Townstone Financial, Inc. and Barry Sturner
On July 15, 2020, the Bureau filed a lawsuit against Townstone Financial, Inc., a nonbank retail-mortgage creditor and broker based in Chicago, Illinois, alleging violations under the Equal Credit Opportunity Act, its implementing regulation, Regulation B, and the Consumer Financial Protection Act of 2010. On November 25, 2020, the Bureau filed an amended complaint, which added as a defendant Barry Sturner, Townstone’s cofounder, sole owner, and sole director, as the alleged fraudulent transferee of more than $2.4 million from Townstone.
On November 7, 2024, the court entered a stipulated final judgment and order against Townstone, which imposed injunctive relief and a civil money penalty. On the same day, pursuant to the parties’ stipulation, the court dismissed the Bureau’s claim against Sturner.
On March 26, 2025, the parties jointly moved the court to vacate the stipulated final judgment and order on the grounds that there were significant undisclosed problems with the Bureau’s treatment of the case, resulting in unmerited investigation and litigation and the infringement of the defendants’ First Amendment rights. The court denied the motion on June 12, 2025.
Related documents
U.S. District Court Memorandum Opinion and Order
U.S. Court of Appeals Opinion (This version has been modified from the version that was entered by the court in order to optimize the reading experience for individuals with disabilities. No text has been changed.)
Stipulated Dismissal - Sturner (This version has been modified from the version that was submitted to or entered by the court in order to optimize the reading experience for individuals with disabilities. No text has been changed.)
Stipulated Final Judgment and Order (This version has been modified from the version that was entered by the court in order to optimize the reading experience for individuals with disabilities. No text has been changed.)
Joint Rule 60(b)(b) Motion for Relief from and Vacatur of the Stipulated Final Judgment and Order
Press release
CFPB Seeks to Vacate Abusive, Unjust Case Against Townstone
CFPB Takes Action to Address Townstone Financial’s Unlawful Redlining (Archived)