a Case: 1:00-cv-05061 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION LILLIE HOPSON, Jury Demand Plaintiffan, MARK DIAMOND, and foreign corporations ff?? CREDICORP CORPORATION and Judge CONTIMORTGAGE Defendants. i" an ?Earth COMPLAINT AUG 18200t?151~ii3ii Lilli .- t.'7 f? ?i ., . 5?52." :31 tinir'Qth?t This is a case in which the Plaintiff, Lillie Hopson (?plaintiff? or ?Ms. Hopson?), an'elderly, blind woman, who depends entirely on Social Security disability payments, alleges that defendant Mark Diamond (?defendant? or ?Diamond?), acted under an unconscionable scheme designed to do her out Of her property?her home?and in doing so, obtained in connection within the course of providing ?nancing for plaintiff to pay for- the installation of gutters on her home, that he himself would loan her the money to pay for the gutters and for back taxes on the property, which had become his, and for a security deposit, as she had become a tenant on his property, with an obligation to pay rent to him for ten years, whether or not she exercised an option to repurchase her home from him for an additional $10,000, charging her for expenses relating to his Obtaining a mortgage, on what had been her property, of some $40,000, for his own use. Not only did Diamond fail to provide Ms. Hopson with any federally-mandated disclosures relating to the payment of the loans, but he also failed to rescind all contractual obligations upon her timely demand. When caught, Diamond, as part of his scheme, tried Case: 1:00-cv-05061 Document 1 to get out it by re-deeding the property and has asserted that he has paid the mortgage, while leaving loans and a trail of his ill deeds outstanding. Plaintiff, through her attorneys, on personal knowledge as to her own affairs and on information and belief based on the investigation and analysis of her counsel, alleges for her complaint against defendant Diamond and defendant mortgage companies involved, as follows: JURISDICTION AND VENUE 1. This Court has subject matter jurisdiction for this case under the Real Estate Settlement Procedure Act 12 USC ?2607, et seq, and the accompanying federal regulations, 24 CFR USC ?1331; under the Truth in Lending Act 15 USC ?1601, et seq., 12 CFR ?226.18, and Regulation and, pursuant to the Court's supplemental jurisdiction, 28 USC ?1357, under the Illinois Consumer Fraud Deceptive Practices Act 815 ILCS ?Sec. 505, and Illinois common law. 2. Venue is proper as both plaintiff and the principal defendant reside in, all of the defendants do business in, the acts complained of occurred in, and the property in question is located in Chicago, Cook County, Illinois, within this District and Division of the Court. THE PARTIES 3. Plaintiff Lillie H0pson, 65 years old, single, disabled, totally blind in her right with severe sight restrictions in her left, and suffering from respiratory and other illnesses, is dependent entirely on Social Security disability payments for her support. She is unschooled, unsophisticated, and inexperienced in ways of ?nance, deeds, home improvement loans, mortgages, and unlawful schemes and practices connected with them. Case: 1:00-cv-05061 "v 4. From 1990, through the date of this instant complaint, and at all times relevant to this complaint, plaintiff has lived in her principle and only residence at 64 E. 102nd Place, Chicago, Illinois 60628 (?the property"), which she had inherited through intestacy, with her three brothers, from their deceased parents, Eula Mitchell and Roosevelt Mitchell, and which is legally described as follows: LOT 127 OF THE EAST 1/2 OF LOT 128 IN ROSELAND HEIGHTS BEING A SUBDIVISION OF ALL OF LOTS 2 AND 3 AND THAT PART OF THE SOUTH 5/7 OF LOT 4 LYING WEST OF MICHIGAN AVENUE IN PETER BOON AND SUBDIVISION OF THE SOUTHWEST 1/4 OF THE SOUTHWEST 1/4 OF SECTION 10, TOWNSHIP 37 NORTH, RANGE 14 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK, COUNTY, ILLINOIS. 5. Prior to the events described here, defendant Mark Diamond was experienced in the ways of residential property ?nancing, having had an Illinois Real Estate Broker's License, having served as a loan of?cer for the Dolphin Mortgage Company, during the course of which he arranged for countless residential loans and related loans, including more than four in the year prior to July 11, 1997. Defendant Diamond had superior knowledge and expertise compared to plaintiff. 6. At all times relevant to this complaint, Diamond operated his own real estate and real estate ?nancing business out of an office at 2355 N. Damen Avenue, or from his residence at 360 E. Randolph Street, in Chicago, Cook County, Illinois, either under his own name or under the name of United Residential Services. Defendant Diamond used the United States mails and the telephone in the course of such activities and was engaged in commerce. 7. Defendants Credicorp Corporation and Contimortgage Corporation are foreign corporations doing business in this district and division of the Court and are named as Case: 1:00-cv-05061 Documenth C, necessary parties, Credicorp having issued a mortgage on the property to the bene?t of defendant Diamond, whether through United Residential Services or otherwise, and having sold the mortgage to Contimortgage during times relevant to this complaint. DEFENDANT MARK SCHEME 8. Defendant Diamond, under a scheme to prey upon owners of residential property through device and arti?ce designed: a. to obtain acknowledgment through telemarketing from a home owner that he or she was in need of certain home repairs and an expression of the owner's inability to pay for such needed work; b. to represent by a follow-up statement through telemarketing that ?nancing could be obtained for the repairs; c. to cause such identified home repair work to be initiated on the property, before obtaining a contract, for the purpose of inducing the owner to believe that (s)he was obligated to sign papers to obtain a loan to pay for the work; and, thereafter, d. to himself call upon the owner, with his superior knowledge and ability in regard to home lending, holding himself out as able to assist the owner in obtaining a loan to pay for the work; e. making such representations falsely, with no intention to obtain a loan to pay for home repairs, but to induce the owner, under the understanding and expectation of such a loan, to sign papers prepared by Diamond, which involved: i. clearing title in the home owner, by preparing deeds, as necessary, for transfers to the home owner of any ?lial or other interests in the property; Case: 1:00-cv-05061 Document?7f?ile?WW? L2 ii. transferring ownership to Diamond, without fair or adequate consideration; in some instances, having ownership converted to a tenancy, and providing an illusory or rapacious repurchase Option, without disclosing the terms of such a loan; and iv. himself advancing money to pay for the home repairs, to avoid mechanic's liens, to pay back taxes, and to qualify the property to be mortgaged, for his own interest, loaning the former home owner the money for a security deposit for the tenancy, all without disclosing the terms of such loans; v. charging the former home owner the expenses for transferring the property into Diamond?s name, and for his obtaining mortgage ?nancing on the property, for his bene?t, all without performing any services for such former home owner; and vi. obtaining, as part of the scheme, and without consideration, an unenforceable statement of awareness of, and a waiver of, all legal rights, for the purpose of leading the signatory to believe it; f. when confronted, whether by of?cials or former home owners who have obtained counsel, re?deeding the property to the home owner, in an effort to moot or avoid complaints against him, asserting that the mortgage had been paid, leaving the loans, charges and liabilities outstanding; and, in addition, g. baselessly threatening to seek sanctions if a federal action were to be ?led by the home owner. Case: 1:00-cv-05061 Document?#Y?I?WW 9. As the ?rst step in Diamond?s scheme involving Ms. Hopson, he induced her to obtain the signatures of her brothers on quit claim deed, conveying their interests in the property to her, making her the sole owner. Diamond then induced plaintiff to execute a quit claim deed to the property to him. 10. Under the guise that signing the remaining papers was a necessary step for the loan, Diamond induced plaintiff on the same day, under her belief that such actions were necessary for him to assist her, to execute the following documents, prepared by and for Diamond, none of which did Ms. Hopson have the opportunity to read or the capacity to comprehend or to otherwise understand: a. Exhibit A: an executed quit claim deed, purportedly conveying the property to Diamond, with the recitation for "a consideration of $10.00" for the property. b. Exhibit B: an "Af?davit of Transaction, purportedly waiving all rights applicable under the laws of Illinois and of the United States, and agreeing that plaintiff would pay all of Diamond?s transaction costs, including costs of his borrowing against the property for his own interest, and providing for Diamond, himself, to loan plaintiff the money to pay for the gutter installation, and to pay her delinquent taxes and security rent deposit as a tenant, without disclosing the terms of such loans, reading in hic verba: Case: 1:00-cv-05061 Document L) AFFIDAVIT OF TRANSACTION LILLIE HOPSON AFTER BEING DULY SWORN UPON STATE AS FOLLOWS: 1. THAT I WAS IN POSSESSION AND WAS INTITLE [sic] TO THE PROPERTY COMMONLY KNOWN AS 64 E. 102nd PL., CHICAGO, ILLINOIS, 6028THAT [sic] I UNDERSTAND AND ARE [Sic] RESPONSIBLE FOR THE FOLLOWING EXPENSES (INCLUDING ANY TAX CONSEQUENCE), WHICH ARE RELATED TO THIS TRANSACTION, AND HEREBY AUTHORIZE THE DISBURSALS AS FOLLOWS: A SIDEALL AMERICA $3,350.00 REAL ESTATE TAXES (est) $300.00 CONSULTANTS $200.00 CLOSING COSTS $658.00 POINTS, PAID TO ITS LENDER $300.00 RECORDING $235.00 DEATH CERTs [sic] $31.50 PROPERTY INSURANCE $524.00 APPRAISAL $250.00 CREDIT REPORT $25.00 INTERCOUNTY (TRACT SEARCHES) $467.00 LEGAL FEES $1,000.00 TO LILLIE HOPSON (FOR SECURITY DEPOSIT) $1,000.00 TRANSACTIONAL FEE $1,659.50 TOTAL DISPERSAL $10,000.00 4 THAT I ACKNOWLEDGE THAT I AM UNABLE TO SECURE ANY TYPE OF FINANCING AND HAVE EXHAUSTED ALL MEANS OF DOING SO, AND HEREBY ACKNOWLEDGE THAT I AM WILLING TO CONCLUDE THIS TRANSACTION AS COMPLETED ON THIS DAY OF JULY, 11TH 1996. 5 THAT I ACKNOWLEDGE THAT I HAVE HAD ALL OF MY QUESTIONS ANSWERED AND FULLY UNDERSTAND THIS TRANSACTION. 6 THAT I ACKNOWLEDGE THAT THE LAWS OF THE STATE OF ILLINOIS AND THE UNITED STATES MAY HAVE AN IMPACT UPON THIS TRANSACTION, AND AGREE TO WAIVE OUR [sic] RIGHTS THEREUNDER. 7 AFFIANTS FURTHER SAY NAUGHT. lS/ Hogson (with no provision for a Notary or Seal) is.) c. Exhibit C: a Lease on the property to plaintiff, as tenant, and United Residential Services, as landlord, for a term of ten years, at a rental of $150.00; and (EM a Rider to the Lease, providing plaintiff with a so?called option, under which she would be obligated to pay rent for the entire, unexpired portion of the ten?year lease, even if she earlier repurchased the property, providing inter aka; 1. the tenant, Hopson, in addition to rent, must pay all expenses for taxes, insurance, and related expenses; and for an 2-3. option to be exercised on or before the end of the rental term??upon the ?nal payment of rent for the unexpired portion of the 120 month term--?entitling the tenant to repurchase the property for $10,000, plus costs and fees associated with the transfer of title; alternatively, 4. the tenant would be entitled to extend the lease (with unde?ned terms as to rent or period of such tenancy). These documents are each part of Diamond?s sham, all to Ms. Hopson?s detriment and Diamond's bene?t. 11. The quit claim deed, which had been conveyed from plaintiff to Diamond was recorded in the Office of the Recorder of Deeds of Cook County (document/case, no. 97139326, dated 02/28/97), in the course of Diamond?s obtaining a mortgage on the preperty, in the amount of some forty thousand ($40,000) dollars, to his own interest (RESPA Statement, Ex. D), on the property from defendant Credicorp, Inc, and, subsequently, Credicorp conveyed the mortgage interest on the property to defendant Contimortgage Corp. (document/case no.993667035, dated 04/16/99). Case: 1:00-cv-05061 Document 12. Plaintiff ?rst learned of these recordings upon her counsel?s obtaining a Title Report from the Chicago Title Trust Company on the Property on or about October 18, 1999. Ex. E. 13. On March 8, 2000, plaintiff, by counsel, ?led in the Circuit Court of Cook County, Illinois, Chancery Division, a Petition to Quiet Title and Rescind Contracts, Honson v. Mark Diamond, d.b.a. Credicorp and Centimortgage Corp, No. 00CH03729, setting out Diamond?s wrongdoing and reciting their essence in Exhibits A, and C. 14. By certi?ed letter dated April 4, 2000, by counsel, plaintiff demanded rescission of all ?nancing contracts or consumer loan transactions entered into with Diamond. Ex. F. Diamond refused and instead, by letter from his then counsel, demanded a secured promissory note from plaintiff in the amount .of $9,000 for a re?transfer of the property, with a threat of seeking sanctions if an action were ?led under federal law.Ex. G. 15. Under the expectation of plaintiffs ?ling the present action, defendant Diamond, by new counsel in a letter dated August 4, 2000, has informed the undersigned, that Diamond has quitclaimed his interest in the property to plaintiff and that the quit claim deed has been recorded. Ex. H. By letter dated August 8, 2000, Diamond?s counsel wrote that the mortgage made by Diamond on the property has been paid, contending that monies had been paid on plaintiff 5 account, and overlooking entirely the three loans from Diamond to plaintiff. Ex. I. Pending before the state court is Diamond?s motion for dismissal with prejudice of the state court action based on his re?deeding the property to Ms. Hopson, and his purported payment of the mortgage; and, Ms. Hopson?s cross- motion to take a non?suit, without prejudice, because of her ?ling of this action in this Court, raising the full panoply of Diamond?s wrongs under both federal and state laws. Case: 1:00-cv-05061 Document 1 COUNT I Violation of RESPA 1-15. Plaintiff ad0pts paragraphs 1-15 of her complaint as paragraphs 1-15 of Count I. 16. Defendant Diamond violated the provisions of the Real Estate Settlement Procedures Act 12 USC ?2607, and the accompanying federal regulations, 24 CFR ?35.00. 14 (c by charging plaintiff for services in connection with his obtaining her property by scheme and arti?ce, without performing services for her in that connection, but charging plaintiff for services performed in connection with the mortgage, none of which was performed for plaintiff or for her bene?t, in violation of RESPA, as indicted on the following items (Ex. B): CLOSING COSTS $658.00 POINTS, PAID TO ITS LENDER $300.00 RECORDING $235.00 DEATH CERTs $31.50 PROPERTY INSURANCE $524.00 I APPRAISAL $250.00 I CREDIT REPORT $25.00 INTERCOUNTY (TRACT SEARCHES) $467.00 LEGAL FEES $1,000.00 TO LILLIE HOPSON (FOR SECURITY DEPOSIT) $1,000.00 TRANSACTIONAL FEE $1,659.50 17. In addition, defendant Diamond, by holding himself out as a person who could assist plaintiff in obtaining ?nancing for home repairs on her property, and by imposing his superior knowledge and experience over plaintiff; created a ?duciary relationship so that Diamond owed plaintiff absolute ?delity, loyalty, and faith?rl performance of the duties owed to her. 18. Defendant Diamond breached his ?duciary duty to plaintiff by obtaining a deed to himself on her property from her by false pretenses, under a scheme, device and 10 Case: 1:00-cv-05061 Document 1 Filed: OMIW arti?ce. In the course of these activities, and by his representations and actions, Diamond became a constructive trustee in favor of plaintiff over the property, and as trustee for plaintiff, Diamond breached his trust by obtaining a RESPA covered mortgage in his own favor on the trust property. 19. In addition, RESPA, prohibits commissions, kick-backs or other such fees. Under such circumstances, plaintiff is entitled to any such fees paid or credited by defendants Credicorp or Contimortgage to defendant Diamond in connection with the mortgage he obtained on the property. COUNT II Violation of TILA 1?19. Plaintiff adopts paragraphs 1 through 19 of this complaint as paragraphs 1- 15 of Count II. 20. Defendant Diamond extended consumer credit to plaintiff by loaning plaintiff the money to pay the real estate taxes outstanding on the property $300.00 (Ex. B, Item the cost of the installation of the gutters, $3,350.00 (Ex B, Item and the security deposit on the lease (Ex. C). Each of these ?nancial transactions is ?credit? or a ?credit sale? as de?ned in ??1602(e) and of TILA. These items were addressed in plaintiff" 5 references to Exhibits A, and in her state court complaint. 21. In violation of TILA, defendant Diamond failed to disclose to plaintiff the cost of the credit and the nature of the terms of credit offered to her, including description of the components of ?nance charges, of the material terms of these loans, the rate or effective rate of interest, the period, the schedule of amounts to be repaid, pre?payment provisions, or any other term of each loan or credit. 11 Case: 1:00-cv-05061 Document 1 Filed: OWEW 22. In addition, as alleged in paragraph 14, above, Diamond refused to rescind, in violation of TILA. COUNT Violation of ICFA 1-22. Plaintiff. adopts paragraphs 1-12 of Count II as paragraphs 1-22 of Count 23. The Illinois Consumer Fraud and Deceptive Practices Act 815 ILCS ?Sec. 505.2, provides: Unfair methods . . . and unfair or deceptive acts or practices, including but not limited to the use or employment of any deception, fraud, false pretense, false promise, misrepresentations or the concealment, suppression or omission of any material fact, with intent that others rely upon [the same]. . .are hereby declared unlawful whether any person has in fact been misled, deceived or damaged thereby. In construing this section consideration shall be given to the interpretations of the Federal Trade Commission and the federal courts relating to section 5(a) of the federal Trade Commission Act. 24. Defendant Diamond by engaging in deception, consumer fraud, false pretense, false promise, misrepresentation and concealment, enticed plaintiff into signing away her legal rights, losing her home, and giving up her property to him, and such conduct violated the his action was willful, for his pecuniary gain at the expense of plaintiff, and was malicious. 12 Case: 1:00-cv-05061 Document 1 Filed: O8/1?7701TPage?I3?otmgei? #13 JURY DEMAND 25. Plaintiff demands trial by jury. WPIEREFORE, plaintiff is entitled to judgment against defendant Mark Diamond for compensatory, statutory, punitive and exemplary damages, litigation costs and attorneys fees, an accounting; and an order on defendants Diamond, Credicorp and Contimortgage, releasing any mortgage or other lien or charge on the pr0perty, removing any cloud on the title, free and clear; and for such other and ?thher relief as is just. Respectfully submitted, William F. Sp?ey?rger f1? Marshall Patner Attorneys for Plaintiff William F. Spielberger Associates, PC. Marshall Patner Associates, PC. 135 S. LaSalle St., Suite 1424 135 S. LaSalle St., Suite 2700 Chicago, IL 60603 Chicago, IL 60603 (312) 332-7851 (312) 641-3355 Fax: (312) 201-4559 Fax: (312) 726-5380 Atty. No. 55828 Atty. No. 0735 13~ chimmoh-ww?wv?mqnw In hm mh?mwmwaum uqu ?a TUE GRMWOR 1.11.115 norms. SINGLE mum . . DEPT-01 325.50 mm . 100003 TRAH 0222 Spitcof mm?w la: mammal . ?an 4 DH H): mm macaw.? . O?k RECORDER 5 . In i am ummn. A 5mm: tum . 0597-10 mam 322.00 (Tb: Abe-w 89m For Rmd??l Us: only) . mo: State a! lair-sols. to wit: . mt :27 um 1m: m5": 122 or to: 1'25 13: 395mm: mama-m. arms at 35mm?? 1/4 or momma! 1/8 or 3mm: 30. msuxr 37 mm. mm: H, 3151' or min museum mm, 12! mo: com. rumors; mun mm: 92?s! 4, 2? 35?" r! huh?: . . I lgkasin? md wu'vin; right: Under and by ?rm: a! the 1mm Exemption Lam Of Ihc Sum 01' Illinois. um: 1:115:90: Hm HERE .1 57139326 g} Fn'mm:m Ra! lat-m Ind-m Mir?1043 21-031 Manama?: Esme: .44 z. 1m in I 057mm 1m; ago: gm 19.9.6. I . 3 nuns: Cf 1! (sm: 1 (SEAL) Cb Tlxurma .. mammaus: Sui; a. Lshcund?nimd. nNomyPublicinmd fur (tawny. in an Sm: Hermit. DO HEREBY CERTIFY that OFFICIAL SEAL um: mama . 1' . Emanuuy Mum-nu lob-c Mariam-rm ?whoa-n name - comm-KW ch: I'm t- tannin human-nu. but? In. this day in phenom and ?knowl- qulbl waa?hmmh pawn Main tor-Ital. :ndudin; this rekaamdw??uoi?thth-muuzd. Givw my haul and mg ml. thin 11 an, a! 19.2_5_ . 4. Wu cum10: ?was . ?93Case: 1:00-Cv-05061 Docum?hme I I 83 AFFIDAVIT OF TRANSACTION -- OF COOK I, LILLIE HOPSON AFTER BEING DULY SWORN UPON STATE AS FOLLOWS: 1 THAT I IN POSSESSION AND WAS IN TITLE TO THE PROPERTY COMMONLY KNOWN AS 64 E. 102ND PL., CHICAGO, ILLINOIS, 60628 (25-10-322-041). 64 E. 102ND PL., CHICAGO, ILLINOIS, 60628 I HEREBY ACKNOWLEDGE THAT I HAVE READ, FULLY UNDERSTAND, AGREE, AND WILL PERFORM IN ACCORDANCE WITH ALL RIGHTS, OBLIGATIONS, AND AGREEMENTS CREATED THEREUNDER. 3 THAT I UNDERSTAND AND ARE RESPONSIBLE FOR THE FOLLOWING EXPENSES (INCLUDING ANY TAX CONSEQUENCEI, WHICH ARE RELATED TO THIS TRANSACTION, AND HEREBY AUTHORIZE THE DISBURSALS AS FOLLOWS: A SIDEALL AMERICA . $3,350.00 REAL ESTATE TAXES (est) $300.00 CONSULTANTS - $200.00 CLOSING COSTS $658.00 POINTS, PAID TO ITS LENDER $300.00 RECORDING $235.00 DEATH CERTS $31.50 PROPERTY INSURANCE $524.00 I APPRAISAL $250.00 CREDIT REPORT $25.00 INTERCOUNTY (TRACT SEARCHES) $467.00 LEGAL FEES $1,000.00 TO LILLIE HOPSON (FOR SECURITY DEPOSIT) $1,000.00 TRANSACTIONAL FEE $1,659.50 TOTAL DISPERSAL $10,000.00 5 THAT I ACKNOWLEDGE THAT I HAVE HAD ALL OF MY QUESTIONS ANSWERED AND . FULLY UNDERSTAND THIS TRANSACTION. 6 THAT I ACKNOWLEDGE THAT THE LAWS OF THE STATE OF ILLINOIS AND THE UNITED STATES MAY HAVE AN IMPACT UPON THIS TRANSACTION, AND AGREE TO WAIVE OUR RIGHTS THEREUNDER. 7 AFFIANTS FURTHER SAY NAUGHT. Case: 1:00-cv-05061 Document . .Md/ - GEORGE E. No. 22am LEGAL FORMS May 1995 . LEASE CAUTION: Consult a lawyer before using or acting under this form. Neither the publisher nor the seller at this form makes any warranty with respect thereto, including any warranty of merchantability or fitness for a particular purpose. - TERM OF LEASE . DATE OF LEASE BEGINNING ENDING - - 5" 3/ep2?oei7 RENT SECURITY 55/6500 77VVL ?lt none, write paragraph 2 of this Lease then INAPPLICABLE. LESSEE NAME err/Ar? (ale/50w . .2 Above Space for Recorder?s Use Only ADDRESS 0F 696?, PREMISES . 6/14 (047$ Z: . LESSOR . NAME AND - fest/pe/??m Soft/x6e; BUSINESS - 2353? 13M (9/0 ADDRESS - arbor?70 ?.236 605 V) THIS AGREEMENT. Made this day of I9 I . Between 7185'; ?re? ate-(L 3054. {715? Lessor,ancl 0k] Lessee. that Lessor has demised and leased to Lessee the Premises. situated in (it County of (200 and State or Illintgs, known and described as follows: Case: 1:00-cv-05061 Permanent Real Estate Index Numbe_r(s) 3 0 i a *3 attain. Address(es) of Real Estate: 6 {0 a? TO HAVE AND TO HOLD the same, unto Lessee, from the day of I l9 . until the . day of . l9 . And Lessee in consideration of said demise. does covenant and agree with Lessor as follows: FIRST. To pay to Lessor at - as rent for the Premises for said term the sum of: - Dollars (S . payable in advance in equal installments upon the first day of each and every morn:?1 during the term hereof. SECOND. That he has examined and knows the condition of the Premises; and has received the same in good Order and repair, and that he will keep the Premises in good repair during the term ofthis lease, at his own expense; and upon the terminatiOn of this lease will yield up the Premises to Lessor in good condition and repair (loss by ?re and ordinary wear excepted). THIRD. That he will not sublet the Premises, nor any part thereof, nor assign this lease without the prior written consent of Lessor. FOURTH. To pay (in addition to the rents above speci?ed) all water rents taxed, levied or charged on the Premises. for and during the time for which this lease is granted. Lessee hereby irrevocably constitutes or any attorney of any Court of Record. attorney for Lessee in Lessee?s name. on default by Lessee of any of the covenants herein, to enter Lessee?s appearance in any such Court of Record, waive process and service thereof, and trial by jury. and confessjudgment against Lessee in favor of Lessor or Lessor?s assigns for forcible detainer of the Premises. with costs of Said suit; and also to enter the appearance in such court of Lessee. waive process and service thereof. and confessjudgment from time to time. for any rent which may be due to Lessor or Lessor?s assigns by the terms of this lease, with costs, and reasonable attorney?s fees, and to waive all errors and all right of appeal. from said judgment and judgments; and to file a consent in writing that a writ of restitution or other proper writ of execution may be issued immediately: Lessee hereby expressly waives all right to any notice or demand under any statute in this state relating to forcible entry and detainer. . in case the Premises shall be rendered untenantable by ?re or other casualty, Lessor may. at his Option. terminate this lease. 0r repair the Premises within thirty days, and failing so to do or upon the destruction of the Premises by ?re. the term hereby created shall cease and determine. - a All the parties to this lease agree that the c0venants and agreements herein contained shall be binding upon, apply and inure to. their respective heirs, executors. administrators and assigns. WITNESS the hands and seals of the parties hereto the day and year ?rst above written. LESSE LESSOR: WWALSEAL) (SEAL) (SEAL) (SEAL) I Case: 1:00-cv-05061 xE/ RIDER THIS RIDER ATTACHED TO THE LEASE DATED 7-11-96 BETWEEN UNITED RESIDENTIAL SERVICES HEREINAFTER AND LILLIE HOPSON HEREINAFTER IS MADE THIS 11TH DAY OF JULY, 1996 IS INCORPORATED INTO SUCH LEASE AND MADE A PART OF SUCH LEASE, THUS THE LESSOR AND THE LESSEE AGREE AS FOLLOWS: 1 THAT THE LESSEE SHALL PAY IN ADDITION TO THE RENT, ALL EXPENSES TO THE LESSOR ON A BASIS FOR TAXES, INSURANCE, AND ANY OTHER EXPENSES RELATED TO THE PROPERTY. THE LESSOR SHALL NOTIFY THE LESSEE OF SUCH AMOUNTS DUE IN ADDITION TO THE RENT AS SUCH EXPENSES SHALL COME DUE. 2 THAT THE LESSEE SHALL HAVE THE RIGHT TO PURCHASE THE PROPERTY FROM THE LESSOR UPON THE EXPIRATION OF THE LEASE, (120 MONTHS). THE LESSEE MUST I NOTIFY IN WRITING BY CERTIFIED MAIL TO THE LESSOR OF HIS DESIRE TO EXERCISE THE OPTION TO PURCHASE THREE MONTHS PRIOR TO THE TIME OF CLOSING . THE LESSEE MUST CLOSE ON THE OPTION TO PURCHASE BY THE END OF THE 120TH MONTH. ITEMIZED AS FOLLOWS: BASE PRICE OF PROPERTY $10,000.00 120TH MONTH RENTAL $150.00 $10,150.00 3 THE TOTAL OF THE EXPENSES ASSOCIATED WITH THE OPTION TO PURCHASE THE PROPERTY IS $10,000,00 PLUS THE 120TH MONTH RENT 0F $150.00. THE TOTAL AMOUNT DUE FROM THE LESSEE TO THE LESSOR UPON EXECUTING THE OPTION TO PURCHASE IS $10,150.00 PLUS ANY UNPAID PORTION OF RENT, TAXES, INSURANCE OR ANY OTHER EXPENSES PAID BY THE LESSOR ON BEHALF OF THE PROPERTY. IN THE EVENT THE LESSEE EXERCISES HIS OPTION TO PURCHASE BEFORE THE EXPIRATION OF THE LEASE (120 MONTHS), ALL LEASE PAYMENTS WILL BE DUE IN ADDITION TO THE PURCHASE PRICE UPON THE SALE OF THE PROPERTY. IN ADDITION TO THE COSTS ASSOCIATED WITH THE OPTION TO PURCHASE, THE LESSEE SHALL BE RESPONSIBLE FOR ALL COST AND FEES ASSOCIATED WITH THE TRANSFER OF TITLE IF THE LESSEE EXERCISES THE OPTION TO PURCHASE UNDER THE TERMS OF THIS RIDER. 4 IF THE LESSEE DOES NOT EXERCISE AND CLOSE UPON THE OPTION BY THE 120TH MONTH, THEN THE LESSEE SHALL HAVE THE OPTION TO EXTEND THE LEASE AND THE OPTION, IF ALL TERMS OF THE LEASE HAVE BEEN FULFILLED. AGREED TO AND ACCEPTED THIS 11TH DAY OF JULY, 1996. LESSEE: FOVR LESSOR: Case: 1:00-cv-05061 Tr?- Name 6-. MARK 360 CHI out Sellers OWBI: ions Name 3. Address of Lancer: ND OLPH IL 60601 Location: {If different from above) 102MB PL CHICAGO, IL 60628 Settlement agent In Place ofSenremenr. Number: 4 28 01h 1997 L. 'entst 0 300 am. Loam ca 40 . 082.0: to; Lem meow Fe. Crow :0 CREDICOHP INC. ?ll 10 805. 505. 0'0? Fae an. 515. no. item: 901. 962. Mortgage Insurance Premium tor 1o 9:3. Hazard mm: Holmium for In ?505. 1509. to 151D. 1511. 151?. T513. Funnies 00?. IDSUMCO 151?. 1?51; 005. 006. 520. TOTAL on Ilnt 40 032.00 005. mm 111T- CH. 02. Mind or Tm: D4. Tluo Insuan Binder Io ETS at 10 LAND Search 590 531. 1 913.00' 06. to 07. Altar-my: Fees in llam 08. Title Insurance to MIDWEST LAND TITLE new Item number: 5 Owner: 3 1am: 0mm . Baum Disbursements lo 901-er (mar expirallcn of any appf'rcable ramsbn patina required by 1m) 40 032.00} 0.00 aonmr: Signalman DIAMOND Borwwers Signaluto Additional Saulemcnl 1a Borrower: Signalure Pen la Form]! 10 IGOR INC. 00 Signalum 130a 130? 1400. Total Settlement Charges (I!an on line 1802} 1,918.00 tort-n HUD-1A (2/93) massm GENESIS 20:0. INC. V9.2 {8?10 223-3260 Farm Case: 1:00-Cv-? CHICAGO TITLE INSURANCE 400 S. JEFFERSON, CHICAGO, IL 60607 (312)223?2582 TRACT INDEX SEARCH WILLIAM SPIELBERGER Order No135 LASALLE CoverDaKE OCTOBER 18, 1999 SUITE 1424 . Re? 64 102 HOBSON CHICAGO, ILLINOIS 60603 Legal Description of Land Searched: (See Attached) Permanent Tax Number Street Address of Land Search (as furnished by Applicant): 25?10-322-041-0000 64 102ND. PLACE CHICAGO, ILLINOIS Grantee(s) in last recorded conveyance: - MARK DIAMOND (SINGLE). r' In accordance with the application, a search of tract indices discloses the following items. With respect to residential properties, we may not have shown mortgages, trust deeds, or other liens which were eliminated by transactions closed through or Chicago Title and Trust Company. No.: 97139326 .GRANTOR: LILLIE HOPSON (SINGLE) GRANTED: MARK DIAMOND (SINGLE) INSTRUMENT: DATE: 0 07/11/96 02/28/97 REMARKS: No.: 97225169 GRANTOR: MARK s. DIAMOND (SINGLE) GRANTED: CREDICORP, INC. INSTRUMENT: DATE: 02/20/97 RECORDED: 04/01/97 REMARKS: $42,000.00 (CONTINUED) I . CHICAGO TITLE INSURANCE COMPANY By: SEE ATTACHED FOR TERMS AND CONDITIONS OF SEARCH AND EXPLANATION OF ABBREVIAT Case. CHICAGO TITLE INSURANCE OrderNo.:1401 39526888 SP Disclosures (Continued): NO.: 99367034 CREDI CORP INC GRANTEE CONTIMORTGAGE CORP INSTRUMENT A DATE RECORDED: 04/16/99 REMARKS: I 97225169 Case. 1.00-cv-O i; LAW OFFICES . ILLIAM F. SPIELBERGER 135 SOUTH LASALLE STREET SUITE 1424 WILLIAM F. ER CHICAGO. ILLINOIS 60603 ATTORNEY AT LAW I 21201 4559 CERTIFIED MAIL: 088 884 671 April 4, 2000 Mark Diamond United Residential Services 2355 N. Damen Chicago, 10 60647 Re: Financing for goods and services provided to Lillie Hopson for real property located at 64 E. 102'?l Place, Chicago, Illinois 60628 Dear Mr. Diamond: As the legal representative of Lille Hopson, by this letter I inform you that she wishes to rescind all ?nancing contracts entered into by you and her because there appear to be inaccuracies in your disclosure statement for the ?nancing for goods and services provided to Lillie Hopson for real property located at 64 E. 102ml Place, Chicago, Illinois 60628. Please act on her desire to rescind all such "consumer loan transactions within twenty (20) days of receipt of this letter. Failure to do so could result in a lawsuit being ?led by Lillie Hopson against you in federal court alleging violation of the Truth in Lending Act, 15 USC 1601-1665, in addition to the charges already brought against you in Lillie Hooson v. Mark Diamond. et al., case number Ch 03729, recently ?led in the Chancery Division of the Circuit Court of Cook County. Very truly yours, {mix/5d . William F. lberger LAW OFFICES OF GDMBERG. SHARFMAN, GOLD AND OSTLER. PC. 203 SOUTH STREET sums 1200 CHICAGO. ILLINOIS 80604-1003 {3123 332?3194 FAX [312) 332-4033 EMAIL gsgolaw?iarnb.org LAWRENCE A. GOLD RAYMOND J. USTLER ROBERT M. GOMBEPG ROBERT J. SHARFMAN KIMBERLY A. PADJEN OF COUNSEL JOHN J. LYDON MAUHESETA T. HAWINS HOLLY A. PETRIK June 20, 2000 William F. Spielberger William F. Spielberger'??c Associates, PC. 135 South LaSalle Street, Suite 1424 Chicago, IL. 60603 RE: Hopson v. Diamond, 00CH03729 Our File: 36188 Dear Mr. Spielberger: In our numerous conversations I have advised you that my client desires to settle the above captioned matter. As I am sure you know, even if you are successful in convincing a court to quiet title your client must make restitution for the value she received from the transaction. Even to get there you would have to overcome the substantial defenses that will be presented. Therefore without admitting any liability on behalf of my client I would suggest that we proceed to the place we will eventually end up and arrive at a settlement. I would suggest that an outline of a settlement agreement, which would be set out in a court order would be as follows: 1. Mr. Diamond shall deed the subject real estate to Ms. H0pson subject only to real estate taxes and easements and restrictions of record; 2. Contemporaneously with the recording of the deed Ms. Hopson shall execute a mortgage to Mr. Diamond secured by a Promissory Note executed by Ms. Hopson in the principal sum of $9,000.00. Such sum shall be amortized over ten (10) years with a payment of approximately $162.00 plus a payment for a tax and insurance escrow; 3. Ms. Hopson will be released of her obligations under the Lease; 4. The parties will execute General Releases, excepting only the obligation of Ms. Hopson to Mr. Diamond under the said Promissory Note. Please discuss this offer of settlement with your client and advise me ifit is acceptable. Case: 1:00-cv-05061 DocumeW?ledeot-ZWW? I LAW OFFICES OF GOMBERG. GOLD AND OSTLER. RC. William F. Spielberger June 20, 2000 Page 2 You also mentioned that you contemplated ?ling an action under the federal Truth in Lending Act.? As no loan was involved in the transaction between Mr. Diamond and Ms. Hopson, we will seek sanctions in the event such a lawsuit is ?led. Further, if the settlement, as outlined above, is not acceptable please let me know and we shall proceed to ?le an answer or otherwise plead. In the event that you have any questions in regard to this letter, please do not hesitate to contact the undersigned. Very truly yours, Gomberg, man, Gold Ostler, Lawrence A. Gold cc: Mark Diamond Case: 1:00-cv-05061 88/84/2838 16:32 URDULYRK 2814559 [1?81 EDWARD R. VRDOLYAK, LTD. Attorneys at Law 741 N. Dearborn Street Chicago, Illinois 60610 (312) 482-8200 (312) 482-8026 Fax 0! Icon 0 9518 5. Commercial? Ace. 495 Bumham Avenue 7725 W. 159016h'eet managed 50:117- .. Calumet City, IL 00400 "may Paring (793) 731-3311 (703) 86243111 (703) 429-2332 (773} 731-6919 Fax (700) 852-3113 Fax (703) 429-1231 Fax August 4, 2000 Via Fggt'miie 312/201-4559 William Spielberger Spielberger d: Associates, RC. 135 S. LaSalle Street, Suit 1424 Chicago, Illinois 60603 Re: Hopson v. Diamond, et a1. 00 CH 3729 Dear Mr. Spielberger: In follow up to our conversation of this date at the Of?ce of Banks and Real Estate, please be advised that we have recorded a Deed to the subject property quit claiming Mr. Diamond?s interest to Lillie Hepson. I enclose a copy of the recorded Deed for your records. Although I have not had the bene?t of reviewing the. new complaint, which you claim that you will be ?ling in Federal Court, my cursory review of the statutes referenced by you would indicate that the statute of limitations applicable to alleged violations of both acts in question have expired. In addition, the Acts you cited do not seem to cover the transaction in question, since their was no loan involved and therefore I question the validity of the complaint you seek to file. i -- I will also want to reiterate that we attempted to resolve this matter with you today, but were unable to receive a demand and you have indicated that for reasons unknown, you cannot resolve this matter without ?rst ?ling a new lawsuit. Case: 1:00-cv-05061 Documentef: 1'"me [38/4/2222 15: 32 22114559 NO. 722 0212 William Spielberger August 4, 2000 Page 2 It would appear that you have now placed your clients interest behind your interweSt in collecting a fee, while we still desire to resolve this matter and are willing to agree to a mediation orooees or a prompt pro-trial with the assigned judge. We will msist any attempts to ?le lmganon solely for the purpose of collecting fees as well as any attempts to delay settlement we stand ready, willing and able to meet with you. EDWARD VRDOLYAK, LTD. lily: Dennis E. 3001' DEBzcam Enclosure . I 43?? ?we I I :5 . Case. i 3? No.73? 17212 [38/88/2 16: 13 221145593 EDWARD R. VRDOLYAK, LTD. Attorneys at Law 741 N. Dearborn Street Chicago, Illinois 60610 (312) 482-8200 (312) 482-8026 Fax 9% 9513 s. CommerdalA . Chicago, IL60617 . ye guil??,?g?39 {773) mean [70818626111 (ms) 429.2332 {773) 7314919 Fax (703) 862-3113 Fax (menus-12315? ?u ?'ggim?e 312/201?552 William Spielberger Spielberger d: Associates, RC. 135 S. LaSalle Streetr Suit 1424 Chicago, Illinois 60603 August 8, 2000 Re: Hopson v. Diamond, et a1. 00 CH 3729 Dear Mr. Spielberger: In follow up to my previous correspondence, please be advised that the mortgage made by Mr. Diamond on the property which is the subject of our dispute, has now been paid. This now leaves the issue of the repayment of the money that it expended on behalfof Lillie Hopson is an open issue. This issue may be resolved as part of our settlement negotiations if these negotiations ever commence. As of this date, I still have not received a demand from you despite my repeated requests. . If I have not received the demand from you by August 11*, I will seek leave to ?le a counterclaim in the pending action, seeking to recoup our expenses. EDWARD VRDO LTD. 43 By: Dennis E. Both DBBmam Case: 1100mm of 29 PageiD #28 STATES DISTRICT COUTV: NORTHERN DISTRICT OF ILLINOIS In the Matter Of . 0 . v? 6744/; #372060?) #5 MAME ?7 (wow!) IMO 6:0, Gab? .- (M 0m 63747420 WERNER APPEARANCES ARE HEREBY FILED BY THE UNDERSIGNED AS FOR: Case Number: an tht: ?9 AGISTRAT (A) (B) SIGNAW SIGNATURE 71 mt NAME 0? NAME . (0 *7 63 ?77 fig-.3; FIRM . FIRM . If, 11., W. F. 61m 14 #6500, Rt STREET ADDRESS C. STREET ADDRESS I. :2 - 3 5 (of 8,347 a? /5/g . . 1; LS, LU M61) x; wan 1; TELEPHONE NUMBER FAX NUMBER TELEPHONE NUMBER 533 -- 9 57/7 E-MAIL ADDRESS EMAIL ADDRESS IDENTIFICATION NUMBER (SEE ITEM 4 ON REVERSE) IDENTIFICATION NUMBER (SEE ITEM 4 ON REVERSE) MEMBER OF TRIAL YES NO MEMBER OF TRIAL . YES No TRIAL YES NO TRIAL Yes no DESIGNATED AS LOCAL YES no (C) (D) SIGNATURE SIGNATURE NAME AM 6 4742677? FIRM FIRM STREET ADDRESS STREET ADDRESS /3r 5. $4455: ?5.44 37d?) TELEPHONE NUMBER 77* 3 3, FAX NUMBER TELEPHONE NUMBER FAX NUMBER (3/52 79? E-MAIL ADDRESS E-MAIL ADDRESS - IDENTIFICATION NUMBER (SEE ITEM 4 ON REVERSE) IDENTIFICATION NUMBER (SEE ITEM 4 ON REVERSE) MEMBER OF TRIAL YES NO MEMBER OF TRIAL YES No TRIAL YES No [3 TRIAL YES N7 g/ DESIGNATED As LOCAL YES [3 NO DESIGNATED As LOCAL YES NO Case: .18 44 (Rev. 121?96) The JS-44 Civil cover sheet and the information contained herein neither re by law. except as provided by local rules of court. This form. approved by th . of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON THE REV l. PLAINTIFFS LILLIE HOPSON CIVIL COVER SHEETU IF: I LLI - COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF 000% US. PLAINTIFF CAS Judicial Conference of the Un't tats place nor supplement the ?ling and service of pleadings or other papers as required ember 1974. is required for the use start-ML 33,, DEFENDANTS Eff 3 MARK DIAMOND AUG 1 8 2008 -- CREDICORP CORP . CONTIMORTGAGE CORP. 5.3. - COUNTY OF RESIDENCE OF FIRST LISTED DEFENDANT QC 0 59" (N US. PLAINTIFF Es'. USE THE LOCATION OF THE Edward R. Vrodolyak, Ltd. NOTE: IN LAND CONDEMNATION CAS TRACT OF LAND INVOLVED. (14 ATTORNEYS NAME ADDRESS. AND TELEPHONE ATTORNEYS KNOWN) I Wm. Spielberger' - {a $975,in ?Dennls E. Both 1 35 . LaSalle Ste . 1 4 af?nity" Chi cago IL 6050 3 I 74 1 . Dearborn . (tr-Int "l'nl-1 It 1w" Ohtnagn: TT. 60810 (312) 482?8200 ll. BASIS OF JU ISDICTION IPLAGE AN IN ONE Box Ill. CITIZENSHIP 0F PRINCIPAL PARTIES (PLACE AN IN ONE Box Foe PLAINTIFF {For Diversity Cases Only) AND ONE Box FOR DEFENDANT) PTF DEF PTF DEF D1 US. Government Federal Question Citizen Of This State in 1 x: 1 Incorporated or Princigal Place 4 El 4 Plaintiff (US. Government Not a Party} I of Business In This tate El 2 US. Government 4 Diversity Citizen of Another State 2 E3 2 Incorporated and Principal Place Ci 5 El 5 Defendant (InfiicatdlCitizenship of Parties of Business In Another State In tam I Citizen or Subject of a I: 3 Foreign Nation I: 6 [:16 Foreign Country 0916'? (PLACE AN ONE BOX ONLY) Appear to cm . . . Transferred from Judge from Jig 1 Original 2 Removed from [3 3 Remanded from [3 4 Reinstated or [3 5 another district a a Multidistrict 13 7 Ma istrate Proceeding State Court Appellate Court Reopened (specify) Litigation Ju gment V. NATURE OF SUIT (PLACEAN IN ONE BOX ONLY) CONTRACT TORTS FORFEITUREIPENALTY BANKRUPTCY OTHER STATUTES 110 Insurance 120 Marine 130 Miller Act 140 Negotiable Instrument 1 151 Medicare Act 152 Recovery of Defaulted Student Loans [Excl Veterans) El El El E1 153 Recovery of Overpayment or Veteran?s Benefits 160 Stockholders'Suits CI 190 Other Contract CI 195 Contract Product Liability 50 Recovery of Over ayment 8. Enforcement Judgment PERSONAL INJURY 310 Airplane 315 Airplane Product Liability Ci 320 Assault. Libel 8. stander El 330 Federal Employers? Liability 340 Marine El 345 Marine Product Liability CI 350 MotorVehicie 355 Motor Vehicle Product 360 Other Personal Injury PERSONAL INJURY 362 Personal Iniury Med. Malpractice El 985 Personal Injury Product Liabli ty 388 Asbestos Persona! Injury Product Liability PERSONAL PROPERTY 70 Other Fraud 371 Truth in Lending El 390 Other Personal Property Damage El 385 Propeny Damage Product Liability [j 610 Agriculture 620 Other Food 8: Drug El 625 Drug Related Seizure of Property 21 USC 881 CI 630 Liquor Laws 640 RR. &Trucir El 650 Airline Regs. 880 Occupational CI 422 Appeal 28 USC 158 423 Withdrawal 28 USC 157 PROPERTY RIGHTS CI 820 Copyrights CI 830 Patent 690 El 840 Trademark LABOR SOCIAL SECURITY REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS CI 210 Land Ccndemnatlon I3 220 Foreclosure 230 Rent Lease a Ejectment El 240 Torts to Land 245 Tort Product Liability Ali Other Real Property CI 441 Voting CI 442 Employment 453 i-iorrsing.i Accommodations 444 Welfare El 440 Other Civil Rights 510 Motions to Vacate Se CI 530 General 535 Death Penatty El 540 Mandamus 3. Other El 550 Civil Rights CI 555 Prison Condition 710 Fair Labor Standards Act 720 Relations El 730 Reporting a Disclosure Act 740 Railway Labor Act 790 Other Labor Litigation El 791 Ernpl. Hat. Inc. Security Act 861 HIA [139511] 862 Black Lung {923] 363 864 SSID Title XVI i3 885 RSI (dosrgii FEDERAL TAX SUITS CI 870 Taxes (US. Plaintiff or Defendant} El 871 IRS Third Party 26 USC 7609 El 400 State Reapportionment 410 Antitrust 430 Banks and Banking El 450 Commerce?CC Ratesr?etc. 480 Deportation 470 Racketeer Influenced and Corrupt Organizations El 810 Selective Service El 850 SecuritiesI?Commoditiesr Exchange CI 875 Customer Challenge 12 USC 3410 El 891 Agricultural Acts 892 Economic Stabilization Act 893 Environmental Matters 894 Energy Allocation Act 895 Freedom or Information Act 900 Appeal of Fee Determination Under Equal Access to Justice 950 Constitutionality of State Statutes 890 Other Statutory Actions VI. CAUSE OF ACTION DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY) RESPA, 12 USC 2607; Truth in Lending Act 12 CFR 226.18. Failure to disclose and rescend real estate mortgage (CITE THE US. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE BRIEF ATEMENT OF CAUSE. VII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION DEMAND CHECK YES only If demanded in complaint: COMPLAINT El UNDER F.R.C.P. 23 JURY DEMAND: 5853 No VI I I . This case is not a rc?ling of a previously dismissed actiort. is a re?iing of case number prayious1'y dismissed by Judge DATE 2% UNITED STATES DISTRICT COURT SIGNATURE OF ?7 IMAM, ?t