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FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION v. COOK

No. 17403.

419 F.2d 1296 (1969)

FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION, Plaintiff-Appellant, v. Walter L. COOK and Paul E. Pickle, Defendants-Appellees.

United States Court of Appeals Seventh Circuit.

Rehearing Denied January 27, 1970.

Attorney(s) appearing for the Case

John M. Duffy, David A. Stall, Chicago, Ill., Frank J. Delany, Washington, D. C., Frank K. Neidhart, Chicago, Ill., for appellant.

Bernard H. Sokol, Martin S. Bieber, Sokol, Schwab & Agran, Chicago, Ill., for appellee Walter L. Cook.

Before CASTLE, Chief Judge, KNOCH, Senior Circuit Judge, and KERNER, Circuit Judge.

Rehearing En Banc Denied January 27, 1970.

CASTLE, Chief Judge.

Plaintiff, an instrumentality of the United States, as purchaser, assignee, and insurer of the assets of Beverly Savings and Loan Association,1 brought this action against the defendants for fraudulent misrepresentation in securing a real estate mortgage. In August, 1961, Beverly approved a mortgage loan of $150,000 to C.M.O. Builders, Inc., a corporation which was...

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