Trial Magazine

Sandy Hutchens, who held himself out as a mortgage lender in Toronto, Ontario, Canada, operated a variety of corporations and used numerous aliases. From 2005 to 2013, he issued billions of dollars in loan commitments, collecting over $8 million in nonrefundable fees from U.S. borrowers. Despite this, Hutchens never funded a single loan to these borrowers, citing eligibility concerns as the reason for his termination of the loan commitments.

Approximately 125 people and entities who paid loan fees to Hutchens brought a class action alleging RICO violations against him; his wife, Tanya Hutchens, who allegedly wrote the commitment letters and used the plaintiffs’ fees to invest in various Canadian properties; and his daughter, Jennifer Hutchens, who managed the purported loan underwriting. Suit charged that, among other things, Sandy Hutchens made misrepresentations and failed to tell borrowers—who were not successful in finding lenders in the United States—that he had a criminal record, including convictions for fraud and forgery. The plaintiffs argued that Sandy Hutchens had no intention or ability to fund the loans regardless of their financial qualifications.

Following a 10-day trial, the jury awarded more than $8.42 million. On posttrial motions, the court awarded treble damages, bringing the award to $24 million, and placed a constructive trust over the defendants’ assets. A motion for attorney fees and prejudgment interest is pending.

Citation: CGC Holding Co. v. Hutchens, No. 11-cv-01012-RBJ (D. Colo. Sept. 26, 2017).

Plaintiff counsel: AAJ member Kevin P. Roddy, Woodbridge, N.J.; and Scott R. Shepherd, Media, Pa.

Plaintiff experts: Greg R. Weiss, damages, and Gary Schwartz, banking, both of Denver; and Kevin M. Baker, advance fee loan fraud, Roseville, Calif.