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S"ETTLEMENT AGREEMENI' AND MUJUAL RELEASES "fl- . 

Th.is Settlement Agreement and Release (

11Agreement"} is made this IT-- day of 

August, 2012 by, betWeen and among the following undersigned Parties: the Federal Deposit 

lnsurailce Corporation, in its capacity as receiver fur AmTrust Bank ("FDIC·R"), and Jordan S. 

Katz ("l<.atz'') and Law Offices ofJordan S. Katz, P.C. ("Ka~ PC). 

WHEREAS, in August, 2008. AmTrust Bank (

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'AmTrust") initiated litigation against 

numerous borrowers, its.~losing attorney Dean Reskakis (..Reskakis"), its mortgage broker., The 

Mortgage Zone Inc.~ and other individuals and entities alleged to be involved in the originatioa 

of ~s. using improper flip transactions and straw buyers in a case captioned FDIC, as 

Receiver for A..mtrust Bank v; The Mortgage Zone Inc., et aL, Case No: 2:08..CV-03369 

(E.D.N.Y.) {"Tht tnigation"). 

'WHEREAS, The Litigation includes claims related to a .rtWrtgage loan made by AmTrust 

fur the puxported purchaSe ofth!: prOperty located atI -~Howard" Beach;NY- (~)(()) 

r-The Property~ by Nicola Hurry (''Hurry"); 

~AS, on June 16, 2009, the United States District Court for the Eastern District of 

New York granted AmTrust an equitable lien (the "'Lien., on The Property. 

WHEREAS, on D~rnber 4, 2009, AmTrust was closed by the Office of Thrift 

Supervision and, pursuant to 12 U.S.C. § l821{c), the Federal Deposit Insurance Corporation 

was .appointed receiver. Irt accordance with 12 U.S.C. § 182l(d), the FDIC-R succeeded to all 

rlgl:rt$., titles, powers, and privileges of' AmTrust, including those with respect to its assets and all 

of AmTruses claims; demands,. and causes of action, including those claims related to Th.e 

Property; 
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WHEREAS, the FD£C-R represents and warrants that it is the current holder of tbe 

promissory note and mortgage executed by Hurry in connection with the mortgage loan and that 

neither the promissory note nor the mortgage have been assigned, sol~ ten~ tr~ 

pledged or the like; 

WHER:BAS, in connection with the mortgage loan to Hurry for the purchase of The 

Property, Reskak.is made an UJl:SOlicited deposit of 211~067.05 into Km, PC's bank account 

(the •tDisbursemem Funds'). even though neither Katz, PC nor Katz bad anything whatsoever to 

do with Hutt,Y's purchase of the property; 

WHEREAS, neither Katz, :PC nor Katz are parties to The Litigation; 

W'H:InffiAS, Katz and Katz. PC have denied any wrongdoing in connection with The 

Property mid. the Disbursement Funds; 

WHEREAS, the FDIC-R has provided Katz, PC with written documentation of the 

Disbutseme!)t Funds and requested tb,at Katz, PC return in full the Disbursement Funds to the 

FDIC-R; 

WHEREASt Katz, PC has acknowledged receipt ofthe Disbursement Funds; 

WHEflEAS, Katz. PC has retained an expert to perform a forensic examination of Katz, 

PCs ~t where the Disbli.rsement Ftinds were deposited for the purpose of determining if 

the Disbursement Funds were or were not validly transferred out of the Ka:tz, PC account (the 

"Forensic Examination");· and 

WH:EREAS, without any admisSion of liability by any of the undeJ'Signed Parties, the 

Parties deem it to be in· their respective best interests to enter into this Agreement concerning 

disputeS arising out ofand related to the Disbursement Funds. 

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NOW, 1HEREPORE, in consideration ofthe promises, undertak.ings and releases stated 

herein, the sufficiency of which consideration is hereby acknowJedged, the undersigned Parties 

agTeet each with each other, as follows: 

1. Within one week ofthe complete execution and delivery ofthis Agreement, Katz, 

PC shal.1 return the Disbutsement Funds in the amouni of $211,067.05 payable to and delivered 

to the FOIC-R by direct wire transfer into an aooount designated by FDIC~R, or by certified or 

cashierts check drawn upon a depository institution acceptable to FDIC·R and mailed to: 

counsel for :FOIC-R at P.O. Box 911774, Dallas, Texas 75397-1774; 01', for overnight delivery 

to: JPMo~ Chase (TXI-0006), Attn: FDIC Receivership Lock Box #971774, 14800 Frye 

Road, 2nd Floor, Fort.Worth, Texas 76155 (hereafter, the HKatz PC Payment"). 

2. lfthe Katz PC Payment is not made within one week of the complete execution 

and delivery ofthis Agreement; this Agreement shalJ be deemed cancelled, void and ofno force 

or etfeet, 

· 3. Release of Katz and Katz PC by the FDIC-R Effective upon the receipt ofthe 

Disbursement F\inds by tne FDIC-R; the FDIC-R hereby releases and discharges Katz, Km; PC, 

(the '1U!lwees~') and each oftheir constituent members., principals, partners~ heirs, executors, 

admin.iStrators, successors and a.Ssigns from all actio~ causes of action. suits, debts~ dues, sums 

ofmoney, 8COOW'lts, teckonings~ bonds) bills, specialties, cove~ contracts, controversies, 

agxee~ts, promises, variances. trespasses, damages, judgment~, extents, executions., claims, 

and dernQnds whatsoever; in law~ admiralty or equity, which the FDIC-R ever bad, now bas, or 

hereafter can, shall ot may have against the Releasees for any matter, cause or thing whatsoever 

from the beginning ofthe world to the day ofthe date ofthis Agreement limited to the claims 

which.arise ftom or related to 1306 Myrtle Avenue~ Howard Beach, New York and/or the 

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tmsolicited deposit of$21 1,067.05 by Dean Reslwds into the bank account ofKatz, PC. This 

Agreement does not release any other person or entity other than Releasees nor does this 

Agreement release any claims other than the claims identified herein. 

4. &lease ofthe FDIC-R by Katz and Katz PC. Effective simultaneously with 1he 

reLease in Section 3above, Katz and Katz PC, on their own behalvess and on behalfoftheir heirs, 

executors. administrators. representatives. assigns, insurers, and attorneys, hereby release and 

discharge the FDIC-R from any and all cl demands, obligations, damages. actions, causes .. :· 

ofaction; direct ar in4irec~ in la:w or·in equity, that arise from or relate to The Property orthe 

Disb~tFunds, e-Xcept that the FDIC-R is not released from any claim by Katz and/or Katz 

PC against FDIC-R Which is based upon the FDIC-R's breach of any ofFDIC-R's 

represe.n~ ns and warranties made in this Agreement. 

· .. 5. ·No Admission ofLiability. The Parties each acknowledge and agree that the 

Iilatte:i;S sefforth in this Agreement constitute a settlement and compromise ofdisputed claims 

and that ·· Agrtlement s not a:b. admission of, or evidence of, any liability ofany of them . ' 

regarding any claim. 

6. Execution ·in ~ountemarts. This Agreement may be executed in counterparts by 

facsimile ot electronically mailed signatures which shall bave the same force and effect as 

ori~ slgnatilres and such counterparts. when taken together, shall ~itute one single and 

bindt:lg A~ent. 

1. ChOice of Law. This Agreement shall be interpreted, construed and enforced 

according tO applicable federal law, or in its absence, the laws of the State ofNew York. 

8. Entire Agre ment and Amendments. This Agreement constitutes the entire 

agreement-and understanding between and among the undersigned Parties concerning the matters 

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set forth herein. This Agreement may not be amended or modified except by another written 

instrument signed by the parties to be bound thereby, or by their respective authorized attorneys 

or other representatives. 

9. For the period ofseven day~ from the date when this Agreement becomes 

effective to the date· that the l<.atz PC Payment is made, or ifnot made, the date when this 

Agreement is· canceled, FDIC-R shall not commence any action or like proceeding against Katz 

and/or Katz, PC. 

. . 

10. The ..WHEREAS" provisions ofthis Agreement are contractual obligations and 

are·not merely recitals.· 

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IN Wl'fNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by 

each ofthem or their duly authorized representative on the dates hereinafter subscribed. 

Federal Deposit Insurance Corporation, as 

(b)(6} Date: W'Jbf~ ~R~verforAmTEt~ ~ 

COM.\10NWEALTH OF VIRGINIA 


COUNTY OF ARLINGTON 


On 1ALJg ~ 2012, before me personally came fi,-/(!C./;~/k~;rr( 

counsel to the Federal Deposit Insurance Company, to me known, and known to me to be the 

individual(s) described in and who executed the foregoing RELEASE~ and duly acknowledged to 

me that he executed the same. r---------.......:;;/------~::--:-~-..., (b).(6)

....~·· 

_...~················ 

················· 

Milficent Kaplan 


Ccmmc!!Wellth cJ Virginia 


Notary Pl.lblic 


Commiuion No. 73Bi42.2 Jordan S. Katz 


MyCcmmiseion Expires 613012015 


Dme.____________________ 

Jordan S. Katz, Esq. 


Personally and on Behalf of the Law Office of 


Jordan S. Katz, P.C. 


STATE OF ______________ 

COUNTY OF _____________ 

On , 2012, before me personally came--:------­

personally and on behalf ofthe Law Office ofJordan S. Katz, P.C., to me known. and known to 

me to be the individual(s) described in and who executed the foregoing RELEASE, and duly 

acknowledged to me that he executed the same. 

Notary 

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by 

each ofthem or their duly authorized representative on the dates hereinafter subscribed. 

Federal Deposit Insurance Corporation, as 

Receiver for AmTrust Bank 

DMe:___________________ 

STATEOF __________~--

COUNTYOF _____________ 

On 2012~ before me personally came --------.......J 

an·o_fficer ofFederal Deposit Insurance Company. to me kno~ and known to me to be the 

indlvidual(s) described in and who executed the foregoing RELEASE, and duly acknowledged to 

me that he executed the same. 

(b)_(6) 

-············· ············ ···················· 

Jo 

Personally and on Behalf ofthe Law Office of 

Jotdan S. Katz, P.C. 

~ 

On f"__ - t 2 ,2012, before me personally came ..;:.,_) o fif2.... S: i:;;b.. 

personally and on behalfof the Law Office ofJordan S. Katz. P.C., to me known, and known to 

me to be the mdividuai(s) described in and who executed the foreaoiruzRELEASE and dulv 

acknowledged to me that he executed the same. _{1:>.)(6) 

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