$650,000 in Sanctions Imposed in Bankruptcy Case

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.

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Nicholas Ortiz, Boston Bankruptcy Attorney

From Attorney Ortiz: We have been helping consumers and small businesses in Massachusetts successfully navigate through the bankruptcy process since 2002. We offer free initial consultations and payment plans. Call us at 617-716-0282 to discuss your debt relief options. Mention the Bankruptcy Law Network when you call!

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