Michigan’s OFIS Fights Fraud with Enforcement Actions

January 14, 2004

Michigan’s Office of Financial and Insurance Services (OFIS) Commissioner Linda Watters announced that OFIS has taken enforcement action against two reported unscrupulous mortgage companies under the Mortgage Broker, Lenders, and Services Licensing Act (MBLSLA).

On Dec. 12, 2003 OFIS issued and entered a Final Decision with an Order of Prohibition in the case OFIS v Select Mortgage L.L.C., Kalil Khalil and Tariq Hamad. An investigation in to the actions of Select Mortgage L.L.C., Kalil Khalil and Tariq Hamad reportedly found a pattern of fraud, deceit and material misrepresentation in connection with mortgage broker lender activities in violation of the MBLSLA Section 22(a) and (b).

The Order prohibits Kalil Khalil and Tariq Hamad from being employed by, an agent of, or control person of any licensee or registrant under the MBLSLA or a licensee or registrant under a financial licensing act.

In the case OFIS v Metrowide Mortgage Corporation, OFIS issued a Final Decision on April 2, 2002 that permanently revoked the license of Metrowide Mortgage Corporation under the MBLSLA and ordered Metrowide Mortgage Corporation to pay a civil fine for each of its reported violations of the MBLSLA totaling $6,000 and reasonable and necessary costs of the investigation by OFIS.

Metrowide Mortgage Corporation appealed the Final Order to the Michigan Supreme Court. The court issued an Order denying the appeal last month.

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