AG Blumenthal Starts Investigation In Qustionable Real Estate Deals

TheDay.com in New London, Connecticut reports that Connecticut Attorney General Richard Blumenthal is beginning an investigation on the seemingly questionable real estate deals involving a New London area group.

TheDay.com has an investigative report about local real estate agent Isaura Guzman and her father, loan officer Jose Guzman, who are at center of complaints of questionable practices in local real estate transactions. Reportedly, Isaura Guzman "was selling multifamily homes for Elizabeth Athan Real Estate LLC in some of New London's most rundown neighborhoods for as much as twice the appraised values listed in the city's tax records. The houses would enter the Multiple Listing Service — a property-listing service for Realtors — and would sell or be listed as a pending sale within 24 hours."

In addition, TheDay.com reports that the name of Alan Messier, a real estate attorney in New London appears on dozens of housing transactions that were reviewed as representing the buyer and Maurizio Lancia, an attorney in Trumbull, Connecticut, has represented the sellers in many of Guzman's transactions. Lancia is also listed by the Secretary of the State's Office as agent for JG Investments, Jose Guzman's firm. For more, see:

• Predatory Lending Shatters Dreams Of Dozens Of First-Time Home Buyers (New London realty agent, loan officer at center of complaints of questionable practices )
• Blumenthal Starts Investigation Of Mortgage Cases

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Connecticut Real Estate Agency Sued; Predatory Lending, Fraud Alleged

In Connecticut, the New London real estate agency that has been the subject of an investigation by the Connecticut Attorney General involving a possible straw buyer, mortgage fraud scam has now been sued by four former clients for alleged predatory lending, claiming they were defrauded of their money and credit, according to a story by TheDay.com.

New London attorney Jason Westcott filed three lawsuits on behalf of the former clients in a Connecticut state court naming the real estate agency Elizabeth Athan Real Estate as the defendant in the lawsuit. This company, which lists loan officer Jose Guzman, real estate broker Elizabeth Athan, and her husband, William Athan, as its principal agents, are also listed as participants in dozens of real estate transactions under investigation by Connecticut Attorney General Richard Blumenthal's office.

For more, see NL Real Estate Firm Target Of Three Lawsuits Alleging Fraud (Company took money and ruined credit, according to complainants).

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Connecticut AG Closing In On Legal Action In Predatory Lending Scheme

In Connecticut, TheDay.com reports:

• "Connecticut Attorney General Richard Blumenthal said Friday that his office has had preliminary discussions with the chief state's attorney and is close to taking legal action in a local predatory lending scheme that has affected dozens of individuals, many of them Hispanic. Those individuals now are facing foreclosure and ruined credit after they were approved for home loans they could not afford based on false information."

TheDay.com ran a story last Sunday (Predatory Lending Shatters Dreams Of Dozens Of First-Time Home Buyers) reporting that in a number of transactions it reviewed, houses that consumers purchased appear to have been sold at inflated prices, and false information may have been used to qualify buyers for high-interest, variable loans in the sub-prime housing market. Reportedly, "[e]ach transaction involves the same group of individuals — [loan originator] Jose Guzman; Elizabeth Athan Real Estate, which employs Guzman's daughter, Isaura Guzman; New London lawyer Alan Messier and Trumbull lawyer Maurizio Lancia."

Reportedly, AG Blumenthal's office received additional complaints from homeowners since last Sunday's article and that his office is building a case and is close to initiating legal action. For more, see Predatory Lending May Draw Legal Action By AG (Blumenthal Asking People Who May Be Victims To Call Him).

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Another Lawsuit In New London Alleged Mortgage Fraud Scam

In Connecticut, The Day reports:

• "A Waterford man whose housing complaint has garnered the attention of the Connecticut attorney general has filed a lawsuit in New London Superior Court seeking damages for real estate practices he calls 'fraudulent, oppressive, unethical, immoral and unscrupulous'. Luis Zayas, who told his story in The Day in May, purchased a $330,000 Waterford home in 2005 and is in severe debt and facing foreclosure. Zayas says the financing he received through New London loan originator Jose Guzman was based on bogus listed assets and income figures. The $81,000 worth of improvements he believed the house had received before the sale were faked as well, he says."

Named in the lawsuit are mortgage loan originator Jose Guzman, Zayas' then attorney Alan Messier; the seller, Juan Velez; the seller's attorney, Maurizio Lancia; the appraiser, Peter Kilbride; Royal Financial Services LLC, and Elizabeth Athan Real Estate in New London.

Guzman and other defendants named in the suit are also being sued by three other people who have similar claims. Connecticut Attorney General Richard Blumenthal is investigating the allegations and has said he is near to filing a suit. Meanwhile, several more people have come forward to both The Day and Blumenthal to claim they were victims of a scheme that includes purchasing houses in different names, redirecting profits and falsifying financial information in order to profit from the sale of houses in New London, Waterford and Norwich at the expense of the homebuyers and sellers.

For more, see Lawsuit Alleges 'Fraudulent' Real Estate Practices (Plaintiff Says He Was Targeted Because He Was A First-Time Homebuyer).

For story update, see Real Estate Offices Close Amid Lawsuits And Foreclosures (Alleged Predatory Lending Under Investigation By State) (TheDay.com - 8-29-07).

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Connecticut AG Files Suit In Predatory Lending, Mortgage Fraud Scam

TheDay.com reports:

• "Attorney General Richard Blumenthal and state Banking Commissioner Howard F. Pitkin today served a lawsuit against New London loan officer Jose Guzman and his associates, accusing him of leading “an extensive predatory lending scheme” that violated the Connecticut Unfair Trade Practices Act and state banking law. Also named in the suit are Royal Financial Services, LLC, in Trumbull, First Source Mortgage Solutions, Inc., in Branford, Elizabeth Athan Real Estate, LLC, in Shelton, J.G. Property Management & Investment, LLC, of New London and Attorney Maurizio Lancia, of Trumbull. Cutting Edge Contracting of Norwich, of which Brian Guimond is the sole proprietor, according to court documents, is also named in the suit."

For more, see New London Loan Officer Sued for Leading Predatory Lending Scheme, and State Suit Alleges Predatory Lending (Guzman, associates accused in scam that targeted Hispanics).

See also, Fighting To Keep Their Homes (Borrowers Victimized By Predatory Loans Look For Ways To Stay).

For AG Press Release, see Blumenthal Sues Brokers, Realtors And Others For Vast Predatory Lending Scheme.

For a copy of the lawsuit, see State of Connecticut vs. Royal Financial Services, LLC., et al.

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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.