Carrington Capital Sued For Racketeering

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From Housing Wire's Teri Buhl:

After finding itself dragged into court by hedge fund manager Bruce Rose of Greenwich-based Carrington Capital, Irving, Tex.-based mortgage servicer American Home Mortgage Servicing, Inc. fired its own volley back at both Rose and Carrington on Thursday, suing for alleged acts of racketeering and a scheme to profit illegally from holding REO hostage at the servicing firm. American Home is owned by legendary investor Wilbur Ross' WL Ross & Co., and is the nation's largest independent residential mortgage servicer.
The allegations made in the complaint by AHMSI against Rose and Carrington show just how complex relations between servicers and investors can be, amid increasing pressure from lawmakers and regulators to find solutions to the nation's housing mess.

At the heart of the case are allegations by AMHSI that claim Carrington intentionally delayed recognition of losses by not allowing American Home to sell REO properties at market prices. The case brings civil RICO charges against Rose and Carrington because both sent, continue to send, interstate wire communications with allegedly false statements about the actual value of the REO properties in question.

American Home Fires Back, Sues Carrington for Racketeering [HW]

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