro/erty 3 was issued out of the +hain
of title, is .oid ab initio, and was unlawfully used as le%al Eustifi+ation to initiate a fraudulent
for+i9le detainer a+tion in indire+t +ontu-a+ious a+tion su9Ee+t to ") 0$S$ C$ J!"235 or 2&5$
"41$ <N= /ur+hased Pro/erty 3 su9Ee+t to the Plaintiff’s lis pendens$ The Defendants
had knowled%e that there was /endin% liti%ation in.ol.in% Pro/erty 3 and that if Defendants
9ou%ht the said /ro/erty, they were on noti+e as to who the /ro/er owners were and that they
+ould 9e sued$
"44$ The +ontu-a+ious, +ri-inal and fraudulent +ondu+t +o-/lained of in this
Co-/laint is a +ontinuation of the de+e/ti.e trade /ra+ti+es, fraudulent +ondu+t, +ons/ira+y, and
Ci.il 8a+keteerin% a+ti.ities that the Defendants are known to en%a%e in as a nor-al and
a++e/ted 9usiness /ra+ti+e$ The Defendants, the law fir- of >iles, <auer, <er%stro- F #inters
LLP, and the followin% attorneys, >iles ?$ <er%stro-, 8$ <auer, A$ #inter, K$ >++lenahan, >$
Do-eyer, T$ Cros9y, L$ ?aBueC, D$ Carter, :$ Corena, #$ 8ash, 8$ ?un%, D$ Pha-, K$ Nielson,
>$ <raun, ;$ Seyed7Ali, 8$ N%uyen, ?$ :araeedian, T$ >orlan, K$ #e99, <$ Tran, A$ :haEar, C$
?ones, and >$ See9a+h, are +har%ed with runnin% a fraudulent fore+losure H-illI for en%a%in% in
+ontu-a+ious +ondu+t in .iolation of ") 0$S$C$ J!" and Ci.il 8a+keteerin%$
"4)$ 0nder the o9Ee+ti.e standard for .iolation of Ci.il 8a+keteerin%, all of the
Defendants are en%a%ed in +ontinual ra+keteerin% a+ti.ities$ Defendants are in the 9usiness of
takin% ad.anta%e of the -ort%a%e fore+losure +risis, /rayin% on indi%ent ho-eowners in+ludin%
the Plaintiff, and unlawfully seiCin% their /ro/erty, in .iolation of the law and in de/ri.in% the-
out of their due /ro+ess ri%hts in their /ro/erty without /ro/er lawful noti+e and in na-in%
wron% /arties in for+i9le detainer a+tions 2Case No$ !6)3!5$
"46$ On Ae9ruary 6, 3!"!, <N= set u/ a ri%%ed non7Eudi+ial fore+losure sale in whi+h
the Plaintiff was not lawfully notified$ On A/ril ", 3!"!, when +onfronted on the re+ord 9efore
Illinois ?ud%e >ary Ann >ason 2Case No$ !6L !"4&)5, +ounsel for <OA ne.er denied that the
Defendants failed to lawfully notify Plaintiff of the fore+losure sale$
")!$ The Defendants in the unlawful AriCona trustee sale of Pro/erty 3, Pro/erty &, and
Pro/erty , ne.er ser.ed any /rior noti+e on the interested /arties, Christo/her Stoller and the
CSPPSP, this is not in dis/ute$
")"$ In this +ase, there was a lis pendens that had 9een filed a%ainst Pro/erty 3, whi+h
alerted all /otential /ur+hasers that Pro/erty 3 was the su9Ee+t of liti%ation +urrently /endin% in
Cook County, Illinois 2see atta+hed EC/i@it 1D5$
")3$ No fraudulent trustee sale +ould e'tin%uish a .alid lis pendens or any +ontin%ent
lia9ility on a su9Ee+t /ro/erty$
")&$ <OA, knowin% that there was a lis pendens that would ha.e a+ted as a 9ar fro-
other /arties enterin% +o-/etiti.e 9ids at au+tion, entered into an a%ree-ent with <N= to
+ondu+t a fraudulent au+tion sale on Ae9ruary 6, 3!"!, as to Pro/erty 3$
")$ <OA /re/ared a fraudulent deed to the au+tion of Ae9ruary 6, 3!"!, in .iolation
of the Ci.il 8i%hts statute, re%ardin% Pro/erty 3$
")*$ The /ro/erty was .alued in e'+ess of L3$& -illion$ <OA entered into an unlawful
a%ree-ent 9efore the au+tion with <N= to /ur+hase the /ro/erty for only L",""&$4*!$!!$
")1$ <N= was the only 9idder, knowin%ly ha.in% e'+luded e.ery other /otential
9idder, as a result of the lis pendens that was /endin%, as to Pro/erty 3$
")4$ The au+tion took /la+e on Ae9ruary 6, 3!"!, in whi+h the trustee /re/ared an
unlawful trustee’s deed sale, whi+h was outside the +hain of title and showed that the /ro/erty
was 9ein% sold fro- 8i9adeneira, who was not in title on the date of the au+tion, as well known
to Defendants$ ConseBuently, the trustee’s deed sale is a wild deed, ha.in% no for+e and effe+t$
The trustee sale on Ae9ruary 6, 3!"! did howe.erK e'tin%uish any /rior -ort%a%e on the
/ro/erty$ The unlawful trustee sale of Pro/erty & and Pro/erty also e'tin%uished the -ort%a%es
on those said /ro/erties$
"))$ The Defendant 8e+onstru+t’s deed of the sales of the said AriCona /ro/erties
re/resents a +lear fraud on the >ari+o/a County 8e+order’s Offi+e as to Pro/erty 3, Pro/erty &,
and Pro/erty , as well known to the Defendants$
")6$ The Defendants 9enefited fro- their fraud u/on the AriCona County 8e+order’s
Offi+e in the +reation of a fraudulent trustee’s deed u/on sale$ Aurther, the Defendants used their
fraudulent trustee deed to initiate a .alid for+i9le detainer a+tion a%ainst a non7/arty 8i9adeneira,
in order to seiCe Pro/erty 3 under the +olor of law$
"6!$ The Defendant’s false sworn /leadin%s in+or/orated herein 9y referen+e, falls
under the +ate%ory of false swearin%, #innin% >o.es, In+$ .$ ;iS <a9y, In+$, 3&) Ill$ A//$ &d
)&, "46 Ill$ De+$ "3, 1!* N$E$3d "!31 23d Dist$ "6635$
"6"$ Plaintiff referen+es his Co-/laint 2Do+$ ", Noti+e of 8e-o.al, in Case No$ ""
CD "41*5 in su//ort of this Co-/laint$ On Se/te-9er 4, 3!"", >ari+o/a County Su/erior Case
No$ CD7""7!6)3! was re-o.ed to Aederal Court and was known as Case No$ CD7""7"41*$
"63$ Notwithstandin% the re-o.al of the for+i9le detainer a+tion /re.iously initiated in
the >ari+o/a County +ase, Defendants 2in+ludin% their attorneys5 /ur/osely -isre/resented
-aterial fa+t and@or law to Co--issioner <ernard Owens, +ausin% hi- to issue an order
unlawfully %rantin% an order of e.i+tion of Pro/erty 3 2see atta+hed a true and +orre+t +o/y of the
+ourt order dated O+to9er 3!, 3!"", -arked as EC/i@it 2"5$ Defendants, under the +olor of law,
/er/etrated a -ulti7-illion dollar heist 9y falsely assertin% that Co--issioner Owens had
Eurisdi+tion to enter an order
*
in the +ase when they knew Co--issioner Owens had no
Eurisdi+tion o.er the -atter to do so as to Pro/erty 3$
"6&$ <y .irtue of the Defendants’ de+e/tion on Co--issioner Owens, they in effe+t
swindled the +ourt in %rantin% the- /ossession of Pro/erty 3, des/ite that Defendants
fraudulently re/resented to the Co--issioner that he had Eurisdi+tion o.er the -atter, when the
Eurisdi+tion had already 9een transferred to federal +ourt in AriCona 2Case No$ ""7"41*5$
"6$ The 9asi+ standards %o.ernin% fraud on the +ourt are reasona9ly strai%htforward$
As set forth in Co' .$ <urke, 4!1 So$ 3d &, 4 2Ala$ *th DCA "66)5, The reBuisite fraud on this
+ourt did o++ur, 9e+ause it +an 9e de-onstrated, +learly and +on.in+in%ly, that the Defendants
ha.e sentiently set in -otion an un+ons+iona9le s+he-e to defraud the Court, in+ludin%, 9y
indu+in% Co--issioner Owens to unlawfully e.i+t Plaintiff’s tenant fro- Pro/erty 3, Paul Case
2the HTenantI5 2see a true and +orre+t +o/y of the Tenant’s affida.it and lease a%ree-ent, atta+hed
hereto and -arked as EC/i@it 2=5$ Defendants’ s+he-e was +al+ulated to interfere with the
Eudi+ial syste-’s a9ility to i-/artially adEudi+ate this -atter 9y /resentin% false +lai-s to
Co--issioner Owens in order to i-/ro/erly influen+e hi- to enter an order in this +ase des/ite
*
An order that is %ranted when a +ourt does not ha.e Eurisdi+tion, is .oid abinitio$ Co--issioner Owens’ order is
thus voi- and ,n4nfo5*4a@l4$ Any order or Eud%-ent entered 9y a trial +ourt without Eurisdi+tion is .oid and -ay
9e atta+hed at any ti-e$ Peo/le .$ Da.is, "*1 Ill$ 3d "*,"** 2"66&5K In re -arria%e of >it+hell, ")" Ill$ 3d "16, "4
2"66)5K Peo/le .$ ;all, 36"E Ill$ A//$ &d "", "1 2"6645$ HA .oid Eud%-ent order or de+ree of a +ourt will 9e
re.ersed on a//eal whene.er 9rou%ht 9efore the +ourt 9y any -eans /ossi9le the /arti+ular +ase$I Peo/le .$
>a%nus, 313 Ill$ &d &13, &1* 2"665$ Our duty to .a+ate .oid Eud%-ents, orders, and de+ree His 9ased u/on the
inherent /ower of the +ourt to e'/un%e fro- its re+ords .oid a+ts of whi+h it has knowled%e$I >a%nus, 313 Ill$ A//$
&d at &1*$ See also Al-%ren .$ 8ush7Pres9yterian7St$ Luke’s >edi+al Center, "13 Ill$ 3d 3!*, 3"! 2"665$
the fa+t Co--issioner Owens held no Eurisdi+tion whatsoe.er to enter su+h an order, Aoude .$
>o9il Oil Cor/$, )63 A$3d """*, """) 2"st Cir$ "6)65$
"6*$ The Defendants, 9e+ause of their %ross -is+ondu+t, fraudulent +lai-s and
-isre/resentation 9efore this +ourt, should not 9e allowed to /ros/er in this +ase$
"61$ Plaintiff -o.es this +ourt for a -otion to stay the fore+losure /ro+eedin% and@or
trustee deed sale of Pro/erty ", whi+h is set for unlawful fore+losure on or a9out ?une ", 3!"3$
"64$ Plaintiff and@or Plaintiff’s A%ent holds ri%hts to the Pro/erties$
"6)$ That the Defendants should not 9e allowed to /ros/er has lon% 9een +entral to the
-oral fa9ri+ of our so+iety and one of the under/innin%s of our le%al syste- and the +ourt should
enter an order stayin% the au+tion date of ?une ", 3!"3, and issue an order .a+atin% the trustee
deed and /er-anently enEoinin% <N= fro- +lai-in% any ownershi/ to the Pro/erty 3, Pro/erty
&, Pro/erty , or further /ro+eedin% in State Court /er 3) 0$S$C$A$, "12d5 8$ Ci.$ P$ 1*, and
statin% that Plaintiff and@or Plaintiff’s A%ent and@or the CSPPSP is the onl. 0a5t.G0a5ti4+ that
has a .alid interest in the Pro/erties$
"66$ Plaintiff also 9rin%s this suit as a +hallen%e to Defendant, <OA’s intentional and
syste-ati+ failure to offer /er-anent loan -odifi+ations to Bualified 9orrowers$ In /arti+ular,
<OA’s failure to offer a /er-anent loan -odifi+ation to Plaintiff$
3!!$ In doin% so, <OA has serially failed to honor its e'/ress and i-/lied +ontra+tual
o9li%ations 9oth under its Trial Period Plan A%ree-ents 2HTPP A%ree-entsI5 as well as its
9orrowers’ loan do+u-ents, has 9rea+hed its Ser.i+er Parti+i/ation A%ree-ent 2HSPAI5 with the
Aederal National >ort%a%e Asso+iation 2HCountrywide Ainan+ialI5, has failed to /ro/erly hire and
su/er.ise its e-/loyees, has -ade re/eated -isre/resentations of -aterial fa+t, and has en%a%ed
in ra+keteerin% and 9usiness /ra+ti+es that are i--oral, uns+ru/ulous, unfair, and o//ressi.e$
3!"$ <OA essentially failed in 3!!)73!!6, sur.i.in% only with the e'traordinary assistan+e
fro- the 0nited States :o.ern-ent$ <OA was quasi"nationali#ed"bailed out in e.ery day /arlan+e
9y the 0nited States :o.ern-ent$ The :o.ern-ent 9ail out was really finan+ed 9y the ta'/ayers, not
the /ri.ate se+tor, whi+h /ro.ided what a-ounted to de9tor in /ossession finan+in% for <OA$ 0nder
the Trou9led Asset 8elief Pro%ra- 2HTA8PI5, also known as the ta'/ayer 9ailout, the 0nited States
:o.ern-ent /ro.ided the nation’s lar%est finan+ial institutions with nearly L4!! 9illion in funds
to address what was widely a++e/ted as an un/re+edented finan+ial +risis$ "3 0$S$C$ J *3""$ In
and around 3!!) Defendant <OA a++e/ted o.er L&! 9illion in TA8P funds$
3!3$ A key feature of TA8P is the >akin% ;o-e Afforda9le Pro%ra-, of whi+h the
;o-e Afforda9le >odifi+ation Pro%ra- 2H;A>PI or Hthe ;A>PI5 is a -aEor +o-/onent$
;A>P is a /ro%ra- under whi+h <OA and other -aEor 9anks re+ei.e in+enti.e /ay-ents for
/ro.idin% -ort%a%e loan -odifi+ations to eli%i9le 9orrowers su+h as Plaintiff$
3!&$ In and a9out 3!!6, <OA si%ned a +ontra+t with the 0$S$ Treasury, throu%h its a%ent,
Countrywide Ainan+ial, a%reein% to /arti+i/ate in ;A>P as an a//ro.ed ;A>P ser.i+er$
3!$ As a ;A>P ser.i+er, <OA entered into written TPP A%ree-ents for te-/orary
-odifi+ations with Plaintiff and other eli%i9le <OA 9orrowers$ These TPP A%ree-ents, whi+h
were for- +ontra+ts, +ontained an e'/ress ter- reBuirin% <OA to e'tend a for-al offer for a
/er-anent loan -odifi+ation u/on a 9orrower’s +o-/letion of his or her res/e+ti.e trial /eriod
and +ontinued +o-/lian+e with the TPP A%ree-ent’s other ter-s$
3!*$ Plaintiff has +o-/lied with his +ontra+tual o9li%ations under his TPP A%ree-ents
9y su9-ittin% all reBuired do+u-entation$ Des/ite Plaintiff’s full /erfor-an+e, <OA has
i%nored its o9li%ations 9y refusin% to e'tend offers for /er-anent -odifi+ation to its eli%i9le
9orrowers as reBuired under the /ro%ra- %uidelines and its +ontra+ts for Pro/erty ", Pro/erty 3,
and Pro/erty &$
3!1$ <OA’s failure to e'tend offers for /er-anent -odifi+ation is no a++ident$ To the
+ontrary, <OA has knowin%ly esta9lished a syste- desi%ned to wron%fully de/ri.e its eli%i9le
;A>P 9orrowers of an o//ortunity to -odify their -ort%a%es, /ay their loans, and sa.e their
houses fro- fore+losure$ <OA’s a+tions, whi+h ser.e only its interest in e'tra+tin% as -u+h
-oney as /ossi9le fro- 9orrowers it dee-s are at risk of default, thwart the .ery /ur/ose of
;A>P, +onstitute e'/ress and i-/lied 9rea+hes of its .arious +ontra+ts, and a-ount to
i--oral and unfair 9usiness /ra+ti+es under the AriCona Consu-er Araud and De+e/ti.e
<usiness Pra+ti+es A+t$
3!4$ Plaintiff and his Pro/erties and its -ort%a%es are also loans, whi+h are also at
issue in this lawsuit$ At all ti-es rele.ant, Plaintiff@Plaintiff’s A%ent were Bualified and eli%i9le
to /arti+i/ate in the ;A>P /ro%ra- under all a//li+a9le dire+ti.es and %uidelines, a +on+lusion
Countrywide@<OA would ha.e rea+hed had it a++urately a//lied su+h %uidelines and dire+ti.es$
Congressional Response to !ational "oreclosure Crisis
3!)$ O.er the last three years, the 0nited States has witnessed a fore+losure +risis$ A
+on%ressional o.ersi%ht /anel has re+ently noted that one in ei%ht 0$S$ -ort%a%es is +urrently in
fore+losure or default$
1
In+reased fore+losures ha.e a detri-ental effe+t on 9orrowers who are at
1
Con%ressional O.ersi%ht Panel, O+t$ 6, 3!!6 re/ort, available at 08L htt/,@@+o/$senate$%o.@/ress@releases@release7
"!!6!67fore+losure$+f- 2last .isited ?une 3&, 3!"!5$
serious risk of losin% their ho-es$ Aore+losures also ha.e a ne%ati.e i-/a+t on the surroundin%
nei%h9orhoods that suffer de+reased /ro/erty .alues, and -uni+i/alities lose ta' re.enue as a
result of fore+losures$ The A<I re/orted that )!N of the fore+losures are due to 9ank -ort%a%e
fraud 2see atta+hed EC/i@it 2, in+or/orated herein 9y referen+e, re/led, and realle%ed in su//ort
of this +o-/laint5$
3!6$ On O+to9er &, 3!!), Con%ress /assed the E-er%en+y E+ono-i+ Sta9iliCation A+t
of 3!!) and, on Ae9ruary "4, 3!!6, Con%ress a-ended the statute 9y /assin% the A-eri+an
8e+o.ery and 8ein.est-ent A+t of 3!!6 2+olle+ti.ely the HA+tI5$ "3 0$S$C$ J *3!" et. seq.
23!!65$ The /ur/ose of the A+t is to %rant the Se+retary of the Treasury the authority to restore
liBuidity and sta9ility to the finan+ial syste- and ensure that su+h authority is used in a -anner
that H/rote+ts ho-e .aluesI and H/reser.es ho-eownershi/$I "3 0$S$C$ J *3!"$
3"!$ The A+t %rants the Se+retary of the Treasury the authority to esta9lish TA8P$ "3
0$S$C$ J *3""$ 0nder TA8P, the Se+retary -ay /ur+hase or -ake +o--it-ents to /ur+hase
trou9led assets fro- finan+ial institutions$ Id. In e'er+isin% its authority to ad-inister TA8P,
the A+t -andates that the Se+retary HshallI take into +onsideration the Hneed to hel/ fa-ilies
kee/ their ho-es and to sta9iliCe +o--unities$I "3 0$S$C$ J *3"&2&5$
3""$ The A+t further -andates, with re%ard to any assets a+Buired 9y the Se+retary that
are 9a+ked 9y residential real estate, that the Se+retary Hshall i-/le-ent a /lan that seeks to
-a'i-iCe assistan+e for ho-eownersI and that uses the Se+retary’s authority o.er ser.i+ers to
en+oura%e the- to take ad.anta%e of /ro%ra-s to H-ini-iCe fore+losures$I "3 0$S$C$ J *3"6$
The A+t %rants authority to the Se+retary of the Treasury to use +redit enhan+e-ent and loan
%uarantees to Hfa+ilitate loan -odifi+ations to /re.ent a.oida9le fore+losures$I Id. The A+t
further i-/oses /arallel -andates to i-/le-ent /lans to -a'i-iCe assistan+e to ho-eowners
and to -ini-iCe fore+losures$ "3 0$S$C J *33!$
3"3$ On Ae9ruary "), 3!!6, /ursuant to their authority under the A+t, the Treasury
Se+retary and the Dire+tor of the Aederal ;ousin% Ainan+e A%en+y announ+ed the ;A>P
/ro%ra-$ 0nder ;A>P, the federal %o.ern-ent in+enti.iCes /arti+i/atin% ser.i+ers to enter into
a%ree-ents with stru%%lin% ho-eowners that will -ake adEust-ents to e'istin% -ort%a%e
o9li%ations in order to -ake the -onthly /ay-ents -ore afforda9le$ Ser.i+ers re+ei.e
L",!!!$!! for ea+h ;A>P -odifi+ation$
Servicer Participation in the #$P program
3"&$ The industry entities that /erfor- the a+tual interfa+e with 9orrowers O in+ludin%
su+h tasks as /ay-ent /ro+essin%, es+row -aintenan+e, loss -iti%ation and fore+losure O are
known as Hser.i+ers$I Ser.i+ers ty/i+ally a+t as the a%ents of the entities that hold -ort%a%e
loans$ <ank A-eri+a ;o-e >ort%a%e, 2also for-erly known as Countrywide Ainan+ial5 is a
ser.i+er o/erated 9y <OA, and its a+tions des+ri9ed herein were -ade as a%ents for the entities
that hold -ort%a%e loans$
3"$ To /arti+i/ate in ;A>P, a ser.i+er -ust e'e+ute a Ser.i+er Parti+i/ation A%ree-ent
2HSPAI5 with the federal %o.ern-ent$
3"*$ In and a9out 3!!6, <OA e'e+uted an SPA, there9y -akin% <OA a /arti+i/atin%
ser.i+er in ;A>P$
3"1$ The SPA e'e+uted 9y <OA in+or/orates all H%uidelines,I H/ro+edures,I and
Hsu//le-ental do+u-entation, instru+tions, 9ulletins, freBuently asked Buestions, letters,
dire+ti.es, or other +o--uni+ationsI issued 9y the Treasury, Countrywide Ainan+ial or Areddie
>a+, in +onne+tion with the duties of Parti+i/atin% Ser.i+ers$
3"4$ The SPA -andates that a Parti+i/atin% Ser.i+er Hshall /erfor-I the a+ti.ities
des+ri9ed in the Pro%ra- Do+u-entation Hfor all -ort%a%e loans it ser.i+es$I
3")$ The Pro%ra- Do+u-entation reBuires Parti+i/atin% Ser.i+ers to e.aluate all loans
that are delinBuent 1! days or %reater for ;A>P -odifi+ations$ In addition, if a 9orrower
+onta+ts a Parti+i/atin% Ser.i+er re%ardin% a ;A>P -odifi+ation, the Parti+i/atin% Ser.i+er
-ust +olle+t in+o-e and hardshi/ infor-ation to deter-ine if ;A>P is a//ro/riate for the
9orrower$
TPP greements
3"6$ A ;A>P >odifi+ation +onsists of two sta%es$ Airst, a Parti+i/atin% Ser.i+er is
reBuired to %ather a 9orrower’s finan+ial and other rele.ant infor-ation and, if the 9orrower
Bualifies, offer the 9orrower a TPP A%ree-ent$ In so-e +ases, 9anks -ay /re7Bualify +usto-ers
9ased on .er9al re/resentations of in+o-e and other infor-ation, instru+t the +usto-er to 9e%in
-akin% the redu+ed te-/orary /ay-ent, and then +onfir-ed eli%i9ility followin% the 9orrower’s
su9-ission of the reBuired do+u-ents$ As an alternati.e, in +ases su+h as this one, 9anks -ay
reBuire that the 9orrower su9-it all ne+essary in+o-e infor-ation and do+u-entation to +onfir-
the 9orrower’s eli%i9ility /rior to sendin% the 9orrower a si%ned TPP A%ree-ent, whi+h is not
su9Ee+t to later +onfir-ation$
33!$ <OA’s for- of TPP A%ree-ents reBuire 9orrowers to -ake +ertain
re/resentations, /ro.ide rele.ant infor-ation, and -ake trial /eriod /ay-ents at a re.ised rate
desi%ned to kee/ the 9orrower in his or her ho-e$ <OA’s TPP A%ree-ents /ro.ide that <OA
will e'tend offers for /er-anent -odifi+ation to those ho-eowners who e'e+ute the TPP
A%ree-ent and fulfill the do+u-entation, re/resentation, and /ay-ent reBuire-ents$
33"$ If a ho-eowner e'e+utes the TPP A%ree-ent, +o-/lies with all do+u-entation and
re/resentation reBuire-ents, and -akes all of the TPP -onthly /ay-ents on ti-e, the se+ond
sta%e of the ;A>P /ro+ess is tri%%ered in whi+h <OA is reBuired to offer the ho-e owner a
/er-anent loan -odifi+ation$ This lawsuit also +hallen%es the fa+t that, des/ite full /erfor-an+e
9y Plaintiff, <OA failed to e'tend offers for /er-anent -odifi+ations to Plaintiff for Pro/erty ",
Pro/erty 3, and Pro/erty &$
333$ <y failin% to li.e u/ to its end of the TPP A%ree-ents and offer /er-anent
-odifi+ations as reBuired, <OA has de/ri.ed Plaintiff of its a9ility to sa.e its ho-es, and has
instead left the- in a state of li-9o, and instead, unlawfully fore+losed on the-$ <OA unlawfully
fore+losed on the afore-entioned /ro/erties without noti+e to the Plaintiff and had ro9osi%ners
e'e+ute fraudulent deeds and trusts of Plaintiff’s /ro/erties to third /arties$
33&$ <OA’s unlawful +ondu+t also /re.ented Plaintiff fro- /ursuin% other a.enues of
resolution$
33$ Plaintiff and@or Plaintiff’s A%ent +onta+ted <OA’s loss -iti%ation de/art-ent and
-ade a reBuest for a loan -odifi+ation under the ;A>P /lan for Pro/erty ", Pro/erty 3, and
Pro/erty &$ <OA’s re/resentati.e infor-ed Plaintiff and@or Plaintiff’s A%ent that he was Bualified
for a te-/orary loan -odifi+ation and that <OA would 9e sendin% the reBuired do+u-entation for
hi- to e'e+ute$
33*$ <OA deter-ined that Plaintiff@Plaintiff’s A%ent Bualified for a ;A>P TPP
A%ree-ent$
331$ Plaintiff and@or Plaintiff’s A%ent re+ei.ed a tele/hone +all fro- <OA
+on%ratulatin% Plaintiff on enterin% into a ;o-e Afforda9le >odifi+ation workout /lan$
334$ Des/ite Plaintiff’s full +o-/lian+e in all res/e+ts with the ter-s of the TPP
A%ree-ent, <OA failed to send Plaintiff a -odifi+ation a%ree-ent for his si%nature or
otherwise e'tend an offer for /er-anent -odifi+ation$ Plaintiff and@or Plaintiff’s A%ent atte-/ts
to %et <OA to honor its end of the 9ar%ain and offer a /er-anent -odifi+ation as /ro-ised were
to no a.ail$
33)$ <OA a%reed to fore%o fore+losure /ro+eedin%s and late fees when it a%reed to the
TPP A%ree-ent as 9etween the Plaintiff@Plaintiff’s A%ent and itself$
336$ 8ather than treat the ti-in% of its /erfor-an+e under the TPP A%ree-ent as 9ein%
HOA T;E ESSENCEI, <OA intentionally and syste-ati+ally delayed +on.ertin% TPP
A%ree-ents into /er-anent -odifi+ations 9y falsely +lai-in% it la+ked and re/eatedly reBuestin%
do+u-ents and infor-ation already in its /ossession, i-/ro/erly re7e.aluatin% Plaintiff’s
eli%i9ility, usin% in+orre+t in/uts and -is+al+ulatin% the HwaterfallI and other fa+tors for
deter-inin% ;A>P eli%i9ility, failin% to i-/le-ent adeBuate /ro+edures and syste-s to res/ond
to inBuiries and +o-/laints, and 9y otherwise dra%%in% out and delayin% its e'tension of offers
for /er-anent loan -odifi+ation$
3&!$ 8ather than e'tendin% offers for /er-anent -odifi+ation to Plaintiff, Defendant,
i-/ro/erly and without Eustifi+ation, ulti-ately de+ided to treat the TPP A%ree-ents as if they
were null and .oid, ulti-ately threatenin% fore+losure$
3&"$ Insofar as <OA did not 9rea+h an e'/ress ter- of the TPP A%ree-ent, <OA
9rea+hed an i-/lied ter- that reBuired <OA to e'tend the offers for /er-anent -odifi+ation within
a reasona9le /eriod of ti-e followin% Plaintiff’s /erfor-an+e under the TPP A%ree-ents$
Defendant%s &reach of Implied Terms
3&3$ The Defendant routinely and re%ularly 9rea+hed these i-/lied duties 9y,
a$ failin% to /erfor- loan ser.i+in% fun+tions +onsistent with its res/onsi9ilities
to Plaintiff and hi%h /rofessional standards of +areK
9$ failin% to /ro/erly su/er.ise its a%ents and e-/loyees in+ludin%,
without li-itation, its loss -iti%ation and +olle+tion /ersonnel and its
fore+losure attorneys or otherwise use indi.iduals with suita9le trainin%,
edu+ation, e'/erien+e and skills to /erfor- loan ser.i+in% fun+tionsK
+$ routinely de-andin% infor-ation already in its files and otherwise filin% to
i-/le-ent an a//ro/riate and fun+tionin% do+u-ent -ana%e-ent syste-K
d$ /ro.idin% false Eustifi+ations for refusin% to e'tend offers for /er-anent
-odifi+ationK
e$ syste-ati+ally -akin% ina++urate +al+ulations and deter-inations of
Plaintiff’s eli%i9ility for ;A>PK
f$unreasona9ly delayin% the e'tension of offers for /er-anent -odifi+ations to
9orrowers who /erfor- fully and faithfully under their TPP A%ree-ents as
des+ri9ed in Para%ra/h "6), a9o.eK and,
%$ a+tin% in a -anner that otherwise +onstitutes an a9use of dis+retion or
authority under the TPP A%ree-ent or takin% su+h other ste/s to frustrate
Plaintiff’s a9ility to re+ei.e the 9enefit of his 9ar%ain under the TPP
A%ree-ent$
Causation and Damages
3&&$ As an a+tual and /ro'i-ate result of <OA’s 9rea+hes of these e'/ress and i-/lied
+ontra+tual ter-s des+ri9ed herein, Plaintiff and@or Plaintiff’s A%ent ha.e suffered har- and are
threatened with additional har-$ Plaintiff has 9een da-a%ed insofar as he has 9een i-/ro/erly
denied offers for /er-anent loan -odifi+ations, whi+h they stand ready, willin% and a9le to
a++e/t$
3&$ Plaintiff has further 9een da-a%ed in the for- of lost ti-e and o//ortunity +osts$
<y enterin% into the TPP A%ree-ent and -akin% his /ay-ents 9oth durin% and after the trial
/eriod, Plaintiff s/ent -onies on a /lan that +ould ha.e %one towards other /otential re-edies
that he -i%ht otherwise ha.e /ursued to sa.e his Pro/erties$ Plaintiff also lost the o//ortunity
to restru+ture his de9t under the 9ankru/t+y +ode, sell his Pro/erties on fa.ora9le ter-s, /ursue
refinan+in% with other lenders, or take other ste/s to address his finan+ial hardshi/ and
threatened loss of the Pro/erties$
3&*$ On infor-ation and 9elief, Plaintiff has suffered additional har- and e'/ense in the
for- of defendin% fore+losures of his Pro/erties when, in reality, he should ha.e 9een e'tended
offers for /er-anent -odifi+ations of his -ort%a%e loans and se.eral -onths into his -odified
/er-anent /ay-ent /lans$
3&1$ Defendant, 9y way of its TPP A%ree-ents, una-9i%uously /ro-ised to Plaintiff
that if he e'e+uted and returned the TPP A%ree-ent to <OA alon% with su//ortin%
do+u-entation, he would re+ei.e an offer for /er-anent -odifi+ation in the for- of a
/er-anent -odifi+ation a%ree-ent for his si%nature$
3&4$ Defendant’s /ro-ise was intended to indu+e Plaintiff to rely on it and -ake -onthly
TPP /ay-ents and otherwise /erfor-$
3&)$ Plaintiff indeed relied on Defendant’s /ro-ise 9y su9-ittin% TPP /ay-ents and
all ne+essary do+u-entation and otherwise fully /erfor-in% under the TPP A%ree-ent$
3&6$ :i.en the lan%ua%e in the TPP A%ree-ent, Plaintiff’s relian+e was reasona9le$
3!$ Plaintiff’s relian+e was to his detri-ent$ Plaintiff has yet to re+ei.e a /er-anent
-odifi+ation a%ree-ent for his si%nature or any other offer for /er-anent -odifi+ation, and has
lost the o//ortunity to fund other strate%ies to deal with his default and a.oid fore+losure$
3"$ Instead of <OA +o-/lyin% with its a%ree-ent to /ro.ide a loan -odifi+ation to
Plaintiff, they unlawfully fore+losed on Pro/erty ", Pro/erty 3, and Pro/erty &$
33$ Plaintiff and@or Plaintiff’s A%ent re+ei.ed noti+e fro- his real estate 9roker that
Pro/erty " is 9ein% unlawfully fore+losed on throu%h a fraudulent Noti+e of Trustee’s Sale
s+heduled on or a9out ?une ", 3!"3, at "!,!! a$-$ 2see atta+hed EC/i@it 2#5$
3&$ Plaintiff holds ri%hts in the Pro/erty ", whi+h is 9ein% unlawfully fore+losed on
throu%h a noti+e of trustee’s sale, whi+h e.iden+es that the trustee intends to sell the Pro/erty at
au+tion and deli.er a trustee deed outside the +hain of title fro- the /rior owner, Philli/ <$
Stone$
CHAIN OF TITLE OF PROPERT( 1
3$ On Se/te-9er "6, 3!!), Stone Buit +lai-ed his interest in Pro/erty " to the
CSPPSP 2see atta+hed EC/i@it $5$ Stone also issued an assi%n-ent of +auses of a+tion and
assi%n-ent of /ro+eeds re%ardin% Pro/erty " to Plaintiff and@or Plaintiff’s A%ent 2see atta+hed a
true and +orre+t +o/y -arked as EC/i@it 2D5$
3*$ On ?anuary "!, 3!!6, the CSPPSP Buit +lai-ed its interest in Pro/erty " to
Plaintiff and@or Plaintiff’s A%ent and issued an assi%n-ent of +auses of a+tion and assi%n-ent of
/ro+eeds to Plaintiff and@or Plaintiff’s A%ent 2see atta+hed EC/i@it+ : an- 115$
31$ ?ud%e Snow /re.iously issued an order dated ?anuary "&, 3!"3, -e-orialiCin% the
fa+t that, HIt/4 *,554nt o7n45 of t/4 05o045t. i+ t/4 C/5i+to0/45 Stoll45 P5ofit an- P4n+ion
Plan, Lt-., 0,5+,ant to t/4 A,it *lai8 -44- f5o8 t/4 o5i?inal @,.45 of t/4 05o045t. P/illi0
%. Ston4 to CSPPSP of S40t48@45 22, 2##: >Do*. 1, 4C. D).J 2See Do+$ 3), Pa%e 3, Lines 67"35$
34$ Pursuant to the noti+e of trustee’s sale, HThe followin% le%ally des+ri9ed trust
/ro/erty will 9e sold, /ursuant to the /ower of sale under the +ertain Deed of Trustee 8e+orded
on !*@!6@3!!1, as Instru-ent Nu-9er 3!!1!13436), <ook N@A, Pa%e N@A, in the re+ords of
>ari+o/a County, AriCona, at /u9li+ au+tion to the hi%hest 9idder, In the Courtyard, 9y the -ain
entran+e of the Su/erior Court <uildin%, 3!" #est ?efferson, Phoeni', A( )*!!& on !1@"@3!"3
at "!,!! A> of said day$I
3)$ As afore-entioned, ?ud%e Snow /re.iously stated that the +urrent owner of the
/ro/erty is in fa+t CSPPSP$ Plaintiff has /rodu+ed an unre+orded Buit +lai- deed showin% that
the /ro/erty was Buit +lai-ed to Plaintiff on ?anuary "!, 3!!6$ In either +ir+u-stan+es, Plaintiff
and@or Plaintiff’s A%ent has standin% to 9rin% the +urrent law suit and to +ontest the fore+losure
of the /ro/erty 9y .irtue of the Assi%n-ent of Causes of A+tion, Assi%n-ent of Pro+eeds that the
CSPPSP issued to Plaintiff and@or 9y .irtue of the ri%hts that Plaintiff holds in the unre+orded
Buit +lai- deed, whi+h is also dated ?anuary "!, 3!!6$ The Noti+e of Trustee’s Sale +ir+u-.ents
the +urrent owner, CSPPSP’s Buit +lai- deed and this ?ud%e Snow’s a+knowled%e-ent that the
+urrent owner of Pro/erty " is in fa+t the CSPPSP$ ConseBuently, the noti+e of trustee’s sale is
.oid ab initio as a result of the alle%ed Trustee atte-/tin% to transfer the ri%hts in the Pro/erty
+urrently held 9y CSPPSP and@or Plaintiff@Plaintiff’s A%ent$
36$ The +ourts ha.e a+knowled%ed that inEun+ti.e relief +an 9e o9tained if the -o.in%
/arty +an show, Hthat he is likely to su++eed on the -erits, that he is likely to suffer irre/ara9le
har- in the a9sen+e of /reli-inary relief, that the 9alan+e of eBuities ti/s in his fa.or, and that an
inEun+tion is in the /u9li+ interest$I #inter .$ Natural 8es$ Def$ Counsel, In+$, *** 0$S$ 4, 33
23!!)5, A-$ Tru+kin% Asso+$, In+$, .$ City of Los An%eles, **6 A$&d "!1, "!*3 26
th
Cir$ 3!!65$
3*!$ If the fore+losure sale is su++essful, Plaintiff will suffer irre/ara9le har- and will
render the relief that Plaintiff is seekin%, -oot$
3*"$ A /er-anent inEun+tion is a//ro/riate in these +ir+u-stan+es 9e+ause Plaintiff has
de-onstrated that, Hserious Buestions %oin% to the -erits are 9ein% raised and the 9alan+e of
hardshi/s ti/s shar/ly in P/laintiff’sQ fa.or$I Id$ 2+itin% Land Coun+il .$ >+Nair, *&4 A$&d 6)",
6)4 26
th
Cir$ 3!!)5 2en 9an+55$
3*3$ Plaintiff has also satisfied the #inter fa+tors, whi+h in+ludes the likelihood of
irre/ara9le har-$ Id$ The Plaintiff stands to unlawfully lose his ri%hts in this fraudulent
fore+losure of ?une ", 3!"3 to a .alua9le residential /ie+e of real estate$ See En.iron-ental
Coun+il of Sa+ra-ento .$ Slater, ") A$ Su/$ 3d "!"1, "!34 2E$D$ Cal$ 3!!!5$
NOTICE OF AD!ERSE PART(
3*&$ Plaintiff asserts that he has %i.en /ro/er noti+e to the ad.erse /arties in this +ase
and that there is no reason why Plaintiff should not 9e entitled to a te-/orary restrainin% order
and@or /reli-inary inEun+tion to enEoin the Defendants fro- sellin% Pro/erty " durin% the
/enden+y of this liti%ation$
3*$ There will 9e no har- to Defendant, <OA if the stay is %ranted durin% the
/enden+y of this liti%ation$
3**$ Plaintiff reBuests that this +ourt issue an i--ediate order sua sponte stayin% the
trustee sale of Pro/erty " durin% the /enden+y of this liti%ation$
3*1$ Plaintiff reBuests that this +ourt order enter a /er-anent and@or /reli-inary
inEun+tion on <OA fro- e.i+tin% his tenant at Pro/erty "$
3*4$ Plaintiff in+or/orates his Co-/laint, 9y referen+e, re/leads and realle%es all the
alle%ations +ontained therein 2Case No$ CD7""7!""!*, Do+$ ", Noti+e of 8e-o.al5 in su//ort of
this Co-/laint$
3*)$ Plaintiff in+or/orates the entire re+ord 9y atta+hin% the do+ketin% state-ents in
su//ort of this -otion 2see true and +orre+t +o/ies of the do+ketin% sheets for Case No$ CD7""7
"41*, Case No$ CD7!&&), and Case No$ CD7""!* atta+hed hereto and -arked as EC/i@it+ 2<, 2$,
and 2:, res/e+ti.ely5$
3*6$ The re-o.al of the for+i9le detainer a+tion /re.iously initiated in >ari+o/a
County as Case No$ CD7"!7!6)3!, whi+h was /endin% 9efore this +ourt as Case No$ CD7""7
"41*, the Defendants 2in+ludin% their attorneys5 -isre/resented -aterial fa+t and@or law to
Co--issioner <ernard Owens, +ausin% hi- to issue an order unlawfully %rantin% <OA
/ossession to Pro/erty 3 2see atta+hed EC/i@it 2"5$
31!$ The Defendants, ha.e +ontinually en%a%ed in %ross -is+ondu+t, Ci.il
8a+keteerin% a+ti.ities, fraudulent +lai-s and -isre/resentations in this +ase$
COUNT ONE
$
4
Count One is the identi+al +ount, whi+h sur.i.ed a >otion to Dis-iss and the res Eudi+ata ar%u-ents -ade 9y
defendants +ounsel in Illinois Cook County +ase nu-9er "! L 31)4, whi+h in.ol.ed the sa-e /arties, defendants
and su9Ee+t /ro/erties$ On A/ril "3, 3!"", ?ud%e >+:rath -ade the followin% findin%s, whi+h are /art of the
offi+ial +ourt re/ort, atta+hed hereto 2EC/i@it 225$ Con.ersion, Slander of Title, Tres/ass, and De+e/ti.e Trade
Pra+ti+es are +learly .alid +auses of a+tions a%ainst the Defendants$ ?ud%e >+:rath shot down Defendant’s +lai- of
res Eudi+ata as it relates to the Con.ersion, Slander of Title, Tres/ass, and De+e/ti.e Trade Pra+ti+es +ounts whi+h
were /led in the afore-entioned +ase and are 9ein% re/led in this +ase 9efore the AriCona Distri+t +ourt 9e+ause the
su9Ee+t /ro/erties are lo+ated in >ari+o/a County, AriCona and not in Cook County, Illinois$ ?ud%e >+:rath -ade
the followin% findin%s, whi+h relate dire+tly to this refile +ause of a+tion in federal +ourt in the state of AriCona$
HCount DIII, +on.ersion$ I’- %oin% to deny the -otion to dis-iss as +on.ersion$ I think what %a.e -e /ause was
the alle%ation of a ri%ht to i--ediate /ossession and the ri%ht and the /ro/erty$ And I think the lis /endens and
Buit+lai- deed are suffi+ient for 371"* /ur/oses$ And we ha.e Count IG for ne%li%en+e$ I don’t think the /laintiff
adeBuately /led suffi+ient fa+ts to show an a+tual duty was owed to hi-$ So I’- dis-issin% Count IG$ Count G we
DECEPTI!E TRADE PRACTICES
2as to all Defendants5
31"$ The a9o.e alle%ations under /ara%ra/hs " throu%h 3*), in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count One,
and are in+or/orated in full as if /art of this Count$
313$ This Count One is a de+e/ti.e 9usiness /ra+ti+e a+tion a%ainst the Defendants$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT T'O
%REACH OF CONTRACT
2as to <OA@Countrywide Ainan+ial5
ha.e slander of title$ I think they’.e adeBuately /led a +ause of a+tion for slander of title under Count G$ They
alle%ed that the defendants filed a false +han%e of title a%ainst the su9Ee+t /ro/erty$ The /u9li+ation of the +han%e of
title dis/ara%es the /laintiff’s ri%ht to the /ro/erty, and as a result /laintiff’s ri%ht to 9e the /ro/erty, and as a result
/laintiff’s 9een da-a%ed and that the defendants a+ted with -ali+e$ So for what it’s worth, 371"* I’- denyin% the
-otion to dis-iss Count G$ #e %et to GIII, tres/ass$ I think that’s 9een suffi+iently alle%ed$ So with re%ard to the
371"6 I’- %rantin% it, under 371"6 under res Eudi+ata and under +ollateral esto//el And under 371"* -otion to
dis-iss, I a- %rantin% it e'+e/t with re%ard to Count II, Count DI, Count DIII, and Count IG$ Now we %et to -otion
to Buash ser.i+e$ Le -e start that o.er$ Count II is suffi+ient$ Count DIII is suffi+ient, Count G is suffi+ient and
Count GII is suffi+ient$ The re-ainin% +ounts will 9e dis-issed without /reEudi+e under 371"*$I 2Pa%e "&, Line "7
3 and Pa%e ", Line "73"5$
31&$ The a9o.e alle%ations under /ara%ra/hs " throu%h 31!, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Two, and are in+or/orated in full as if /art of this Count$
31$ <OA -ade an offer to Plaintiff and@or Plaintiff’s A%ent of a TPP A%ree-ent for
-odifi+ation of loans for Pro/erty ", Pro/erty 3, and Pro/erty &$
31*$ Plaintiff a++e/ted offer 9y .erifyin% his eli%i9ility and deter-inin% he Bualified
for ;A>P$
311$ The TPP A%ree-ent was su//orted 9y +onsideration in the for- of an e'+han%e
of -utual /ro-ises as 9etween <OA and Plaintiff and@or Plaintiff’s A%ent$ Plaintiff /ro-ised to
kee/ his infor-ation +urrent and in e'+han%e <OA /ro-ised to send Plaintiff a /er-anent
-odifi+ation for Pro/erty ", Pro/erty 3, and Pro/erty & in e'+han%e for a +o-/leted TPP
A%ree-ent$
314$ Plaintiff and@or Plaintiff’s A%ent ha.e suffered additional har- and e'/ense in the
for- of defendin% fore+losure of their /ro/erties when in reality they should ha.e 9een e'tended
offers for /er-anent -odifi+ations for the -ort%a%e loans and -odified /er-anent /ay-ent
/lans$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT THREE
%REACH OF SER!ICER PARTICIPATION A1REE)ENT AS
INTENDED THIRDPART( %ENEFICIAR(
2as to Defendants, <OA@Countrywide Ainan+ial5
31)$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "731*, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Three, and are in+or/orated in full as if /art of this Count$
316$ Plaintiff was intended, as o//osed to in+idental, 9enefi+iary of the SPA 9etween
<OA and Countrywide Ainan+ial$ The SPA was entered into for their dire+t 9enefit$
34!$ The SPA and the dire+ti.es it in+or/orates reBuire <OA to offer /er-anent
-odifi+ations for -ort%a%es held 9y eli%i9le 9orrowers su+h as Plaintiff u/on su++essful
+o-/letion of the TPP A%ree-ent$ The Dire+ti.es e'/ressly /ro.ide that, HIf the 9orrower
+o-/lies with the ter-s and +onditions of the Trial Period Plan, the loan -odifi+ation will
9e+o-e effe+ti.e on the first day of the -onth followin% the trial /eriod as s/e+ified in the
Trial Period Plan$I ;A>P Su//le-ental Dire+ti.e !67!", at ") 2effe+ti.e on or a9out A/ril 1,
3!!65$
34"$ 0nder a//li+a9le %uidelines in effe+t when Plaintiff was to 9e +onsidered for ;A>P
eli%i9ility, Plaintiff was at all ti-es eli%i9le for ;A>P, and <OA would ha.e +on+luded the sa-e
had <OA /ro/erly /erfor-ed the waterfall and other a//li+a9le +al+ulations as /ro.ided for under
a//li+a9le /ro%ra- dire+ti.es$
343$ As re/resented 9y <OA, Countrywide Ainan+ial was the -ort%a%ee on Plaintiff’s
-ort%a%e$ A++ordin%ly, durin% all ti-es rele.ant, <OA was neither authoriCed nor reBuired to run
a net /resent .alue 2HNPDI5 test on Plaintiff’s /ro/erty to deter-ine his eli%i9ility for
/arti+i/ation in the ;A>P /ro%ra-$
34&$ On infor-ation and 9elief, had <OA 9een reBuired to run an NPD test, and had
<OA a++urately and /ro/erly done so, <OA would ha.e deter-ined that the NPD was H/ositi.eI
under the a//li+a9le %uidelines$ A++ordin%ly, <OA would ha.e 9een reBuired to offer Plaintiff a
/er-anent -odifi+ation u/on her su++essful +o-/letion of the TPP A%ree-ent$
34$ <OA 9rea+hed the SPA 9y failin% to offer /er-anent -odifi+ation a%ree-ents
to Plaintiff, 9y failin%, 2i5 to e'er+ise a hi%h /rofessional standards of +are, and de%ree of
attention used in a well -ana%ed o/eration, 2ii5 to use Bualified indi.iduals with suita9le trainin%,
edu+ation, e'/erien+e, and skills, 2iii5 to -aintain a//ro/riate do+u-ent -ana%e-ent syste-,
2i.5 to institute syste-s and /ro+edures for the handlin% and /ro+essin% of +usto-er inBuiries
and +o-/laints, and 2.5 to offer /er-anent -odifi+ations to 9orrowers in a++ordan+e with the
;A>P$
34*$ As an a+tual and /ro'i-ate result of <OA’s 9rea+hes of the SPA, Plaintiff and@or
Plaintiff’s A%ent ha.e suffered da-a%es in the for- des+ri9ed herein$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT FOUR
NE1LI1ENT HIRIN1 AND SUPER!ISION
2as to Countrywide Ainan+ial5
341$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "734&, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Aour, and are in+or/orated in full as if /art of this Count$
!egligent #iring
344$ <OA owed a duty to its +lients to hire +o-/etent /ersonnel$
34)$ 8ather than hire e-/loyees with suita9le trainin%, edu+ation, e'/erien+e, and
skills to deter-ine ;A>P eli%i9ility and /erfor- other loan -odifi+ation ser.i+es, <OA routinely
hired te-/orary workers and other /ersons who la+ked su+h trainin%, edu+ation, and e'/erien+e$
Aurther-ore, on infor-ation and 9elief, <OA routinely re/la+ed e-/loyees with e'/erien+e and
trainin% with e-/loyees who la+ked su+h skills$
346$ <OA further failed to train new e-/loyees, often /ro.idin% -ere days of trainin% as
to how to /erfor- relati.ely +o-/le' +al+ulations and use unfa-iliar +o-/uter /ro%ra-s
desi%ned to +o-/ute and deter-ine the ;A>P eli%i9ility$
3)!$ <ased on these failures, <OA knew or should ha.e known that its loan
-odifi+ation e-/loyees had a /arti+ular unfitness for the /osition so as to +reate a dan%er of
har- to third /ersons su+h as Plaintiff and@or Plaintiff’s A%ent insofar as su+h e-/loyees would
/ro.ide false infor-ation to 9orrowers, would i-/ro/erly /erfor- +al+ulations under the ;A>P
dire+ti.es to deter-ine eli%i9ility, and would fail to /ro/erly use the software and +o-/uter
/ro%ra-s <OA e-/loyed to assist in the deter-ination of eli%i9ility$
3)"$ Su+h /arti+ular unfitness was known or should ha.e 9een known to <OA at the
ti-e of the e-/loyees’ hirin% or retention$ On infor-ation and 9elief, <OA /referred to
utiliCe e-/loyees that la+ked the reBuisite edu+ation, e'/erien+e, and trainin% so that 9orrowers
would 9e+o-e too frustrated to /ursue their -odifi+ations and to +orre+t <OA’s nu-erous
errors$ The result was that <OA was a9le to +olle+t additional -onies /rior to institutin%
fore+losure /ro+eedin%s fro- 9orrowers who otherwise would not ha.e /aid su+h -onies$
3)3$ <OA’s hirin% and e-/loy-ent of /arti+ularly ill7suited e-/loyees dire+tly and
/ro'i-ately +aused Plaintiff and@or Plaintiff’s A%ent to suffer da-a%es in the for- of 9ein%
wron%fully denied offers for /er-anent -odifi+ations for whi+h they were a+tually eli%i9le$
!egligent Supervision
3)&$ As des+ri9ed a9o.e, <OA knew or should ha.e known that its e-/loyees had a
/arti+ular unfitness for a+tin% as loan -odifi+ation ser.i+ers so as to +reate a dan%er of har- to
third /ersons su+h as Plaintiff and@or Plaintiff’s A%ent$ <OA failed to safe%uard Plaintiff a%ainst
this /arti+ular unfitnessTto the +ontrary, it fostered and en+oura%ed it$ On infor-ation and 9elief,
<OA instituted a Hone +all resolutionI /oli+y desi%ned to ensure that 9orrowers only s/oke to a
/arti+ular +usto-er ser.i+e re/resentati.e on one o++asion, and ne.er to the sa-e re/resentati.e
twi+e$ This would ensure that 9orrowers would ha.e to +onstantly Hstart o.erI ea+h ti-e the
+usto-er +alled <OA to +he+k on the status of their -odifi+ation 9e+ause the re/resentati.e had
no fa-iliarity with the /ro%ress or status of the 9orrower’s a//li+ation$
3)$ Likewise, on infor-ation and 9elief, when <OA re.iewed e-/loyees for 9onuses,
raises, and other e-/loyee +o-/ensation, <OA would +onsider Hdro/ ti-e,I or the a.era%e
len%th of ti-e it took a +usto-er ser.i+e re/resentati.e to %et a +o-/lainin% or inBuirin%
9orrower off of the tele/hone$ The shorter the Hdro/ ti-e,I the -ore +o-/ensation the e-/loyee
would re+ei.e or 9e+o-e eli%i9le for$
3)*$ As a result of these in+enti.es and /oli+ies, <OA ensured that a%%rie.ed 9orrowers
would 9e+o-e too frustrated to /ursue their -odifi+ations, +o-/lain, or otherwise /rotest <OA’s
de+isionsTno -atter how erroneous$
3)1$ <OA’s failure to safe%uard its ;A>P7eli%i9le 9orrowers fro- these /ra+ti+es
a+tually and /ro'i-ately +aused Plaintiff and Class -e-9ers to suffer da-a%es 9y 9ein%
wron%fully denied offers for /er-anent -odifi+ation and 9y 9ein% stri//ed of their a9ility to
+ontest <OA’s i-/ro/er deter-inations and -is+al+ulations without the assistan+e of +ounsel$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT FI!E
FRAUDULENT )ISREPRESENTATIONGCONCEAL)ENT
2as to Countrywide Ainan+ial5
3)4$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "73)&, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Ai.e, and are in+or/orated in full as if /art of this Count$
$isrepresentation
3))$ Defendant knew this re/resentation was false at the ti-e it sent the TPP
A%ree-ent to Plaintiff$ Defendant had a9solutely no intention to -odify Plaintiff’s -ort%a%e$
Its state-ent was also -aterial insofar as Plaintiff would not ha.e entered into the TPP
A%ree-ent or otherwise wasted ti-e atte-/tin% to +o-/ly with its ter-s had he known
Defendant had no intention to offer hi- a /er-anent -odifi+ation$
3)6$ Defendant -ade this false re/resentation to indu+e Plaintiff to enter into the TPP
A%ree-ent and -ake the te-/orary /ay-ents$
36!$ Plaintiff reasona9ly relied on Defendant’s false re/resentations 9y enterin% into and
+o-/lyin% with the ter-s of the TPP A%ree-ent$
36"$ Plaintiff’s relian+e on this false state-ent a+tually and /ro'i-ately +aused hi- to
suffer da-a%es in that he ne.er re+ei.ed a /er-anent -odifi+ation of his -ort%a%e loan, lost
ti-e, and lost the o//ortunity to /ursue other a.enues for sa.in% his +redit and Pro/erties$
Concealment I ' "ailure to Disclose Participation Renders &orro(er in Default
363$ Defendant intentionally ne.er dis+losed to Plaintiff that 9y his enterin% into and
+o-/lyin% with the TPP A%ree-ent, Defendant would +onsider and re/ort hi- as 9ein% in
default on his -ort%a%e, in dire+t .iolation of the a//li+a9le dire+ti.es$ Defendant should
ha.e dis+losed this -aterial fa+t to hi- at the ti-e he entered into and 9e%an /erfor-in%
under the TPP A%ree-ent$ ;ad Plaintiff known Defendant would +onsider hi- as ha.in%
9een in default 9y .irtue of his /arti+i/ation in ;A>P, Plaintiff would ha.e /ursued other
a.aila9le o/tions for sa.in% his Pro/erties$
36&$ Defendant +on+ealed this -aterial fa+t so as to indu+e Plaintiff to enter into the TPP
A%ree-ent and -ake the te-/orary /ay-ents$
36$ Plaintiff reasona9ly relied on Defendant’s +on+eal-ent 9y enterin% into and
+o-/lyin% with the ter-s of the TPP A%ree-ent$
36*$ Plaintiff’s relian+e on this +on+eal-ent has a+tually and /ro'i-ately +aused hi- to
suffer da-a%es in that he ne.er re+ei.ed a /er-anent -odifi+ation of his -ort%a%e loan, lost
ti-e, and lost the o//ortunity to /ursue other a.enues for sa.in% his +redit and Pro/erties
Concealment II ' "ailure to Disclose Potential for Reconsideration
361$ At the ti-e Plaintiff entered into the TPP A%ree-ent, Defendant intentionally
failed to dis+lose that it would fail to adhere to a//li+a9le ;A>P %uidelines and dire+ti.es and
would, in +ontra.ention of those dire+ti.es, re7e.aluate the Plaintiff’s eli%i9ility usin% different
standards and +al+ulations than those reBuired under the dire+ti.es$
364$ Defendant +on+ealed this fa+t with the intention of indu+in% Plaintiff to enter into
the TPP A%ree-ent$
36)$ Plaintiff would not ha.e entered into the TPP A%ree-ent had Defendant dis+losed
its true intentions to re7e.aluate his usin% i-/ro/er standards and +al+ulations$
366$ Plaintiff reasona9ly relied on the Defendant’s silen+e to his detri-ent 9y enterin%
into the TPP A%ree-ent and +o-/lyin% with its /ro.isions$
&!!$ Plaintiff’s relian+e on this +on+eal-ent has a+tually and /ro'i-ately +aused hi- to
suffer da-a%es in+ludin% without li-itation, Plaintiff ne.er re+ei.ed a /er-anent
-odifi+ation a%ree-ent for his si%nature$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT SIK
NE1LI1ENT )ISREPRESENTATIONGCONCEAL)ENT
IN THE ALTERNATI!E TO COUNT FOUR
&!"$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7364, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count Si',
and are in+or/orated in full as if /art of this Count$
&!3$ In the alternati.e, Defendant’s -isre/resentations and +on+eal-ents des+ri9ed a9o.e
were -ade or +on+ealed +arelessly or ne%li%ently, without a reasona9le 9asis for 9elie.in%
the- to 9e true$ :i.en the +ir+u-stan+es of the loan -odifi+ation /ro+ess, Defendant had a duty
to +o--uni+ate a++urate infor-ation to Plaintiff, whi+h it failed to do$
&!&$ As des+ri9ed a9o.e, these false state-ents and +on+eal-ents of -aterial fa+t
a+tually and /ro'i-ately +aused Plaintiff to suffer da-a%es in that he ne.er re+ei.ed a
/er-anent -odifi+ation a%ree-ent for his si%nature or any other offer for /er-anent
-odifi+ation, and he lost the o//ortunity to /ursue other a.enues for sa.in% his Pro/erties$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT SE!EN
!iolation of t/4 A5i6ona Con+,845 F5a,- an- D4*40tiv4 %,+in4++ P5a*ti*4+ A*t
2as to <OA@Countrywide Ainan+ial5
&!$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7&!!, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Se.en, and are in+or/orated in full as if /art of this Count$
&!*$ This Count Se.en is a de+e/ti.e 9usiness /ra+ti+e a+tion a%ainst ea+h Defendant
indi.idually and in their offi+ial +a/a+ity$
"raudulent Conduct
&!1$ Defendant’s intentional -isre/resentation and +on+eal-ent of -aterial fa+ts
+onstitute /rohi9ited fraudulent +ondu+t under the AriCona Consu-er Araud A+t$
&!4$ Plaintiff has suffered a+tual da-a%es as an a+tual and /ro'i-ate result of the
Defendant’s intentional -isre/resentation and +on+eal-ent of -aterial fa+ts in that he ne.er
re+ei.ed a /er-anent -odifi+ation a%ree-ent for his si%nature or any other offer for /er-anent
-odifi+ation, and lost the o//ortunity to /ursue other a.enues for sa.in% his +redit and
Pro/erties$
)nfair* Immoral and )nscrupulous Practices
&!)$ Defendant’s +ondu+t as des+ri9ed throu%hout this Co-/laint +onstitutes unfair,
i--oral and uns+ru/ulous 9usiness and ra+keteerin% /ra+ti+es that har-ed not only Plaintiff
and@or Plaintiff’s A%ent 9ut the %eneral /u9li+ as well$ Defendant’s i--oral, ra+keteerin% and
uns+ru/ulous /ra+ti+es, whi+h were i-/le-ented so as to e'tra+t as -u+h -oney as /ossi9le fro-
9orrowers Defendant identified as 9ein% at risk for default /rior to fore+losure, in+luded 9ut
were not li-ited to,
a$ Defendant in+enti+iCed its e-/loyees to rush +usto-ers off of the
tele/hone as Bui+kly as /ossi9le so as to frustrate +usto-ers, the intended
result 9ein% that instead of +o-/lainin%, the +usto-ers would %i.e u/ and a++e/t
<OA’s faulty eli%i9ility deter-inations$ Defendant also ensured further
frustration 9y i-/le-entin% a Hone +all resolutionI /oli+y under whi+h
+usto-ers would ne.er s/eak to the sa-e ser.i+e re/resentati.e twi+eK
9$ #ith res/e+t to for-er Countrywide Ainan+ial +usto-ers in /arti+ular, <OA
routinely lost their loan do+u-ents, -odifi+ation /a/ers, and other ne+essary
-aterials to e.aluate eli%i9ility and routinely reEe+ted these +usto-ers’
+o-/letely /erfor-ed TPP A%ree-ents on false and in+orre+t %roundsK
+$ Defendant routinely reBuired Plaintiff to su9-it and re7su9-it
do+u-ents and finan+ial infor-ation already in its /ossession +lai-in% that it
would not re.iew a 9orrower for an eli%i9ility until and unless these do+u-ents
were su9-itted ti-e and a%ainK
d$ Defendant routinely and syste-ati+ally -ade in+orre+t +al+ulations and
deter-inations at i-/ro/er ti-es durin% the -odifi+ation /ro+ess, falsely
+lai-ed that it was /er-itted to do so under a//li+a9le dire+ti.es and that it was
una9le to a+hie.e tar%et in+o-e to /ay-ent ratios, and routinely /ro.ided
+usto-ers with other false, /re7te'tual reasons for refusin% to e'tend eli%i9le
9orrowers their offers for /er-anent -odifi+ationK
e$ Defendant sent Plaintiff -onthly letters threatenin% fore+losure if the
entire 9alan+e due is not /aid within &! days, while Plaintiff in fa+t should ha.e
re+ei.ed offers for /er-anent -odifi+ationK
f$ Defendant routinely /ro.ided false infor-ation re%ardin% its /ro+esses and
standards, refused to /ut state-ents in writin% when askedK and,
%$ Defendant routinely +ondu+ted its loan -odifi+ation /ro+esses and
delayed /ro+essin% -odifi+ations on the false /re-ise that it +ould not
/erfor- the reBuired +al+ulations unless the do+u-ents in its /ossession were no
%reater than &! days old, when in reality the a//li+a9le dire+ti.es allow
Defendant to +onsider do+u-ents older than &! days$
&!6$ Defendant en%a%ed in other -is+ondu+t desi%ned to e'tra+t -oney fro- Hat
riskI 9orrowers as o//osed to a+tually hel/in% su+h 9orrowers who were at all ti-es ;A>P
eli%i9le a+hie.e -odified loan ter-s$
&"!$ Defendant knowin%ly desi%ned and -aintained a loan -odifi+ation syste- that was
riddled with flaws and intentionally staffed with e-/loyees who la+ked the trainin%,
e'/erien+e, edu+ation or skill to a++urately /erfor- their o9li%ations$
&""$ Defendant’s +ondu+t des+ri9ed herein a+tually and /ro'i-ately +aused Plaintiff
and@or Plaintiff’s A%ent to suffer da-a%es as des+ri9ed throu%hout this Co-/laint$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT EI1HT
)
SLANDER OF TITLE
2as to all Defendants5
&"3$ The a9o.e %eneral alle%ations under /ara%ra/hs " throu%h &!), in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Ei%ht, and are in+or/orated in full as if /art of this Count$
&"&$ On or a9out Ae9ruary 6, 3!"!, the Defendants +ondu+ted a fraudulent au+tion of
the /ro/erty known as Pro/erty 3$ Defendants are also +har%ed with slander of title for Pro/erty
", Pro/erty &, and Pro/erty $
)
See EC/i@it 22K ?ud%e >+:rath’s +ourt hearin% trans+ri/t$
&"$ The Plaintiff /ut Defendants, <ryan Ca.e LLP, S-ith and #eri+h on noti+e not to
interfere with the said /ro/erty durin% the /enden+y of the liti%ation$ Notwithstandin% the lawful
noti+e, these Defendants hid and +on+ealed fro- the +ourt and Plaintiff the fore+losure sales date
of Ae9ruary 6, 3!"!, and then and there, the Defendants +ondu+ted an unlawful fore+losure sale
with Defendant, <N=$
&"*$ The Defendants thereafter filed a false +han%e of title a%ainst the Pro/erty 3$
Defendants ha.e -ade a false and -ali+ious /u9li+ation$
&"1$ The /u9li+ation of the false +han%e of title has dis/ara%ed Plaintiff’s ri%hts in and
to the title Pro/erty 3$ Defendants, the law fir- of >iles, <auer, <er%stro- F #inters LLP$, and
their attorneys a%ain /u9lished a false +han%e of title on ?uly &!, 3!"!$
&"4$ As a result of the /u9li+ation of the false and dis/ara%in% +han%e of title, the
Plaintiff has 9een da-a%ed$
&")$ The Defendants re+orded the +han%e of title with the >ari+o/a County 8e+order
of Deeds offi+e$ The Defendants ha.e atte-/ted to use the false and dis/ara%in% +han%e of title
to unlawfully and without noti+e seiCe Pro/erty 3$
&"6$ Defendants also +ondu+ted unlawful fore+losure sales a%ainst Pro/erty " and
Pro/erty &$ Defendants also filed false +han%e of titles and -ade false /u9li+ations a%ainst
Pro/erty " and Pro/erty &$
&3!$ As a result, the Plaintiff has 9een da-a%ed$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT NINE
!IOLATION OF A.R.S. 1"2"1=.#=
2as to all Defendants5
&3"$ The a9o.e %eneral alle%ations under /ara%ra/hs " throu%h &"4, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Nine, and are in+or/orated in full as if /art of this Count$
&33$ This is a +lai- 9rou%ht under Diolation of A$8$S$ "&73&"$!, seekin% to sto/ and
deter Defendants fro- /ra+ti+in% their unlawful enter/rise, 2+ondu+ted throu%h a /attern of
ra+keteerin% a+ti.ity5, u/on AriCona +onsu-ers and to /ro.ide an adeBuate re-edy for the
.i+ti-s of su+h /ra+ti+es$
&3&$ Defendants +ons/ired to ille%ally defraud the Plaintiff out of his /ro/erty ri%hts in
and to the Pro/erties 9y unlawful tres/ass, +on.ersion, and tortuous interferen+e with Plaintiff’s
+ontra+tual ri%hts, filin% without lawful noti+e a fraudulent +o-/laint in for+i9le detainer and
tortiously interferin% and terroriCin% third7/arties residin% on the said /ro/erty$
&3$ To%ether, Defendants +o-/ose a +ri-inal enter/rise 2see the Lisa >adi%an
Co-/laint, EC/i@it 15$ The +olle+tion of ille%al a-ounts of interest, whi+h for+es AriCona
+onsu-ers into fore+losure without any lawful noti+e and unlawful seiCure of /ro/erties, throu%h
fraudulent Co-/laints in for+i9le detainer for-s the o9Ee+t of the /attern of ra+keteerin% a+ti.ity$
The Defendants en%a%ed in a ra+keteerin% s+he-e to indu+e unBualified /arties to /ur+hase
-ort%a%es, whi+h they were not Bualified to -aintain, at .aria9le interest rates, all of whi+h was
not fully dis+losed to the 9orrowers, who were defrauded into /arti+i/atin% in loans, whi+h they
were for+ed into fore+losure after the Defendants offered and failed to -odify the said loans, the
Defendants unlawfully seiCed the Plaintiff’s /ro/erties without lawful noti+e, +ondu+ted
fraudulent trustee sales of the said /ro/erties, unlawfully en%a%ed in fraudulent for+i9le detainer
a+tions without noti+e, in order to o9tain /ossession of the real estate, and to resell the said
/ro/erties in order to /er/etuate the s+he-e$ The Defendants failed to notify the Plaintiff of the
a+tual fore+losure in Ae9ruary of 3!"!, they knowin%ly and willfully failed to notify the Plaintiff
of the filin% of a +o-/laint in for+i9le detainer on ?uly &!, 3!"! durin% the /enden+y of this
liti%ation and .iolated Plaintiff’s ri%hts 9y unlawfully enterin% the su9Ee+t /ro/erty and
interferin% with Plaintiff’s +ontra+tual ri%hts 9y unlawfully a//roa+hin% the resident of the said
/ro/erty$ Defendant a++o-/lished their fraudulent s+he-e throu%h use of the 0$S$ -ail and
interstate wires$
&3*$ Defendants’ +onstitute a +ri-inal enter/rise and their unlawful s+he-e was
e'e+uted throu%h their /arti+i/ation in a a /attern of ra+keteerin% a+ti.ity that in+luded -ulti/le
and re/eated +ri-inal a+ts, in+ludin% nu-erous a+ts of usury resale of realty with intent to
defraud, wire and -ail fraud, and a s+he-e and artifi+e to defraud all defined as /redi+ate a+ts 9y
AriCona law$
&31$ Defendants’ /attern of ra+keteerin% a+ti.ity was tar%eted at the Plaintiff, and
Plaintiff sustained dire+t inEury to his /ro/erty or 9usiness as a result of the /redi+ate a+ts$
&34$ As dis+ussed a9o.e, Defendants e'e+ute their s+he-e with si-ilar intents, si-ilar
-ethods of +o--ission, and with si-ilar results$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT TEN
TORTUROUS INTERFERENCE 'ITH PLAINTIFFLS CONTRACTUAL RI1HTS
2as to Defendants <ank of New =ork, and its attorneys5
&3)$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7&3*, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count Ten,
and are in+or/orated in full as if /art of this Count$
&36$ On O+to9er 3!!), Plaintiff /ur+hased Pro/erty 3 fro- 8i9adeneira$ 8i9adeneira
Buit7+lai-ed Pro/erty 3 to CSPPSP$ CSPPSP alon% with 8i9adeneira si%ned all ri%hts and
+lai-s relatin% to the /ro/erty to Pro/erty$
&&!$ On ?anuary &!, 3!!6, the CSPPSP o9tained a lease fro- the Tenant to o++u/y
Pro/erty 3$ All +lai-s relatin% to the lease 9y CSPPSP ha.e 9een assi%ned to Plaintiff$
&&"$ The a-ount of rent /aid to CSPPSP 9y the tenants is L&,*!!$!! -onthly$ On or
a9out Ae9ruary 6, 3!"!, <N= unlawfully /ur+hased Pro/erty 3 fro- <OA, in a fraudulent
trustee sale$
&&3$ A Hro9oI si%ner with no authority to si%n this do+u-ent sin%ed the trustee deed$
The ille%al sale was also ne.er noti+ed to the Plaintiff, in +lear .iolation of AriCona law$
&&&$ In ?uly 3!!6, <OA filed a fraudulent for+i9le detainer a+tion atte-/tin% to seek
/ossession of Pro/erty 3 and na-in% a sha- defendant, 8i9adeneira, who- defendants knew
was not in /ossession or +ontrol of the /ro/erty sin+e at least No.e-9er of 3!!)$ Defendants
intentionally na-ed 8i9adeneira as a /arty to the for+i9le detainer a+tion to /re.ent Plaintiff
fro- seekin% a lawful re-o.al of the +ase to Aederal Court$
&&$ On Se/te-9er 4, 3!"", Plaintiff su++essfully re-o.ed the +ase fro- >ari+o/a
County to AriCona State Court$
&&*$ Plaintiff ad.ised ?ud%e <ernard Owens of the noti+e of re-o.al, 9y fa+si-ile
trans-ission, whi+h ?ud%e Owens a+knowled%ed the re+ei/t of$ Notwithstandin% ?ud%e Owens
knowled%e of said re-o.al, <N= and its attorneys went 9efore ?ud%e Owens and o9tained an
order of /ossession of Pro/erty 3, as a%ainst a sha- defendant, 8i9adeneira$ Defendants knew
that Paul Case was the Plaintiff’s tenant and used the fraudulently indu+ed order of e.i+tion 9y
Co--issioner Owens 2see atta+hed EC/i@it 2"), in order to ha.e the Plaintiff’s tenant re-o.ed
fro- Pro/erty 3$
&&1$ The Tenant sent an e-ail to Stoller 2see a true and +orre+t +o/y of whi+h is
atta+hed hereto and -arked as EC/i@it 2;5, whi+h +onfir-ed that the Defendants +ontinued to
tortiously interfere with the Plaintiff’s +ontra+tual relationshi/ with the Tenant$ The >ari+o/a
County Sheriff /osted a noti+e of e.i+tion on the door at Pro/erty 3, unlawfully +ausin% the
Tenant to e.a+uate the /re-ises for fear of 9ein% +har%ed with +ri-inal tres/assin%$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT ELE!EN
;
CON!ERSION
2as to all Defendants)
&&4$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7&&, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count Ten,
and are in+or/orated in full as if /art of this Count$
6
See EC/i@it 22K ?ud%e >+:rath’s +ourt hearin% trans+ri/t$
&&)$ On or a9out Ae9ruary 6, 3!"!, the Defendants +ondu+ted a fraudulent fore+losure
sale 9etween the- and failed to %i.e the Plaintiff noti+e /rior to the fore+losure sale$
&&6$ The alle%ed fore+losure sale is .oid ab initio.
&!$ Plaintiff holds a9solute ri%hts to the Pro/erty 3, Pro/erty &, and Pro/erty $
&"$ Defendants, Those Callaways PC, ?oann Callaway, ?ose/h Callway and Kelly
Callaway, were /ut on noti+e in Ae9ruary of 3!"! and in >ar+h of 3!"! not to enter the su9Ee+t
/ro/erty and@or to interfere in any way with any of the /arties that are residin% on Pro/erty 3$
&3$ On or a9out ?uly 4, 3!"!, Defendants, Those Callaways PC, ?oann Callaway,
?ose/h Callway and Kelly Callaway, and@or their a%ent, -ali+iously, unlawfully and willfully,
and without the Plaintiff’s knowled%e or +onsent, entered u/on the /ro/erty of Plaintiff, and
unlawfully +onta+ted the tenants residin% therein$
&&$ As a dire+t and /ro'i-ate result of Defendants, Those Callaways PC, ?oann
Callaway, ?ose/h Callway and Kelly Callaway’s unlawful a+ts, in +onEun+tion, and at the
dire+tion and +ontrol of the other Defendants in this +ase, the Plaintiff has suffered inEuries of a
/ersonal and /e+uniary nature, in+ludin% se.ere e-otional distress, the loss of .alue, 9enefit and
enEoy-ent of Pro/erty 3$
&$ This Court has authority and should e'er+ise authority to award /uniti.e da-a%es
to Plaintiff to /unish Defendants for su+h e%re%ious a+tions and to /re.ent the- fro-
+o--ittin% su+h a+ts in the future$
&*$ In doin% the a+ts alle%ed a9o.e, Defendants +o--itted the intentional tort of
+on.ersation as to Pro/erty 3, Pro/erty &, and Pro/erty $
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT T'EL!E
"!
TRESPASS
2as to all Defendants5
&1$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7&&, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Twel.e, and are in+or/orated in full as if /art of this Count$
&4$ The Plaintiff holds ri%hts to Pro/erty 3$
&)$ Defendants, in+ludin% Those Callaways PC$, ?oann Callaway, ?ose/h Callaway
and Kelly Callaway, were warned in Ae9ruary, 3!"!, 9y the Plaintiff not to interfere or enter the
said /ro/erty$
&6$ After so-e in.esti%ation, the Plaintiff has learned that so-e ti-e in ?uly 3!"!, the
Defendants, Those Callaways PC$, ?oann Callaway, ?ose/h Callaway and Kelly Callaway, and@or
"!
See EC/i@it 22K ?ud%e >+:rath’s +ourt hearin% trans+ri/t$
their a%ent, without any +onsent or authoriCation fro- the Plaintiff, ille%ally entered on Pro/erty
3$
&*!$ The Defendants now +lai- ownershi/ of the /ro/erty throu%h a fraudulent
fore+losure /ro+eedin%, alle%edly held on Ae9ruary "3, 3!"!, without ser.i+e of /ro+ess or any
noti+e to the Plaintiff$
&*"$ The Defendant, <N=’s unlawful +lai- of ownershi/ +onstitutes a +on.ersion of
Plaintiff’s /ro/erty$
&*3$ Plaintiff still +lai-s a9solute ri%hts to the Pro/erties and has not either .oluntarily
or in.oluntarily transferred any ri%ht, title, nor interest in the /ro/erty to any /erson, entity or
%o.ern-ental 9ody$
&*&$ #ithout any noti+e to the Plaintiff, and without any authority, the Defendants,
Those Callaways PC, ?oann Callaway, ?ose/h Callaway and Kelly Callaway, and@or their a%ent,
with the knowled%e and dire+tion of the other Defendants, unlawfully, willfully and without
Plaintiff’s knowled%e or +onsent, entered u/on the /ro/erty of the Plaintiff and atte-/ted to
tortiously interfere with Plaintiff’s +ontra+tual relationshi/ with a /arty o++u/yin% the /re-ises$
As a result of the Defendants’ unlawful a+ts, Plaintiff has lost the .alue, 9enefit and enEoy-ent of
Pro/erty 3, Pro/erty & and Pro/erty$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT THIRTEEN
FRAUD
&*$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7&*", in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Thirteen, and are in+or/orated in full as if /art of this Count$
&**$ Defendants, <N= and the na-ed offi+ers and dire+tors and their attorneys, ha.e
knowin%ly +o--itted +o--on law fraud and statutory fraud 9y en%a%in% in an or+hestrated
/attern and +i.il ra+keteerin% s+he-e of -isre/resentation, o-ission and +on+eal-ent to
fraudulently o9tain /ossession and +ontrol of Plaintiff’s Pro/erties, and in /arti+ular Pro/erty 3,
9y -akin% -isre/resentations to ?ud%e Owens, in Case No$ CD 3!"! !6)3!, in order to
unlawfully o9tain an order of /ossession on O+to9er 3!, 3!"", when Defendants knew that ?ud%e
Owens had a9solutely no Eurisdi+tion to issue any order in the >ari+o/a +ase in .iew of the fa+t
that the /arti+ular +ase had already 9een transferred to AriCona Aederal Court on Se/te-9er 4,
3!"" and 9e+a-e known as Case No$ ""7"41*$
&*1$ Defendants and their attorneys then used the O+to9er 3!, 3!"" erroneous order of
?ud%e Owens to fraudulently o9tain an order of e.i+tion fro- the >ari+o/a County Sheriff and
affi' it to Pro/erty 3$ Defendants knowin%ly and willfully used the O+to9er 3!, 3!"" order to
terroriCe the Tenant at Pro/erty 3 and threatened hi- with +ri-inal tres/ass +har%es if he and his
fa-ily did not .a+ate the /re-ises i--ediately$
&*4$ Defendants then unlawfully seiCed +ontrol of Pro/erty 3 and +han%ed the lo+ks on
the /ro/erty$
&*)$ Defendants ha.e +o--itted +o--on law and statutory fraud 9y en%a%in% in an
or+hestrated /attern and s+he-e of +ontinued -isre/resentations, /ur/oseful o-issions and
+on+eal-ents to defraud the Plaintiff out of his /ro/erty ri%hts in the Pro/erties$
&*6$ On O+to9er 3!, 3!"", Defendants 2in+ludin% their attorneys5, -ade
-isre/resentations and or law to ?ud%e Owens, a >ari+o/a +ounty ?ud%e, and fraudulently
indu+ed the ?ud%e to erroneously enter an order of /ossession in the +ase$
&1!$ Defendants knew that the >ari+o/a County for+i9le detainer a+tion was
transferred to federal +ourt in Phoeni', AriCona, on Se/te-9er 4, 3!"" and was +urrently /endin%
in federal +ourt$
&1"$ <N=, their offi+ers, dire+tors, and attorneys, intentionally -isled ?ud%e Owens to
issue an order of /ossession when ?ud%e Owens had no Eurisdi+tion o.er the for+i9le detainer
a+tion
&13$ <N= sou%ht and re+ei.ed an unlawful e.i+tion order fro- the >ari+o/a County
Sheriff$
&1&$ Defendants /ro+eeded to tortiously interfere with Plaintiff’s +ontra+tual
relationshi/ with his Tenant 9y enterin% the Pro/erty and /ostin% an e.i+tion noti+e and
threatenin% the Tenant that he -ust .a+ate the /ro/erty or 9e +har%ed with +ri-inal tres/assin%$
&1$ ;arass-ent fro- Defendants for+ed the Tenants to 9rea+h the +onditions of the
lease -o.e fro- the Pro/erty$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT FOURTEEN
CONDUCT >C) AND PARTICIPATION IN A RICO ENTERPRISE
THROU1H A PATTERN OF RAC&ETEERIN1 ACTI!IT(:
1: U.S.C. MM 1;<1 >D), 1;<2
&1*$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7&13, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Aourteen, and are in+or/orated in full as if /art of this Count$
&11$ At .arious ti-es and /la+es /artially enu-erated in Plaintiff’s do+u-entary
-aterial, all Defendants did asso+iate with a 8ICO enter/rise of indi.iduals who were asso+iated
in fa+t and who en%a%ed in, and whose a+ti.ities did affe+t, interstate and forei%n +o--er+e$
&14$ Likewise, all Defendants did +ondu+t and@or /arti+i/ate, either dire+tly or
indire+tly, in the +ondu+t of the affairs of said 8ICO enter/rise throu%h a /attern of ra+keteerin%
a+ti.ity, all in .iolation of ") 0$S$C$ JJ 1;<125, 2*5, 265, and 1;<22+5$
&1)$ Plaintiff further alle%es that all Defendants did +o--it two or -ore of the
offenses ite-iCed a9o.e in a -anner whi+h they +al+ulated and /re-editated intentionally to
threaten +ontinuity, 2i$e$ a +ontinuin% threat of their res/e+ti.e ra+keteerin% a+ti.ities5 also in
.iolation of the 8ICO law at 1: U.S.C. 1;<22+5 su/ra$
&16$ Pursuant to ) Stat$ 64, Se+$ 6!, O+t$ "*, "64!, the 8ICO laws ite-iCed a9o.e
are to 9e li9erally +onstrued 9y this honora9le Court$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$
COUNT FIFTEEN
CONSPIRAC( TO EN1A1E IN A PATTERN OF RAC&ETEERIN1 ACTI!IT(:
1: U.S.C. MM 1;<1>D), 1;<2>D)
&4!$ Plaintiff re/eats and re7alle%es the alle%ations of /ara%ra/hs "7&14, in+ludin% any
su9/ara%ra/hs thereof, are herein 9y referen+e -ade /art of the alle%ations under this Count
Aifteen, and are in+or/orated in full as if /art of this Count$
&4"$ At .arious ti-es and /la+es /artially enu-erated in Plaintiff’s do+u-entary
-aterial, all Defendants did +ons/ire to a+Buire and -aintain an interest in a 8ICO enter/rise
en%a%ed in a /attern of ra+keteerin% a+ti.ity, in .iolation of ") 0$S$C$ JJ 1;<2295 and 2d5$
&43$ At .arious ti-es and /la+es /artially enu-erated in Plaintiff’s do+u-entary
-aterial, all Defendants did also +ons/ire to +ondu+t and /arti+i/ate in said 8ICO enter/rise
throu%h a /attern of ra+keteerin% a+ti.ity, in .iolation of ") 0$S$C$ JJ 1;<22+5 and 2d5$ See also
") 0$S$C$ JJ 1;<125, 2*5 and 265$
&4&$ Plaintiff further alle%es that all Defendants did +o--it two or -ore of the
offenses ite-iCed a9o.e in a -anner whi+h they +al+ulated and /re-editated intentionally to
threaten +ontinuity, i$e$ a +ontinuin% threat of their res/e+ti.e ra+keteerin% a+ti.ities, also in
.iolation of 1: U.S.C. 1;<22d5 2Prohi9ited a+ti.ities su/ra5$
'HEREFORE, the Plaintiff seeks da-a%es in e'+ess of ONE7;0ND8ED >ILLION
DOLLA8S 2L"!!,!!!,!!!$!!5 and /uniti.e da-a%es in the a-ount of AIDE7;0ND8ED
>ILLION DOLLA8S 2L*!!,!!!,!!!$!!5, and attorneys’ fees and +osts, indi.idually assessed
a%ainst ea+h Defendant and in their offi+ial +a/a+ity$ Aor a de+laration that the Defendants ha.e
no ownershi/ and@or /ro/erty ri%hts in the Pro/erties 2the /ro/erties whi+h are the su9Ee+t of this
liti%ation are, 2:="$ N. 112
t/
'a., S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty "5,
1#<"2 E. %l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty 35, 1#<<D E.
%l,4 SE. D5iv4, S*ott+-al4, A5i6ona, :D2<2 2referred to as Pro/erty &5, and =$:1< N. 1D
t/
Lan4, N47 Riv45, A5i6ona, :D#:$:#DD), and for su+h other and further relief this Court dee-s
/ro/er and Eust$ Plaintiff seeks an inEun+tion a%ainst the >ari+o/a County Sheriff fro-
interferin% with Plaintiff’s Pro/erties and e.i+tin% Plaintiff’s tenants fro- the said dis/ute$
8es/e+tfully su9-itted,

Aaron Penna
Attorney for Christo/her Stoller
*"1! #$ Sunnyside A.enue
;o-ewood, IL 1!&!
Ar/ena)U%-ail$+o-
DECLARATION
The undersi%ned, de+lares that he is authoriCed to e'e+ute this do+u-ent on his 9ehalf,
that all state-ents -ade of his own knowled%e are true and all state-ents -ade on infor-ation
and 9elief are 9elie.ed to 9e trueK and further that these state-ents were -ade with the
knowled%e that willful false state-ents and the like so -ade are /unisha9le 9y fine or
i-/rison-ent, or 9oth, under Se+tion "!!" of Title ") of the 0nited States Code$ The
do+u-ents atta+hed hereto are true and +orre+t +o/ies of the ori%inals$