Legal News

Mortgage fraud alleged against Riverside business

By Richard Binder

A lawsuit filed yesterday in U.S. Central District Court in Los Angeles is seeking an injunction to shut down the operations of The Team Realty Group and Nations West Investments, with offices in Riverside, Grand Terrace and La Habra. This is the latest of a series of recent enforcement actions by the Department of Justice in a national crackdown on mortgage fraud.

Seven defendants, including Peter G. Morris, a licensed broker from San Bernardino County who ran the three offices, are accused of submitting falsified loan applications so their clients could obtain mortgages insured by the Federal Housing Administration and the Veterans Administration. The government is seeking up to $5 million in fines under the Financial Institutions Reform, Recovery and Enforcement Act against each defendant.

Leon Weidman, chief of the civil division of the U.S attorney's Central District office, said of five fraud cases that his office recently filed seeking relief for government financial institutions, the alleged Riverside-based mortgage fraud was the largest and most complex.

Full story at pe.com.

Full post as published by Legal Pad | LA on June 24, 2010 (boomark / email).