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by CareyBot

A Nevada mortgage brokerage that raised capital by selling real estate investment funds to the public misled investors about the rate of return its funds achieved, according to a Securities and Exchange Commission investigation. In a settlement, Vestin Mortgage Inc. and Vestin Capital Inc. have agreed to hire an outside consultant to review its sales materials for two years, and founder and principal Michael V. Shustek will pay a $100,000 civil penalty. According to the SEC, Vestin has raised $560 million from investors since September 2000 in three separate funds. Most of the money was invested in short-term commercial real estate loans originated and serviced by Vestin Mortgage. While the first two funds initially earned investors 11 percent to 13 percent returns, after about two years...