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Fraud, breach of contract suits filed against Florida business

On Behalf of | Jul 24, 2013 | Contract Disputes |

A former vice president of a prominent Fort Lauderdale company is facing charges related to fraud and contract breach, according to local sources. The Coastal States Mortgage Corporation is suspected of defrauding a federally-backed organization of millions of dollars. The breach of contract and fraud suits are being dealt with in Florida’s southern district.

The former vice president of Coastal States, Mansell, has been charged with conspiracy and intent to commit wire fraud in a case involving loan sales to Fannie May and Freddie Mac. The Florida Office of Financial Regulation had previously revoked Mansell’s license after several incidences of bounced checks. It has been alleged that Mansell misappropriated funds by using false financial reports.

The Federal National Mortgage Association filed suit against Coastal States for breach of contract and fraud in an effort to reappropriate what the company alleges is tens of millions of dollars in loan payoffs they say Mansell and Coastal took for their own use. The lawsuit says there are 75 cases of funds not being forwarded to Fannie May, totaling over $28 million. It is suspected that Mansell may have misappropriated over $5 million of that amount personally.

Both breach of contract and fraud are serious charges for any business to face, particularly at the level at which Coastal States is operating. Florida business owners are encouraged to seek support in dealing with any business disagreement that may arise between partners. This can help to mitigate financial loss brought on by dealing with partners who prove themselves to be untrustworthy.

Source: Source: South Florida Business Journal, “Executive of Fort Lauderdale mortgage company charged with fraud,” Brian Bandell, July 11, 2013