SANTA MONICA, Calif. and SALT LAKE CITY, March 31, 2011 /PRNewswire/ -- On March 30, 2011 a lawsuit (Case No. 2:11-ap-01907, Central District of California) was filed by a developer who alleges that Bank of Utah engaged in a fraudulent scheme in connection with a $5 million construction loan. The lawsuit alleges that not only did the bank attempt to wrongfully foreclose on certain properties, but the bank intentionally interfered with several attempts by the developer to sell the disputed properties for amounts in excess of $5 million.
"Even putting aside the illegal conduct at issue, the actions of this particular bank are among the worst that I've seen and I sue a lot of banks," said attorney Philip J. Layfield, whose law firm filed the suit along with The Bridi Law Firm.
The complaint alleges that Bank of Utah intentionally misled the developer during the loan closing and when it came time to honor their obligations, the Bank refused to do so. Instead, the Bank chose to embark on a path of intimidation, extortion and attempted foreclosure in an attempt to force the developer to give up his contractual rights and potentially lose his entire net worth. The lawsuit goes on to allege that Bank executives showed up unannounced in the evening at the developer's home and attempted to force the developer into signing new loan documents even though the bank was aware the developer was represented by counsel. In another instance, one of the top bank executives threatened to file a "false" Form 1099 with the IRS to cause the developer hundreds of thousands in legal fees to defend a wrongful tax assessment which the lawsuit alleges amounts to extortion by Executive Vice President Roger Shumway.
"Even though this Bank's founding family may have a state holiday and gun, it won't help them when we hold them accountable in front of a jury of their peers," says attorney Philip J. Layfield.
Layfield is joined on the suit by attorney Gus Bridi who was formerly with the law firm of Masry & Vititoe who was made famous by the litigation depicted in the movie Erin Brockovich.
For additional information, please contact Philip J. Layfield at (310) 917-1010 or visit our website at www.pjllawfirm.com to see a list of other high profile lawsuits.
SOURCE Philip J. Layfield