Calif. Gov. Sued Over Diverting $369M In Mortgage Relief

Law360, Washington (March 14, 2014, 5:40 PM EDT) -- A coalition of minority counseling groups on Friday sued California Gov. Jerry Brown and state finance officials in state court, alleging they unlawfully diverted money from a $369 million fund meant for foreclosure relief set aside from the landmark National Mortgage Settlement.

According to the plaintiffs — National Asian American Coalition, COR Community Development Corp. and National Hispanic Christian Leadership Conference — Brown, state Comptroller John Chiang and Director of Finance Michael Cohen took money from the fund, specifically earmarked for homeowners, and unlawfully redirected it...
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