Friday, October 3, 2008

FEDERAL COURT

A federal judge dropped four defendants this week from a class-action lawsuit stemming from what plaintiffs allege was one of the largest mortgage fraud schemes in Maryland history.

The case continues against the main defendant, Metropolitan Money Store Corp. of Lanham, but not against Chicago Title Insurance Co., Southern Title Insurance Corp. and two employees of another title company, Ali Farahpour and Alexander J. Chaudhry.

Plaintiffs' attorneys allege that Metropolitan defrauded as many as 400 people in Maryland, Virginia and the District and that homeowners lost as much as $60 million in home equity through the scheme.

Federal authorities have indicted Joy Jackson, the owner of Metropolitan, on fraud and other charges relating to the mortgage rescue business. Those charges are pending.

Phillip Robinson, lead attorney for the plaintiffs, said he was disappointed by the judge's decision in the civil case. "During the next few days and weeks, we will continue to evaluate what if anything can be done to help the hundreds of 'Main Street' homeowners caught up in this scheme to recover the millions of dollars they lost," he said.

Steve Norman, former owner of Sussex Title LLC in Rockville, where Farahpour and Chaudhry worked, said he was pleased that their involvement in the case was over. Norman has said his company contacted the FBI about "irregularities" it found in paperwork from Metropolitan.

-- Ovetta Wiggins

Montgomery County police and the FBI said they are investigating the armed robbery yesterday of a Silver Spring bank.

Police said the robbery occurred about 10:40 a.m. at Independence Federal Savings in the 7900 block of Eastern Avenue.

Two men, one with a gun, entered the bank and ordered the manager to open the vault, took the money and fled, police said.

Police said no one was injured.

-- Associated Press