Blaise A. Repasky has filed a civil class action lawsuit in the United States District Court for the Eastern District of Michigan against:
Real Financial, L. L. C.
Sheldon Lubin
Robert Willey
A and S Appraisal Group, Incorporated
Michael Stacey
First Mortgage Fund, Incorporated
Exact Title, L. L. C.
AMC Mortgage Services, Incorporated
American Home Mortgage Acceptance, Incorporated
Oak Street Mortgage, L. L. C.
HSBC Mortgage Services, Incorporated
America's Servicing Company
American Home Mortgage Corporation
Select Portfolio Servicing, Incorporated
Argent Mortgage Company, L. L. C.
Ameriquest Mortgage Company
Chase Mortgage Services, Incorporated
The complaint alleges that in September 2004, Repasky received a telephone call from Lubin, senior VP of Real Financial, informing him of the availability of three home in Detroit, Michigan for purchase at a good price that could earn Repasky substantial profits. The homes were located at 15230 Evanston, Detroit, Michigan, 4417 Balfour, Detroit, Michigan and 5026 Philip, Detroit, Michigan and were all owned by First Mortgage Fund, Inc. According to the complaint, Willey of A&S Appraisal Group, Inc. submitted inflated appraisals on each of the properties and plaintiff purchased the properties at inflated values. Each of the three property purchases were closed by Exact Title. After entering into purchase contracts on the three initial properties, Lubin again contacted plaintiff and informed him that there were six more well-priced homes in Detroit that would produced substantial profits for plaintiff. The homes were located at 11523 Lakepointe, Detroit, Michigan, 14840 Fairmount Drive, Detroit, Michigan, 18668 Fairport, Detroit, Michigan, 5903 Lakepointe, Detroit, Michigan, 5953 Beaconsfield, Detroit, Michigan, and 9920 Beaconsfield, Detroit, Michigan. According to the complaint, Willey of A&S Appraisal Group, Inc. submitted inflated appraisals on each of the properties and plaintiff purchased the properties at inflated values. Each of the additional six property purchases were closed by Exact Title.
The defendant lenders are either the original or secondary mortgage holders on the properties.
Lubin told the Detroit News that Real Financial acted as the mortgage broker, that allegations of fraud and conspiracy are false and that First Mortgage Fund buys foreclosed properties at rock-bottom prices and often spends significant amounts fixing them up.
The complaint asserts causes of action for violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) as against Lubin, Real Financial, Willey, A&S Appraisal Group, Stacey and First Mortgage Fund; Conspiracy to violate RICO; violation of the Michigan Consumer Protection Act; Fraud and Misrepresentation as against Lubin, Real Financial, Willey, A&S Appraisal Group, Stacey and First Mortgage Fund; Civil Conspiracy
Details on each of the properties purchased
15230 Evanston, Detroit, Michigan was purchased by First Mortgage Fund on September 14, 2004 for $28,000, appraised by A&S on November 8, 2004 for $100,000 and purchased by plaintiff on December 10, 2004.
4417 Balfour, Detroit, Michigan was purchased by First Mortgage Fund on July 19, 2004 for $70,350, appraised by A&Son August 25, 2004 for $135,000 and purchased by plaintiff on November 12, 2004 for $125,000.
5026 Philip, Detroit, Michigan was purchased byFirst Mortgage Fund on September 12, 2004 for $40,000, appraised by A&S on October 19, 2004 for $110,000 and purchased by plaintiff on November 12, 2004 for $110,000
11523 Lakepointe, Detroit, Michigan was purchased by First Mortgage Fund on August 31, 2004 for $60,000 appraised by A&S for $125,000 and purchased by plaintiff on November 12, 2004 for $125,000
14840 Fairmount Drive, Detroit, Michigan was purchased by First Mortgage Fund on July 28, 2004 for $55,000 appraised by A&S for $110,000 and purchased by plaintiff on November 12, 2004 for $110,000
18668 Fairport, Detroit, Michigan was purchased by First Mortgage Fund on November 12, 2004 appraised by A&S for $92,500 and purchased by plaintiff on November 12, 2004 for $92,500
5903 Lakepointe, Detroit, Michigan was purchased by First Mortgage Fund on June 30, 2004 for $39,000 appraised by A&S on August 25, 204 for $135,000 and purchased by plaintiff on December 10, 2004 for $125,000
5953 Beaconsfield, Detroit, Michigan was purchased by First Mortgage Fund on June 30, 2004 for $39,900 appraised by A&S on November 3, 2004 for $127,500 and purchased by plaintiff on November 12, 2004 for $125,000
9920 Beaconsfield, Detroit, Michigan was purchased by First Mortgage Fund on August 6, 2004 for $60,000 appraised by A&S on August 25, 204 for $125,000 and purchased by plaintiff on December 10, 2004 for $120,000


Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.