Genuine Title, LLC; Brandon Glickstein; Gary Klopp; Adam Mandelberg; William J. Peterson, III; Angela Pobletts; Jay Zukerberg; All County Settlements, LLC; BTS Management and Consulting, LLC; Carroll Abstracts, Inc.; MARC, LLC; Mortgage Services, LLC; and R&R Marketing Group, LLC
On April 29, 2015, the Bureau and the State of Maryland filed a lawsuit against Genuine Title, LLC, a title company, its principals, and several loan officers and their affiliated companies for violating RESPA and the CFPA. The complaint alleged that Genuine Title and its principals provided cash or marketing services in exchange for the referral of settlement work. On May 5, 2015, the court approved settlements with ten of the thirteen defendants. On November 16, 2015, the court approved a settlement with the remaining defendants. Under the settlements, Genuine Title and its two principals were limited from participating in the mortgage industry for five years, three loan officers and four affiliated companies were limited from participating in the mortgage industry for two years, and the defendants are required to pay redress in the amount of $562,500 and penalties in the amount of $175,000.
On June 8, 2017, the Bureau and Maryland initiated a contempt proceeding against Gary Klopp alleging that he violated the November 2015 order by managing, owning, and controlling two branches of an Oklahoma bank that brokered mortgages, as well as by failing to comply with the order’s reporting requirements. On August 16, 2017, following a hearing, the court found Klopp violated the order and held Klopp in civil contempt. Following a sanctions hearing, the court ordered Klopp to pay $526,796.36 as disgorgement of wrongful profits. The 2017 order also completely barred Klopp from the mortgage industry for two years. Klopp appealed to the Fourth Circuit. On April 27, 2020, the Fourth Circuit affirmed three of the four grounds for contempt, and remanded the case for recalculation of the sanctions amount. On February 25, 2021, on remand, the district court ordered Klopp to pay $269,722.14 as disgorgement of wrongful profits.