Mortgage loan broker settles with Coakley

Ashley Stinnett Jun. 17, 2009, 10:37pm


BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley has agreed to a settlement with mortgage loan broker Leo H. Desire Sr. over allegations of mortgage fraud.

Under the terms of the agreement, Desire can no longer act as a mortgage loan broker or originator. He has also been ordered to reimburse the Commonwealth $60,000 in fees and penalties, as well as pay out $240,000 for profits gained through unlawful mortgage transactions, according to Coakley.

This settlement comes on the heels of last week's agreement reached with Desire's attorney, Valerie Hanserd, after the two allegedly used false information and forged documents to obtain deeds.

Coakley said the State is planning further action against Desire and 17 other defendants for allegedly taking part in a foreclosure rescue scheme in which defendants coaxed homeowners into selling their homes to avoid foreclosure.

Once the homes were sold, the defendants allegedly titled themselves the property, and in some cases sold the homes and kept the profits.

The complaint also alleges both defendants had falsified income, raised the appraisals of the homes, and provided inaccurate information to Housing and Urban Development officials.

Closing statements in the ongoing trial against the third defendant, Primary Mortgage Resource, Inc., have not been scheduled.

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