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When a Bank Asks A Court to Find For Loan Application Fraud vs. When a Homeowner Asks the Court to Find for Loan Application Fraud

An attorney for the Banc of California told a judge Thursday that his client is seeking a default judgment against the former son-in-law of President Donald Trump’s former campaign chairman for allegedly defrauding the institution on a loan, and court papers show the amount sought is more than $750,000.

Bank Seeks Default Judgment Against Former Trump Campaign Chairman Relative

An attorney for the Banc of California told a judge Thursday that his client is seeking a default judgment against the former son-in-law of President Donald Trump’s former campaign chairman for allegedly defrauding the institution on a loan, and court papers show the amount sought is more than $750,000.

In a telephone conference call hearing with Los Angeles Superior Court Judge Gregory Alarcon, Lawyer Jarrett Osborne-Revis said the appropriate paperwork has been filed and is ready for review for the judge. The court papers show the total amount being sought against Jeffrey Yohai and Baylor Holding LLC, a company Yohai and Manafort owned, is $763,887.

Osborne-Revis said the bank is proceeding to trial against Manafort and he is not included in the request for a default judgment.

The judge set another hearing for Dec. 3.

The Banc of California’s complaint, filed Feb. 28, alleges Paul Manafort and Yohai, defaulted on the loan in 2016.The suit alleges fraud, negligent misrepresentation and breach of loan document contracts. Yohai was once married to Manafort’s daughter, Jessica. They divorced in 2017.

Manafort and Yohai lied on their credit applications and gave the bank false personal financial statements, according to the complaint. The pair said they wanted to finance ventures in Los Angeles and told the bank they already owned property through Baylor Holding LLC that were free and clear of all liens, the suit states.

Additionally, Manafort told the bank he had a net income of $4 million, and both men promised the loan would be the start of a `highly profitable” relationship between them and the bank, the suit says.

Manafort was previously convicted of tax and bank fraud in Virginia. In a separate case, he also pleaded guilty to conspiracy against the United States and conspiracy to obstruct justice. He forfeited more than $22 million in cash and property to the federal government and promised to cooperate with Special Counsel Robert Mueller.

But a federal judge found Manafort, 70, had violated the plea deal and a recent sentencing memo from Mueller described Manafort as a liar who “presents a grave risk of recidivism.” He was sentenced in March to more than seven years in prison.

Yohai pleaded guilty in February 2018 to conspiracy to commit bank wire fraud. Prosecutors say Yohai swindled numerous individuals and lenders out of a total of more than $13 million through deals to develop real estate in wealthy Los Angeles neighborhoods.

He was later accused of engaging in similar frauds, prompting his re-arrest and a second guilty plea in June of this year on another charge of wire fraud conspiracy. He has not yet been sentenced.

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Laws In Texas is a blog about the Financial Crisis and how the banks and government are colluding against the citizens and homeowners of the State of Texas and relying on a system of #FakeDocs and post-crisis legal precedents, specially created by the Court of Appeals for the Fifth Circuit to foreclose on homeowners around this great State. We are not lawyers. We do not offer legal advice. We are citizens of the State of Texas who have spent a decade in the court system in Texas and have been party to during this period to the good, the bad and the very ugly.

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