Loans

Equity Resources wins trade secrets lawsuit against Revolution Mortgage



Ohio jury sides with Equity Resources in case Trade secrets File a lawsuit against Revolution Mortgage. Therefore, Equity is entitled to damages worth just over $70,000.

A lawsuit filed three years ago accuses three former loan officers of diverting numerous leads, loans and documents from Equity to their new employer. The Ohio-based lender accused Revolution of knowing what was going on and getting rich because of it.

On March 22, the jury supported Equity’s claim and held that Revolution had misappropriated trade secrets and its behavior was “intentional and malicious” and infringingly interfered with business relationships. Law360 first reported the outcome of the case.

Equity Resources and Revolution Mortgage did not immediately respond to a request for comment.

Equity filed a complaint against Revolution on December 30, 2021, outlining a scheme concocted by three loan officers, Larry Dugger, April Roberts, and Kelly Thoman, with Roberts and Dugger going to Revolution in April 2021 and instructing Thoman to “abuse She “provided confidential information and business and sales opportunities to Equity Resources systems.” Thoman left Equity after two months, documents show.

With Thoman’s help, Dugger and Roberts allegedly diverted at least 40 loans from mortgage stores and took on at least 14 borrowers whose loans had been originated at Equity in Ohio. The promoters also stole Equity’s training model, the original suit said.

Additionally, Equity claims that between April 12 and May 12, 2021, multiple clients’ confidential closing disclosure information was stolen. Closing disclosures could help “quickly refinance such loans, potentially causing Equity Resources to violate mortgage loan prohibitions if the loans are stolen.” It was not properly seasoned to meet investor requirements,” the complaint states.

Leads gleaned from this alleged strategy were also shared with Revolution’s other loan originators. Together, these actions violated the employment agreements signed by all three sponsors with Equity.

Thoman, Dugger and Roberts are still employed by Revolution, according to their LinkedIn pages.

Industry stakeholders say poaching and trade secrets lawsuits are common but cost a lot of money and can take a long time to resolve, with most settling out of court.

Mortgage stores include Loan center, United Home Mortgage, North Point Mortgage All of the lawsuits filed in recent years accuse competitors of misappropriating trade secrets.

Another noteworthy lawsuit currently pending in Pennsylvania courts is Nurez files lawsuit against former top brassThe bank accused former retail chief James Hecht of leaving for a rival and hatching a ruse to move others around.

According to the lawsuit, before going to OneTrust Home Loans, where Hecht is now CEO, on February 1 Fired Nurez manager Later they were rehired. new place of employmentThe plan is said to have been implemented shortly after Newrez announced a recommitment to its retail business, when the planned sale did not materialize.





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