Industry News

Real estate scam hits Texas

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The Texas Attorney General's Office is seeking a restraining order and asset freeze against a company that has allegedly defrauded more than 150 homeowners by keeping their mortgage payments. Consumers in the Dallas-Fort Worth and Houston areas reported to the Office of the Attorney General that City Mortgage Services Inc. (which has no affiliation to CitiBank or CitiMortgage) and its principals, Gustavo Duarte and Alfredo Mendez, pocketed thousands of dollars that should have been forwarded to the mortgage companies financing the consumers' homes. The company, which had offices in Dallas, Houston and Austin, shut down abruptly earlier this year, leaving consumers owing their mortgage companies substantial amounts of money in missed payments and late fees, the office announced. "Brazen schemes like these will not be tolerated in Texas," said Attorney General Abbott. "City Mortgage systematically victimized these Hispanic families by exploiting their dreams of home ownership. I am ...