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SETTLEMENTAGREEMENT AND MUTUAl, RELEASES 

This Settlement Agreement and Release {"Agreement") is made this '3 1~~ day of 

Jammry, 2013 by. between and among fuc fofioVtiDg undersigned Parties: the Federal Deposit 

Insurance Corporation1 in its cape.city as re~iver for AmTrust .Bank (uFDIC-R"). and Devon 

McDowell f'M:cD{JweH"); both of whom are parties in a case captioned FDIC as Receiver for 

A.m.Trust Bank "· Mlchael Hodge, et aJ., Case No. 09-CV-3234 in the United States District Court 

for the Eastern District ofNew York (' The Litigation'} 

HEREAS~ in July, 2009, AmTrust Bank ("'AmTrust"') initiated The Litigation against 

numerous borrowers. its closing attorney James Carroll c··auroU"), mortgage broker, Link One 

Mortgage Bankers, LLC~ and other individuals and entities alleged to be involved in a pu.rported 

mortgage fraud scheme concerning twenty (20} Joans including claims for conspiracy and fraud 

against McDowell arising from hls actions in obtaining a mortgage loan :from AmTrust; 

WHEREAS, The Litigation includes claims related to a mortgage loan ("The Mortgage 

Loanj made by AmTru.st for the pllipOrted purchase of the property located t~ ······

J)(6) 

Street. Saint Albans~ New York ("'The Property") by McDO\vell; 

\VHEREAS, on December 4, 2009, AmT:rust was closed by the Office of Thrift 

Supervision and. pursuant to 12 U.S.C. § l82l(c), the Federal Deposjt Insurance Corpor~tion 

----~···..... .. .. 

'9-'aS appointed receiver. In accordance v.i th. 12 U.S.C. § l 821 (d). the FDIC-R succeeded to all 

rights., titles, pow and privileges ofAmTrust, including those with respect to its assets and a11 

of AmTrust's claims, demands. and cau.-;es of action, including those claims asserted in The 

Litigation and all claims relateri to The Property; 

WHEREAS, Mcllilwell has d.enied any ·wttmgdoing in connection with The Litigation 

and The Property; 
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WHEREAS, ~Dowell has provided the FDIC-R with a sv;om affidavit and other 

f1nanciaJ materialsto demonstrate that he has litn.ited means from "'<b.ich to pay a judgment; 

WHEREAS, the FDIC-R has relied upon the accuracy of tbe info:rrnation provided by 

McDowe11 regarding his finan.cial condition as a material condition for entering 'this Settlement 

Agreement; 

WHEREAS, without any admission of liability by any of the Wldersigned Parties, the 

Parties deem it to be in their respective best interests to end their disputes arising out of and 

related to lbe Litigation a:od The Property and avoid filfthe:r costs and risks associated witb The 

Litigation and entermto this Agreemem. 

NOW, THEREFORE, in coosideration ofthe prot:rriscs, undertakings and releases stated 

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

agree. each with each other, as follows: 

Section l. Payment to :the FDIC-R. 

A. A.s an essential covenant and oondition to this Agreement. McDowell has agreed 

to pay the FDIC-R the sum ofTwe1ve Thousand Nine Hundred Sixty-Six Dollars ($12,966.()0} 

(the ''Settlement Payments"")­

B. lrnmediately upon execution ofthis Agreement, McDowell shall deliver the first 

FourThousand Dollars ofthe Settlement Payments to the FDIC~R by check transmitted pursuant 

to the FDIC-R's written instructions. 

C. No later th!Ul February 28, 2013, McDowell shall deliver the second pa)ntent of 

Four Thousand Dollars ($4,000.00) of the Settlement Payments to the Fl:)lC-R by check 

t:ransmitted pursuant to the FDIC-R's written instructions. 

D. No later than July :11 , 2013, McDowell shall deliver the third payment of Two 

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Thc.uJ.gand Fi.ve Hundred Tmllars ($2,500.00) of rhe Settlement Payments to the FDIC-R by check 

tran5mitted pursuant to the DlC-R~s written instructions. 

E. No later than December 31, 2013, McDowell shaH deliver the remaining Two 

Thousand Four Hundred Sixty-Six Dollars ($2,466.00) oftOO Settlement Payments to the FDrcR by check transmitted pursuant to the FDIC-R's written instructions.. 

Section 2. Confession ofJw;!gment. 

A. As an additional essential covenant and condition 10 this Agreement, McDowell 

has agreed to execute and deliver to the FDIC~R an Affidavit of Confession of Judgment, 

confessing judgment :in the FDIC·R·s favor for t.l-te entire unpaid balance ofThe Mortgage Loan. 

in the amount of Five HWldred Thirty-Nine Thousand Nine Hnndred F<>rty..Six Dollars and 

Thirty-One Cents ($539~9 .31). 

B. In the e:vent that McDowell fails to make either payment listed in Section 1 above 

by the applicable deadline, McDowell shnll be in default ofthis Agreement mJ.d the FDIC~R shall 

bave the right to obtain a Confession ofJudgme.ot against McDowcll in the full amount of the 

unpaid balance ofThe Mortgage Loan. 

C. Ifthe Settlement Payments, or any portion there()f, are not received by the FDICR within the deadlines stated in Section 1 ofthe Agreement, intt!rest upon any unpaid portion of 

the Settlement Payments will accrue at a rate of6% per annum commencing on the 31st day after 

the payments were due. 

D. Without waiving any other rights that the FDIC-R may have, in the event that the 

Settlement Payments. including all accrued interest as may be applicable, are not received by the 

dates specified in Secti<m 1 ofthis Agreement, then the FDIC-R sha11 ha"'e the right, in its sole 

digo.rc.tion.. to enforce this Agreemenl, and McDowell shall be responsible for the SeHleme.nt 

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Paymeuts, and a11 fees, including attorney fees. incurred by the FDJC-R in enforcing this 

Agreement. 

Section 3. McDowell's Transfer ofTitle to the Property to the FDIC-R. 

A. As an essential covenant and condition to this Agreemen~ McDowell agrees to 

exe-eute and deliver to the FDIC·R a deed transferring all of his interest. righ1s, and title to The 

Property to the FDIC-R in the form and according to the instructions provided to him by the 

fDIC-R.. 

Section4. McDowell's AgreementtoCooperate. 

A As an essential covenant and oondition to this Agreement, McDowell agrees to 

provide a swom statement to the FDIC-R regarding the persons., enti~ and events involved in 

The Litigation. 

B. McDowell further agrees to cooperate fully with the FDIC-R in the ongoing 

Litigation and any .further litigation related to the persons. entities, and events involved in Ihe 

Litigation:, including7 if necessary. te.stifyjng regarding the persons, entiti and events involved 

in The Litigation. 

Section 5. Stipulations and Dismissals. 

Upon execution ofthis Agreement by each ofthe undersigned Parties: the FDIC-R shall 

dismiss with prejudice ali ofits claims inthe Litigation against McDoweU. 

Section 6. Murual Releases. 

A. Release ofMciX,well by the FDlC-R. 

Effective upon receipt oftbe initial payment of Four Thousand Dollars ($4,000) oft.':\e 

&tt!em(.."llt Payments, the signed confession ofjudgment, and the executed deed as specified in 

Sections 1A, ~ and 3 above, the FDIC-R h~y releases and dischtlfges McDowell) his insu.rers, 

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representativess successors. assigns and attorneys, from any and aJj claims, demand~. obligations. 

damages, actions, causes of action. direct ox indirect; in law or in equity, belonging to the FDIC. 

R that arise from or relate to The Litigation. 

B. Release ofthe FDIC-R by McDoweU. 

Effective simultaneously '-'ritb the release io S~tion 6A above, McDowell, on his O'Wll 

bebalfs and on behalf of his heirs, executors, ad.-n.inistra or~ representatives, assigns. insurers, 

a:nd attorneys bereby releases and discharges the FDIC-R from any and all c1aims, demands, 

obligations, damage~ actions, causes of actio~ direct or indirect, in law or in equity, that arise 

from orrelate to The Litigation. 

C. Expre§S ReM;rya:tion QfRelcases by the FD:K;-R. 

Notwithstanding any other provisi ~ by this Agreement, the FDIC,R does not release 

and expressly preserves fully and to the same extent as ifthe Agreement had not been executed, 

any rights, claims or causes of action against any other party in the Litigation not expressly 

released by this Agreement. 


Section 7. Reoresentation:S and Acknowledgement.~. 

A. No Admission of Liahil.i!y. The Parties each acknowledge and agree that the 

matters set fo:rth in this Agreement constitute a settlement and eotnptomise ofdisputed claims 

and that this Agreement is not an admission ot: or evidence of; any liability of any ofthem 

regarding any claim. 

B. Execution inCounterparts. This Agreement may be executed m counterparts by 

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

original signatures and :such counterparts, when taken together, shall constitute one single and 

binding Agreement. 

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C. Choice ofLaw. This Agreement shaH be interpreted, coru.'tr'Ued and enforced 

according to applicable federal law. orin its absenceJ the laws of ilie State ofNew York. 

D, Binding Effect. Each ofihc Wldersigned peroons represents and waaants that 

they are a Party hereto orare authorized to signthis Agreement onbehalfofa Party, and that 

they have the ful l power and authority f4) bind such Party to each and every provision ofthis 

AgreemeDt. This Agreement shall be binding upon and inure to the benefit ofthe undersign...~ 

Parties and their respective heirs, exe~utors, administrators, representatives, successors, assigns, 

and attorneys. 

R Specilic Representations., Warranties. and Disclaimer. McDowell acknowledges 

that in determining to settle the claims released herein, the FDIC-Rreasonably andj ustifiably 

relied upon th.e accuracy offinancial information pro"'ided by MGDowelL IfMcDowell failed to 

disclose, or misrepresented the natw'e or amount o( any interest, legaL equitable, or beneficial. 

i.n any asset. McDowell agrees. to coopemte fully with the FDIC-R to transfer his interest in the 

!1SS¢t to the FDIC-R. Moreover. ifMcDo-w-ell has failed to disclose or materially misstated any 

interest, legal, cquitabl~ or beneficial,.1n any asset. the FDIC-R in its sole discW;ion, may 

exercise one ormore orall ofthe following remedies: (a) the FDIC-R may declare the release 

granted to McDowell as null and void; (b) the FOlC·Rmay sue McDowell for da.1·nages, an 

injunct:io~ and specific performance forthe breach ofthls. Agreement~ and (c) the FDIC-R may 

seek to vacate any dismissal order atld reinstate the FDIC-R's claims againstMcDowell. 

McDowell agrees that ifhe has intentionally failed lo disclose~ or materially misrepresenred the 

nature or amount of, any interest~ leg~ equitable, or beneficial, in any asset, McDowell oonsents 

to the reillb-tat.eroent ofthe FDIC-R's claims. and waives any statute oflintitations defense tlm! 

would bar any oftoe FDIC-R•s claims against him. 

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F. Entire Agreement Cl!JQ..t.\mendments. This Agreement constitutes the entire 

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

set forlh hercin. This Agreement may not be amende<! or modified ex~pt by an<>ther written 

)n.~ent signed by the parties to be bmmd thereby, or by their respective authorized attorneys 

or otherrepresentatives. 

JN \\t1TNESS WHEREOFt the l'arties hereto have caused this Agreement to be executed 

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

Federal Deposit Insurance Corporatiollo as 

Receiver for AmTrust Bank 

(b)(6) 

Devon McDowell 

(b)(6) 

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