New Hampshire AG seeks bankruptcy for mortgage co.

AP News
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Posted: Nov 20, 2009 5:59 PM

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 Friday that he has filed involuntary bankruptcy petitions against Financial Resources Management and C L and 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.