I promised to tell my story at length when I posted to some other threads, so this is it. Please keep in mind that this is my opinion only. I am working on a novel based on the story.
Five years ago, my husband, a highly successful and respected professional engineer and general contractor in commercial and industrial construction work, was selected to be the contractor on a large condominium project in a resort area. As inducement to get him to do the job, he was offered a minority interest in the project and full management control of the design and construction. It was a great project, with an initial phase already completed and most of the units sold, and three 10-story buildings to come. The majority partner and his attorney were confident that they would get a bank construction loan from a big regional bank where the attorney had connections. Contingent on that loan, my husband (and son, who was also an engineer and president of the construction company) researched all the details of the project, including that permits were all in place, etc., and agreed to do the project one building at a time.
One of the other issues in agreeing to do the development was the medical condition of the majority owner, whose face exhibited the result of major mouth surgery for tongue and jaw cancer. Compassionate people that we were, we felt that we could help that family complete their dream project.
Construction went well, with a great design team and great subcontractors for the most part. The bank, however, was very slow in paying the construction draws. Struggling with that issue was difficult. When the project was over 50% done, the majority partner's son was in an accident and left paraplegic. He turned his role over to his personal attorney, and said he would like to sell his shares. Buyers were sought, and several potential buyers came forth. In each case, the personal attorney threw up road blocks to final contracts, until each potential buyer backed off, saying that it was obvious that the shares were not really for sale.
Trying to solve the banking and majority owner problems, my husband agreed that he would seek investors to buy the entire note from the bank, then negotiate the construction contract with a new lender. By that time, with construction nearing 75%, and much of that being borne by the construction company, it became clear that the bank was not going to continue funding the project. Two strange break-ins occurred on the project: one in which it appeared, on the project webcam, that the majority partner's personal attorney was involved. Fingerprints compared with the authorities' database showed only one identifiable print, which seemed to match that of a mortgage fraud felon known to live and have property in the area.
Suddenly the realtor on the project called and said that the majority owner was meeting one-on-one with the bank's foreclosure attorney. Obviously, something was going on. Meetings set up with that attorney and the partner and his attorney were contentious, with the foreclosure attorney making unfounded accusations of defective construction and misuse of funds - accusations that were later proved totally false. My husband realized that he was being railroaded and sought a larger law firm to represent him; the second one he called responded that they "already represented the new owners of ___" -- there weren't any such new owners; other large law firms in the area declined once they were aware of the name of the bank's attorney, citing conflict of interest and such.
To make a long story a little shorter, the bank's foreclosure attorney and her bosses foreclosed on the property under its "on demand" clauses rather than complete the last 15% of the funding. In addition, multiple investors tried to buy the note, some at nearly the full amount of the loan, and were all refused. Finally, an investor went to a different branch of the same large regional bank and reached a verbal agreement to purchase the note, however, that bank officer suddenly became unavailable and the note was sold quickly to an associate of the bank for practically nothing.
In addition, another law firm that had agreed to take our case on half-contingency received a phone call from the foreclosure attorney telling one partner that the one we were talking to "had better not take that case." Apparently the construction company's bank that provided its line of credit was called, and its bonding company also appeared to have received a call, causing the smaller bank to seize every asset and the bonding company to cause the cancellation of another million dollar project. Today, we and our son are in personal bankruptcy, losing our homes. We have been prevented from any day in court, have been prevented from deposing the ex-partner or the new owner of the note. After having spent nearly half a million in legal fees on at least seven lawyers who all seem to specialize, we have yet to have decent legal representation, as all are afraid of the political power and influence of this bank attorney.
Since the bank was one of those that went under - bought out with TARP money - the attorney who was going to take the case on contingency reneged, saying that he could win on principle, but we would never see any money.
Of course, none of this is provable with documentation. Nearly everything that was done against us was done verbally. We are still being harassed in our personal bankruptcy, as the new owner is now represented by the former bank foreclosure attorney. Finally, just this week another person from the area reported that apparently the partner's personal attorney had been the project's attorney during the permitting process and had tried to kill the permits rather than work toward getting them. He had been fired by the managing partner at that time and another attorney hired to shepherd it through the process.
Now, this person reported, the rumor is that no one will be able to complete the project, because this attorney is close to an unidentified someone who doesn't want it built and will destroy anyone who tries to complete it.
In our innocence, our compassion for a man's medical ordeals and appearance, and a desire to do a great job for someone, we have lost everything we worked for over the last 50 years, our son is starting over after 27 years in a business that had a great reputation for integrity, quality and trying to do the right thing. At least five businesses have been put under, several others have been damaged, two small banks have suffered losses, and over 150 people have lost their jobs. In addition, the big bank that let it's attorney and the other attorney work together to destroy this project lost several million dollars itself. Oh, btw, did I mention that the bank attorney released the majority partner (who was also a lawyer in the same city) from his personal guarantees?
Summary judgments continue to be issued against us, simply because we can no longer afford legal representation. How long the harassment will continue I can't even guess. We are surviving on wild game in our freezer and the charity of friends and neighbors.
Does anyone know a movie producer that would work with me on the script? I believe this story of legal corruption and unethical conduct needs to be told.
Five years ago, my husband, a highly successful and respected professional engineer and general contractor in commercial and industrial construction work, was selected to be the contractor on a large condominium project in a resort area. As inducement to get him to do the job, he was offered a minority interest in the project and full management control of the design and construction. It was a great project, with an initial phase already completed and most of the units sold, and three 10-story buildings to come. The majority partner and his attorney were confident that they would get a bank construction loan from a big regional bank where the attorney had connections. Contingent on that loan, my husband (and son, who was also an engineer and president of the construction company) researched all the details of the project, including that permits were all in place, etc., and agreed to do the project one building at a time.
One of the other issues in agreeing to do the development was the medical condition of the majority owner, whose face exhibited the result of major mouth surgery for tongue and jaw cancer. Compassionate people that we were, we felt that we could help that family complete their dream project.
Construction went well, with a great design team and great subcontractors for the most part. The bank, however, was very slow in paying the construction draws. Struggling with that issue was difficult. When the project was over 50% done, the majority partner's son was in an accident and left paraplegic. He turned his role over to his personal attorney, and said he would like to sell his shares. Buyers were sought, and several potential buyers came forth. In each case, the personal attorney threw up road blocks to final contracts, until each potential buyer backed off, saying that it was obvious that the shares were not really for sale.
Trying to solve the banking and majority owner problems, my husband agreed that he would seek investors to buy the entire note from the bank, then negotiate the construction contract with a new lender. By that time, with construction nearing 75%, and much of that being borne by the construction company, it became clear that the bank was not going to continue funding the project. Two strange break-ins occurred on the project: one in which it appeared, on the project webcam, that the majority partner's personal attorney was involved. Fingerprints compared with the authorities' database showed only one identifiable print, which seemed to match that of a mortgage fraud felon known to live and have property in the area.
Suddenly the realtor on the project called and said that the majority owner was meeting one-on-one with the bank's foreclosure attorney. Obviously, something was going on. Meetings set up with that attorney and the partner and his attorney were contentious, with the foreclosure attorney making unfounded accusations of defective construction and misuse of funds - accusations that were later proved totally false. My husband realized that he was being railroaded and sought a larger law firm to represent him; the second one he called responded that they "already represented the new owners of ___" -- there weren't any such new owners; other large law firms in the area declined once they were aware of the name of the bank's attorney, citing conflict of interest and such.
To make a long story a little shorter, the bank's foreclosure attorney and her bosses foreclosed on the property under its "on demand" clauses rather than complete the last 15% of the funding. In addition, multiple investors tried to buy the note, some at nearly the full amount of the loan, and were all refused. Finally, an investor went to a different branch of the same large regional bank and reached a verbal agreement to purchase the note, however, that bank officer suddenly became unavailable and the note was sold quickly to an associate of the bank for practically nothing.
In addition, another law firm that had agreed to take our case on half-contingency received a phone call from the foreclosure attorney telling one partner that the one we were talking to "had better not take that case." Apparently the construction company's bank that provided its line of credit was called, and its bonding company also appeared to have received a call, causing the smaller bank to seize every asset and the bonding company to cause the cancellation of another million dollar project. Today, we and our son are in personal bankruptcy, losing our homes. We have been prevented from any day in court, have been prevented from deposing the ex-partner or the new owner of the note. After having spent nearly half a million in legal fees on at least seven lawyers who all seem to specialize, we have yet to have decent legal representation, as all are afraid of the political power and influence of this bank attorney.
Since the bank was one of those that went under - bought out with TARP money - the attorney who was going to take the case on contingency reneged, saying that he could win on principle, but we would never see any money.
Of course, none of this is provable with documentation. Nearly everything that was done against us was done verbally. We are still being harassed in our personal bankruptcy, as the new owner is now represented by the former bank foreclosure attorney. Finally, just this week another person from the area reported that apparently the partner's personal attorney had been the project's attorney during the permitting process and had tried to kill the permits rather than work toward getting them. He had been fired by the managing partner at that time and another attorney hired to shepherd it through the process.
Now, this person reported, the rumor is that no one will be able to complete the project, because this attorney is close to an unidentified someone who doesn't want it built and will destroy anyone who tries to complete it.
In our innocence, our compassion for a man's medical ordeals and appearance, and a desire to do a great job for someone, we have lost everything we worked for over the last 50 years, our son is starting over after 27 years in a business that had a great reputation for integrity, quality and trying to do the right thing. At least five businesses have been put under, several others have been damaged, two small banks have suffered losses, and over 150 people have lost their jobs. In addition, the big bank that let it's attorney and the other attorney work together to destroy this project lost several million dollars itself. Oh, btw, did I mention that the bank attorney released the majority partner (who was also a lawyer in the same city) from his personal guarantees?
Summary judgments continue to be issued against us, simply because we can no longer afford legal representation. How long the harassment will continue I can't even guess. We are surviving on wild game in our freezer and the charity of friends and neighbors.
Does anyone know a movie producer that would work with me on the script? I believe this story of legal corruption and unethical conduct needs to be told.
Comment