Kramer-Kaslow: Citibank Facing Lawsuit for Allegedly Defrauding Homeowners

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Citibank is facing a massive lawsuit which seeks damages for homeowners who were allegedly defrauded by the bank.

Kramer & Kaslow

Philip Kramer has filed a mass joinder lawsuit against Citibank (Wagner v. Citibank, Superior Court of California, Los Angeles Superior Court, case number: BC 452 265) in what is potentially the most significant and precedent-setting legal action taken against lenders as a result of the national foreclosure crisis, it was announced today by Philip Kramer, Esq. of Kramer & Kaslow.

The firm has filed suit on behalf of a mass joinder of plaintiffs seeking damages and injunctive relief as a result of what the firm alleges is the bank's fraud and multiple violations of Local, State, and Federal consumer protection laws. Mr. Kramer says that relief is being sought for fraud, to stop the illegal sale of plaintiffs’ homes, to force the bank to cease and desist from their conduct, as well as to seek compensatory damages on behalf of the plaintiffs.

Kramer says that the lawsuit alleges Citibank perpetrated a massive fraud, also constituting unfair competition upon borrowers that devastated the values of their residences, resulting in the loss of net worth even as Citibank enriched itself by knowingly selling financial instruments based on a value the bank knew to be unwarranted. Kramer will argue in court that Citibank further intended to deprive numerous rights and remedies for the problems they caused the borrowers and believes that the harm done to the plaintiffs is exceeded only by the scale of the bank’s conduct as asserted in the plaintiffs’ suit.

According to court documents, the lawsuit claims the bank disregarded underwriting standards and implemented a massive fraud that was concealed from borrowers and other mortgagees on an unprecedented scale. The lawsuit alleges that, as a result of the bank’s actions, borrowers lost equity in their homes, their credit ratings and histories were destroyed and they incurred unnecessary costs and expenses.

Kramer also says the lawsuit challenges the fraudulent and illegal use of MERS in connection with the loans and mortgages, as well as the defendants’ failure to perform their obligations pursuant to accepting TARP funds.

The lawsuit's filing coincides with a recent decision in a class action suit in Maryland that invalidated more than 10,000 foreclosure cases managed by GMAC Mortgage because affidavits in the cases were signed by a GMAC “robo-signer” who, according to court documents, attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements in the case Manson v. GMAC Mortgage LLC, 08-cv-12166, U.S. District Court, District of Massachusetts (Boston).

Philip Kramer and Kramer & Kaslow have also filed suits against Bank of America/Countrywide, JP Morgan Chase, Washington Mutual, GMAC, Wells Fargo/Wachovia and One West/IndyMac which have all allegedly defrauded hundreds of thousands of homeowners. These cases are now going national. Philip Kramer and Kramer & Kaslow attorneys have invoked laws and procedures the banks were previously unaware of.

“I am convinced that for the first time that aggrieved homeowners are going to get a fighting chance,” says attorney Philip Kramer. “Until now, the banks have had their way, using and abusing the system at the expense of distressed homeowners across the nation. Now, after years of abusing homeowners and the greater public, the ‘bank bullies’ are getting a good stiff legal punch in the nose.”

ABOUT PHILIP KRAMER

PHILIP A. KRAMER is the senior partner of the Law Office of Kramer & Kaslow, in Calabasas, California. Kramer & Kaslow is Martindale Hubbell “AV” rated. Mr. Kramer is a perennial recipient of the prestigious “Southern California Super Lawyer” award.

Mr. Kramer received his undergraduate degree from Ohio State University and his Juris Doctorate from the Catholic University of America, in Washington, DC. His practice emphasizes commercial litigation and trial advocacy, with a concentration on business litigation, and real property matters. He has prosecuted and defended cases for over 25 years.

For more information call 1-888-805-6120 or visit http://www.kramer-kaslow.com

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