Another Racketeering Lawsuit Filed Against "Hard Money" Massachusetts Mortgage Lender

In Worcester, Massachusetts, the Worcester Telegram & Gazette news reports:

• A fourth federal lawsuit accusing prominent city businessman David G. “Duddie” Massad and a business associate of running a racketeering enterprise through lending companies has been filed in U.S. District Court. A federal judge rolled the three previous civil cases making similar extortion allegations into one action in February, and yesterday ruled against motions by the defendants to dismiss that case. In the new lawsuit filed Tuesday, bankrupt developer Bernard J. Laverty Jr. of Marshfield alleges Mr. Massad and Marcello M. Mallegni of Southboro “used the threat of foreclosure and bodily harm to force the borrowers to agree to their fraudulent loan terms” and “used their position to force borrowers to pay them kickbacks in the form of cash and ownership interest in the various projects.”

For more, see Fourth racketeering lawsuit filed (Massad, Mallegni accused by Marshfield man).

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