Federal lawsuits contend fraud by Bank of America for Lake Lure development

Fifteen separate federal lawsuits are reported to be filed against Bank of America involving the defunct Grey Rock subdivision in the Lake Lure area.

Plaintiffs claim that BofA aided and abetted the developer in selling Lake Lure real estate which the bank knew to be offered by an insolvent company.

From Courthousenews.com: Fifteen frustrated customers claim Bank of America defrauded them by helping a now-bankrupt developer sell lots without mentioning that “roads, sewers, water, gas, or electric service” were not part of the deal.
In 15 separate federal complaints, homebuyers claim Bank of America aided and abetted the developer of Grey Rock, a subdivision of Lake Lure, N.C. The bank was so aggressive it set up a booth next to the developer at the site to recruit customers, according to Robert Nagle’s complaint, which resembles the other 14. The plaintiffs claim BofA helped push the lots, but failed to tell buyers that the developer was insolvent and could not complete the promised “amenities,” such as roads and utilities.

From Consumerist.com Fifteen separate lawsuits recently filed in U.S. District Court accuse Bank of America of defrauding homebuyers by allowing an insolvent developer to take their money for properties in a subdivision that were not only never built, but also had no roads, sewers, or other utilities.
The plaintiffs claim that BofA openly recruited potential homebuyers at the Lake Lure, NC, subdivision and set up shop next to the developer’s on-site office for that purpose.
The developer ended up selling 435 lots — about half of which were financed by BofA, according to the complaint — for a total of $90 million. But then the company went bankrupt in 2008, claiming it only had $905 left in its accounts.


Before you comment

The comments section is here to provide a platform for civil dialogue on the issues we face together as a local community. Xpress is committed to offering this platform for all voices, but when the tone of the discussion gets nasty or strays off topic, we believe many people choose not to participate. Xpress editors are determined to moderate comments to ensure a constructive interchange is maintained. All comments judged not to be in keeping with the spirit of civil discourse will be removed and repeat violators will be banned. See here for our terms of service. Thank you for being part of this effort to promote respectful discussion.

Leave a Reply

To leave a reply you may Login with your Mountain Xpress account, connect socially or enter your name and e-mail. Your e-mail address will not be published. All fields are required.