A prominent financial institution is taking legal action against a local real estate developer and his associated companies, alleging fraudulent activities and breach of contract. Great Southern Bank filed a complaint on December 5, 2024, in the United States District Court for the Eastern District of Louisiana against Edward Neal Morris III and several LLCs under his control, including Lincoln Grove, LLC, Lincoln Grove 1, LLC, Lincoln Grove 2, LLC, and Project Renew, L.L.C.
The lawsuit stems from a series of complex real estate transactions involving properties in New Orleans. According to the complaint, these properties were initially mortgaged by Opportunity Homes Limited Partnership to Valley Bank in 2006. The loan was later acquired by Great Southern Bank after Valley Bank's closure in 2014. The bank claims that Morris orchestrated fraudulent property transfers and mortgage assumptions among his entities without proper consent or adherence to contractual obligations.
Great Southern Bank accuses Morris and his companies of failing to maintain insurance on the properties as required by their loan agreements. The bank alleges that insurance coverage lapsed and that it was not listed as an additional insured party. Furthermore, the bank claims that Morris's entities did not use insurance proceeds from storm damage claims to repair the properties. These actions allegedly resulted in uninsured losses when one property burned down.
In addition to these breaches of contract, Great Southern Bank asserts that Morris's entities engaged in deceptive practices by initiating foreclosure proceedings on certain properties without valid mortgages or promissory notes. The bank argues that these foreclosure actions are part of a scheme to deprive it of its rightful collateral security.
The plaintiff seeks injunctive relief to prevent further dissipation of funds obtained through these foreclosures and demands that any such funds be deposited into a court-supervised account. Additionally, Great Southern Bank requests damages for breach of contract and fraud, along with legal fees and costs associated with the lawsuit.
Representing Great Southern Bank are attorneys David N. Luder, Robert J. Dressel, Chloé M. Chetta, and Laura M. Blockman from Barrasso Usdin Kupperman Freeman & Sarver L.L.C., based in New Orleans. The case is presided over by Magistrate Judge Lincoln Judge with Case ID: 2:24-cv-02815.