FBI investigating NH mortgage company that closed

AP News
Posted: Nov 17, 2009 1:00 PM

A mortgage company in Meredith that closed suddenly last week is undergoing a criminal investigation by the FBI.

State Attorney General Michael Delaney confirmed Monday that the FBI investigation of Financial Resources Mortgage Inc. had expanded beyond New Hampshire.

Financial Resources closed its doors Nov. 9, as did two other businesses sharing its address. A sign on the door said the company was closed because of "unforeseen circumstances." The sign said information about the closure would be made available "as soon as possible."

New Hampshire authorities are reviewing at least six complaints against the firm. The company's managers, Scott David Farah of Meredith and Donald Dodge of Belmont, have not been seen since the business closed.

"He's going to be back," said Robert Farah, Scott Farah's father, told WMUR-TV on Monday. "He's not running, but he needs to get his mental health straightened out."

Farah said he has kept in touch with his son. When asked if his son had explained to him why the business closed, he said, "I think that he just didn't get the money that was owed to him in fast enough to pay the investors."

Harry Bean of Gilford has sued the company's managers, saying he and his family invested $4 million in various mortgage and beneficial interests in trust over four years. He said he received a call Nov. 8 from Dodge that "no further payments" would be forthcoming on the family's investments and that the "money was missing," according to his complaint.

Also filing suit late last week were Laconia residents Martha Mason and Deirdre Ritchie, who together invested $100,000 in a subdivision project in Litchfield in October.

Terrence Burns, a Florida resident, sued Monday, saying the bulk of his $800,000 IRAs is probably gone.

In their petition Monday, Robert and Chris Furgerson detailed nearly $1.6 million of investments over the past two years into a variety of mortgages and businesses. The Furgersons' hometown was not immediately available.

A Belknap County judge is scheduled to meet with plaintiffs Dec. 4.

(This version CORRECTS that Delaney made comments Monday, not Tuesday. )