Los Angeles, CA, March 05, 2025 (GLOBE NEWSWIRE) — Zaya Younan has initiated legal proceedings in the Superior Court of California, County of Ventura, against Royal Business Bank (NASDAQ: RBB) and its three top executives: David R. Morris, Chief Executive Officer; Robert Franco, Chairman of the Directors’ Loan Committee; and Robert Ross, Deputy Chief Credit Officer (Case No: 2025CUOR038548).
The lawsuit alleges that Royal Business Bank and its senior leadership engaged in a systematic scheme of fraud, deception, and predatory lending practices designed to exploit borrowers.
According to the complaint, the bank, and its executives deliberately misrepresented and concealed the true terms and risks of loans while unlawfully altering or canceling critical financial instruments. They are further accused of engaging in unethical and deceptive business practices, acting in bad faith by willfully disregarding fair dealing and transparency, and intentionally interfering with the economic advantages of borrowers by disrupting their financial stability. The suit also contends that Royal Business Bank abused legal and administrative procedures for improper gain, inflicted severe emotional distress through calculated deceptive lending practices, and employed predatory tactics such as loan flipping, fee stacking, and other discreet fraudulent activities. It appears that Royal Business Bank has a documented history of engaging in fraudulent lending practices, with several former executives previously involved in similar misconduct. One of these executives was former CEO Alan Thian who was placed on leave amid an internal investigation. The probe found he had violated unspecified company policies and procedures, leading to his resignation. The same CEO was involved in originating of our loans.
“After numerous unsuccessful attempts to resolve these issues amicably, we have been left with no choice but to hold Royal Business Bank and its executives fully accountable for their egregious misconduct,” said Zaya Younan. “This lawsuit is not only a fight for our own justice—it is a call to every borrower harmed by these unethical practices to stand with us. We will not allow these deceptive practices to continue unchecked.”
In a further show of resolve, the complete lawsuit and all supporting documentation will be forwarded to key government agencies, including the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and the Department of Financial Protection and Innovation (DFPI). This action underscores the grave risks that these fraudulent practices pose to investors, consumers, and the integrity of the financial system.
Royal Business Bank, a publicly traded institution on NASDAQ under the symbol RBB, now faces not only significant legal challenges but also heightened regulatory scrutiny and the potential for severe reputational damage. This litigation seeks to recover substantial damages incurred by the plaintiffs as a direct result of the bank’s alleged fraud and deceptive lending practices.
We urge any borrower who has been adversely affected by Royal Business Bank’s unethical practices to contact us, as we are exploring the possibility of a collective class action lawsuit to ensure that every wronged party obtains the justice and compensation they deserve.
- Zaya Younan Launches Landmark Fraud Lawsuit Against Royal Business Bank and Its Top Executives