Realtor Kyle Seyboth Hit With “Agent Alert” by Leading Title Insurance Company

Saturday, December 21, 2024

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GoLocalProv News Team

 

On November 12, GoLocal broke the story of one of Rhode Island’s top realtors, Kyle Seyboth, and a number of his related companies and associates being sued by the Rhode Island Attorney General’s office with claims that the group took advantage of two elderly Haitian immigrants with limited command of the English language to swindle the pair out of their home for a fraction of its value.

Now, Seyboth has been cited by CATIC, one of the leading title insurance companies in New England with an “Agent Alert.”

The alert reads: “Effective immediately, all issuing offices are instructed not to accept any orders or close any transactions involving the following without the written approval of CATIC.” 

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Seyboth’s lawyer, Nick Hemonds, in a letter to CATIC, demands that the designation be removed. “CATIC is basing its unwarranted interference with Mr. Seyboth’s ability to run his business. If immediate action is [not] taken, suit will be brought in the Superior Court for CATIC’s tortious interference with Mr. Seyboth’s businesses.”

 

 

 

The notice then lists Seyboth and 30 other companies operated or associated with Seyboth. SEE THE FULL LIST BELOW.

The Agent Alert ends with “If you have any pending transactions involving the above, please contact local underwriting before proceeding.”

 

Attorney General: How the Deal Worked

According to the lawsuit, “Defendants, each and collectively, represented to the owners that they were offering a refinancing during the negotiation of the transaction but then performed a bait-and-switch by presenting documents for a sale at closing in a language the owners could not understand.”

Further, the Attorney General alleges in the lawsuit that the owners “did not intend to sell their $450,000 house for $100,000, and there is no reason why they would or should have.”

“This scam, which here targeted elderly immigrants who do not speak English, is similar in-kind to a plague of equity and deed theft transactions the FDIC has warned about taking place across the country,” claims the lawsuit.

Immediately after taking control of the property, Seyboth put the house on the market. He gained control of the house for $100,000 and then immediately marketed it for $450,000.

“Take a closer look at this $450,000, 5 bed, 3 bath, 2700 Sq Ft, Multi-Family for sale, located at 58 Pekin,” said one listing, according to the lawsuit. READ MORE

Seyboth, who is regularly featured in promotions on WJAR 10 and is one of the most prolific real estate professionals in Rhode Island, is involved in much more.

 

Lawyer for Seyboth

In the letter to CATIC, Seyboth’s lawyer, Hemond, claims the action is unwarranted and damaging.

“Please be aware that Attorney William Lynch and I represent Kyle Seyboth and all of the entities in which he has an ownership interested listed in the correspondence sent from CATIC sent to an unknown but wide-ranging universe of attorneys, brokers, agents, lenders and other important business contacts of Mr. Seyboth and his businesses on December 16, 2024. This correspondence has cast warrantless and baseless aspersions on Mr. Seyboth and besmirched his reputation in the business community. It is unclear what justification or basis CATIC has to send out a notice to all major real estate brokers, lenders, attorneys, and lenders in the state which implies that Mr. Seyboth and his companies are not in good standing. These actions are libelous and constitute tortious interference with Mr. Seyboth and his ability to do business,” writes in a letter dated December 20.

Hemond adds, “For years, Mr. Seyboth and his companies have successfully, ethically, and effectively represented buyers and sellers in real estate transactions. Why CATIC sends out this damaging and unwarranted bulletin as if Mr. Seyboth has done anything wrong is simply baffling. As a result of this outrageous action, Mr. Seyboth has already suffered harm to his reputation and business good will has the bulletin has generated numerous inquiries from clients and colleagues inquiring if Mr. Seyboth is in trouble or if they are able to continue to do business with him. He has gotten calls from clients concerned that their transactions are going to fall through because they are using him as a realtor. He has gotten calls from lenders asking if they need to encourage borrowers to change agents or brokers in order to close transactions. He has lost clients and transactions as a direct response from CATIC’s remarkably inappropriate and indiscriminate attack on Mr. Seyboth’s reputation.”

 

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The attorney general’s case against Seyboth and others continues in Providence Superior Court in January.

The Agent Alert was filed against all of the following individuals and companies:

 

 

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