Connecticut Attorney A Target In Mortgage Fraud Lawsuits

A recent story in The New York Times features Connecticut attorney Maurizio D. Lancia who, along with his Trumbull-based mortgage brokerage firm, Royal Financial Services L.L.C., is currently embroiled in a number of civil lawsuits alleging that he played a part in a mortgage fraud scam that duped unwitting straw buyers into buying homes that they couldn't afford using subprime mortgage financing that ultimately ended up in foreclosure.

In one case, brought by the State of Connecticut, state Attorney General Richard Blumenthal said of them and their co-defendants:

• “The defendants misled consumers and mortgage lenders into property purchases that financially destroyed dozens of homebuyers, while benefiting only the defendants, their associates and family members.”

In this case, the state of Connecticut is seeking civil penalties for violations of the Unfair Trade Practices Act and financial relief for those harmed. The co-defendants in this case include Elisabeth Athan Real Estate, L.L.C., of Shelton, CT and Jose Guzman of Waterford, CT, a former employee of Royal Financial who was recently charged with mail fraud and wire fraud by Federal investigators and prosecutors. For more, see Promises Left Buyers Destitute, Suit Says.

Go here for other posts on this mortgage fraud investigation.