A federal bankruptcy judge has granted the state's request to have a trustee seize control of the assets of two Meredith financial companies that shut down without notice two weeks ago, leaving dozens of investors in the lurch.

Financial Resources Mortgage and a related firm, CL&M, closed their doors suddenly Nov. 9, state officials say. Since then, dozens of investors and borrowers have come forward, claiming that the companies' principals, Scott Farah and Donald Dodge, are holding at least $23 million in investments. Investigators with the state and federal attorneys general, the FBI, and state banking and securities regulators are investigating the circumstances surrounding the companies' closing.

Late last week, New Hampshire Attorney General Michael Delaney asked a judge to force Financial Resources Mortgage and CL&M into involuntary bankruptcy. Delaney said such a step would help officials figure out what assets might be available to investors who had money with Farah and Dodge. It would also provide a method for borrowers to continue making regular payments on loans they received from Farah or Dodge.

In an order dated Monday, Judge Michael Deasy granted Delaney's request, appointing an interim trustee to take control of any property, records, monies, and payments and communications belonging to the two companies. Deasy also scheduled a hearing on the matter for Dec. 3 at the U.S. Bankruptcy Court in Manchester.

"It appears that (Farah and Dodge) have abandoned their business premises . . . have likely ceased business operations, have removed records and property from their business premises, and have surrendered control of those business premises to the New Hampshire Banking Commission," Deasy wrote in his order. "Accordingly, the court finds that the immediate appointment of an interim trustee . . . is necessary to take control of the property of the estate and to operate the business of (Farah and Dodge)."

Before closing two weeks ago, Farah's firm financed construction projects across the country by collecting money from private investors looking for big returns. The building projects tended to be higher-risk proposals traditional banks rejected because of concerns such as a developer's spotty credit.

Farah charged developers high interest on his loans, which were drawn from trusts that in many cases were controlled by Dodge, according to lawsuits filed by former clients. The investors, in turn, received monthly interest payments, often as high as 13 percent. In most cases, mortgage documents were provided to secure the investors' stake in the project they helped finance.

But in interviews and court documents, several investors said they never received any records to back up their investments. At least one man told the Monitor last week that the condominium development he believed he was funding in Chichester was never actually built, although the trust that lent money to the development now appears to be empty.

Farah and Dodge have until Dec. 23 to respond to the state's bankruptcy petition. Michael Ramsdell, Farah's lawyer, said Farah does not plan to object to the state's effort.

Ramsdell said Farah returned to New Hampshire last week after having left the state about the time of his company's closing. Ramsdell would not comment on the accusations of fraud made by Farah's former investors, but Ramsdell said he has spoken on Farah's behalf with investigators with the FBI and U.S. attorney general.

"He does intend to respond to the investigators," Ramsdell said. "The priority at this point is to deal with the regulatory and law enforcement investigations that are going on."

Mark Howard, Dodge's lawyer, also declined to respond to fraud allegations from former investors with the companies, though he said Dodge was cooperating with investigators. Asked about fears by some investors that their investments have evaporated, Howard said, "In some instances, investors are protected by the mortgages they have on existing projects or building. For others, Mr. Dodge is doing everything he can to try to protect them as much as possible."

A Belknap County Superior Court judge earlier this month barred Farah and Dodge from transferring any assets until arguments are heard on those cases Dec. 4. But a full-blown bankruptcy filing would likely sideline any lawsuits that name Financial Resources Mortgage or CL&M. Many of the suits, however, name several defendants, including other companies and trusts controlled by Farah and Dodge, Farah's wife, and former employees of the two companies.

Also named in many of the lawsuits is the law firm of Gould & Burke, which shared the same address as Farah's and Dodge's companies and which handled real estate closings and foreclosures for Farah's investments, according to court documents and interviews with investors. A phone call to the firm's new office was not returned yesterday.

In a deposition last week, Michael Burke, one of the lawyers in the firm, said his firm currently holds no money on behalf of Farah and Dodge, except in one case, according to a document in one of the lawsuits.