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institutions by means of materially false and fraudulent
pretenses. Petitioners, although mentioned in the indictment,
were not charged with any crime regarding their involvement in
Mr. Razvi’s fraudulent scheme, and there is no evidence in the
record that petitioners were aware of the fraudulent scheme.
Thereafter, most of the properties securing the mortgages were
foreclosed upon in separate actions, with petitioners named as
defendants. The sheriff then sold the properties in a judicial
sale pursuant to the decree of foreclosure. After the sale, the
Illinois State court where the actions were brought issued orders
approving the sales. Some sales resulted in deficiencies (i.e.,
the proceeds were less than the judgment amount). In those
cases, the plaintiffs (usually a bank or other type of commercial
lender) obtained an in rem deficiency judgment3 against the
properties but did not obtain an in personam judgment against
petitioners. Other sales resulted in zero deficiencies, and the
3 A judgment in rem affects the interests of all persons in
designated property, whereas a judgment in personam imposes a
personal liability or obligation on one person in favor of
another. Hanson v. Denckla, 357 U.S. 235 (1958). It is
characteristic of a judgment in rem that it operates on a thing
or status rather than against the person, and binds all persons
to the extent of their interest in the thing whether or not they
were parties to the proceedings. 50 C.J.S., Judgments, sec. 1054
(2005).
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Last modified: May 25, 2011