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| Nevada’s Mortgage Lending Commissioner has issued a cease and desist order against a real estate developer who has been offering investments in short-term mortgage loans without a mortgage license.
Las Vegas-based Sure Development and Real Estate ran an advertisement in the Las Vegas Review that promised, “a 15% return on First Trust Deeds in multiples of $40,000.00 secured by a one acre residential lot, 50-60% LTV,” according to the State of Nevada’s documents. But Sure did not seek approval from the Mortgage Lending Division to run the advertisement and failed to include required statements of disclosure including “money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured,” the documents said. In addition, the advertisement failed to identify the company and only provided a telephone number. “A person engages in a ‘deceptive trade practice’ when in the course of his business or occupation he knowingly conducts the business or occupation without all required state, county or city licenses,” the document explained. Phone messages left for James Fales, the listed resident agent and corporate broker for Sure Development, were not returned to MortgageDaily.com. Records show that Sure Development received a business license on October 31, 2005 and Fales did hold a real estate broker’s license in Nevada, but it expired, according to a spokeswoman for Nevada’s Department of Business & Industry. Sure Development has been ordered to pay $30,000 in administrative fines and is barred from advertising any solicitation from private investors unless it is compliant and has the approval of the Division, according to the State’s order. The company says it offers potential investors a “red carpet service” for $1000 which includes a one night stay in Cedar City, Utah, transportation from the airport and a guided tour of the city and listed properties located in Utah, according to its Web site. Related: States Crack Down on Licensees |
