The Court finds the facts as follows: the borrowers in this loan transaction are Samuel A. Linch, Marcia Penny Linch, and Albert C. Randolph. Samuel A. Linch is a real estate developer and is married to Marcia Penny Linch.

Linch and Randolph submitted their formal loan request, each enclosing a personal financial statement. The loan request was not signed by Mrs. Linch or Mrs. Randolph, and their assets were purportedly not described in the loan request.

The financial statements attached to the loan request maintain that Linch’s net worth was $2,313,200 and that Randolph’s net worth was $14,732,045. Linch’s affidavit listed assets that included a two hundred and eleven-acre property known as Meadowlin Farm, valued at $1,077,305.00.

In reality, Samuel Linch did not own Meadowlin Farm. The property was partially owned by his wife, and three others, of which Linch was a shareholder. There was no indication whatsoever on Linch’s financial statement that Meadowlin Farm was jointly owned or partially owned by third parties.

Two loans were consolidated from Riggs Bank. The loan was unpaid on its maturity date. Pursuant to a new loan agreement, the borrowers agreed to repay Riggs the principal sum of $11,182,800.00 plus interest on or before a date certain. Again, the loan was not paid. Accordingly, the balance due including interest and late charges is $13,555,996.02. Riggs now seeks to collect on the loan from the guarantors. Mr. and Mrs. Linch sought rescission or avoidance, in whole or in part, of the guaranty based upon alleged violations of the ECOA by Riggs.

Riggs Bank did not improperly discriminate based on the Linches’ marital status. Linch would be barred from any recovery, even if the Court found that Riggs Bank had violated the ECOA in any way. Samuel Linch used unclean hands when he falsely executed his financial affidavit.

Riggs Nat. Bank of Washington, D.C. v. Linch, 829 F.Supp. 163.

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