Banking Misconduct Blog


LNR Partners - A "Cash Cow" (CMBS Special Servicer Post)

Yesterday Seeking Alpha published an article on Starwood Property Trust, the owner of embattled special servicer LNR Partners LLC. The article hails Starwood as a "cash cow" and worthy investment. Where does Starwood get much of its cash? From LNR.
LNR Partners is the nation's...


Many TIC & CMBS Financed Projects Facing Default

“Rearranging the deck chairs on the Titanic,” that is how I describe the many owners of real estate projects financed with CMBS or tenant in common structures. The ship is sinking, slipping under the surface, yet the party on the upper decks continues. Unfortunately, the folks most at...

Predicate Acts for NJ RICO Statute

Editor’s Note – The following article on RICO was written for lawyers and is to be published in the National Law Review. We are posting it here because it useful for business owners and individuals victimized by banks and others. RICO is one of the most powerful anti-fraud statutes on...

Small Banks and Punitive Damage Awards

In 1946, Jimmy Stewart starred in one of the great classic movies, It’s a Wonderful Life. His character was the head of a small local bank. 70 years later, that movie is still played every year at Christmas. One of the great scenes takes place in the bank’s board room. (I won’t...

SEC Sues Wells Fargo for Misleading Curt Schilling Bond Offering

Curt Schilling is a household name in New England. A former pitcher for the Boston Red Sox, Schilling helped lead three different Major League Baseball teams to the World Series. After retiring in 2008, Schilling went on to start a video game company. That is where this sad tail...

The Looming TIC Time Bomb

The year was 2006, the economy was booming and many thought the real estate market still had years more of growth. Promoters like Carlton Cabot and Tony Thompson were pushing a unique investment called a “tenant-in-common” or TIC investment. TICs took advantage of a 2002 IRS revenue...

Judge Says Automobile Dealer RICO Suit Is Untimely
RICO

The Racketeer Influenced and Corrupt Organization Act (RICO) is one of the most powerful and misunderstood anti-fraud tools available to private litigants. Originally enacted as a tool for government prosecutors to combat organized crime and biker gangs, the law contains potent remedies for...

Court Okays Lawsuit Against BNY Mellon as Mortgage Trustee

Earlier this week, a federal judge in Manhattan gave a green light to a lawsuit filed by an investor against Bank of New York Mellon. The investor claims it lost over $1 billion because of BNY Mellon’s poor performance as trustee over several Residential Mortgage Backed Securities (RMBS)...

Over One Third of CMBS Loans Could Default by 2017

Many CMBS loans are coming due in 2016 and 2017. Morningstar reports that almost half of the maturing Commercial Mortgage Backed Securities loans are overleveraged. That means that they are facing imminent maturity defaults.
According to a report published by Morningstar Credit Ratings, over...