NEW ORLEANS – A man alleges his home is being foreclosed on because of a fraudulently obtained mortgage intended for repairs.
Merrion Severan filed a complaint on Feb. 4 in the U.S. Bankruptcy Court for the Eastern District of Louisiana against Myrna A. Davis, Ireka Davis and Kenneth T. Merritt, citing alleged fraud, negligent misrepresentation unjust enrichment and other counts.
According to the complaint, the plaintiff alleges that Clear Spring Loan Services Inc. instituted foreclosure proceedings against him for the balance due on the mortgage loan that Myrna Davis fraudulently obtained. The plaintiff holds Myrna A. Davis, Ireka Davis and Kenneth T. Merritt responsible because the defendants allegedly conspired after Myrna Davis obtained a $100,000 mortgage loan to finance the renovation of the plaintiff's home. Merritt allegedly acted as a broker for the property and received a fee. The suit states that Myrna Davis acted as the plaintiff's power of attorney to commit the alleged fraud, and used $13,000 of the mortgage to pay for Ireka Davis' wedding.
The suit states that because of Clear Spring Loan Services' foreclosure actions, the plaintiff has had to file for Chapter 13 bankruptcy protection.
The plaintiff requests compensation for the full amount of the mortgage note taken out against the property, plus interest and costs of these proceedings, attorney’s fees and expert witness fees and any equitable relief as law, equity and the nature of the case may allow. He is represented by Edwin M. Shortly Jr. and Nathan M. Chiantella of Edwin Shorty Jr. & Associates in New Orleans.
U.S. Bankruptcy Court for the Eastern District of Louisiana Case number 16-10019