Banking Misconduct Blog


Tick Tock... CMBS Crisis Looms (Lender Liability Post)

Rating agencies are sounding the alarm over the looming problems facing maturing CMBS loans. A large percentage of commercial mortgage backed securities (CMBS) financed loans were underwritten in 2006 and 2007 at the height of the real estate market. Those loans are coming due just as the...

Mineral Rights Claim Shows Novel Use of Racketeering Law

The Racketeer Influenced and Corrupt Organizations Act (RICO) was originally intended as a criminal statute. Congress wanted to arm prosecutors with a new law to address criminal conspiracies involving gangs and organized crime. A last minute amendment allowed private litigants to use the law in...

RICO Complaint Targets Title Co’s, Marriott’s Timeshare Program

A class action lawsuit filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) last month claims Marriott’s “Vacation Club” timeshare program is actually an illegal racketeering scheme. A couple from Shelbyville, Indiana say they were duped into thinking they...

Appeals Court Enforces Modification Deal

We rarely write about residential foreclosure cases. Although we don’t typically handle cases for individual homeowners, we follow them closely. The same deceitful tricks banks use against helpless homeowners often find their way into commercial cases. Banks have deep pockets and know that...

Tribe, Payday Lender Can’t Dodge RICO Claim

A Vermont federal court judge refused to toss a RICO claim filed against the Chippewa Cree payday lender, Plain Green LLC. The court also refused to enforce a loan provision that prevented borrowers from filing lawsuits or making class action claims. The payday lender unsuccessfully argued that...

RICO: Powerful Anti-Fraud Tool – EB-5 Class Action

Congress enacted the Racketeer Influenced and Corrupt Organizations Act (RICO) as a response to organized crime and biker gangs. A few decades later and this powerful statute is now mostly used by savvy private litigants seeking redress for a wide variety of fraud claims. This month a group of...

RICO- Collecting Damages for Lost Profits

There is a tremendous amount of case law surrounding the civil RICO statute. Because it the law provides for treble damages, arguments frequently arise over the proper measure of damages. This is particularly true when the damages claims include lost profits. Given the explosion in RICO claims,...

CMBS Borrowers Feeling the Squeeze on Refinancing

2016 and 2017 are the years when many CMBS (Commercial Mortgage Backed Securities) mortgages mature. Loans that were written in the height of the real estate market are now coming due. Even though most of these loans are not in default, we are already seeing problems with those forced to...

Does RICO Apply to Conduct Overseas?

The Racketeer Influenced and Corrupt Organizations Act (RICO) is one of the most powerful anti-fraud statutes on the books. It can really level the playing field for victims of fraud and criminal conspiracies. Triple damages, costs and attorney’s fees are what make the law so attractive to...

Banks Put the Squeeze on Oil Companies

More bad news from the oil patch. Oil prices have been at historic lows since the summer of 2014. Although prices have rebounded a bit, prices are still well below the $65 per barrel benchmark that most companies need to be profitable. In recent months approximately 50 exploration and...