04 May $650,000 in Sanctions Imposed in Bankruptcy Case
Massachusetts Bankruptcy Judge Rosenthal recently imposed $650,000 in sanctions under Bankruptcy Rule 9011 on various parties for misrepresenting the ownership of a mortgage loan in a bankruptcy case.
Ameriquest Mortgage Company, which was sanctioned $250,000, represented to the Court on various occasions that it was the holder of of the debtor’s mortgage/note. In reality, Ameriquest was only the servicer of the loan for a time.
Two law firms, Ablitt & Charlton, P.C. ($25,000) and Buchalter Nemer Fields & Younger ($100,000), and one lawyer, Attorney Robert Charlton ($25,000) were also sanctioned. Wells Fargo was sanctioned in the amount of $250,000. The order arose in the long-running Nosek case. An appeal will likely follow.
Nicholas Ortiz, Boston Bankruptcy Attorney
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