MORTGAGE COMPANIES
NEW YORK INVESTIGATION SHOCKING IRREGULARITIES.” NEW YORK, December 26. The State Superintendent of Insurance has revealed “ shocking irregularities ” in the management of some of the fourteen real estate title and mortgage companies of New York which he took over a few weeks ago for rehabilitation. As a consequence he has turned over to the district attorney’s office a record of the investigation made by his agents and the evidence of more than 200 witnesses. The superintendent told the district attorney that among other things some of these companies, which had had a business amounting to several hundred million dollars, had conveyed properties without adequate consideration to favourites of company officials; they had sold securities to innocent purchasers when the issues were actually in default; they had failed to treat money’s received in trust as trust funds; and they had made improper substitutions in certificate issues of defaulted mortgages. , The outcome of the superintendent s action is expected to be the prosecution of a number of officials of these companies, on crinjinal charges^
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https://paperspast.natlib.govt.nz/newspapers/ESD19340115.2.71
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Evening Star, Issue 21619, 15 January 1934, Page 7
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174MORTGAGE COMPANIES Evening Star, Issue 21619, 15 January 1934, Page 7
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