Ex-Chief Sues Ameriquest; Reforms Blocked?

Wayne Lee, a 15-year veteran of Ameriquest Capital Corp., is suing the company, alleging that it reneged on a $50 million consulting deal, while its owner -- the current ambassador to the Netherlands -- blocked badly needed operational reforms.Filed late last week, the lawsuit alleges that company owner Roland Arnall (currently an ambassador) "blocked" reforms that might have helped the subprime giant stem allegations that it engaged in abusive lending practices. A year ago Ameriquest agreed to pay $325 million to settle claims with 49 states that it engaged in abusive lending practices. Mr. Lee headed Argent Mortgage, an Ameriquest company, until June 2004 when he was promoted to chief executive of ACC Capital Holdings, where he oversaw both Ameriquest Mortgage (Ameriquest's retail arm) and Argent, a wholesaler. (Argent was not a party to the Ameriquest/ACC settlement.) Mr. Lee resigned 11 months later, agreeing to a $20 million lump sum payment and five installments of $6 million a year. He contends that ACC paid the $20 million, but not the first installment that was due in mid-June of last year. In a statement, Ameriquest's attorney Bernard LeSage called Mr. Lee's complaint a "ridiculous work of fiction." (For the full story, see the Feb. 5 issue of National Mortgage News.