ABN AMRO Mortgage Group, Inc. filed a civil lawsuit in the United States District Court for the Eastern District of Ohio on May 9, 2005 against the following defendants who are alleged, in the Complaint, to have the following roles or capacities:

New Partners Mortgage Company, Westlake, Ohio, alleged to have been the mortgage broker on all loans in the complaint

Joseph Michael Cahlik aka Michael Cahlik, Parma, Ohio, alleged to be a New Partners loans officer that helped set up and participated in the alleged scheme.

Joseph Daniele, Odessa, Florida. The complaint alleges, on information and belief, that Daniele was the primary architect of the scheme and was primarily responsible for locating and pairing sellers and borrowers.

Naetal Lawrence aka N.R. Lawrence, Beachwood, Ohio, alleged to be a real estate appraiser.

Excel Appraisals, Beachwood, Ohio, alleged to be owned and operated by Lawrence.

Netco Title aka National Equity Title Agency, Inc., Parma, Ohio

Title Associates, Inc., Brecksville, Ohio

Crescent Title, Canton, Ohio

Advanced/Affiliated Title Agency, Inc. nka Affiliated Title Agency, Inc., Independence, Ohio

(Netco, Cresent and Advanced/Affiliated are alleged in the complaint to have prepared the title work in the mortgage transactions and to have acted as ABN AMRO’s agents at the closing of the loans)

Also named as defendants were Fidelity National Title Insurance Company and Lawyers Title Insurance Company - alleged in the complaint to have issued closing protection letters against certain misconduct of the closing agents.

In the lawsuit, ABN AMRO alleges that it was the lender, and victim, on hundreds of loans under a mortgage secured loan scheme and faces millions of dollars in loan loss. One aspect of the alleged scheme involved representing loan transactions to be refinances when, in reality, they were purchase money loans. Other aspects of the alleged scheme involved use of inflated appraisals to increase the loan amounts and inclusion of false information (or concealment) regarding borrower qualifications during the credit assessment phase of the loan transaction.