SETTLEMENT AGREEMENT AND MUTUAL RELEASES 

This Settlement Agreement and Mutual Releases {"Agreement'') is made this--· day 

of January, 1012 by, between and among the following undersigned Parties: the Plaintiff, 

Federal Deposit Insurance Corporation, in its capacity as receiver for AmTrust Bank ("FDICR"); and the Defendant William Green ("Green'')~ both of whom are parties in a case captioned 

FDIC, as Receiver fi.Jr AmTrust Bank v. The lvfortgage Zone Inc .. el a/.. Case No: 2:08-CV03369 (E.D.N.Y.) ("The Litigation''). 

WHEREAS, fn August, 2008, AmTrust Bank initiated TI1e Litigation against nu.;nerous 

borrowers, its closing attorney Dean Reskakis, its mortgage broker. The Mortgage Zone Inc., and 

other individuals and entili.es alleged to be involved in the origination of mortgages using 

improper flip transactions and straw buyers, including claims against Green tor fraud and breach 

of contmct related to one such mortgage; 

WHEREAS. on December 4, 2009, ArnTrust was closed hy the Office of 'I'hri.ft 

Supervision and, pmsuant to 12 U.S.C. § 182l{c), the Federal Deposit Insurance Corporation 

was appointed receiver. In accordance with 12 U.S.C. § 1821(d), the FDIC-R succeeded to all 

rights. titles, powers, and privileges of the Bank, including those with respect to its assets and all 

of [he Bank's claims, demands. and causes of action, including those claims asserted in The 

Litigation; and 

WHEREAS. Green has denied the allegations assened against him tor fraud and breach 

of contract; 

-1-
WHEREAS. Green has provided the FDIC-R with a sworn affidavit and other financial 

materials to demonstrate that he has limited means from which to pay a judgment; 

WHEREAS. the FDIC-R has relied upon the accuracy of the information provided hy 

Green regarding his financial condition as a m~terial condition for entering this Settlement 

Agreement; and 

WHEREAS, without any admission of liability by any of the undersigned Parties. the 

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

related to The Litigation, and avoid further costs and risks associated with The Litigation and 

enter into this Agreement. 

NOW, THEREFORE. in consideration of the promises, undertakings and releases stated 

herein, the sufficiency of which consideration is hereby acknowledged. the undersigned Parties 

agree, each with each other, as f{,llows: 

Section 1. Payment to the FDIC-R. 

A. As an essential covenant and condition to this Agreement. Green has agreed to 

pay the FDIC-R the sum of One Hundred n1ousand Dollars ($1 00,000.00) (the "Settlement 

Funds"). 

B. Within 30 days of the execution of the Agreement, Green shaH deliver the first 

Seventy-Five Thousand Dollars ($75,000.00) of the Settlement Funds to the FDIC·R by check 

transmitted pursuant to FDIC -R's written instructions. 

C. Within one year of the execution of the Agreement, Green shall deliver the 

remaining Twenty-Five Thousand Dollars ($25,000.00) of the Settlement Funds to the FDIC-R 

hy check transmitted pursuant to FDIC~R's written instructions. 

2 
Section 2. Confession of Judcunent and Asslgmn~DLQf.Rents. 

A. As an additional essential covenant and condition to this Agreement, Green ha'i 

agreed to execute and deliver to the FDIC-R an Afti.davit of Confession of Judgment, confessing 

judgment in the FDIC-R's favor for any unpaid balance of the Settlement Funds. 

B. As an additional essential covenant and condition of this Agreement~ Green and 

his wife. Linda Green, have agreed to execute and delivcrto the FD[C-R an Assignment of Rents 

and Leases. 

C In the event that Green fails to make either payment listed in Section 1 above by 

the applicable deadline, Green shall be in default of this Agreement and the FDIC-R shall have 

the right to obtain a Confession of Judgment against Green and to record and entbrcc the 

As~ignment of Rents and Leases in order to recover the balance of Seitlcm~nt Funds due to the 

FDIC·R. 

D. If the Settlement Funds, or any portion thereof, are not received by the FDIC-R 

within the deadlines stated in Section 1 of the Agreement, interest upon any unpaid portion of the 

Settlement Funds will accrue at a rate of 6% per annum commencing on the 3 I st day after the 

funds were due. 

E. Without waiving any other rights that the .FD[C-R may have. in the event that the 

Settlement Funds, including all accrued interest as may be applicable~ are not rccejvcd by lhe 

dates specified in Section 1 of this Agreement, then the FDIC-R shall have the right, in irs sole 

discretion, to enforce this Agreement, and Green shall be responsible for the Settlement Funds. 

and all fees, including attorney fees, incurred by the FDIC-R in enforcing the Agreement. 

3 
Section 3. Green's Agt~e_nt to Cooperate. 

A. As an essential covenant and condition to this Agreement, Green agrees to 

provide a sworn statement to the FDIC~R regarding the persons, entities, and events involved in 

the Litigation. 

B. Green further agrees to cooperate fully with the FDIC-R 1n the ongoing LJtjgation 

and any future litigation related to the persons~ entities, and events involved in the Litigation, 

including, if necessary, testifying regarding the persons, entities, and events involved in the 

Litigation. 

Section 4. S..ti.Qulations and Dismissals. 

Upon execution of this Agreement by each ofthe undersigned Parties, the FDIC-R shalt 

dismiss with prejudice all of its claims in U1e Litigation against Green and Green shall dismiss 

with prejudice all of his claims against the FIJI C-R. The FDlC-R shall prepare and execute a 

stipulation of dismissal wjth prejudice as to these claims within 30 days after receipt of the sworn 

statement by Green. 

Section 5. Mutual R~1.9.~~~..:~· 

A. Release qf G.1:een bv the FDIC-R. 

Effective upon receipt of the sworn statement specified in Section 1 above, the FDIC-R 

hereby releases and discharges Green. his .insurers, representatives, successors, assigns and 

attomeys, from any and all claims, demands, obligations, damages, actions, causes of action. 

direct or indirect, in law or in equity, belonging tn the FDIC~R that arise from or relate to The 

Litigation, including all claims the FDIC-R has that arise from mortgage loans having numbers 

(b )(6 -~- --- --~ 

4 
B. Release of the FDlC-R bv Green. 

Effective simultaneously with the release in Section 5A above. Green, on his own behalf, 

and on behalf of his heirs, executors, administrators, representatives, assigns, insurers, and 

attorneys hereby releases and discharges the FDIC-R from any and all claims, demands, 

obligations. damages, actions. causes of action, direct or indirect, in law or in equity. that arise 

h:orn or relate to the Litigation. 

C. Express Reservation of Releases By The FDlC. 

I. Notwithstanding any other provision, by this Agreement, the FOJC-R does not 

release and expressly preserves fully and to the same extent as if th.e Agreement had not been 

executed, any rights, c1aims or causes of action: 

1. Against any other party i11 the Lihgatioo not expressly released by this 

reem ~ and 

11 . Which are not exprcssJy released in SeclionSA, above. 

2. Notwithstanding any other provision of this Agreement, nothing herein limits, 

waives, releases, diminishes or compromises the jmisdiction and authority of the Federal Deposit 

Insurance Corporation in the exercise of its supervisory or regulatory authority to institute 

administrative enforcement or other proceedings seeking removal. prohibition, civil penalties, 

restitution or other relief it is authorized to seek pursuant to its supervisory or regulatory 

authority against any person, or which may arise by operation of law, rule, or regulation. 

3. Notwithstanding any other provision of this Agreement, this Agreement does not 

waive any chrims which could be brought by the United States through the Department of Ju..:;tice 

or the United States Attorney's Office for any federal judicial di.strict (n addition~ the FDIC-R 

5 
specifically reserves the right to seek court ordered restitution pursuant to the relevant provisions 

ofthe Victim and Witness Protection Act, 18 U.S.C. § 3663, et seq., if appropriate. 

Section 6. Representations and AcknowlcQ.gm.9J1l~ 

A. No Admission of Liabilitv. The undersigned Parties each acknowledge and agree 

that the matters set forth in this Agreement constitute a settlement and compromise of disputed 

claims and that this Agreement is not an admission or evidence of any liability of any of them 

regarding any claim. 

B. Execution in Counterparts. This Agreement may be executed in counterparts hy 

one or more of the Parties named herein and all such counterparts when so executed shall 

together constitute the final Agreement, as if one document had been signed by all Parties hereto; 

and each such counterpart, upon execution and delivery, shall he deemed a complete original, 

binding the Party or Parties subscribed thereto upon the t:xeculion by all Parties to this 

Agreement 

C. Binding EtTect. Each of the undersigned persons represents and warrants that 

they arc a Party hereto or are authorized to sign thi.s Agreement on behalf of a Party, and that 

they have the full power and authority to bind such Party w each and every provision of this 

Agreement. This Agreement shall be binding upon and inure to the benefit of the undersigned 

Pmiies and their respective heirs, executors, administrators, representatives, successors, a<::signs 

and attorneys. 

D. Specific Representation.&._YLqrr~ti~,;; and _Disclaimer. Green acknowledges that 

in detennining to settle the claims released herein, the FDIC>R reasonably and justifiably relied 

upon the accuracy of financial information provided by Green. ff Green failed to disclose, or 

misrepresented the nature or amount of. any interest, legal. equitable, or beneficial, in any asset, 

6 
Green agrees lo cooperate fully with the FDIC-R to transier his .interest in the asset to the FDICR and to sign any and all documents necessary to transfer his interest in the asset to the FDTC-R. 

Mo.reovcr, if Green has intentionally failed to disclose or materially misstated any interesL legal, 

equitable, or beneficial, in any asset, the FDJC-R in its sole discretion, may cxc:rc.isc one or more 

or all of the f()llowing remedies: (a) the FDIC-R may declare the release granted to Green as null 

and void; (b) the FDIC-R may sue Green for damages, an injunction, and specific performance 

lor the breach ofthis Agreement; and (c) the FOIC-R may seek to vacate any dismissal order and 

reinstate the FDIC-R 's claims against Green. Green agrees that if he has intentionally failed to 

disclose. or materially misrepresented the nature or amount of, any interest legal, equitable, or 

beneficial, in any asset~ Green consents to the reinstatement of FDIC-R's claims and waives any 

statute oflimitations ddense that would bar any of the FDl(>R's claims against h1m. 

E. Choi.ce of Law. This Agreement shall be interpre!ed, construed and enforced 

according to applicable federal law, or in its absence. the laws of the State of New York. 

F. Entire Agreement fJ!lf1L'}.m~n.4JUents. This Agreement along with the Atlida:vit of 

Confession of Judgment and the Assignment of Rents and Leases described in Section 2 

constitute the entire agreement and understanding between and among the undersigned Parties 

concerning the matters set forth herein. This Agreement may not be amended or modified except 

by anoU1er written instrument signed by the parties to be bound thereby, or by their respective 

authorized attorneys or other representatives. 

G. Advic~u~f.G.ou.nsel. Each Party hereby acknowledges that it has consulted with 

and obtained tlie advice of counsel prior to executing this Agreement, and that this Agreement 

has been explained to rhat Party by his or her counseL 

7 
IN WITNESS WHEREOF. the Parties hereto have caused this Agreement to be executed 

by each of them or their duly authorized representative on the dates hereinafter subscribed. 

Date. ___________ _ 

11612.052 

8 

Federal Deposit Insurance Corporation, as 

Receiver for Am Trust Bank 

WiHiam Green 
IN WITNESS WHEREOF, the Parties hereto have caused this Agret."lllent to be executed 

by each of them or their duly authorized representative on the dates hereinafter ~mbscribed. 

Date~-----------

Datc_/"j/+--/1__,_ & L_/ (_ 

Jj6I2052 

8 

Federal Deposii Insurance Corporation, as 

Receiver for Am Trust Bank