First Magnus - Alt A
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stories: azstarnet.com, azstarnet.com, azstarnet.com, yahoo.com
Update 2009-04-29: U.S. Bankruptcy Court Judge James. M. Marlar has ordered attorneys to rewrite the complaint filed in a $1 billion lawsuit against former First Magnus executives. Speaking of the 200-page complaint, the Arizona Daily Star quotes Judge Marlar saying the document had "so much editorializing and excess wording that I don't think it's fair to the defendants."
"Attorney Michael McGrath, who represents First Magnus founders Thomas Sullivan Sr. and Thomas Sullivan Jr., moved in March to dismiss the complaint or at least strike nearly all of the first 100 pages to remove material they called redundant, immaterial, impertinent or scandalous."
Marlar denied McGrath's motion to dismiss the lawsuit, but noted the complaint was "more story than a recital of facts to which defendants could respond." Attorney Jamie R. Welton who filed the complaint on behalf of First Magnus creditors said he could "shorten it."
Discussion about the lawsuit on our forums continues. Click here to jump to the latest comments.
Update - 2009-02-27: The Arizona Star today reported a lawsuit has been filed against former First Magnus executives for $1 billion, accusing them of excessive spending that "would make even the most pampered and precocious movie star blush." Among 40 individuals named in the complaint filed on 2009-02-26 as an adversary proceeding by Bankruptcy Trustee Larry Lattig are Gurpreet Jaggi, Thomas Sullivan Sr., Thomas Sullivan Jr., Bill Gaylord, Gary Malis, Dominick Marchetti and Karl Young (now president of StoneWater Mortgage Corp.).
"They were paying themselves like the Phoenix Suns," Lattig's attorney Jamie R. Welton said in a telephone interview Thursday night.
An attorney for a number of those named including Jaggi and Young issued a statement denying the allegations and the claim as "absurd" and "libelous." The complaint also accuses the former First Magnus executives of "theft for taking computer programs to the new mortgage company StoneWater."
Read the entire 200-page complaint here. Discussion on our forums has re-ignited as a result.
Update - 2007-08-22: The following was sent out to notify employees that First Magnus has sought bankruptcy protection:
Update - 2007-08-18: The second article above points out that 6,000 people have been laid off, and a bankruptcy filing is possible.
Original Listing - 2007-08-16: Many have forwarded on to us an emailed announcement from First Magnus that appears to have been sent late yesterday evening that indicates they have ceased funding loans:
The Arizona Daily Star has reported on the closure here:
permalink to this record | forum thread
doit at 16:21 2009-06-07 said:These guys can't be allowed to continue to financially rape us. Why are these guys allowed to steal from their clients, vendors and employees, run off with the money, get protection by filing bankruptcy, and be allowed to start another business to repeat the crimes? This white-collar BS fraud needs to be stopped NOW! These guys need to be brought to justice & locked up with Bubba to really feel what it's like to be at the other end. These crooks harm millions of people under the cloak of doing business. When will we stop crooks like these from defrauding hard-working people and small businesses & get this country going in a positive direction? Permalink
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.