Mass AG Brings Civil Charges Against Man Who Allegedly Fraudulently Obtained Mortgages & Allowed Them To Go Into Default

From the Massachusetts Attorney General's Office:

• Attorney General Martha Coakley’s Office has filed a lawsuit against an Adams investor who allegedly obtained inflated loan proceeds by fraudulently procuring mortgages on multi-family homes and commercial buildings in Adams, Greenfield, North Adams, and Pittsfield. The lawsuit, filed in Suffolk Superior Court, alleges that Richard E. Doherty devised a scheme by which he submitted false qualifying information and documentation to obtain mortgage loans for property purchases and refinances. Doherty then failed to repay the mortgages and allowed the houses to fall into foreclosure. Doherty, 63, was served notification of the lawsuit [last week]. The Attorney General’s Office is seeking civil penalties, restitution, attorneys’ fees, and disgorgement of ill-gotten gains from Doherty.

For more, see Attorney General Martha Coakley Files Lawsuit Alleging Significant Mortgage Fraud in Western Massachusetts (Alleged Fraud Caused Numerous Properties to Fall Into Foreclosure).

For more details on the alleged scheme as set forth in the Massachusetts AG's lawsuit, see Complaint - Commonwealth of Massachusetts v. Doherty.