Mortgage Fraud In Central Florida Home Building Operation Suspected
(revised 8-11-07)
A situation that has been described as a "$110 million residential loan dilemma" is currently facing Coast Bank and St. Petersburg-based homebuilder CCI Homes, according to an article in the Bradenton Herald at Bradenton.com.
Sarasota attorney Alan Tannenbaum has reportedly been contacted by about 100 potential clients and anticipates representing at least 50 to 75 who claim to have lost money in the deal. He says the way investors were approached to buy homes constitutes investment fraud. He is representing clients in a potential class action suit against two other companies that worked on investor packages linked to the residential home development.
At least two other attorneys are representing groups of investors whose homes were being built by CCI.
Reportedly, some investors were promised a portion of the home sale price in exchange for allowing their credit scores to be used to obtain construction loans on homes being built by CCI. Bank loans totaling $110 million to 482 borrowers were made and, to date, "[a]bout half of those "homes" still amount to empty lots" according to a recent SEC filing.
To read more, see Coast Bank loan holders may file lawsuit.
For a more recent story on Coast Bank, see Coast Bank discloses SEC inquiry (Bradenton Herald - 8-11-07).
A situation that has been described as a "$110 million residential loan dilemma" is currently facing Coast Bank and St. Petersburg-based homebuilder CCI Homes, according to an article in the Bradenton Herald at Bradenton.com.
Sarasota attorney Alan Tannenbaum has reportedly been contacted by about 100 potential clients and anticipates representing at least 50 to 75 who claim to have lost money in the deal. He says the way investors were approached to buy homes constitutes investment fraud. He is representing clients in a potential class action suit against two other companies that worked on investor packages linked to the residential home development.
At least two other attorneys are representing groups of investors whose homes were being built by CCI.
Reportedly, some investors were promised a portion of the home sale price in exchange for allowing their credit scores to be used to obtain construction loans on homes being built by CCI. Bank loans totaling $110 million to 482 borrowers were made and, to date, "[a]bout half of those "homes" still amount to empty lots" according to a recent SEC filing.
To read more, see Coast Bank loan holders may file lawsuit.
For a more recent story on Coast Bank, see Coast Bank discloses SEC inquiry (Bradenton Herald - 8-11-07).
posted by Home Equity Theft Reporter at 9:25 AM
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