v. Civil ActionNO~mortgagefraudblog.com/images/uploads/Carter_v._Rosenberg_Comp… · BRYAN P....

RALPH D. CARTER, JR.1518 Gallatin Place, NEWashington, D.C. 20017

'LTit10Rt.

___OEP U1YnPlaintiff,

Civil ActionNO~v.

BRYAN P. ROSENBERGMorgantown FCIP.O. Box 1000Morgantown, WV 26507

WILLIAM W. DENT )

10 Sunrise Court )

Randallstown, Maryland 21133)

INC.))

ALL FINANCIAL SERVICES,9G30 Red Branch RoadSuite 150Columbia, Maryland 21045

JOSEPH L. RIECK a/k/aJOSEPH LORIECK313 Queens RoadHubert, North Carolina

MONUMENTAL CITY TITLE)COMPANY LLC now d/b/a)REGAL TITLE COMPANY, LLC )

813 E. Baltimore St., #102 )

Suite 102 )

Baltimore, Maryland 21202 )

Serve: )Harriet Taylor)813 E. Baltimore Street)Baltimore, MD 21202 )

and

ROBERT FULTON DAHIELL826 E. Baltimore StreetBaltimore, Maryland 21202

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IN THE UNITED STATES-DISTRICT COURTFOR THE DISTRICT °1~~~1~~~ ~ ss

Case 1:04-cv-00759-AMD Document 1-1 Filed 03/16/2004 of 15

II

COMPLAINT

Comes now plaintiff, Jr., by andRalph D. Carter,

, and for his cause of actionthrough undersigned counse

against defendants, alleges as follows:

is based on 28 USC1. Jurisdiction of this Court

51332, and 15 USC §1601 ~ ~.

28based2. Venue this Court is onin

of the§1391(a) (2 substantial eventspartbecause a

~f action arose in the State ofgiving rise to this cause

Maryland and the properties that are the subject of this

litigation are located in the State of Maryland

3. Plaintiff Jr. a naturalRalph D. Carter, is

is a citizen andthe age of whomajority,persor over

resident of the District of Columbia.

4. Defendant Bryan P Rosenberg held himself out

propertiesof realthe for certainagent ownersas

City and is currently a resident oflocated in Baltimore

Virginia.Morgantown West

5. Defendant William W Dent held himself out as a

behalf ofand tomortgage purporting act onbroker,

arranged fordefendant All Inc.,Financial Services,

mortgage loans to plaintiff, and is currently a resident

Maryland.

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of Randallstown,


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" AllServices, Inc.6. ADefendant Financial

incorporated under the laws of Maryland,Financial" is

and is a broker for home mortgages in Baltimore, Maryland

9030 Red Branchwith its principal offices located at

'land 21045.Road, s Marte Columbia,

City Title Company LLC,Defendant Monumental

LLCd/b/a Regal Titlewhich Company,is now

ofunder the"Monumental" incorporated lawsis

is a real estate settlement company withandMaryland,

its principal offices located at 813 E Baltimore Street,

Maryland 21202.Suite 102, Ba imore,

Defendant Robert Fulton Dashiell is affiliated8.

with defendant Monumental, and issued opinion letters for

the benefit of plaintiff attesting to the legality of the

and currently does business in Baltimore,ransactions,

Maryland.

9. Defendant Joseph L. Rieck, who is also known as

"Rieck"Joseph Lorieck is a real estate appraiser, was

a resident of the State of Maryland at all times relevant

this Complaint, but is believed to have relocated toto

North CarolinaL.w~

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FACTUAL ALLEGATIONS

Plaintiff incorporates the preceding paragraphs10.

herein.

11, 2001 plaintiff becamearound March:>l11.

Postof the Washingtona advertisementaware

by whichdefendant Rosenberg wasbeingnewspaper run

soliciting for persons interested in investment property

in Baltimore, Maryland.

that for12. The investors~dvertisement claimed

fully rented properties were availablewith A++ credit,

for purchase with no money down and cash back at closing.

In response to the advertisement, plaintiff met13.

office in Baltimorewith defendant Rosenberg in is

:>cated at 25 Street.30

defendant Rosenberg informed14 At that. meeting,

he had photographs of several propertiesplaintiff that

that were available for purchase undern Baltimore Cit

very favorable terms

15. reiterated the terms setDefendant Rosenberg

forth in the advertisement that so long as plaintiff had

could not only purchase the propertieshegood credit,

with no money down and receive cash back at closing, he

could also receive referral fees if he provided the names~~

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(D)J4~of other potential qualified investors.


theofobvious that16. Although someit was

defendant Rosenbergin need ofproperties were repair,

informed plaintiff that he could acquire the properties

value, and that the rents were infor less than market

excess of the carrying charges for the properties.

plaintiffreferred toRosenberg17 Defendant

defendantsthe loans, whichobtainDent todefendant

Rosenberg and Dent informed him would not only give him

sufficient cash to acquire the properties, but to realize

some cash for his personal use.

purchaseplaintiff's agreement to some18. Upon

he was referred toproperties from defendant Rosenberg,

order toobtain mortgagesDent to the indefendant

consummate the purchases.

ultimatelyDefendants Dent and All Financial19.

obtained mortgages for plaintiff with various lenders

saidDent,After plaintiff met defendant20.

could offerheconvinced plaintiff thatdefendant

plaintiff better terms if plaintiff purchased properties

from him instead of defendant Rosenberg.

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defendant Dent offered to21. Amo Ither things,g

assure that plaintiff received a greater amount of cash

back from each purchase, and he also agreed to provide a

andof the managementto propertycarecompany take

1 year after purchase.repairs for a period of one

422. Plaintiff ultimately purchased four

(8Rosenberg and eightdefendantproperties from

properties from defendant Dent.

23. Defendant Monumental Title handled all of the

took place between June 2001 and Octoberlosings whict

2001.

24. After closing, plaintiff discovered that almost

were merelyof through Dentthe repairs undertakenall

of quality ancosmetic, were poor or inand some

unworkmanlike manner.

of convincing the plaintiff of the25. As a part

defendants Rosenberg and Denthisva ue of purchases,

commissioned appraisals for the properties.

the appraisals were performed by defendantAl26.

Joseph Rieck

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a value thatNone of the appraisals were for27.

any appraiser exercising due skill and diligence would

but were for amountsfor,have assessed the properties

true value or even their tax assessedfar exceeding their

values

of theresultand proximatedirect28. As a

conduct, plaintiff suffered damages.defendants'

COUNT I(Negligent Misrepresentation)


herein.

Defendants owed a duty of care to plaintiff.30.

Defendants negligently misrepresented several31

of thevaluetheplaintiffthe regardingfacts to

properties and the terms of the financing.

Defendants negligently misrepresented several32.

that the property1including:related present facts,

actual marketthan itssubstantiallyworth morewas

therealized from(2) the rents beingthatvalue;

excess of the carrying charges for theproperties were i

could obtain suffic.ientthat plaintiff3properties;

cash back to cover any expenses necessary to repair the

that plaintiff could consummate the(4)properties; andLAW 0FFIa:s

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purchases with no money down.

7

1L-


misrepresentationsmade the33 Defendants

the plaintiff would act in reliance onintending that

their oral and written representations.

plaintiffIn reliance on the false promises,34.

proceeded with settlement on the various transactions.

that theDefendants could reasonably foresee35.

plaintiff would rely on the misrepresentations.

ifreasonably thatcould foresee36. Defendants

wouldthe plaintifftheir false,representations were

incur injury and financial loss.

andreasonableactionsPlaintiff took37 in

justified reliance on the negligent misrepresentations of

which resulted in him suffering damages.defendants,

of theresultand proximate38. As directa


COUNT II(Fraudulent Inducement)

Plaintiff incorporates the preceding paragraphs39

herein

and All FinancialDefendants Rosenberg, Dent,40.

induced plaintiff to enter into the contracts with them

andbased falseloansclose the onand then to on

fraudulent representations of the terms and conditions of1.AW0FF1CESOF

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the services to be provided, the value of the properties,

and the loans to be obtained.

8


COUNT III(Unlawful Trade Practices)


herein.

Defendants engaged in a pattern and practice of50.

high cost loans for the purchasearranging high interest,

and inovervalued,grosslyof thatproperty was

deplorable condition.

practice,unlawfultheirout51. In carrying

of thevalue of allgrossly overstated thedefendants

properties

grosslyand DentRosenberg52. Defendants

andthefrom propertiesoverstated the net income

saidwhichcommitted plaintiff to mortgagesknowingly

the income fromdefendants knew, or should have known,

the properties would not sustain.

Dent, All Financial, andDefendants Rosenberg,53.

Rieck knew, or should have known, of the condition of the

theother inwith eachcolludedproperties, but

valuations and loans.

of theresultand proximate54. As directa


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10


COUNT IV(Violation of Maryland Consumer

Protection Procedures Act)


herein.

Defendants Rosenberg and Dent made false and56.

which deceivedmisleading representations to plaintiff,

of the investmentthe andhim nature valueas to

which they sold to him.property,

allRieckRosenberg, Dent, and57. Defendants

failed to apprise plaintiff of the actual values of the

him toproperties and wrongfully deceived him causing

purchase all of the properties at inflated prices.

Dent, and All Financial58. Defendants Rosenberg,

the terms ofarranged for and made loans to plaintiff,

which were unconscionable

theresult of59. and proximateAs directa

defendants' plaintiff suffered damages.conduct,

COUNT V(Violation of Truth In Lending Statute and Real

Estate Settlement Procedures Act)

Plaintiff incorporates the preceding paragraphs60

herein

Dent and All FinancialRosenberg,61. DefendantsLAW 0FFIas

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and misleadingprovided plaintiff with erroneous

the charges and interest rate oninformation regarding

11


the loans which were offered.

DahiellTitle andMonumental62 Defendants

documentssettlementand flawedmisleadingprepared

that plaintiff had providedinter alia,falsely claiming,

funds at closing.

theresult ofand proximate63. directAs a


COUNT VI(Breach of Fiduciary Duty)


herein.

Defendants owed to plaintiff a fiduciary duty.65.

theduty,of thatbreacr and violation66. I

regarding themisrepresented material factsdefendants

the charges for acquisition ofvalue of the properties,

interest rates on the loans; closing costs; thethe loans;

of thethe conditionfrom the properties,net income

and the terms of settlement.properties;

Defendants held themselves out to plaintiff as67.

possessed of the requisite skills needed for their various

professions.

had a duty to plaintiff to render68. Defendants

skill thatstandard of and careservices based upon aLAW 0FF1CESOF

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exists within their professions.

12


Defendants breached their duties of skill and69.

care

of theresultand proximate70. directAs a

negligent conduct, plaintiff suffered damages.defendants'

COUNT VII

(Collusion/Conspiracy)

Plaintiff incorporates the preceding paragraphs7 .l .

hereir

foregoing actsall of the72 In performing

with the intent to injuredefendants, and each of them,

and defraud plaintiff, colluded and conspired together to

inflatedforthe propertiesplaintiff purchasehave

atobligated mortgagesbecome ontoandprices,

unfavorable terms

As a result of their wrongful acts hereinabove73.

plaintiff suffered damagesdescribed,

considered,foregoingthe premisesWHEREFORE,

plaintiff prays as follows:

Enter an Order declaring that defendants havea)

violated plaintiff's rights pursuant to the provisions of

but not limited to, theall applicable laws, including,

the FederalMaryland Consumer Protection Procedures Act,

Settlementand the Real EstateTruth Act,LendinginLAW OR'ICFSOF

VN6SA~~P.C4400 M.'L;AKrHUR BIYD. N W

sum 205Procedures Act; and granting to plaintiff all relief to

WASHIN{,'"JUN. l).1.;

mn.2521(m)342-Km which he is entitled pursuant to each of the statutes

13


or their successors, agentsOrder defendants,(b)

to provide a full accounting of all fees andand assigns,

accrual of interest, andcharges assessed on the loans,

insurance, and other charges.payments made for taxes,

Order defendants to return to the plaintiff al(c

finance charges and all other fees paidbrokerage fees,

by him in connection with the mortgage loans.

compensatory damages intrebled) Award

against defendants.plaintiff's favor

Order defendants to pay twice the amount of any(e

finance charges assessed to the account up to the full

amount al owed by law.

Award plaintiff consequential damages againstf)

the defendants in at least the amount of $100,000.00.

Award plaintiff exemplary and punitive damagesg)

against the defendants in a sum no less than $100,000.00.

thedifference betweenplaintiff the(h) Award

actual value of the properties and his purchase prices as

less thanbutdamages noas proven,compensatory

$100,000.00.

legal fees,Award plaintiff his court costs,i

and pre and post judgment interest.

relief as to itGrant such other and further(j)

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seems just and proper.

14


VERIFICATION

I, Ralph D. Jr.,Carter, being duly sworn on oath

depose and that I do solemnly declaresay and affirm

under penalties of perjury and upon personal knowledge

that the contents of the foregoing document are true and

correct. /i // )/p1

~/// 1 /

/ 4*.Tr

Subscribed to and sworn to before me thishbriJary , 2 0 0 ..

day13of

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~ carp~~t:ei=LO~E.;-; #029444400 MacArthur Blvd., NW, #250Washington, D.C. 20007-2521Tel: (202) 342-8000Counsel for Plaintiff

JURY DEMAND

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