A Connecticut Judge has thrown out claims that Hayley Kissel assisted her deceased husband, Andrew Kissel, a wealthy real estate developer, in fraudulently obtaining mortgage money according to a new WTHN news and a Hartford Paper article.
Mr. Kissel was murdered in 2006, leaving an estate that owed more than $20,000,000 to several banks, based on the fraudulent mortgages. Kissel initially took out legitimate mortgages on properties, but then created and recorded fraudulent releases. He would then go to another bank to borrow money, and repeat the process. The lawsuit claims Mrs. Kissel was aware that her husband was forging and recording bogus releases to obtain more funds, but kept quiet to maintain her lifestyle. And, because she did not speak up, Kissel was able to repeat the scam, causing losses to the title companies.
Both Chicago Title and Fidelity National Title Insurance companies, which insured title for the lender’s, are suing Mrs. Kissel. They allege that because she was aware of her husband’s conduct, she was complicit in the activity by not reporting it. The judge disagreed. A jury will now have to decide if Mrs. Kissel, who has significant assets, has been unjustly enriched by her husband’s theft and is therefore responsible for some of the losses incurred by the title underwriters.
Author comment: Granted, I have not seen the documentation, but this appears to have all the red flags signs of perpetrated fraud. Honestly, when is the last time the title person legitimately saw a large mortgage paid off PRIOR to a mortgage closing, as it appears to have been in this case.