In the wake of the mortgage industry crises, we are all learning of the rampant fraud that pervaded the industry and played a key role in its collapse. Many mortgagees have fallen victim to unscrupulous lender practices and dishonest mortgage officers. I have yet to encounter a worse case of repeated victimization than the one whom is the center of this story. For those victims that want to take legal action against anyone in the mortgage industry, read this story and take heed.

Several years ago Ms. Wang moved to Bellevue from Chengdu China with her two sons; she moved into a modest condo while she looked for a home to buy. Ms. Wang was befriended by a real estate agent named Linda who was also Chinese. They had met at a local church Ms. Wang attended.

Linda quickly befriended Ms. Wang and began showing her homes in Bellevue, and in time, she convinced her to buy a home in the Somerset neighborhood. Apparently that particular home was already under contract and was being sold to Linda's boyfriend, Charles Monson. Charles was unable to acquire financing and was in danger of losing his $5,000 earnest money. Ms. Wang was convinced the home was a good buy and a solid investment.

Ms. Wang decided to purchase the home and told Linda she wanted to pay cash for the home. Linda quickly told her that would be a mistake because in our country it's always wise to "build credit" and it would be better to put 50% down, and borrow the rest; naturally Linda new the perfect mortgage officer for Ms. Wang to use. Linda took her to meet Leo Chan at New World Mortgage and he proceeded to prepare the loan docs for her. Shortly thereafter Ms. Wang went to closing at Leo's attorney's office in Seattle and signed all closing docs there. Linda acted as a translator for her.

Several months later I was reviewing the loan documents for Ms. Wang after she came to me with them. Some of the docs didn't make sense when compared to the payment statements being sent from the lender. Upon review it was apparent that Leo Chan (aka: Chin Chui Ming) had in fact stolen $88,000 of the $200,000 given as a down payment. Leo, with the watchful eye of Linda had Ms. Wang sign documents that did the following:

•1.     Placed a lien on her home by Leo Chan that obligated her to pay him $200,000.

•2.     Surrender the $88,000 to him (in addition to the 200k debt).

•3.     Pay $288,000 mortgage to World Savings (88k more than she intended to borrow).

Upon discovering all of this, Ms. Wang sought out an attorney to file suite against Mr. Chan. She spoke with Michael D. Brandt of Durham Brandt (currently Brandt Law Group). Brandt assured her it was not difficult to show what Mr. Chan had done, and took the case. She was told it would likely cost only a few thousand if Mr. Chan settled quickly, which it was believed he likely would.

Mr. Brandt did quickly procure an offer to settle from Leo Chan, but with the stipulation that he be allowed to pay over time and with interest. Mr. Brandt didn't feel that was an acceptable option due to the amount of money owed and the payment being offered was only $1,000 per month. Mr. Brandt felt that it would be better to sue the real estate company, the attorney that closed the sale, and Mr. Chan. All being insured, he felt it could be settled quickly. Ms. Wang was assured legal fees are recoverable in Washington State; Mr. Brandt estimated the cost to be around $40,000.

Within just a few months the legal bills which were being paid by Ms. Wang had exceeded $40,000 and no settlement was on the horizon. On two occasions Ms. Wang was contacted and told that thousands in legal fee's needed to be paid by that Friday in order for Mr. Brandt to make payroll.

After more than two years of litigation the fees had totaled almost $100,000 to collect $86,000! Not one dime had ever been collected for the victim, and she was now out $188,000 dollars. The American dream had become a nightmare. As the trial date approached all parties attended the required mediation hearing; Ms. Wang of course had to pay $1,000 in advance for this privilege.

Half a day was spent haggling back and forth with the attorney's for the insurance companies, and by the end of the day Michael Brandt felt she should take the settlement since she had run out of money and he was no longer sure all parties would be found liable under Washington Law. Mr. Chan's Bond was only $40,000 and that's all that could be recovered from him. He had no money, no assets, and his company was broke. He had lost all pf Ms. Wang's money on the stock market.

Mr. Chan had to be taken back to court for an enforcement of judgment to remove the fictitious liens from her Somerset home.

After almost three years of litigation:

Mr. Chan walked away without personally paying Ms. Wang a dime.

Ms. Wang's attorney Michael D. Brandt walked away with over $100,000. 

Linda (the agent) kept her full $15,000 commission.

Attorneys for the three insurance companies undoubtedly made a small fortune from the years of litigation for the case.

Ms. Wang after expenses netted approximately $15,000 towards her damages.

Most recently Ms. Wang received a bill from a collection agency working on behalf of Michael D. Brandt for unpaid bills. Yes indeed, it would appear that she still owed an additional $3,600 to his new law firm from the case. She had no choice but to pay it; she was told that if she refused to pay it a lien would be placed on her home, her accounts would be frozen, and she would incur thousands in additional legal fees for the collection efforts. He hadn't been paid enough!

Welcome to America Ms. Wang.