Massachusetts Attorney General Andrea Joy Campbell announced on Mar. 11 a $2.25 million settlement with MV Realty of Massachusetts, LLC, its CEO Antony Mitchell, and COO David Manchester. The agreement resolves allegations that the company misrepresented itself as a real estate brokerage while marketing a deceptive loan product to financially struggling homeowners in the state.
The settlement is significant because it addresses concerns about predatory lending and deceptive business practices targeting vulnerable homeowners. Under the terms of the agreement, MV Realty and its CEO will pay $2.25 million to the Commonwealth, with $1.85 million suspended if they comply with the agreement. The company is also barred from enforcing its agreements with consumers and must release mortgages obtained through these contracts, which is expected to save residents at least an additional $7 million.
“For most Massachusetts residents, a home is their most valuable asset and an enduring symbol of the American Dream. MV Realty knowingly used malicious marketing practices to take advantage of hundreds of cash-strapped homeowners across Massachusetts, stripping home equity from buyers and owners,” said AG Campbell. “While this settlement agreement cannot undo all the harms caused by MV Realty, it will provide meaningful relief for impacted homeowners and hopefully help them regain a sense of stability.”
The lawsuit filed by the Attorney General’s Office in December 2022 alleged that MV Realty concealed key contract terms from consumers through unfair sales tactics. The company’s “Homeowner Benefit Agreement” offered small cash payments—typically less than $1,500—in exchange for a 40-year exclusive right for MV Realty to act as listing broker when selling the home or upon other transfers such as death or foreclosure.
According to allegations by the Attorney General’s Office, MV Realty targeted people searching for small loans or public benefits using misleading advertisements that implied government affiliation and phrases like “Remember, because it’s not a loan, there is NO repayment” and “you NEVER repay these funds.” Salespeople reportedly pressured homeowners into signing contracts without fully understanding them by withholding documents in advance, using small print sizes, not leaving copies after signing, and sending uninformed mobile notaries to rush signatures.
In March 2023, AG Campbell secured a preliminary injunction against MV Realty prohibiting further deceptive marketing practices and requiring release of existing mortgages; once approved by court order under this new agreement, those restrictions will become permanent.
