Foreclosure Justice Project
Did You Lose a Home in Foreclosure? You May Be Owed Money.
Overview
Across New York, thousands of homeowners, heirs, creditors, and municipal entities may have been defrauded out of surplus funds owed to them after foreclosure sales. This website is part of an effort to identify and support victims of a widespread scheme involving inflated foreclosure judgments and stolen surplus proceeds.
We are now seeking class members to join multiple related federal lawsuits filed in the Eastern District of New York.
What Happened
A coalition of foreclosure law firms, mortgage servicers, and investment entities are alleged to have engaged in a fraudulent scheme that:
- Inflated judgment amounts through miscalculated interest and fabricated charges.
- Filed deceptive referee reports to overstate what was owed to lenders.
- Submitted boilerplate documents to courts without proper verification.
- Diverted surplus funds that should have gone to homeowners, heirs, and junior lienholders.
- Misused the judicial process to delay proceedings and refile actions that should have been barred.
This scheme not only impacted individual borrowers but also denied funds to creditors, estates, and public agencies including the IRS, HUD, and local governments.
Firms Potentially Involved
The following law firms have been named in related actions or are believed to have engaged in similar conduct:
- RAS Boriskin (Robertson, Anschutz, Schneid, Crane & Partners)
- McCabe Weisberg & Conway
- Frenkel Lambert Weiss Weisman & Gordon
- Greenspoon Marder
- Gallo and Associates
- Costello, Cooney and Fearon
- The Frank Law Firm
- Druckman Law Group
- Terenzi and Confusione
- Friedman Vartolo
- Shapiro, DiCaro & Barak
- Menashe and Associates
- Adam Leitman Bailey, P.C.
- Schiller, Knapp, Lefkowitz & Hertzel
- Roach & Lin, P.C.
- Borchert & LaSpina, P.C.
Examples of the Scheme
These lawsuits allege that the named defendants, among others:
- Submitted referee reports charging compound interest from a date before the court actually entered a Judgment of Foreclosure and Sale (JFS) — a violation of New York law (CPLR §§ 5001–5003, GOL § 5-527).
- Used the total JFS amount as a baseline for interest, rather than the principal balance, improperly inflating the final debt by tens or even hundreds of thousands of dollars.
- Misrepresented foreclosure sale proceeds to courts, in some cases falsely reporting lower auction prices to reduce or eliminate apparent surplus funds.
- Failed to notify or distribute surplus funds to entitled parties including homeowners, heirs, subordinate lienholders, and government agencies.
- Continued operating in the shadow of the now-defunct Steven J. Baum P.C., using the same staff and fraudulent practices.
Who May Qualify
You may be eligible to join if:
Your property was foreclosed in New York between 2014 and the present.
You did not receive surplus funds after the auction of your home.
You believe the judgment or referee report was inaccurate or included phantom charges.
You are an heir, creditor, junior lienholder, or estate representative of a foreclosed property.
The foreclosure involved any of the firms listed above.
Why This Case Matters
The affected class includes vulnerable individuals and estates across New York. The failure to correct these inflated judgments has led to:
Stolen equity from homeowners and heirs.
False claims submitted to government agencies (potential False Claims Act violations).
Fraudulent court filings constituting abuse of process and systemic misconduct.
Disregard of newly enacted laws, including the Foreclosure Abuse Prevention Act (FAPA).
These are not isolated errors — they are part of a coordinated scheme impacting thousands.
How to Join the Lawsuit
We are currently assembling claimants for ongoing federal class actions in the Eastern District of New York.
About the Lawsuits
This effort is led by Anderson Bowman Wallshein PLLC, a premier consumer protection law firm in New York, with a track record of success in complex litigation against major servicers, banks, and foreclosure mills.
The firm has filed multiple class actions on behalf of impacted homeowners including:
- Ruiz v. Schiller Knapp, et al.
- Small v. Shapiro DiCaro, et al.
- Bhoge v. Frenkel Lambert, et al.
- Salty v. RAS Boriskin, et al.
- Athill v. Eckert Seamans, et al.
Contact Us
📧 Email:
📞 Phone: (718) 263-6800
📍 Office: 8002 Kew Gardens Road, Suite 600, Kew Gardens NY 11415
📞 Phone: (718) 263-6800
📍 Office: 8002 Kew Gardens Road, Suite 600, Kew Gardens NY 11415
Frequently Asked Questions
Q: I didn’t get surplus funds — how do I know if I was entitled to them?
A: If your home sold for more than you owed on the mortgage, the difference should have been distributed. We can investigate your case for free.
A: If your home sold for more than you owed on the mortgage, the difference should have been distributed. We can investigate your case for free.
Q: What if I already signed away my rights or don’t have my paperwork?
A: Many victims have no idea they were defrauded. We can obtain the court and auction records on your behalf.
A: Many victims have no idea they were defrauded. We can obtain the court and auction records on your behalf.
Q: Will this cost anything?
A: There is no cost to join the lawsuit. You only pay if we win and recover money for you.
A: There is no cost to join the lawsuit. You only pay if we win and recover money for you.
