The co-managers of the Morristown, N.J., branch of Gateway Funding Diversified Mortgage Services LP are suing the company and its principals -- Regina Lowrie, Paul Catinella and Michael Karp -- in the Federal District Court of New Jersey.The complaint, according to a news release from John Field and Marty Witzburg and their attorneys Lowenstein Sandler, alleges violations of the Racketeer Influenced and Corrupt Organizations Act, fraud, and negligent misrepresentation. The pair also allege breach of contract. The attorney for Horsham, Pa.-based Gateway Funding, Stephen Orlofsky of the law firm Blank Rome LLP, said the lawsuit is without merit and that Gateway Funding intends to fight it vigorously. He added that the company would file a response in the court on Sept. 1 seeking dismissal of the charges.

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