A high-stakes mortgage servicing transfer in January set off alarm bells for a former Marlin Mortgage executive who now claims he was punished for questioning the deal.
Steve Stone, former COO at Marlin Mortgage, alleges that the transfer did not financially benefit Voya Financial Management, the investor that owned the MSR portfolio.
The lawsuit claims the transfer was orchestrated to benefit Marlin Mortgage CEO Andrew Weber personally, allowing him to pocket millions through an undisclosed side deal. Not long after, Weber
Stone's suspicions were raised in early 2025 because the transfer of the
According to the lawsuit, Voya stands to lose more than $500,000 in fees and income because of the transfer, thereby impacting Maryland teachers and employees whose pensions and retirement funds are managed by the financial management company, litigation filed March 7 in Florida claims.
The Marlin's former COO and Voya did not immediately respond to a request for comment. Marlin Mortgage itself denies the allegations and dubs them as "baseless."
"We believe these claims are entirely without merit and appear to be motivated by the plaintiff's personal grievances following his departure from our company," a company spokesperson said in a statement Tuesday.
The plaintiff purports CEO Weber carried out the "disadvantageous transaction in exchange for an undisclosed side-deal with Nationstar whereby Weber sold some of his interests in Series I to [Mr. Cooper] in exchange for millions of dollars in personal profit" i.e. a kickback scheme.
Soon after the transfer, in which "Voya lost out in the transaction, Weber entered into an undisclosed side-deal that personally garnered him millions of dollars —which, without a hint of irony, Weber used to purchase a 64-foot Viking yacht that he named 'JuJu," per the complaint.
When these concerns were raised with Marlin's executives, a breakdown in communication unraveled. Stone sent a handful of emails to heads of the company, including the CEO, including one that asked for Voya to be informed of the situation.Subsequent two emails pertained to Marlin Mortgage's move to sell mortgage lender Loanfront — a company Stone founded, which was acquired by Marlin Mortgage years earlier— and monies still owed to Stone after his company was acquired.
Stone was let go shortly after these emails were sent and another COO was hired to replace him, in violation of Florida's Whistleblower Act, which prohibits retaliation against someone who refuses to participate in unlawful behavior, the complaint said.
The executive is suing the servicing management company claiming his termination entitled him to a "prompt" $250,000 payment, and additional monies totaling over $1 million.
