Greenberg Traurig, Quarles to pay $88M to settle Mortgages Ltd. lawsuits

The Greenberg Traurig LLP and Quarles & Brady LLP law firms have agreed to pay $87.5 million to settle investor lawsuits over their legal counsel in the Mortgages Ltd. commercial lending debacle. Greenberg will pay $61 million and Quarles $26.5 million to settle the federal lawsuits. Greenberg attorneys represented Mortgages Ltd before it went bankrupt and was exposed as Ponzi scheme. Mortgages Ltd. CEO Scott Coles committed suicide. Greenberg is based in Miami but has a large Phoenix office. Quarles represented an investment outfit called Radical Bunny that was linked to the commercial lender. Quarles is based in Phoenix. The Mortgages Ltd. downfall sent waves of troubles through the Valley’s commercial real estate market impacting projects in Phoenix and Tempe.

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