A sophisticated mortgage fraudster commenced an action against a major lender alleging that a number of individuals actually defrauded the fraudster. The fraudster had previously been convicted of committing mortgage fraud, causing losses of millions of dollars to lenders.
After the fraudster was released from prison, she claimed that the mortgage on a property that was formerly owned by a company that she controlled should be discharged. If she were successful in this action, it would have costour client hundreds of thousands of dollars.
Plaintiff alleged that the scheme to defraud her involved numerous individuals and institutions. Plaintiff was not convicted of fraud related to this particular property or mortgage. This type of caseoften involves substantial and expensive discovery and a lengthy trial. Trials, of course, always involve risk. Thus, despite plaintiff’s criminal history, the case could have been extremely expensive to defend.
Adam Leitman Bailey, P.C. employed an aggressive pretrial discovery strategy, designed to break down what was believed to be yet another scheme to defraud a lender. The attorneys assigned to this matterare both former prosecutors who had the skillset to plan and execute this strategy.
The end game for Adam Leitman Bailey, P.C. attorneys was to force a dismissal of the action or to elicit enough information to destroy the Plaintiff’s credibility at a trial. Adam Leitman Bailey, P.C. attorneys, procured information from a criminal co-conspirator of Plaintiff and a law enforcement source to piece together plaintiff’s entire scheme. DKMPC then served a “Notice to Admit” on Plaintiff’s counsel which required plaintiff either to admit to the details of the scheme or deny the entire scheme in writing and under oath, thus forcing plaintiff to admit her scheme to defraud or to commit perjury.
Instead of responding under oath, the Plaintiff intentionally defaulted, causing the case to be dismissed.