Former real estate lawyer accused of mortgage fraud
August 23rd, 2008 | by admin |THE REGION A grand jury in Middlesex County indicted a former Somerville real estate lawyer on charges of mortgage fraud and stealing more than $2 million from lenders by “stacking” numerous mortgages on properties owned by himself and family members. Middleborough resident Kevin Carey, 48, engaged in the scheme between April 2002 and September 2004, according to the office of Massachusetts Attorney General Martha Coakley. Carey and his lawyer could not be reached yesterday for comment. The state said Carey obtained three mortgages for one Medford house, two mortgages each for two Everett houses, and one for another Medford house, but did not pay off the properties’ existing loans. (Kimberly Blanton)
S&P gives $1.06b of Mass. bonds 2d-highest rating Standard & Poor’s gave a AA rating - its second highest - to $1.06 billion worth of Massachusetts general obligation bonds, with a stable outlook, citing the state’s reserves and relative wealth. The rating agency also affirmed its AA rating on Massachusetts parity bonds, with a stable outlook. Standard & Poor’s credit analyst Karl Jacob said the rating “reflects the Commonwealth’s strong reserve levels, which should provide flexibility and a cushion in the event of a drop in revenues in the current economic slowdown.” But constraints on the rating include the state’s high debt burden and large unfunded pension liability. (Ross Kerber)
THE NATION Merrill Lynch reaches $8.5b settlement with SEC The Securities and Exchange Commission reached an $8.5 billion agreement with Merrill Lynch & Co. to settle allegations the firm misled investors when marketing auction-rate debt. Merrill will buy back up to $7 billion in securities and take steps to cover investors’ losses, the SEC said. The bank must also use “best efforts” to help other businesses and institutional clients unload about $1.5 billion in frozen debt. The settlement requires Merrill to reimburse individuals, small businesses, and charities for losses if they already sold their holdings. It also gives those customers an edge in arbitration claims over other damages, such as from missed business opportunities. (Bloomberg)
FDA approves Amgen drug for blood-clotting disorder The Food and Drug Administration approved a biotech drug from Amgen Inc. to treat a rare blood-clotting disorder. The FDA backed Nplate for a disorder that causes the body to attack its own platelets. The condition, which can cause bruising and bleeding after minor injuries, affects about 140,000 people. Regulators said Nplate is the first drug that directly encourages platelet production by stimulating bone marrow. The FDA approved the drug based on two studies showing it increased patients’ platelet count over six months. (AP)
American Airlines parent might issue more stock AMR Corp., parent of the world’s largest airline, American Airlines, said it may sell as much as $300 million worth of newly issued shares for uses including debt repayment and aircraft purchases. The timing of the possible sale wasn’t specified in a Securities and Exchange Commission filing. At yesterday’s closing price of $10.33 a share, the move may involve more than 28.5 million AMR shares. A sale would allow AMR to take advantage of shares that have more than doubled in price since early July, when jet-fuel costs peaked. An American spokesman declined to comment on timing or use of the proceeds beyond what was in the regulatory filing. (Bloomberg)
US Mint to resume sales of 1-ounce gold eagles The US Mint said it will resume limited distribution of its 1-ounce American Eagle Gold coins a week after suspending sales because investors and collectors depleted the supply. In a memo to authorized dealers, Cathy Laperle, a Mint official, said the coins will be allocated “on a weekly basis until we are able to meet demand.” The Mint will resume taking orders Monday, Laperle said. Citing “unprecedented demand,” the Mint halted sales Aug. 15. Gold prices soared over the past year, with the most active gold futures reaching a record $1,033.90 an ounce on March 17. Prices have since declined. American Eagle coins are available in other weights as well as in silver and platinum, the Mint said. (Bloomberg)
