Frazier v. Bear Stearns Residential Mortgage Corp.
The collapse of much of our country’s home lending market over the last decade produced rubble of varying compositions. The debris in this case included an old fashioned Ponzi scheme. When one perpetrator’s bankruptcy and a Securities and Exchange Commission investigation effectively eliminated suit against the schemers, the borrowers here sued their lender on various common law theories, asserting generally the lender had made a loan the lender knew the borrowers could not repay. The trial court granted summary judgment, concluding no triable issue of fact existed that the lender was in cahoots with the Ponzi operators, nor was the lender liable under any other theory. We agree with the trial court and affirm the grant of summary judgment.
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