Plaintiff Alleges Banking Giant Engaged in Fraudulent Conduct Post-Bankruptcy Sale

A former property owner is taking legal action against a major banking corporation for allegedly engaging in fraudulent conduct following a court-approved sale of her property. On February 17, 2026, Chryssoula Arsenis filed a complaint in the United States District Court of New Jersey against M&T Bank Corporation. The lawsuit accuses the bank of unlawfully continuing to assert mortgage rights on a property that was sold free and clear of liens.

Chryssoula Arsenis, once the owner of real estate at 6 Quail Run, Warren, New Jersey, alleges that despite the discharge of M&T Bank Corporation’s mortgage lien on August 15, 2025, the bank has continued to act as if it holds a secured interest in the property. According to Arsenis, this includes sending loan statements demanding payment on an already satisfied mortgage and paying property taxes from escrow after the sale. She claims these actions are not only erroneous but also fraudulent and injurious. “Defendant’s actions violate federal law and court orders,” states the complaint, which seeks relief including declaratory and injunctive measures to confirm that M&T Bank has no secured claim or lien on the property.

The complaint details how Arsenis sold her property through a bankruptcy court-approved sale under 11 U.S.C. § 363(f), which was supposed to extinguish all liens and encumbrances. Despite this legal process and the full payment received by M&T Bank Corporation for its claim secured by a mortgage amounting to $759,393.48, Arsenis asserts that the bank continued its unlawful conduct post-sale. She accuses M&T Bank Corporation of violating multiple laws including common law fraud and the Fair Debt Collection Practices Act (FDCPA). The plaintiff is seeking damages for fraud and conversion, as well as trebled and punitive damages permitted by law.

Arsenis’s lawsuit emphasizes that these claims arise solely from post-discharge conduct by M&T Bank Corporation—actions taken after their lien was legally extinguished on August 15, 2025. The plaintiff argues that these are new wrongful acts occurring after any prior foreclosure or bankruptcy proceedings were concluded. In addition to financial compensation exceeding $75,000 for damages caused by what she describes as deceptive practices against public interest, Arsenis seeks judicial declarations confirming her position and permanent injunctions preventing further misconduct by M&T Bank Corporation.

Represented by her attorneys whose names are not specified in this document excerpt, Chryssoula Arsenis is determined to hold M&T Bank accountable for what she views as blatant disregard for legal obligations and consumer protections. This case is being presided over by Judge Michael A. Shipp with Case ID: 3:26-cv-01593-MAS-JBD.