Pennsylvania attorney general sues mortgage brokers over kickback scheme

by
January 17, 2025

HARRISBURG, Pa. — Pennsylvania Attorney General Michelle Henry has filed a civil lawsuit against Lehigh Valley-based mortgage brokers and their manager, Barry Newhart, accusing them of orchestrating a kickback scheme with real estate agents to steer homebuyers toward their services.

According to the complaint, Newhart and the involved brokers provided real estate agents with discounted ownership stakes in a joint venture mortgage company, along with perks such as sports tickets and expensive dinners, in exchange for client referrals. Homebuyers were allegedly unaware of these arrangements.

The lawsuit claims that these practices violate Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, the federal Consumer Financial Protection Act, and the Real Estate Settlement Procedures Act. The Attorney General’s Office is seeking injunctive relief, civil penalties, restitution, and legal fees.

“Consumers, especially those who are making large financial investments like the purchase of a home, deserve to know if businesses assisting them have conflicts of interest,” Attorney General Henry stated.

The brokers named in the lawsuit include Bright Financial Group, LLC; Conquest Mortgage, LLC; Flagship Home Loans, LLC; Legacy Mortgage Partners, LLC; Nittany Home Loans, LLC; and MCT Financial, LLC.

Phil Stilton

Phil Stilton

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