Owner of closed mortgage company returns to NH

AP News
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Posted: Nov 27, 2009 9:27 AM

A lawyer for the owner of a closed mortgage company being investigated by the state says his client is back in New Hampshire.

Company owner Scott Farah, Financial Resources Mortgage and its partners are at the center of an FBI and state investigation after the company closed suddenly this month.

Since then, dozens of investors and borrowers have claimed that Farah and Donald Dodge are holding at least $23 million in investments.

This week, a U.S. bankruptcy court judge granted the state's request to force Financial Resources and a related business, CL&M, into voluntary bankruptcy. An interim trustee has been appointed to take control of any property, records, money and payments and communications belonging to the two companies.

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A hearing has been scheduled for Dec. 3 at the U.S. Bankruptcy Court in Manchester.