Class-action suit against Greenleaf in the works

Matt Wagner, SBJ ReporterFor months now, I’ve been fielding calls from Greenleaf Cos. LLC customers and investors – some livid, some downtrodden – who want to know if anyone’s organizing a class-action lawsuit against the Springfield-based contract-for-deed home seller.

Indeed, a Leawood, Kan., attorney is scheduled to travel to Springfield tomorrow – on his Harley, if the weather cooperates – to meet with an unidentified local attorney about a class-action suit in the works.

Doug Patterson, with The Property Law Center LLC, already represents a group of clients who contracted with Greenleaf to buy homes in the Tuscany subdivision in Peculiar, near Kansas City, that were later foreclosed on when Greenleaf officials failed to relay their monthly payments to property investors who owned the homes. In January, Patterson filed suit against Greenleaf and dozens of those investors in U.S. District Court that accuses the company of running a massive Ponzi scheme predicated on loose lending standards.

Since then, Patterson’s been in touch with disgruntled Greenleaf tenants in Nixa, Willard and even in northwest Arkansas who have expressed interest in joining a class of plaintiffs with similar claims against the company.

“It’s huge,” Patterson said.

If all goes according to plan, Patterson said an amended version of the suit involving the Tuscany residents could be filed within the next 30 days. However, he is still seeking additional plaintiffs, and I doubt if he’ll have any trouble finding them in Springfield and surrounding cities where Greenleaf and sister company The Real Estate Co. built homes and marketed the properties to people with poor credit, many of whom were later forced out when lenders foreclosed on the mortgage loans.

Patterson said one of the suit’s central claims would focus on alleged “shadow closings” by title companies that processed real estate transactions for Greenleaf and its investors. He also expects New Mexico-based Westar Escrow Servicing, which began processing payments from Greenleaf tenants in May 2007, to be named as a defendant in the class-action suit.

Next month, Greenleaf representatives will appear before Missouri Securities Commissioner Matt Kitzi to argue against the imposition of penalties stemming from a cease-and-desist order issued by Kitzi against the company in December.

Stay tuned to sbj.net and future issues of Springfield Business Journal for more about this developing story.

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4 Responses to “Class-action suit against Greenleaf in the works”


  1. 1 Esther Moi July 27, 2009 at 10:50 pm

    I am a victim of this Greenleaf fraud. I would like to know how I too could get into this class action lawsuit against them. If you could please contact me I would be more than pleased to give you any information I have.

    The only difference between myself and the ones who lost their home to foreclosure is that the investor of our home was told no one was living in the property for two years. The investor tried to work something out with us, but everything that we had already paid toward the principal would’ve been lost to greenleaf and we would have to start all over with the investor.

    My husband and I would like to get involved as much as possible. My sister also recently lost their home to foreclosure. The investor or owner just found out what was going on in July of 2009.

  2. 2 Becky Fisher March 15, 2012 at 10:19 pm

    I know it is 2012, but I was unaware of the class action suit. My husband and I were one of the investors in SW MO. We lost a large sum of money (for us, anyway) by trying to keep up payments of the houses for a short time and even trying to work out something with one of the homeowners when he contacted us. My husband was going through chemo treatments for leukemia at the time and things were just very stressful at best. Can we do anything now.

  3. 3 Elaine Cott September 17, 2013 at 5:17 pm

    I too, purchased from Greenleaf, and what’s worse is the owner of greenleaf what the investor backing my loan on my house in Emory creek! Which I lost because it was foreclosed on. If there is a law suit can someone please contact me as I have moved out of Missouri. elainecott@hotmail.com
    Thanks


  1. 1 Class Action Lawsuit Against Greenleaf In Works « Life Of Jason Trackback on April 2, 2009 at 12:48 am

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