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Florida Office of Financial Regulation Files Action against Berman Mortgage Corp, M.A.M.C., Inc, et al

12/11/2007

Contact: John B. Harper, (305) 536-0308
             John W. Kneissel, (305) 536-0493
 
The Florida Office of Financial Regulation (OFR) filed a complaint today in Miami-Dade County Circuit Court seeking an injunction against Berman Mortgage Corporation, M.A.M.C., Inc., and other related entities and requesting appointment of a receiver.  The complaint alleges the defendants sold unregistered securities in the form of fractionalized interests in mortgages, operated as an unregistered securities dealer, made misrepresentations to investors, and misapplied investors’ monies in connection with the funding of commercial mortgage loans.  The Honorable Thomas Wilson, Circuit Court Judge for Miami-Dade County, considered the filing by OFR and entered an Order appointing Michael I. Goldberg as receiver for the assets of Berman Mortgage Corporation, M.A.M.C., Inc., and other related entities controlled by Dana J. Berman.
 
The OFR complaint alleged the defendants obtained at least $192,000,000 from more than 700 individual investors.  The defendants provided little or no financial disclosure to investors; however, they represented investors would receive returns averaging from 12% to 14% a year.  The investors’ monies were used to fund the acquisition and construction of commercial real estate projects.  The majority of these projects are incomplete and the mortgage loans are in default. 
 
“The Office of Financial Regulation has and will continue to aggressively investigate mortgage companies that solicit monies from investors.  Any mortgage companies found to have violated Florida Statutes will be dealt with to the fullest extent of the law,” said Don Saxon, OFR Commissioner.
 
Investors seeking further information should contact the Receiver, Michael I. Goldberg at (800) 223-2234 or at the following website:  www.Bermanmortgageinfo.com.
 
The Florida Office of Financial Regulation encourages investors to thoroughly investigate investment offerings and to call OFR at 1-800-848-3792 to determine if the company and broker(s) are licensed, and if they have a history of consumer complaints or regulatory actions.
 
About the Florida Office of Financial Regulation
The Office of Financial Regulation (Office) is dedicated to safeguarding the private financial interests of the public by licensing, chartering, examining and regulating depository and non-depository financial institutions and financial service companies in the State of Florida.  The Office protects consumers from financial fraud, while preserving the integrity of Florida’s markets and financial service industries.  Please visit our website at www.flofr.com or call us toll free within Florida at 800-848-3792 or directly at 850-410-9898.