Ameritrust Mortgage sued a group of investors, a broker and title firms in Maryland federal court, alleging they ran a 90-loan real estate fraud scheme using shell LLCs, inflated appraisals and manipulated title work on Baltimore investment properties. The lender says it sustained about $14 million in losses. AI Summary
Ameritrust Mortgage Corp. has sued a group of investors, a mortgage broker, appraisers and title companies in federal court, alleging they orchestrated a real estate fraud scheme in Baltimore that left the lender with more than $14 million in losses.
In a complaint filed last week in the U.S. District Court for the District of Maryland, Ameritrust claims the defendants ran “an extensive real estate fraud ring” involving about 90 loans on Baltimore-area investment properties. These loans caused roughly $14,076,000 in harm to the lender and “severely disrupted the mortgage lending market for investment properties in Baltimore and its surrounding areas,” according to legal filings…