State and Federal Litigation Proceeding in Poconos
The Pennsylvania State Attorney General rejected a proposal by Gene Percudani to settle the state’s $10.2 million civil suit. The details of the offer were not made public. The lawsuit alleges that Percudani, his former partner Gerald Powell and appraiser Dominick Stranieri, through various companies of Percudani, including Raintree Homes and Why Rent Inc., took part in a scheme to defraud as many as 170 home buyers by selling homes in the Poconos at inflated prices. The complaint seeks $8.3 million in restitution, $1.8 million in civil penalties and $130,000 in costs.
Attorneys representing more than 100 home buyers have filed a separate lawsuit in federal court, alleging that Percudani and the Chase Manhattan Mortgage Corp, which purchased the mortgages, conspired to sell homes at inflated prices.
Chase Manhattan Mortgage Corp also filed a separate lawsuit against Percudani and Stranieri.
Last year the parties to all of the lawsuits agreed to engaged in mediation to attempt a global settlement of all of the pending actions.
