Sixteen Texas property owners have sued Clayton Homes Inc., claiming the Blount County company forged their signatures to fraudulently assume ownership of their land in deals to finance manufactured homes.

In a lawsuit filed Monday, Horacio Oliveira and Lydia Olivarez, allege that on Dec. 7, 2001, Clayton, its retail and finance divisions CMH Homes Inc. and Vanderbilt Mortgage, and an associate, Benjamin Joseph Frazier, forged Olivarez's signature to an affidavit of heirship in order to fraudulently convey her ownership of land in Duval County, Texas, to the companies.

The suit also says the defendants intended to have the forged signature filed with Duval County representing the company's valid ownership.

Oliveira and Olivarez are seeking $10 million each in damages.

In a second suit filed Monday, Carlos C. Garcia Jr. and Emeteria N. Garcia of Duval County, which is near Corpus Christi, make similar charges against the defendants dating to Jan. 11, 2001. They also are seeking $10 million in damages a piece.

Another eight similarly themed suits dating from September 2001 to April 2002 against the same defendants were filed May 6 in Duval County, with each defendant asking $10 million in damages.

David Rumley, a lawyer with the Corpus Christi law firm of Wigington Rumley LLP, which is representing the plaintiffs, said families have owned the land at issue for generations, going back to the era of Spanish land grants.

He said children and grandchildren of the owners purchased Clayton houses to put on parcels and sought financing through Vanderbilt Mortgage.

Rumley said while the homebuyers did not own the property, Clayton Inc. financed the deals, then claimed ownership of the property through fraud.

"It's happened time and time and time again," Rumley said, adding that in two cases Clayton has already sold the land of which it took possession.

Rumley, who said Frazier notarized the documents, noted that only two cases involved defaults on the home loans. In the other eight cases, Clayton is holding the property deeds, he said.

Clayton spokesman Chris Nicely said the company can't comment about ongoing litigation other than to say an internal investigation is under way. "We are aware of it and investigating it from our side," he said.

Assistant business editor Bill Brewer may be reached at 865-342-6319.

- Copyright 2004, Knoxville News-Sentinel Co.