In the first of these two unrelated cases, Ephraim Demons, representing himself, alleged that his mortgage lender (among others) committed fraud related to his mortgage based on Demons' belief that he created “money” when signing his mortgage.
Similarly, Aalaam alleged fraud and claimed his mortgage loan was invalid under the "vapor money" theory, arguing that banks create money by recording promissory notes as assets and therefore loans don’t need repayment.
Trident, the Debtor’s main creditor, argued that the bankruptcy filings were part of a “scheme to delay, hinder, or defraud creditors,” as outlined in Section 362(d)(4) of the Bankruptcy Code, due to multiple bankruptcy filings affecting the same property. However, the court found that Trident did not present sufficient evidence to prove this claim.
