Ex-Mortage Lender Officers Request Insurance Funds

Law360, New York (September 29, 2006, 12:00 AM EDT) -- The former directors and officers of mortgage lender American Business Financial Services Inc., which converted to Chapter 7 in May 2005, are scrambling for extra insurance funds to pay defense costs for lawsuits alleging fraud lodged against them.

The group of one-time directors and officers has asked the U.S. District Court for the District of Delaware for unspecified amounts of funds to foot their defense bill for civil lawsuits.

The group includes former Chief Executive Anthony Santilli, and former company officers and directors, including his wife...
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