IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS



IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS

COUNTY DEPARTMENT, CHANCERY DIVISION

Natalie Valentine

Plaintiff,

v.

Laron Esau , Eyes Have Not Seen, Inc.,

Eyes Have Not Seen Investment Group, Inc.,

Charles T. White, Darius K. Monroe,

Norton Helton,

America’s Wholesale Lenders Inc., MERS, and

Unknown Owners

Defendants.

No. 06 CH 13082

FIRST AMENDED COMPLAINT TO QUIET TITLE AND FOR OTHER RELIEF

Plaintiff, Natalie Valentine, by and through her attorneys, the Legal Assistance Foundation of Metropolitan Chicago hereby file this Complaint to Quiet Title and for Other Relief, and allege in support thereof as follows.

INTRODUCTION

By this action to quiet title, Plaintiff seeks a declaration that she is the exclusive titleholder to her residential real property, that the deed which purported to convey the exclusive title to the property was in fact an equitable mortgage, and that all subsequent Mortgages and Assignments of Rents subsequently executed and purportedly encumbering the Plaintiff’s property are voidable. Plaintiff seeks entry of an order voiding the transfer of title allegedly effected by the deed and voiding the subsequent Mortgages and Assignments of Rents. Additionally, Plaintiff seeks damages for the wrongful conduct of the Defendants as set forth below.

JURISDICTION AND VENUE

The Court has jurisdiction over the parties and the subject matter. All parties necessary to the determination of this cause have been duly joined as defendants.

Venue is proper pursuant to 735 ILCS 5/2-103(b), because the real estate that is the subject of this complaint is situated in Cook County.

PARTIES

Plaintiff, Natalie Valentine (“Valentine”) is an individual who presently resides at 18610 Walnut Ave. Country Club Hills, Cook County, Illinois.

Defendant, Laron Esau (“Esau”), is an individual who presently resides at 2109 W. 70th St., Chicago, Cook County, Illinois.

Defendant, Charles T. White (“White”), is the registered agent for Eyes Have Not Seen, Inc., and is and was, at all times relevant, the President of Eyes Have Not Seen Investment Group.

Defendant, Darius K. Monroe (“Monroe”), is and was, at all time relevant, an employee of EHNS, operating as a sales consultant, and specializing in foreclosures and refinancing.

Defendant, Norton Helton, (“Helton”) is an attorney licensed to practice law in Illinois and at all times relevant to this action had his business address at 980 N Michigan Avenue, Suite 1400 ,Chicago, IL 60611, Cook County, Illinois.

Defendants, Eyes Have Not Seen, Inc. and Eyes Have Not Seen Investment Group (together referred to as “EHNS”), is a corporation doing business in Cook County, Illinois and registered to do business in Illinois. EHNS’s principal place of businesses is 800 South Wells, Suite 190, Chicago, Cook County, Illinois. Ms. Darlene White is the registered agent of Eyes Have Not Seen Investment Group, Inc.

Defendant, America’s Wholesale Lender (“AWL”), is a New York Corporation doing business in Illinois. AWL presently claims a security interest in the property at 18610 Walnut Ave., Country Club Hills, Cook County, Illinois.. through a loan to LaRon Esau that is purported to be secured by a mortgage on the property located at 18610 Walnut Ave., Country Club Hills, Cook County, Illinois.

Defendant, MERS, Inc., is a Delaware Corporation doing business in Illinois. MERS presently claims a security interest in the property 18610 Walnut Ave., Country Club Hills, Cook County, Illinois through a loan to LaRon Esau that is purported to be secured by a mortgage on the property located at 18610 Walnut Ave., Country Club Hills, Cook County, Illinois.

Defendant Unknown Owners are any other individuals or entities who may have or claim an interest in the property described below.

FACTUAL ALLEGATIONS

Plaintiff, Valentine, is the rightful owner of the property commonly known as 18610 Walnut Ave., Country Club Hills, Illinois, (the “Home”), and legally described as follows:

Lot 27 in Monarch Subdivision Unit #1, being a Subdivision of Part of the Northeast ¼ and the Southeast ¼ of Section 3, Township 35 North, Range 13, East of the Third Principal Meridian in Cook County, Illinois.

PIN 31-03-211-006-0000

The Home is a single family residence.

Plaintiff is the sole legal title holder of the Home by virtue of inheritance from her mother, Annette Simmons, who passed away on January 25, 2002.

In 2003 Valentine obtained a mortgage in the amount for $130,000 from BNC Mortgage, Inc.

Valentine’s monthly mortgage payments were approximately $1475 including principal, interest, taxes and insurance.

In January 2004, LaSalle National Bank, the holder of Valentine’s mortgage, filed a foreclosure action, LaSalle Bank NA v. Natalie Valentine, 04 CH 00154, in the Circuit Court of Cook County.

On information and belief, the principal balance owed on the note and mortgage that was the basis for the foreclosure action filed by LaSalle Bank was approximately $130,000.

On May 12, 2004, a judgment was entered against Valentine in the foreclosure case, 04 CH 00154.

On August 19, 2004, Valentine filed a Chapter 13 bankruptcy, Case No. 04 B 30857, in order to save her Home.

In additional to the emotional significance of the home to her, Valentine had a significant amount of financial equity in the home.

The Chapter 13 case was dismissed on October 6, 2004.

After the bankruptcy case was dismissed, Valentine heard an advertisement on a radio station on avoiding foreclosure by contacting EHNS. This advertisement contained the following statements: “You don’t have to lose your home”, “Eyes Have Not Seen is a way out” and “Been in foreclosure, bad credit, no credit, we can help you”.

Valentine believed Eyes Have Not Seen’s name to be associated with a quotation from the Bible, Christian based and therefore trustworthy.

EHNS intends that people associate their name with the Bible and Christianity.

With the foreclosure once again looming over her Valentine quickly contacted EHNS, told EHNS that she feared foreclosure from La Salle and set-up a meeting with EHNS.

In early November 2004, Valentine went to the office of EHNS at 800 South Wells, Suite 190, Chicago.

During this meeting Valentine met with EHNS sales consultant Monroe, EHNS president White and a woman named Sandra.

During this meeting, Monroe, Sandra and White told Valentine, among other things, that:

a. EHNS could rescue her Home from foreclosure by giving an interest in her Home to an investor that they had identified;

b. Valentine would remain on title to the Home and neither Valentine nor the investor would be able to transfer the home without the involvement of both of them.

c. the investor would secure a loan from which EHNS would be paid and from which the investor would receive ten thousand dollars ($10,000.00) for her/his services;

d. the balance of the loan proceeds would be used to pay the monthly mortgage, taxes, and insurance payments for one year;

e. Valentine would continue to reside in the property;

f. after one year, Valentine would receive the property back from the investor; and

g. in order for Valentine to be able to repay the investor, she would need to improve her credit so that she would be able to obtain a loan. To do this she would need a credit score of at least 550. EHNS would repair her credit using the “credit repair” clinic operated by an attorney named Norton Helton (“Helton”).

Also, during this meeting, Valentine was introduced to LaRon Esau (“Esau”). Esau was identified as the investor who would help Valentine save her home. Esau asked Valentine if she had a drug problem. Valentine told Esau that she did not use drugs. Esau told Valentine that he didn’t want her home and that everything will work out fine.

During this meeting, White had Valentine sign some papers which he told her were to aid EHNS in saving her home. White told Valentine that the purpose of these papers was for them to obtain the balance Valentine owed on her mortgage. White did not let her read these papers, nor did he give Valentine copies of them.

Subsequently, Monroe called Valentine and set up another appointment for Valentine to come to EHNS’ offices for the purpose of finalizing the deal to save Valentine’s home.

On or about November 15, 2004 Valentine appeared, as instructed, at the offices of EHNS where she met with White, Helton, another man who Valentine didn’t know and Jeffrey Burt. Jeffrey Burt is an attorney who attended this meeting at the request of another attorney from the law firm of Starks & Boyd, with whom Valentine had consulted about saving her home. They presented Valentine with a number of documents including:

a. a Settlement Statement (HUD-1 form) dated November 15, 2004 that purports to detail a transaction whereby Esau purchased the Home from Valentine for $245,000 and secured financing through America’s Wholesale Lenders (“AWL”), attached as exhibit A;

b. Articles of Agreement dated November 15, 2004, wherein Valentine as “purchaser,” purportedly agreed to pay Esau, as “seller,” the sum of $208,250.00 for the Home; payable in monthly installments of $1,371.50 at 6.9% interest beginning in January 2006 obliging Valentine to pay, among other items, property taxes and water services; and obliging Valentine to obtain financing with in 1 year on or before December 31, 2005, attached as exhibit B;

c. Warranty Deed dated November 15, 2004 wherein Valentine purportedly conveyed the Home to Esau, attached as exhibit C.

During the November 15, 2004 meeting, Helton gave Valentine a pamphlet describing his credit repair services and told Valentine to call his office to set up an appointment. A copy of the pamphlet is attached as exhibit D.

After Helton gave Valentine the “Credit Repair” pamphlet, he described the “credit repair” to Valentine. Helton told Valentine that through his credit repair services any bad credit would be taken off her credit report every 45 days. Helton also told Valentine that she would need to file a bankruptcy and that she would have to file a chapter 7 because she had already previously filed an unsuccessful chapter 13 bankruptcy. Valentine asked Helton how much his services would cost. Helton told Valentine that the cost for the “credit repair” would be $1,900. Valentine told Helton that she didn’t have that much money. Helton told Valentine that EHNS would pay him out of the proceeds of the November 15, 2004 transaction.

On information and belief, the warranty deed was drafted by employees and/ or agents of EHNS and/or Esau.

On information and belief, the Articles of Agreement were drafted by employees and/ or agents of EHNS and/or Esau.

In connection with the November 15, 2004 transaction, Esau obtained a loan for $208,2500 from America’s Wholesale Lenders (“AWL”)secured by a mortgage on the Home.

Esau’s financing through AWL was arranged and brokered by EHNS, Monroe, and White.

The approximate market value of the Home in November 2004 was at least $245,000.

On information and belief, as part of the November 15, 2004 transaction, on behalf of Valentine, $152,958.29 was paid to LaSalle, the holder of Valentine’s note and mortgage.

On information and belief, on or about November 23, 2004, LaSalle, the holder of Valentine’s note and mortgage received the sum of $152,958.29 to fully and finally satisfy Valentine’s mortgage obligation to LaSalle.

On information and belief, as part of the November 15, 2004 transaction, on behalf of Valentine, approximately $2,500 was paid to the Cook County Treasurer’s Office for payment of real estate taxes.

Valentine received $5,000 from the November 15, 2005 transaction.

On information and belief, Esau received the sum of $10,000 for his role in the November 15, 2004 transaction, purportedly received ownership of the Home, and Esau and/or EHNS received all or part of the difference between the fair market value of the Home ($245,000) and the amount paid to LaSalle in satisfaction of Valentine’s mortgage and Cook County for real estate taxes ($160,458.29).

EHNS received fees for arranging and brokering the transactions between Esau and Valentine and the transaction between Esau and AWL.

On information and belief, Helton received at least $1,100 in connection with the November 15, 2004 transaction.

On information and belief, Title Zone, LLC provided the closing/settlement services for the November 15, 2004 transaction described above.

On information and belief, Title Zone is owned and/or controlled by EHNS or by persons who control EHNS.

In connection with the transaction, Title Zone received approximately $2,767.

On information and belief, Creative Solutions acted as the mortgage broker for the mortgage transaction between Esau and AWL/MERS.

On information and belief, Creative Solutions is owned and/or controlled by EHNS or by persons who control EHNS.

All American Title Agency (All American) also appears on some of the documents recorded with the Cook County Recorder of Deeds office, including but not limited to the Warranty Deed that purportedly transferred Valentine’s interest in the Home to Esau.

On information and belief, All American is owned and/or controlled by EHNS or by persons who control EHNS.

On information and belief, Felicia Ford (“Ford”) acted as the closing agent for the November 2004 transaction.

On information and belief, Felicia Ford, is an employee and/or agent of EHNS, Title Zone, Creative Solutions and/or All American.

On information and belief, Title Zone and/or All American was AWL/MERS’ agent at the closing of the November 2004 transaction.

In connection with her duties as the closing agent for AWL/MERS, Ford notarized and witnessed the signatures of Valentine on at least 3 documents including but not limited to:

a. the Warranty Deed;

b. the Articles of Agreement

c. the HUD-1 settlement statement.

In connection with her duties as the closing agent for AWL/MERS, Ford notarized and witnessed the signatures of Esau on at least 3 documents including but not limited to:

a. the AWL/MERS mortgage;

b. the Articles of Agreement; and

c. the HUD-1 settlement statement.

On information and belief, pursuant to the May 12, 2004 judgement in the foreclosure case, 04 CH 00154., a judicial sale of the property was held on November 22, 2004.

On information and belief, La Salle Bank, the plaintiff in the foreclosure action, 04 CH 00154, purchased the home at the November 22, 2004 judicial sale.

In addition to operating the credit repair clinic, Helton is also an attorney.

On information and belief, Helton represented Esau at the November 15, 2004 meeting in which Valentine purportedly transferred title to the Home to Esau.

Shortly after the November 15, 2004 transaction, Valentine received a notice of motion advising her that there was a court date in the pending foreclosure matter, 04 CH 00154 on December 1, 2004. Valentine called Monroe and asked if she needed to attend this court date and Monroe told her no, everything has been taken care of.

On December 1, 2004 the Court presiding over the foreclosure case, 04 CH 00154, confirmed the November 2004 sale of the home.

On January 18, 2005, Helton, filed a motion to vacate the confirmation of the November 22, 2004 sale of the home in which he stated he was representing Valentine.

In his motion, Helton alleged that Valentine had sold her home to a third party.

On January 26, 2005, the Court in the foreclosure case, 04 CH 00154, entered an order vacating its order confirming the November 22, 2004 sale of the home, expunging the deed, vacating the November 22, 2004 sale and dismissing the case.

Helton then advised Valentine that as part of his efforts to repair her credit, she would need to file a Chapter 7 bankruptcy. Based upon Helton’s advice, Valentine agreed to this.

Helton prepared the bankruptcy petition and supporting documents that were filed in In re Valentine, Case No. 05 B 02654, on January 27, 2005. Valentine did not carefully review these documents before they were filed, as she was trusting Helton to do what was necessary and appropriate to file the bankruptcy. Helton signed the bankruptcy petition as Valentine’s attorney.

As Valentine subsequently learned, the documents filed in the chapter 7 case contained numerous errors and mistakes, including many statements which Helton knew were incorrect.

As required by the bankruptcy Code, Valentine attended the section 341 meeting of creditors. Before going into meet with the Chapter 7 trustee, Helton instructed Valentine as to how to answer the trustee’s questions. Helton told Valentine that “when it comes to the house you don’t own any real estate.” When asked whether she owned any real estate, Valentine responded as Helton had instructed her, “no.” Afterward, Helton told Valentine that she done a “good job.”

Subsequently, the chapter 7 trustee filed a no-asset report..

Valentine received a discharge on May 2, 2005, and the chapter 7 bankruptcy case was closed on May 5, 2005.

On or about May 16, 2005, EHNS caused to be recorded with the Cook County Recorder of Deeds Office the Warranty Claim Deed by which Valentine purportedly conveyed the Home to Esau.

On or about May 16, 2005, EHNS caused to be recorded with the Cook County Recorder of Deeds Office a mortgage for $208,250.00 between Esau, as borrower, AWL, as lender.

Later in 2005, Valentine came to the realization that Eyes Have Not Seen and Helton had deceived her about the true nature of the transactions that she had entered into, and that she had been tricked out of the equity that she had in her home.

On March 24, 2006, Valentine filed a motion reopen her chapter 7 bankruptcy case for the purpose of disclosing the legal claims she had against defendants here.

On March 29, 2006, the Bankruptcy Court entered an order reopening Valentine’s chapter 7 bankruptcy.

On March 29, 2006, Valentine filed amended schedules B and C with the bankruptcy court disclosing the legal claims she had against defendants here.

Valentine did not understand, and EHNS, White, Monroe and Helton knew, but deliberately did not explain, that the November 15, 2004 transaction arranged by EHNS involved a complete transfer of Valentine’s ownership interest to Esau.

Had Valentine understood that the transaction arranged by EHNS would result in a complete transfer of Valentine’s ownership interest to Esau, Valentine never would have consented to the agreements’ terms.

Valentine did not understand, and EHNS, White, Monroe and Helton knew, but deliberately did not explain, that the transaction arranged by EHNS could result in the loss of the equity Valentine had in the Home.

Had Valentine understood that the transaction arranged by EHNS could result in the loss of such equity, Valentine never would have consented to the loan terms.

During his representation of Valentine, Helton was not acting in the economic interests of Valentine but was acting in the interests of parties with economic interests that conflicted with the Valentine.

On information and belief, Helton had an ongoing financial, legal and/or business relationship with EHNS before, during and after his representation of Plaintiff.

On information and belief, EHNS arranged for Helton to be present at the November 15, 2004 meeting.

Helton never disclosed to Valentine that he had any type of financial, legal and/or business relationship with EHNS.

Helton’s ongoing financial, legal and/or business relationship with EHNS before, during and after his purported representation of Valentine created a conflict of interest between Helton and Valentine.

Esau never took possession of the Home and has never resided at the Home.

Valentine has resided in the Home at all times relevant to this Complaint.

Valentine has fallen prey to the bustling new foreclosure rescue scam business that was the subject of a report issued in June 2005 by the National Consumer Law Center, “Dreams Foreclosed: The Rampant Theft of Americans’ Homes Through Equity-stripping Foreclosure ‘Rescue’ Scams” (). This report surveys 18 states (including Illinois), examining the equity-stripping schemes targeting Homeowners facing foreclosure and the statutes that states are beginning to pass in an effort to combat this form of equity-stripping. In Illinois, EHNS itself has engaged in a practice of foreclosure rescue equity stripping and is currently being sued in at least 2 other cases, McChristian v. EHNS et. l., 05 CH 13753 and Simpson v. EHNS et. al., 06 CH 03355.

The primary benefit Valentine received from the transaction with the defendants was the satisfaction of her mortgage loan with La Salle Bank, the payment of real estate taxes and $5,000, totaling no more than $167,700.

EHNS, White, Helton and Monroe, who arranged and participated in the sale of the Home, are sophisticated professionals in the field of real estate sales and financing and Plaintiff had minimal formal education and no experience in, or understanding of, the complexities of real estate financing and sales that were the subject of the transactions at issue here

By the complex and barely intelligible design of the transaction and in addition to the acts and practices aforesaid, EHNS, Monroe, and White concealed from and materially misrepresented to Valentine that she would be required to pay Esau substantially more ($208,250.00) than Valentine’s mortgage and real estate tax liability ($160,458.29) in order to retain her own Home, and, that her monthly payment obligation to Esau would be substantially more her monthly mortgage payment to LaSalle.

On information and belief, on or about August 4, 2006 the Illinois Department of Financial and Professional Regulation shut down both Title Zone and All American Title Agency.

On information and belief, on or about August 2, 2006 the Illinois Department of Financial and Professional Regulation suspended Defendant, Charles T. White’s license as a Loan Originator.

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