mikelbeck
12-04-2010, 09:59 AM
http://www.newsday.com/long-island/defunct-lender-lend-america-sued-1.2515547
Defunct mortgage lender Lend America has been put into "involuntary bankruptcy" by a group of creditors, while in a separate suit, a Florida creditor accused a former key executive of funneling more than $3.2 million from the former Melville firm's accounts.
In the bankruptcy case filed this week in federal court in Central Islip, more than $2.6 million is sought by two title insurance firms that did work for Lend America - EAM Land Services in Syosset and PSS Settlement Services in Melville, and by Evans National Leasing, of upstate New York, which rented out equipment. A New Jersey couple also joined the suit, saying Lend America never paid off their old loan after refinancing, so they're now in foreclosure with the original lender.
In the second suit, also filed this week in Central Islip, Global Appraisal Solutions, a defunct Florida firm, said Lend America owed it money but instead of paying, its executive vice president, Michael Ashley, diverted company funds in the months before the firm began closing down in December 2009.
Besides Ashley, the second suit names as defendants his parents, Cooper Capital Group and Mike Ashley Racing.
"We're going after that money that got moved," said Global's Philadelphia attorney, Judith Fellheimer.
The suit alleges that more than $524,000 went to the Mike Ashley Racing team and that more than $2.7 million went to Cooper Capital Group, which has the same address as the Melville home of Ashley's parents, Kenneth and Janet, according to the lawsuit.
"We have nothing to do with it," Janet Ashley said of Cooper Capital and the alleged $2.7 million transfer.
The parents said they believe Cooper Capital Group was their son's investment vehicle and that he used their address without permission.
Ashley said Friday that no Lend America funds went to the two businesses sued. "I'm not going to give you the facts, except to tell you that it's not true," he said.
Lend America's business was effectively shut down after the Federal Housing Administration revoked its license to make federally insured loans, saying it had falsified borrowers' qualifications.
Joseph Maniscalco, EAM's Wantagh-based attorney, said creditors want a bankruptcy trustee appointed to find and liquidate assets. A hearing on the matter has been set for Dec. 13.
Defunct mortgage lender Lend America has been put into "involuntary bankruptcy" by a group of creditors, while in a separate suit, a Florida creditor accused a former key executive of funneling more than $3.2 million from the former Melville firm's accounts.
In the bankruptcy case filed this week in federal court in Central Islip, more than $2.6 million is sought by two title insurance firms that did work for Lend America - EAM Land Services in Syosset and PSS Settlement Services in Melville, and by Evans National Leasing, of upstate New York, which rented out equipment. A New Jersey couple also joined the suit, saying Lend America never paid off their old loan after refinancing, so they're now in foreclosure with the original lender.
In the second suit, also filed this week in Central Islip, Global Appraisal Solutions, a defunct Florida firm, said Lend America owed it money but instead of paying, its executive vice president, Michael Ashley, diverted company funds in the months before the firm began closing down in December 2009.
Besides Ashley, the second suit names as defendants his parents, Cooper Capital Group and Mike Ashley Racing.
"We're going after that money that got moved," said Global's Philadelphia attorney, Judith Fellheimer.
The suit alleges that more than $524,000 went to the Mike Ashley Racing team and that more than $2.7 million went to Cooper Capital Group, which has the same address as the Melville home of Ashley's parents, Kenneth and Janet, according to the lawsuit.
"We have nothing to do with it," Janet Ashley said of Cooper Capital and the alleged $2.7 million transfer.
The parents said they believe Cooper Capital Group was their son's investment vehicle and that he used their address without permission.
Ashley said Friday that no Lend America funds went to the two businesses sued. "I'm not going to give you the facts, except to tell you that it's not true," he said.
Lend America's business was effectively shut down after the Federal Housing Administration revoked its license to make federally insured loans, saying it had falsified borrowers' qualifications.
Joseph Maniscalco, EAM's Wantagh-based attorney, said creditors want a bankruptcy trustee appointed to find and liquidate assets. A hearing on the matter has been set for Dec. 13.