Blue Spring Lake Lawsuit Filed – Appraisers and Banks Included
Defendants include the developer, several appraisers, and Fifth Third Bank, highlighting a focus on the contribution to alleged fraud by appraisers and lenders.
Palm Coast, FL – November 11, 2009 – A lawsuit was filed yesterday by twenty-six foreign nationals, all British citizens, who purchased property in the Blue Spring Lake development in Lake County near Orlando, Florida. Similar to the Ginn – Lubert Adler complaint filed in May ’09, this suit targets a real estate developer, appraisers, and a bank. It shares several named parties with the Ginn-LA lawsuit, the most high-profile being Fifth Third Bank.
Blue Spring Lake Defendants:
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Blue Spring Lake LLC
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Max Minhas Properties LLC
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LandQuest Group, Inc.
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Fifth Third Bancorp
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Fifth Third Bank – defendant in Ginn-LA complaint
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Fifth Third Mortgage Company
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Roy Snoeblen – a loan originator named in Ginn-LA complaint
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AFL Appraisals LLC – named in Ginn-LA complaint
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Southeast Appraisal Services, Inc.
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Brad Long Appraisals, Inc – named in Ginn-LA complaint
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Professional Appraisal Group, Inc.
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Lakeshore Appraisals, Inc.
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Bayside Appraisals Corp.
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Note: The complaint lists Central Florida Appraisal Group Inc. as a defendant. This was apparently done in error. Central Florida Appraisal Group was subsequently dismissed from the complaint "without prejudice."
Blue Spring Lake is a relatively small project with only 35 lots and no added facilities. The significance of this lawsuit is the similarity of the charges to the Ginn-LA complaint and the inclusion of many of the same parties involved with appraisals, loan origination, and lending. Look for more of the same in another complaint said to be filed soon according to an undisclosed source.
The complaint seeks redress for the "Defendants’ scheme to market, sell, resell, and finance real estate in Blue Spring Lake at prices that were fraudulently inflated through misrepresentations, manipulation, fraud, deceptions, omissions and unconscionable conduct ……. in order to increase Defendants’ profits …"
Both the Blue Spring Lake complaint and the Ginn-LA complaint were filed by Salpeter Gitkin, LLP. Salpeter Gitkin of Fr. Lauderdale, FL was joined on the Ginn-LA fling by Barroway Topaz Kessler Meltzer & Check LLP of Pennsylvania.
A complaint is an allegation. It does not prove guilt. The legal system will ultimately determine the guilt or innocence of the plaintiffs.
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Just call me RICO
Criminal charges proven, then Civil should yield some monitary reward for complaintants. Of course a deal for dropping the criminal charges could avoid the civil action and be done with the matter. Now the laws on the books that protect primary residences from being attached by courts will come into play, for those charged, if that’s all the assets they have. I think the plaintives attornies should hire a competent appraiser to value those assets, to see if there is anything to pay their fees, and court cost. The old saying is you can’t get blood from a rock. I will be interesting to watch the procedings.