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Court Awards Nearly $5 Million to the FDIC-R

Wed 3rd Sep 2014, Blog, Case Successes

On a motion for summary judgment brought by Bienert | Katzman, a federal district judge in Miami, Florida ordered Defendant Attorneys’ Title Insurance Fund, Inc. (“ATIF”) to pay nearly $5 million to the Federal Deposit Insurance Corporation, as Receiver for Washington Mutual Bank (“FDIC-R”) for ATIF’s failure to reimburse funds that ATIF’s closing agents had misappropriated from Washington Mutual Bank (“WaMu”) in connection with several residential real estate transactions in southern Florida.  Steven Jay KatzmanMichael R. Williams, and Anne Uyeda of Bienert | Katzman represented the FDIC-R in this matter as the FDIC-R’s approved outside counsel.

The FDIC-R alleged that seven closing agents who issued title insurance policies on behalf of ATIF had falsified loan, settlement, and accounting documents and failed to comply with WaMu’s closing instructions with respect to 14 real estate transactions.  The Court ruled that the FDIC-R was entitled to summary judgment on 6 of the 14 transactions and ordered ATIF to pay the award of $5 million plus prejudgment in interest to the FDIC-R.  A copy of the Court’s order is found here.