Franck v. Bedenfield

We have before us yet another of the cases arising from the Diamond Mortgage Corporation/A.J. Obie & Associates, Inc., mortgage-backed securities fraud. For a history of this scam, see Stone v Mehlberg, 728 F Supp 1341 (WD Mich, 1989).

In this case, plaintiff, Robert Franck, purchased a mortgage that had been given to Diamond by Clark and Jessie Bedenfield (hereafter defendants). Miscreants at Diamond absconded with plaintiffs investment money after assigning him the note and mortgage but without disbursing the loan funds to the Bedenfields.

Plaintiff brought suit to foreclose the Bedenfields’…