Suit alleges loan fraud, elder abuse
Investors from Florence file a lawsuit in Linn County claiming a “Ponzi scheme” over millions in real estate loans
BY JOE MOSLEY
The Register-Guard
Apr 28, 2009 10:52PM
Three elderly investors from Florence have alleged in a lawsuit filed in Linn County Circuit Court that they were swindled out of $2.2 million in a fraudulent loan-purchase scheme.
Douglas Huntingdon is accused in the lawsuit of misleading investors about the rate of return on the loans he sold them and about real estate that was supposed to be securing the loans. The suit also alleged that some of the loans were fictitious, and that the sale of them “constituted a Ponzi scheme” in which a portion of the money taken from new investors was used to pay returns to previous investors.
Huntingdon’s son said Tuesday that the real culprit was a California firm, and that his father, also, was a victim.
The plaintiffs in the lawsuit — Paul and Florence Patrick and Norma Seay — all are in their 70s, and the lawsuit also maintains that Huntingdon’s actions amounted to elder abuse.
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