LAWSUITS NEWS & LEGAL INFORMATION
$700,000 payout resolves mortgage kickbacks lawsuit.
Hartford, CT: (Dec-10-07) State Attorney General Richard Blumenthal's office brought charges against Reiner, Reiner & Bendett, a law firm, Absolute Mortgage Solutions, a mortgage company and Century 21 Access America, a real estate broker, alleging that they engaged in kickback schemes that cheated hundreds of home buyers for mortgage-related services. Sources at the AG's office stated that the allegations came to Blumenthal's attention with complaints from consumers and a lawyer who questioned why Reiner, Reiner & Bendett were receiving so much business from Absolute Mortgage Solutions.
The suit claimed that the allegations expose an uneven playing field between the real estate industry, which is involved in numerous property transactions, and less-experienced home buyers. Blumenthal sued Farmington law firm of Reiner, Reiner & Bendett in October 2007, accusing it of concealing $142,200 in kickbacks and inducements between 2002 and 2005. The law firm, which also sells title insurance, used sham service, rental and other agreements to conceal the payments.
The suit alleged that Reiner agreed to pay mortgage broker Absolute Mortgage Solutions of East Hartford $200 per customer for closing services, including ordering a title search, assembling closing documents and coordinating the closing. Reiner paid Absolute $76,200 in 2004 under the agreement. Century 21 Access America of Wethersfield was also accused of steering title insurance business to Reiner, Reiner & Bendett. Connecticut law prohibits title insurance agents from paying for referrals. As part of a settlement reached, the three companies have agreed to pay $700,000 in fines, forfeitures and restitution to resolve kickback allegations.
[NEWSDAY] State announces settlement over real estate kickback allegations
Published on Dec-12-07
The suit claimed that the allegations expose an uneven playing field between the real estate industry, which is involved in numerous property transactions, and less-experienced home buyers. Blumenthal sued Farmington law firm of Reiner, Reiner & Bendett in October 2007, accusing it of concealing $142,200 in kickbacks and inducements between 2002 and 2005. The law firm, which also sells title insurance, used sham service, rental and other agreements to conceal the payments.
The suit alleged that Reiner agreed to pay mortgage broker Absolute Mortgage Solutions of East Hartford $200 per customer for closing services, including ordering a title search, assembling closing documents and coordinating the closing. Reiner paid Absolute $76,200 in 2004 under the agreement. Century 21 Access America of Wethersfield was also accused of steering title insurance business to Reiner, Reiner & Bendett. Connecticut law prohibits title insurance agents from paying for referrals. As part of a settlement reached, the three companies have agreed to pay $700,000 in fines, forfeitures and restitution to resolve kickback allegations.
[NEWSDAY] State announces settlement over real estate kickback allegations
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