SEC Sues 4 Over $197M Mortgage Lending Scheme

Law360, New York (July 28, 2009, 10:11 PM EDT) -- The U.S. Securities and Exchange Commission has sued four individuals for allegedly raising $197 million from hundreds of investors by misrepresenting the safety and performance of investments that were made as loans to private commercial lender Mortgages Ltd., which ultimately filed for bankruptcy.

The regulator claims that the four promoters and their company, Radical Bunny LLC, violated federal securities laws by pooling investor funds to make loans to Mortgages Ltd., a Phoenix-based originator of high-interest, short-term loans to real estate developers, according to a complaint filed...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.