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STONE v. MEHLBERG

No. G88-833 CA7.

728 F.Supp. 1341 (1989)

Kenneth STONE and Delores J. Stone, Plaintiffs and Counter-Defendants, v. Frank W. MEHLBERG and Mary E. Mehlberg, Defendants, Counter-Plaintiffs and Third-Party Plaintiffs, v. MICHIGAN ATTORNEY GENERAL'S OFFICE, Attorney General Frank Kelley, Michigan Corporation and Securities Bureau, Department of Licensing and Regulation, E.C. Mackey, Jaffe, Snider, Raitt & Heuer, Peter Sugar, Barton Greenberg, Gary L. Mitchell, Leslie A. Lupovich, and Patti L. Mitchell, Third-Party Defendants.

United States District Court, W.D. Michigan, S.D.

Supplementary Opinion January 3, 1990.

Attorney(s) appearing for the Case

Frank W. Mehlberg and Mary E. Mehlberg, Mancelona, Mich., in pro per.

Leslie A. Lupovich, Clinton, Conn., in pro per.

Frank J. Kelley, Atty. Gen. by John D. Walter, Asst. Atty. Gen., Lansing, Mich., for E.C. Mackey.

Collins, Einhorn & Farrell by Morton H. Collins, Gerald A. Pawlak, Southfield, Mich., for Peter Sugar.

Patti L. Mitchell and Gary L. Mitchell, Stanwood, Mich., in pro per.

OPINION

HILLMAN, Chief Judge.

This is a case arising from the so-called Diamond Mortgage Corp. (Diamond)/A.J. Obie & Associates (Obie) mortgage-backed securities fraud. The main action and counterclaim pit Diamond victims Delores and Kenneth Stone against Obie victims Mary and Frank Mehlberg, in a dispute over the validity of a promissory note and undisbursed mortgage on the Stones' home, solicited by Diamond and assigned to the Mehlbergs as part of...

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