Attorney General Michelle Henry announced that a civil complaint has been filed against a group of Lehigh Valley-based mortgage brokers and their manager, Barry Newhart, alleging a kickback scheme that involved real estate agents directing potential homebuyers to the brokers.

The mortgage broker defendants are: Bright Financial Group LLC; Conquest Mortgage LLC; Flagship Home Loans LLC; Legacy Mortgage Partners LLC; Nittany Home Loans LLC; and MCT Financial LLC.

Newhart and the brokers offered real estate agents discounted ownership in a joint venture mortgage brokerage company, sporting event tickets, dinners and other kickbacks in exchange for the agents steering clients to the mortgage brokerage, according to the complaint.

The office of attorney general’s lawsuit alleges that Newhart and the brokers’ sales practices violate Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, the federal Consumer Financial Protection Act, and the Real Estate Settlement Procedures Act. The office is seeking injunctive relief, civil penalties, restitution, costs and attorneys fees, as well as other relief to end this kickback scheme.

“Buying a home can be a stressful and challenging time, and this group of mortgage brokers and real estate agents conspired to serve themselves while betraying buyers,” Henry said. “Consumers, especially those who are making large financial investments like the purchase of a home which is very often a family’s most valuable asset, deserve to know if businesses assisting them have conflicts of interest.”

According to the lawsuit, in an attempt to evade a federal ban for the kickback scheme, Newhart allegedly concocted and executed a complex scheme in an attempt to disguise the kickbacks as stock sales and cash to referring real estate professionals.

Henry urges any consumers who believe they may have been a victim of any of the defendants’ business practices to file a complaint online, by calling the Consumer Protection Hotline at 1-800-441-2555, or by emailing scams@attorneygeneral.gov.

The complaint was filed in the United States District Court for the Eastern District of Pennsylvania.