BY JIM DOOLEY -Ewa Neighborhood Board member and past state House candidate Kurt Fevella has been sued for fraud by a Mainland woman who claims Fevella took financial advantage of her elderly father while he was in Fevella’s care.
Fevella has not responded to the suit yet and did not reply to requests for comment.
The state court suit was filed by Melanie Burroughs, daughter of Paul W. Burroughs, an Ewa Beach resident who died in 2009, two years after selling his home to Favella and his wife for $250,000.
Before he passed away, Burroughs told his daughter that he planned to leave “the majority of his estate” to her, the suit, filed by attorney John Edmunds, alleged.
While acting as Burroughs’ caregivers, Kurt and DonnaLee Favella “assisted him from time to time in his personal and financial affairs” and “used undue influence and fraud” to induce him to deed the title to his house to them, the suit charged.
Property records show that in 2007, Burroughs took out two mortgages on his home before selling it later that year to the Favellas.
The first mortgage, for $100,000, was made in January 2007 and the second, an adjustable rate “reverse mortgage” worth up to $660,000, was borrowed in June 2007, according to state land records.
Reverse mortgages allow individuals over 62 years of age to draw cash from the equity in their homes over time. The effect on the market value of a home varies according to terms of the loan.
Favella did not respond to questions about how the loan proceeds were used or if he assisted Burroughs in borrowing the money.
Both loans have since been repaid.
Favella, who works part-time for the City as a refuse inspector, ran unsuccessfully for the state House of Representatives in 2008 and last year.
A vocal proponent of the Honolulu rapid transit project, Fevella is past chairman of the Ewa Neighborhood Board and was re-elected to the board earlier this year.