Industry NewsMortgage

Colorado real estate investment fraud probe underway

Federal, state probes follow on heels of individual lawsuits

Federal and state officials are now probing a Colorado real estate investment company owner who is already being sued by a series of investors. Darin V. DeVoe's Colorado companies, including Home Owner's Solutions, Home Owner's Trust and The DeVoe Group, have been named in a number of lawsuits alleging fraud. Now, agencies including the state's Attorney General and the Division of Securities are probing DeVoe. Residential real estate loan fraud is a national epidemic, costing communities nationwide an estimated $1 billion in 2005, compared with $429 million in 2004, according to the Federal Bureau of Investigation. In 2005, the FBI identified Colorado as one of the top 10 mortgage fraud "hot spots'" in the country, and fraud-fighting legislation is currently underway in the state. "We have received complaints about this individual and his companies and we're taking a look at it," said Kristen Hubbell, spokeswoman for the Office of the Attorney General in Denver. "It's on our radar sc...