A
class action lawsuit has been filed in Baltimore County against a prominent Maryland real estate team and its affiliates, alleging a kickback scheme that affected over 100 homebuyers and borrowers. The plaintiffs, Joshua and Jacqueline Kladifko and Shawn Gaines, claim that The Bob and Ronna Group, Bay Capital Mortgage Corp., and Elite Home Title LLC violated the Real Estate Settlement Procedures Act (RESPA) by receiving kickbacks for referring clients to these businesses.

    The lawsuit alleges that The Bob and Ronna Group received several thousand dollars each month in exchange for assigning clients to Bay Capital for mortgage loans and to Elite Home Title for title and settlement services. In turn, Bay Capital and Elite Home Title earned service fees while The Bob and Ronna Group used the kickbacks to purchase leads from Zillow's flex program.

    The plaintiffs claim that this scheme was not disclosed to buyers, who were instead directed to use Bay Capital and Elite Home Title despite their own preferred lenders. Attorneys for the defendants have denied these allegations, calling them "demonstrably false" and "baseless." They have filed a joint motion to dismiss the suit and separate requests for summary judgment.

    The lawsuit also alleges that The Bob and Ronna Group tracked the kickback arrangement using software, withholding leads from sales staff who did not comply with the referral arrangement. The plaintiffs claim that they were harmed by this scheme, which was allegedly used to generate leads and purchase real estate services.