A lawsuit has been filed against Aurora Financial mortgage company, an American Financial corporation by its four ex-employees who were fired when trying to expose the scam.
As per the lawsuit, the company purposely deceived at least half a dozen finance companies and banks by showing fake documents and filing the incorrect consumer loan applications. The lawsuit also claims that the manager of the company was aware of the fraud and was trying hard to cover it.
Chris Springer, Steffen Mehnert, and Sandra Reynold, the mortgage consultants and Stacia, the pre-qualification specilist, were the employees to file the lawsuit said that they were suspended first and then were fired when trying to bring their concern to higher ups. This happened in March 2017.
In return statement, the company said, “vigorously against this meritless lawsuit and the false allegations.”
The charges were conduct reminiscent of the type that were responsible for financial crisis in 2004 and the real estate collapse. The charges include deliberately faking loan information, forging signatures, hiding negative financial information about an applicant and falsifying compliance with key deadlines. These all stand vital to whether a bank will approve or buy an existing loan. The fee or a percentage of the loan that the mortgage brokers get, inspired Aurora mortgage company to indulge in such scam.
The banks and the financial institutions that were scammed include JP Morgan Chase, US Bank, Wells Fargo, PennyMac, Flagstar Bank, Colorado Housing and Finance Authority.
“We plan to file a motion to dismiss some of the claims in the lawsuit. We are in good standing with mortgage licensing authorities here in Colorado and across the United States. Throughout our 18 years in business, we have a strong track record of helping thousands of homeowners make smart mortgage decisions”, The company stated.
According to the lawsuit that contained 23 pages stated that the ex-employees were restricted to talk about the fraud at all. After these employees were suspended, the supervisor shredded the files that could have become the proof of the fraud from the employees’ computers. They even fired Mehnert from playing with an outside softball team because the teammates included a number of American Financial employees. The company tried to ensure that Mehnert could not talk about the fraud to other employees.
The employees have claimed that they were fired after they tried to reach the lawyer to file the mortgage fraud with the Colorado Division of Regulatory Agencies. However, nothing was done in that regard.
Eric Turner, the agency spokesman confirmed that there have been no disciplinary actions against Aurora and, by law, he cannot either confirm or deny about investigation or complaint.