Lawsuit accuses The Federal Savings Bank of misleading VA loan practices


Margo Brodie, Chief Judge with the U.S. District Court for the Eastern District of New York | Administrative Office of the United States Courts | Wikipedia Commons

A couple has filed a lawsuit against a mortgage lender, alleging fraudulent practices that led to financial harm.

According to the complaint, Brendan and Lindsay Calderone accuse The Federal Savings Bank (TFSB), along with John Joseph Sinnes and Tarik Dalal, of engaging in deceptive practices during a mortgage refinancing process. The Calderones allege that TFSB agents promised benefits under the Department of Veterans Affairs (VA) loan programs, including lower monthly payments and access to home equity. However, they claim these promises were misleading and resulted in higher interest rates and increased financial obligations.

The plaintiffs contend they were subjected to "loan churning" and "loan flipping," practices that involve repeated refinancing without substantial benefit to the borrower. The complaint cites alleged violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), the Truth-in-Lending Act (TILA), and New York General Business Law sections 349 and 350.

The Calderones allege that TFSB representatives pressured them into refinancing decisions by presenting inaccurate information about VA loan benefits. They claim that promised reductions in monthly payments never occurred. Efforts to address their concerns with TFSB leadership, including CEO John Calk and President Javier Ubarri, were reportedly unsuccessful.

The plaintiffs seek compensatory damages, statutory damages under TILA, treble damages under RICO and New York law, and punitive damages.

The case was filed in the United States District Court for the Eastern District of New York under Case No. 2:25-cv-02647.

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