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Meredith
 
N.H. attorney general to force mortgage firm's bankruptcy
More than a dozen clients filed suits
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November 21, 2009 - 12:00 am

The New Hampshire attorney general's office wants to force a mortgage company that closed suddenly into bankruptcy.

Financial Resources Management of Meredith closed abruptly Nov. 9, as did two other businesses sharing its address. Since then, the attorney general's office has heard from people claiming to have lost $23 million owed to them, and the FBI is investigating.

Attorney General Michael Delaney said yesterday that he has filed involuntary bankruptcy petitions against Financial Resources Management and C L & M Inc. He said investors who backed the companies' construction projects have been demanding payment from homeowners and threatening to take their property.

The state asked a bankruptcy court to appoint a trustee to oversee the companies' assets.

"I have taken this action in order to begin the process of an orderly and lawful dissolution of both FRM and C L and M Inc. This step is necessary to provide assurance to those who, in good faith, obtained loans from FRM and C L & M, and are looking for a procedure for making future payments. The filing of the bankruptcy petitions," said Delaney, "will also begin the process to establish a system for the orderly distribution of assets to creditors."

The state's seeks a federal trustee to appoint an interim trustee to take over the assets of the two corporations.

Delaney said, "The appointment of an interim trustee is important and necessary where, as has occurred in this case, the businesses have been abandoned and valuable property has been left unsecured."

In the past week, more than a dozen people have filed lawsuits claiming losses in the millions against Financial Resources Management and C L & M Inc. and the companies' respective principals, Scott Farah and Donald Dodge.

A Belknap County Superior Court judge will hear arguments in those cases Dec. 4.






 

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