Judge Gives Green Light To AHM's Fraud Suit

Law360, New York (November 12, 2007, 12:00 AM EST) -- A federal judge has refused to dismiss a fraud case brought by bankrupt lender American Home Mortgage Co. against property title insurance underwriter First American Title Insurance Co. arising from its alleged participation in the New Jersey Affordable Homes fraud scheme.

On Thursday, Judge Jose L. Linares of the U.S. District Court for the District of New Jersey ruled that AHM’s complaint should not be dismissed for failure to join necessary and indispensable parties, as First American had claimed.

The case arises from an alleged Ponzi...
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