BALTIMORE, Aug. 6, 2025 /PRNewswire/ -- A class action lawsuit has been filed by Joseph Greenwald & Laake and Keilty Bonadio in the U.S. District Court for the District of Maryland against Monroe Capital Corporation and its affiliates, alleging their central role in financing and directing a nationwide predatory real estate scheme that has harmed tens of thousands of homeowners.

The lawsuit, filed on behalf of plaintiffs Justin Keller, Hailey Kardux, and Patricia Bandy, accuses Monroe Capital of enabling and profiting from a deceptive business model created by MV Realty through its "Homeowner Benefit Agreements" (HBAs). These contracts promised small cash payments in exchange for the exclusive right to list a homeowner's property — but locked homeowners into 40-year agreements secured by quasi-liens on their properties.

According to the complaint, Monroe Capital provided MV Realty with a $40 million credit facility and oversight, enabling the expansion of this exploitative program into 33 states. The lawsuit alleges that Monroe's investment was not passive: it approved marketing strategies and directly influenced the program's strategy.

"These agreements stripped homeowners of control over their property and access to equity," said Drew LaFramboise of Joseph Greenwald & Laake. "And Monroe Capital was the architect of this scheme's nationwide rollout."

The complaint brings claims under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), the Sherman Antitrust Act, and state consumer protection laws. Plaintiffs seek to represent a class of more than 38,000 homeowners whose properties were encumbered by HBAs or who paid penalties to terminate them.

Named plaintiffs include Maryland residents Keller and Kardux, who were unable to sell their home due to the agreement's terms, and North Carolina resident Bandy, who was forced to pay a termination fee over $10,000 to exit the agreement and sell her home.

"For homeowners, their home is their largest asset. And homeowners are just one disaster—like the loss of a job or the illness of a loved one—from needing access to their home's equity to stay afloat," said Thomas W. Keilty of Keilty Bonadio.

The case is Keller, Kardux, and Bandy v. Monroe Capital Corporation et al., Case No. 1:25-cv-02474, filed in the U.S. District Court for the District of Maryland.

Plaintiffs are represented by Drew LaFramboise and Lacey Logsdon McMullan of Joseph, Greenwald & Laake, and Thomas W. Keilty and Nicholas C. Bonadio of Keilty Bonadio.

View original content:https://www.prnewswire.com/news-releases/homeowners-file-nationwide-class-action-against-monroe-capital-for-financing-mv-realtys-predatory-lending-scheme-defrauding-38-000-families-302523303.html

SOURCE Joseph Greenwald & Laake