Judge Denies Bank's Urgings To Overturn $44M Verdict

Law360, New York (September 29, 2006, 12:00 AM EDT) -- A federal judge has denied State Bancorp Inc.’s motion to overturn the $44 million jury verdict against its unit State Bank of Long Island in a mortgage fraud lawsuit.

The suit, brought by HSA Residential Mortgage Services of Texas, alleges that State Bank of Long Island helped to perpetrate another mortgage company’s fraud against HSA Residential.

On January 30, a jury found that State Bank of Long Island had aided and abetted a fraud committed by Island Mortgage Network Inc.

State Bancorp moved for judgment or...
To view the full article, register now.