Red Flags
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Kennedy Funding Financial
Kennedy Funding Financial, a New Jersey-based private lender, faces multiple allegations of fraudulent practices and has been involved in significant legal disputes, raising concerns about its business ethics and reliability.
Quick summary on Kennedy Funding Financial
Kennedy Funding Financial (KFF), a private lender based in Englewood Cliffs, New Jersey, has been embroiled in multiple legal disputes and allegations of fraudulent practices. These controversies have significantly impacted its reputation in the real estate lending industry.
Allegations of Fraudulent Practices: Numerous clients have accused KFF of engaging in deceptive lending practices. Common allegations include the collection of substantial upfront fees for due diligence on loans that ultimately do not materialize, leaving borrowers financially strained. For instance, in the case of Quimera Holding Group SAC v. Kennedy Funding Financial LLC, Quimera alleged fraud, negligent misrepresentation, and unjust enrichment, claiming that KFF failed to fulfill its contractual obligations after collecting significant fees.
Legal Proceedings: KFF has faced several lawsuits pertaining to its business practices. In Virgil Shelton v. Kennedy Funding, Inc., a jury awarded the plaintiff $1.675 million on claims of breach of contract and fraud, though the amount was later reduced on appeal.
Additionally, in Professional Cleaning and Innovative Building Services, Inc. v. Kennedy Funding Inc., issues of fraud in the inducement were raised, questioning the enforceability of certain contractual clauses.
Impact on Reputation: These legal challenges have cast a shadow over KFF’s credibility. Industry discussions and online forums frequently highlight concerns about the company’s ethics and reliability, with some professionals advising caution when engaging with KFF. The accumulation of lawsuits and negative client experiences suggests a pattern of behavior that potential clients should carefully consider.
Conclusion: The controversies surrounding Kennedy Funding Financial underscore the necessity for thorough due diligence when selecting a lending partner. Prospective clients are encouraged to meticulously review contractual terms and seek independent legal advice to safeguard their interests.
Intel Reports
by: Jonathan Montgomery
Ain’t no way a real lender got this many fraud cases lined up.
Cons
by: Jordan Kensington
So people pay for a loan that never happens? Sounds like the easiest scam ever.
Cons