PHH Mortgage Corporation fka Cendant Mortgage Corporation filed a lawsuit in Federal Court for the Southern Division of Indiana, Indianapolis Division, against the following defendants:
Charles Brown, principal and/or manager of Central Fidelity Mortgage, LLC fka Admiral Fidelity Corporation, LLC;
Admiral Fidelity, mortgage broker;
Brooke L. Barnette, former wife of Brown
United Commonwealth Title Co., closing agent for real estate transactions. Brown is a principal of United;
Aimee Grantham, notary public and employee of United.
Brooke Howard, notary public and employee of United.
The following Corporate Defendants are alleged to be real or fictitious corporate entities of Brown:
Pacific Management Corporation,
Capital Companies, LLC,
Freeport Management, LLC,
Diamond Unlimited Properties, LLC,
Americas Title, LLC,
Nations Realty, LLC,
Onyx Construction Services, LLC,
Third Street Legal Consortium, LLC,
Sebastian Enterprises, LLC,
Capital Investments, LLC,
Capital Builders, LLC,
First Nations Capital, LLC,
United Commonwealth Title Co.,
Nations Finance of America, Inc.,
Dream Homes, LLC,
Prestige Abstract & Search, LLC,
Metropolitan Financial Group, LLC,
1st United Commonwealth Title Co.,
American City Mortgage Corporation,
Empire Trust, LLC,
Citizens National Fund,
Capital Investments, LP,
Colonial Chase Mortgage, LLC,
Colonial National Investments, LLC,
National Trust Administration, LLC
The complaint alleges that Brown, in conjunction with the Corporate Defendants, United, Grantham, Howard, Admiral Fidelity, and other unidentified individuals and business entities, defrauded PHH and multiple other mortgage lenders on numerous occasions, as more fully described below.
In May of 1999 Barnette owned the Parkshore property. She was slated to close on a loan closed by Admiral Fidelity with funds of Ohio Savings Bank. The transaction was recorded in June, 1999. The complaint alleges that the loan documents were actually forged by Brown, Grantham, Howard or another party. The loan was subsequently sold to Chase Home Finance, LLC.
In March of 2000, Brown took out a mortgage against the Parkshore property with RBMG, Inc., and two weeks later, obtained another mortgage through Southeastern Funding LLC. These mortgages were not recorded, and the title policies, purported to be issued by an agent of Conestoga Title Insurance Company, were forged.
In September 2001, Brown, Grantham, Admiral Fidelity and United conducted another real estate closing involving the Parkshore property, this time in the name of Barnette. PHH alleges that the company never received a complete copy of the mortgage, nor was it ever recorded by United. United issued a title commitment for the property, purportedly underwritten by Fidelity National Title Insurance Company to PHH. However Fidelity had revoked its underwriting agreement with United and United was no longer an approved agent. PHH alleges that the commitment was forged by Brown and United. At closing, Grantham, Brown or an individual acting at Brown’s direction forged Barnette’s name to the PHH mortgage.
In September 2002, Barnette purportedly conveyed the Marjac property to Brown and Brown executed a mortgage closed by Admiral Fidelity with funds of National City Mortgage . The closing agent was Barnes & Associates, in which Brown had an ownership interest. According to the complaint, Barnes & Associates’ chief operating officer has since been convicted of mortgage fraud.
This mortgage was not recorded. The closing funds were allegedly diverted to fictitious entities created by Brown, Citizen’s National Fund and Empire Trust based upon fabricated payoff statements. In July 2004, a Release of Mortgage was fraudulently created, forged and recorded on behalf of National City, according to the complaint. The property was then sold to Douglas and Mary Jo Ausenbaugh, who were unaware of the pre-existing mortgage to National City. The proceeds of the sale were divided among Admiral Fidelity and Brown.
The complaint includes causes of action for Civil RICO, Breach of Contract, Deception and Conversion. PHH is requesting triple damages.
The property addresses involved in the complaint are:
9943 Parkshore Drive, Noblesville, Hamilton County, Indiana
13451 Marjac Way, McCordsville, Indiana