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Special servicer/lender—Guarantor liability

Retained by special servicer to represent lender in a complex, multifaceted effort to collect on an $11.5 million loan secured by a mortgage on an office building in Stamford, Connecticut. This litigation, which involved appearances in Delaware bankruptcy court, a Connecticut foreclosure action and litigation in Connecticut against the guarantors of the loan, was complicated by the discovery that one of the borrower’s principals had engaged in a criminal scheme to defraud numerous lenders and investors, and by the guarantors’ allegations that their signatures were forged and their attorneys in the loan transaction committed negligence. Our client ultimately obtained title to the building and received a significant payment to resolve the outstanding litigation.

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Media item: Joseph J. Cherico
Joseph J. Cherico

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