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Opinion: Rory Reid has a foreclosure problem



As Rory Reid continues his attacks on Brian Sandoval, he really should stop to do some fact checking on his own resume.

In his latest ad, Reid slams big banks who have “always gotten their way while denying small businesses loans or refusing to modify the mortgage on your home.”  Trouble is Reid’s firm, Lionel Sawyer & Collins, represents big banking clients.  In fact, they’ve represented the very banks Reid slams as they foreclose on Nevadans.

What’s worse, as a shareholder at one of Nevada’s largest lobbying firms, Rory is currently profiting from the banks he apparently now abhors.

Lionel Sawyer & Collins either has represented or currently represents Citibank, Charles Schwab, Morgan Stanley, First Republic Bank, Bank of America, HSBC and Countrywide Home Loans.

Lionel Sawyer & Collins attorneys represented Citimortgage in a home foreclosure case which is currently pending in federal court.  The case, Dalby et al v. Citimortgage, Inc. et al (3:09-cv-00659-RCJ-VPC), is a wrongful foreclosure case initiated by ten individual plaintiffs who own homes located in Reno, Sparks and Glenbrook, Nevada.  The plaintiffs, who at the time the lawsuit was filed, were “at imminent risk of losing their home,” allege they “were the victims of unlawful and wrongful foreclosures and/or an underlying conspiracy to commit fraud that resulted in foreclosures” being initiated by Citimortgage and other financial institutions.  Lionel Sawyer & Collins has filed a motion to dismiss this case.

Rory’s colleagues also represented Citimortgage in a class action wrongful foreclosure case presenting claims similar to the above case.  Plaintiffs in this case, Dalton et al v. Citimortgage, Inc. et al (3:09-cv-00534-LDG-VPC), have either already lost their homes to foreclosure or were at imminent risk of loss due to foreclosure.  The case remains active in federal court, although many of the claims and defendants have been dismissed.

“Rory Reid is the worst kind of politician – one who will tell you what you want to hear just to get elected,” Sandoval Communications Director Mary-Sarah Kinner said.  “The truth is that while he’s telling voters he’ll always be on their side, Rory Reid is profiting from the very banks he condemns foreclosing on Nevada families.”

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