Brothers from Italy Sue Broker and Attorney

Umberto Fusaro came from Italy and settled in Stamford, Connecticut. He was a construction worker and saved his money to purchase the pair of matching homes on West Main Street that were built by twin brothers originally from Russia and it only seemed fitting to purchase the homes as he was a twin himself. He purchased one home in 1979 and its twin in 1984.  He moved his wife and children in and started a business of mowing lawns, and a diner called Carolina’s Luncheonette in the commercial building that adjoined the two buildings.  They rented out one of the homes as apartments and derived an income from it.

Now Fusaro’s sons are on the verge of losing both the homes and their personal residence due to churning. Churning is when a property is refinanced several times to liquidate the equity out of the home and generates more fees for the brokers involved in the transaction. The combined mortgages on all three homes owned by the Fusaros has sky rocketed from five hundred thousand to over two million. Fusaro’s sons Carmine, 46 and Biagio, 37 with the help of their Attorney Mark Sank say that the brothers are victims of predatory lending practices that resulted in the refinancing of their properties between 2001 and 2008. Biagio, one of the brothers is learning disabled and graduated from a special education program at Westhill High School.

Mark Sank, the Fusaros’ Attorney states that the problem began in 1997 and 1998 when Umberto and his sons refinanced the properties on main street and what is now family home on Brodwood Drive. The first refinance was for a combined value of six hundred and sixty thousand dollars. The family used the money to settle outstanding tax liens. The broker, United National Mortgage at the time of close told the Fusaros that was all they would be able to do for them. Asif Malik who at the time worked as an independent loan officer met with the Fusaros in passing in the parking lot where the closing took place. He informed the Fusaros that if they ever where in need of money to contact him and gave them his card.

Court documents show that Umberto, Carmine and Biagio had a meeting with Malik in 2001 in which Malik told them he would rent out the properties on Main Street as office space and get an income between twelve and fifteen thousand a month. The family agreed and the properties were renovated. The office rental income was to cover the current tenants’ evictions resulting in a loss of income for the family and the construction cost of the renovation.

Malik over the course of the next seven years assisted the brothers with refinancing the properties for cash and used several different closing attorneys in the process. Malik refinanced the Main Street properties in 2002 which doubled the mortgages on both properties. Malik refinanced the properties again in 2004 which increased the mortgage loans on the properties to a combined four hundred fourteen thousand dollars. The height of the mortgage boom brought yet another refinance in 2006 and strap the brothers with mortgages combining over a half million on each property.  Malik also during this time refinanced the family home on Brodwood Drive where Carmine lives with his wife, two sons and Biagio. The refinances on the family home increased by one hundred thousand dollars each time and now the mortgage stands at over seven hundred fifty thousand dollars. The brothers were refinancing just to be able to make the mortgage payments on the properties.

Malik would switch closing Attorney with each refinance because some of the Attorneys voiced concern in regard to the financial constrains the Fusaros seemed to be getting themselves into. Attorneys would advise the Fusaros to not refinance and Malik would locate a new attorney and show up at their home with groceries and money to convince them to sign the paperwork. Malik in 2004 began working with Attorney David Rogers who is also named in the lawsuit. The Fusaros would go to a closing but Malik would not attain, only Rogers and for the most part the closings were handled in a rush manner.

Rogers in 2008 informed the Fusaros to stop working with Malik due to their inability to make mortgage payments or refinance the properties. Rogers referred the Fusaros to Mark Sank for the defending of the mortgage foreclosures to come.

Sank while going through the complicated paper work that the Fusaros kept noticed a lot of what he felt was improprieties. He advised the Fusaros that they may have a case against Malik and Rogers. The lawsuit at this point has not official began and is still in the hearing stages. The hearings relate to Malik’s assets and if his assets should be frozen in the event that he may lose the lawsuit against him. Sank and Rogers have an agreement called a pre-judgment remedy and Sank therefore is not seeking the same action against Rogers.

Biagio in one of the hearings was asked if he understood the issues he faces and he replied by stating that someone would be coming to his door and kicking him out. He said that he was afraid and scared. Carmine testified that Mr. Malik said with a million dollars you can do a lot of things and that he relied to by saying Mr. Malik you never gave me a million dollars. Carmines testimony was difficult as questions had to be asked then re-asked and financial terms needed to be explained. Carmine said that he did not know what a subprime loan was but yet he had received one. He stated he didn’t know how to operate a computer, that he didn’t fill out the documents and he didn’t know these things. An unsigned complaint filed in civil court the brothers’ claim that they are not sophisticated and have been taken advantage of.

Maliks Attorney John Vecchiloa countered Carmines claim by saying he ran a business and Carmine responded to the claim by saying “No, I have a job. IC cut grass and all the records we keep are by hand.” He stated that they always did what the lawyers told them to do.

A few of the loans that were used to refinance the Fusaros properties were no income no assets loans in which the Fusaros did not have to provide income information. The on income no asset loans according to Maliks were the only loans that the Fusaros could qualify for. The Fusaros state that their accountant always sent the information to Malik in regard to their financials. Malik contends that Umberto told him that they made Thirteen thousand a month. Sank asked Malik if he thought that was a reasonable income for the profession the Fusaros were in and Malik replied that he thought they actually made more.

Sank also during one of the hearings questioned a series of checks from Rogers to Milak for broker fees. Ten check representing one hundred twenty thousand dollars to Rogers for fees. Two checks were around the time frame that the two properties on Main Street were refinanced in 2004. Malik stated the check for eight thousand was an origination fee another check was for repayment of a personals loan he made to the Fusaros.  The HUD 1 from the refinance however did not show the origination fee and where separate from other commissions listed. Malik continued to claim they were from the personal loan to the Fusaros.

Judge Kevin Tierney interrupted the questioning at that point and advised Malik of his Fifth Amendment right not to incriminate himself.

Malik is also being sued by two others in cases regarding their mortgages. Rogers has declined to discuss the case.

The Fusaros at this point face not only this challenge but because the homes are empty they are not receiving rental income from them and pipes have burst in the homes over the winter months making on livable. Sank is defending the Fusaros pro-bono however Umberto, 73, is currently in Italy tending to his wife Carolina who is ill and legally blind. He cannot afford the flight back to the states to testify so his name has been removed as a plaintiff in the case. Carmine is dealing with the challenge of a twelve year old son who is autistic.

Carmine for his part has always referred to everyone involved in the case by their honorary titles and authority figures rather than peers. The Fusaros have always put their faith in authority figures and have blindly gone about their business. The Fusaros unfortunately began doing business with someone who used that trust to gain advantage.