Investors Want Shares Released From Mortgage Lender

Law360, New York (May 3, 2006, 12:00 AM EDT) -- Less than a month after USA Commercial Mortgage Company, a short-term mortgage lender, filed for bankruptcy, certain investors in the company are up in arms over loan shares they argue should be released by the court.

The Las Vegas-based USA Capital, which raises investment funds to make short-term mortgage loans to high-risk real estate and commercial property clients, filed for Chapter 11 protection on April 13 with $950 million in assets.

That move came amid widespread anger from its investors, who were lured by double-digit interest...
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