Brother: Ameriquest founder stiffed me on $47 million

January 16th, 2009, 2:11 am · 18 Comments · posted by John Gittelsohn

Roland Arnall

UPDATED with comment from Claude Arnall’s attorney and corrected inheritance figure.

The late billionaire Roland Arnall, founder of defunct Orange-based subprime lender Ameriquest Mortgage Corp., died before paying his younger brother $47.6 million, the balance he is allegedly owed for the sale and profit of a family-owned mortgage company, a filing in probate court says.

The filing by Claude Arnall of Los Angeles says his older brother, one of the biggest names in subprime lending, promised to pay him $25 million in profits and $22.6 million for a 50 percent interest in Olympus Mortgage Co., a company Claude Arnall ran from 2002 to 2004.

In what could become a bitter family feud, attorneys for Roland Arnall’s widow wrote that Claude Arnall’s filing violates a “no contest” provision in the late financier’s trust and that “if he proceeds with that claim he may be disinherited later.”

“We believe that Claude Arnall’s decision to contest the Trust by claiming that he should be paid nearly $50 million for an alleged stake in a worthless and defunct company, based on a secret verbal agreement, is inconsistent with the facts and is completely without merit,” said Robert N. Sacks, the attorney for Arnall’s widow.

Claude Arnall’s attorney, Steve Kerekes, said his client will seek the money if a judge rules the claim does not violate the trust.

“The proposed claim simply seeks the payment of an obligation which Roland was not able to pay in full before his unexpected and untimely passing,” Kerekes said, adding that he is confident he can establish that the brothers made an agreement in November 2004.

Roland Arnall’s 2006 family trust promised Claude Arnall, the deceased tycoon’s only sibling, at least $10 $5 million. Forbes magazine estimated Roland Arnall’s personal fortune was $1.5 billion in 2007, ranking him No. 317 on the list of wealthiest Americans. He fell off the list after his death.

A hearing on the dispute is scheduled for Jan. 20 in Superior Court in Los Angeles.

The Claude Arnall filing says Roland Arnall paid his brother $20 million in 2004 to fold Olympus into Argent Mortgage, one of several businesses under the umbrella of Ameriquest Capital Corp., the family-owned holding company. Claude Arnall said he received several payments on the obligation totaling $7.4 million, but that Roland Arnall kept coming up with excuses to delay paying the entire debt.

One excuse cited by Claude Arnall was his older brother’s deal to pay $325 million in January 2006 to settle investigations by attorneys general in 49 states that Ameriquest ran “boiler rooms” and engaged in predatory lending. That payment cleared the way for Roland Arnall’s nomination as U.S. Ambassador to the Netherlands, which provided another excuse to delay payments, Claude Arnall claimed. The ambassador resigned from his post on March 10, 2008, and died of esophageal cancer a week later, the filing says.

“Claimant (Claude Arnall) did not have any opportunity to resolve the payment of the balance due on the buy-out before Roland Arnall passed away,” Claude Arnall’s filing said.

Claude Arnall’s filing said the debts were well-known to his brother’s widow, Dawn Arnall, and others, who discussed the plan at informal meetings and over meals.

“On one such occasion, in the fall of 2007, Dawn Arnall met at the Urth Cafe in Beverly Hills with Claimant, Claimant’s wife and Roland Arnall,” the filing said, adding that Roland Arnal proposed giving “real estate in lieu of cash” to cover the debts.

Dawn Arnall, who took the helm at Ameriquest after her husband became ambassador, disputed that claim.

“Mrs. Arnall believes that Applicant (Claude Arnall) will not be able to produce a shred of evidence to support his claim and that it is unreasonable to believe that the Applicant and Mr. Arnall entered into a business deal (without a single document being created) under which Applicant claims he has already received almost $30,000,000 and claims is due some $46,700,000 more,” her lawyers wrote.

Ameriquest and its sister companies were the nation’s largest subprime lenders in 2005, employing 16,000 workers and writing $80 billion in loans, or 13 percent of the subprime market. Ameriquest bought a blimp and naming rights for the Texas Rangers’ stadium and sponsored concerts by the Rolling Stones and Paul McCartney. In 2007, as the subprime industry collapsed, Ameriquest closed its doors.

Roland Arnall, a Holocaust survivor, was a major philanthropist, serving as a co-founder of the Simon Wiesenthal Center in Los Angeles and serving as a trustee of the Cal State University system. He also donated at least $12 million to Republican candidates, including Arnold Schwarzenegger and George W. Bush, contributions that helped win him the ambassadorship.

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OCNewswatcher says:

January 16, 2009 at 8:36 am

This is a no-brainer. He’s owed 47 MIl and the estate has to pay up, done.

There is no possible way that there can be a transaction of this size between two guys lawyered up to the hilt without solid signed contracts…. can there?

if there isn’t a solid document trail , I would suggest to Claude that he start calling “Handel on the law” so he can get some more marginal legal advice and be told he has absolutely no case.

bpsqwerty says:

January 16, 2009 at 8:56 am

better pay up

ocwatchout says:

January 16, 2009 at 9:02 am

I did not realize Arnell passed away.

I am sorry to say, I am glad he did not get to enjoy his money that he earned because his company cheated so many people in their tricky subprime lending practices.

I know, I was there, and had to quit because I was so disgusted with what I saw.

Liar Loan says:

January 16, 2009 at 9:27 am

There should be bank records of the payments made. Otherwise, this might just be a legal shakedown by the brother.

PG says:

January 16, 2009 at 9:38 am

It was Arnall’s wife that was the evil one.

raicha says:

January 16, 2009 at 9:50 am

“He fell off the list after his death.”

Man, talk about a bad week.

mexika says:

January 16, 2009 at 10:02 am

I worked for ameriquest ………bastards!
then it became AMC mortgage……..still doing dirty work!

until Citi came and bought them out, now Citi is closing all its California offices!

Joe the Taxpayer says:

January 16, 2009 at 10:30 am

I believe that money is owed me.

OC Ivey says:

January 16, 2009 at 10:37 am

Has any of the family members taken a look at the trust since this past December? They might be surprised…Bernie Madoff might be holder of the funds…

bob smith says:

January 16, 2009 at 1:34 pm

one more thief dead

LEXUSRY says:

January 17, 2009 at 8:18 am

THEY SHOULD HAVE A HOLIDAY TO CELEBRATE THESE GREEDY BASTARD DEATH

Warren says:

January 17, 2009 at 9:16 am

“Roland Arnall’s 2006 family trust promised Claude Arnall, the deceased tycoon’s only sibling, at least $10 $5 million.”

Is this $5 or $10 million? Or, $5 to $10 million?

Any person who is owed $47.6 million and doesn’t have it in written is a fool! However, being that this was a family business I have a feeling that Claude Amall claim could be true. I don’t put much faith in “IN LAWS.” I’ll give the blood line the benefit of the doubt.

Kim says:

January 21, 2009 at 11:26 am

I worked for Arnall for many years. What a piece of ****! He screwed so many workers out of overtime pay etc that the moneyshould to them. He was just as greedy as his wife. I am glad he didn’t get to enjoy his money. Karma is a bi***, so while you’re here on earth you better make the most of it. Sad to say, but he deserved it after what he put his employees and the borrowers through!

Alex Tzelepis says:

January 21, 2009 at 7:08 pm

I worked for Mr.Arnall as well for Argent Mortgage Company and if I may say to those who claim he was a ” Bad Man “, ” Greedy “, etc….. I know the man changed my life financialy by making me a small fortune during our run. The man paid well, he was one of the best in the GAME and made plenty who worked for him from the bottom up a whole bunch of money. Now as far as Mr. Arnall being a Subprime War criminal, that’s a whole other story. Many companys did the same if not worse. But of course ” the Baddest and The Biggiest always takes the blame first. Personaly, I think Mr. Arnall is on a remote Island sipping on some Greek Ouzo in Greece or somewhere and he’s live and well. I only say that because the ship was going down and if he could as for any favors from President Bush, it would be to make him go away before he spends the rest of his life in jail like all these other CEO’s. God Bless him and I hope I’m right, but he was a fine man to me and once again, he helped me make a fortune. Good Luck to his Wife and I prey they dont go after her for any of this mess. She is a wonderful person as well.

Alex T - Argent Mortgage Account Executive Tampa Florida. ( AT031952 )

Ameriquest Sucks! says:

January 21, 2009 at 9:33 pm

Karma is a Biotch! I don’t think he’s dead, he’s just hiding.

He quit is job less than 6 days before he died. I didn’t see even a funeral or hear anything about one. I bet his bro could dig him up ”IF” he wanted to, OR at least did up some evidence. Like Wayne Lee did……

I want Dawn Arnall to Pay UP! and That Mary Jo Shelton B!!!!

LEX is right it should be a Holiday.

http://www.youtube.com/watch?v=jtyMdQ44bL4&feature=related

January 25, 2009 at 8:16 pm

So you helped him RIP off people and their family’s?

Did yo help him RIP off poor Crystal and her kids?

January 25, 2009 at 8:17 pm

How many people are homeless because of you? I hope you have nightmares for EVER!

January 31, 2009 at 4:31 pm

From the Ameriquest Attorneys about them breaching the contract with me.

……………………………………………………….
The offer extended by Ameriquest in the August 16, 2007 letter was Ameriquest’s final offer. It is not agreeable to any terms other than those set forth in its August 16th letter.

——————————————————————————–
From: Markie8611@aol.com [mailto:Markie8611@aol.com]
Sent: Monday, August 27, 2007 9:21 AM
To: Mealey-Hatch, Joanne D.; Davies, Joanne; rarnall@ameriquest.com; corlando@ameriquest.com
Subject: Re: Ameriquest

Dear Ms Hatch,

At this time the only thing keeping us from being able to get moved into the 2 bedroom mobile home and out of the shed is a ramp and a wider door. The cost of the ramp is 3,800 plus a door at 200 hundred dollars. The cost of removal of our damaged home is 6,000 thousand. That in total is 10,000 thousand dollars.

In an effort to get this resolved, get moved out of the shed and into a home and try to start a more normal life again, I am willing to accepted 10,000 thousand dollars to resolve ameriquest breach of settlement agreement. If ameriquest is agreeable to this then please let me know.

Thanks

Markana August 27, 2007

Orange County Register