Fraud Lawsuit Filed Against Two Tucson Real Estate Companies

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Arizona Attorney General Mark Brnovich’s office filed a consumer fraud lawsuit against two Tucson businesses, Deed and Note Traders, LLC and 881 Home, LLC, for deceiving consumers in transactions.

The lawsuit alleges that the defendants sold houses under a “wrap mortgage” arrangement and failed to make their loan payments, despite collecting down payments from consumers. The defendants also allegedly violated the Deed and Note Traders’ 2006 Consent Decree with the state by failing to provide consumers a title report and a minimum 15-year loan repayment term.

The lawsuit is seeking restitution for up to $10,000 in civil penalties for each violation of the Arizona Consumer Fraud Act, $25,000 for each violation of the consent decree, injunctive relief, attorney’s fees and costs, and the amount owed from Deed and Traders on the 2006 Consent Decree.

Judge Upholds Dismissal of Case Against Resort Developer

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In Helena, Montana, a U.S. bankruptcy judge supported the court’s decision regarding the state of Montana not being able to file an involuntary bankruptcy petition against Tim Blixseth, co-founder of Yellowstone Club, over ten years ago.

The Yellowstone club filed for bankruptcy in 2008 and Blixseth was accused of pocketing 375 million  dollars in Credit Suisse Loans. After an audit had been conducted, it was found that Blixseth owed $56.8 million in taxes, penalties, and interest arising from several audit issues.

Blixseth maintains that the state did not uphold the law.

On June 3, 2021, a Nevada Judge, Mike N. Nakagawa, confirmed the ruling to dismiss the involuntary petition, noting it had lingered for ten years. The case was then referred to bankruptcy court to determine if it should be dismissed.