Cabell Co. couple alleges inducement to enter predatory loans

By Noddy A. Fernandez | Jan 26, 2019

CHARLESTON — A Cabell County couple is suing a bank and individuals citing alleged fraudulent inducement, negligent misrepresentation and unjust enrichment.

Dawne M. Boukhemis and Rabah Boukhemis filed a complaint in Kanawha Circuit Court against The First State Bank, Sam Vallandingham, Andrew Vallandingham and Jackie Cantley alleging that they engaged in a pattern and practice of predatory lending practices to make illegal loans in order to transfer equity from borrowers to their accounts.

According to the complaint, between 2009 and 2014, the Boukhemises entered into 16 loans with the defendants that were secured by properties located in the Huntington area, all known and disclosed to the defendants to be used for rental property. 

Despite the plaintiffs' clear intention with each of the subject loans to pay off and own outright the properties over time, the defendants allegedly induced the couple to enter into commercial loans with short maturity dates whereby most, if not all, of the payments applied to interest on the loans such that the principal would never be paid off. After five years of payments, plaintiffs discovered that they still owe almost the entire balance for each loan and risk losing each of the properties.

In addition, the Boukhemises were induced to sign a Deed of Trust giving the defendants the right to hold property to secure all payments due under the loan for a particular property. 

The plaintiffs allege the defendants misled them into believing that they were obtaining loans similar to traditional mortgages, all the while placing them in exploitive loans with short terms and balloon payments.

The plaintiffs request a trial by jury and seek judgment for all damages, attorney fees, costs of litigation, and for any such other and further relief as the Court may deem just. They are represented by Scott H. Kaminski of Kaminski Law, PLLC in Charleston.

Kanawha Circuit Court Case number 18-C-1473

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Kaminski Law PLLC Kanawha Circuit Court

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