Las Vegas non-profit files class action against lender

Friday, May 9, 2003 | 11:30 a.m.

The Nevada Fair Housing Center has filed a federal lawsuit in Las Vegas accusing Fairbanks Capital Corp. and Manufacturers and Traders Trust Co. of fraud.

David Olshan, managing attorney for the Nevada Fair Housing Center, a Las Vegas-based nonprofit agency, said Fairbanks Capital intentionally mishandled the mortgage of Las Vegas-resident Manuel Serrano, forcing the loan into default and assessing penalties and fees.

"Fairbanks has engaged in a scheme in which it defrauds consumers," the suit said. The scheme was carried out by failing to send monthly statements and to record payments the company received, Olshan said.

Haidee Schwartz, a spokeswoman for Fairbanks, said the company had not received a copy of the complaint and does not comment on litigation.

The suit seeks class-action status for homeowners whose loans were serviced by Utah-based Fairbanks Capital on behalf of Manufacturers and Traders Trust Co., a New York banking company. That group includes as many as 5,000 potential plaintiffs nationwide, the suit said.

Serrano is the only current plaintiff, but "based on interviews of Fairbanks customers conducted by plaintiff's counsel, plaintiff is informed and believes his experience is typical," the suit said.

Manufacturers and Traders Trust could not be reached for comment.