Startup Lender Sues Rival Over Alleged Sabotage

Lendwise claims Priority Financial Network falsely reported fraud to damage its business

Published on Mar. 5, 2026

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Newly launched California mortgage lender Lendwise Mortgage has filed a lawsuit against rival Priority Financial Network Lending Group and its CEO, Marc Shenkman. Lendwise alleges that PFN falsely reported to shared lending partners that Lendwise organized an "Amended Returns Scheme", even though the alleged scheme actually occurred at PFN under Shenkman's leadership. Lendwise is seeking at least $25 million in damages from the alleged smear campaign, which it claims led to the loss of active transactions and destroyed future business opportunities.

Why it matters

This lawsuit highlights the intense competition and potential for underhanded tactics in the mortgage lending industry, where established players may try to undermine upstart rivals. The case raises questions about compliance oversight, nepotism, and the importance of maintaining trust between lenders and their industry partners.

The details

According to the lawsuit, Lendwise founder Anthony Amini previously worked as president and COO of PFN, where he warned CEO Marc Shenkman about nepotism and unqualified staff in critical roles. Amini left PFN in 2025 to start Lendwise, taking several former PFN employees with him. As Lendwise grew, PFN's business declined. The lawsuit alleges that PFN later discovered one of its own loan officers had used amended tax returns, and in an attempt to deflect blame, Shenkman falsely reported the issue to major industry partners like PennyMac, Rocket, and DeepHaven Mortgage as being associated with Lendwise. This led those partners to terminate their relationships with Lendwise, halting its early momentum and resulting in the loss of active transactions worth millions.

  • Amini left his role as PFN's president in January 2025.
  • Lendwise funded $12 million across 14 loans in its first few weeks and was on pace to exceed $24 million by March 1.

The players

Lendwise Mortgage

A newly launched California mortgage lender that is suing its rival Priority Financial Network Lending Group.

Priority Financial Network Lending Group

A mortgage lending company that is accused of falsely reporting fraud to Lendwise's industry partners in order to sabotage its business.

Marc Shenkman

The CEO of Priority Financial Network Lending Group, who is named as a defendant in the lawsuit.

Anthony Amini

The founder of Lendwise Mortgage, who previously worked as the president and COO of Priority Financial Network Lending Group.

Alex Weingarten

A lawyer at Willkie Farr & Gallagher who represents Anthony Amini.

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What they’re saying

“Lendwise and [Founder] Anthony Amini are the victims of a vicious smear campaign in which PFN and Marc Shenkman spread malicious lies in order to bury their own improper actions. But, neither Lendwise nor Mr. Amini were aware of the wrongdoing that PFN and Mr. Shenkman now freely admit occurred at PFN.”

— Alex Weingarten, Lawyer, Willkie Farr & Gallagher (National Mortgage News)

What’s next

The judge in the case will decide on whether to allow the lawsuit to proceed.

The takeaway

This lawsuit highlights the cutthroat competition in the mortgage lending industry, where established players may resort to underhanded tactics to undermine upstart rivals. It raises concerns about compliance oversight, nepotism, and the importance of trust between lenders and their industry partners.