Key facts
- OneTrust Home Loans is suing competitors E Mortgage Capital (EMC) and United Wholesale Mortgage (UWM) for alleged trade secret theft and diversion of loan volume.
- The lawsuit includes 31 former employees of OneTrust's Arizona division, alleging they participated in a coordinated scheme.
- OneTrust claims over $31 million in loan volume was diverted to EMC and UWM by former employees.
- The complaint alleges the defendants improperly obtained and exploited borrower information, trade secrets, and business infrastructure.
- EMC and UWM have denied the allegations, with EMC stating it enforces a strict policy against using former employers' leads.
- OneTrust is seeking damages for counts including misappropriation of trade secrets, CFAA violation, and breach of fiduciary duty.
OneTrust Home Loans has filed a lawsuit in U.S. district court in Arizona against rival lenders E Mortgage Capital (EMC) and United Wholesale Mortgage (UWM), alongside 31 former employees. The company alleges a coordinated scheme to steal trade secrets and divert more than $31 million in loan volume.
The complaint, filed June 4, asserts that the former employees secretly funneled borrower information and loan opportunities to EMC and UWM while still employed by OneTrust, which operates as CalCon Mutual Mortgage. OneTrust claims the defendants "improperly obtained and exploited" its confidential information, trade secrets, and business infrastructure for their own financial gain.
As of March 12, 2024, the lawsuit states that the group of departing employees had successfully solicited at least 79 loans away from OneTrust, representing an aggregate volume of just over $31 million. The alleged misconduct came to light during the discovery process of a separate legal dispute initiated by former employees.
EMC issued a statement asserting a "clear and firm policy" against new employees bringing leads or information from former employers, and expressed confidence in its legal position. UWM dismissed the claims as "without merit" and stated it would defend itself vigorously.
According to the lawsuit, a key part of the alleged scheme involved the unauthorized use of the third-party platform Floify, alongside personal email domains, to process borrower leads covertly and redirect them to EMC and UWM. This allegedly occurred despite instructions to use OneTrust's authorized systems like Blend. The Arizona division was reportedly led by former senior vice president Tim Potempa, who departed OneTrust for EMC in early 2024 with a large team and significant annual production. OneTrust alleges that Potempa and other leaders engaged in coordinated efforts to transition pipeline and personnel, despite employment contracts prohibiting solicitation of OneTrust employees for 18 months post-departure. The company also claims UWM received and funded loans while "willfully blind" to their origin from OneTrust personnel and systems. OneTrust is seeking damages for multiple counts, including misappropriation of trade secrets, violation of the Computer Fraud and Abuse Act, breach of fiduciary duty, tortious interference, civil conspiracy, and unjust enrichment.