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ennsylvania's Attorney General, Michelle Henry, has filed a civil complaint against a group of Lehigh Valley-based mortgage brokers and their manager for allegedly participating in a kickback scheme. The scheme involved real estate agents directing potential homebuyers to the brokers in exchange for discounted ownership in a joint venture company, tickets to sporting events, dinners, and other benefits.

    The buyers were unaware of the arrangement, according to Henry. The lawsuit claims that the manager's and brokers' sales practices violate Pennsylvania state law, federal consumer protection laws, and regulations governing real estate transactions. The Attorney General's office is seeking an end to the alleged kickback scheme, as well as civil penalties, restitution, and other relief.

    In an attempt to disguise the kickbacks, the manager allegedly created a complex scheme that masqueraded the payments as stock sales or cash to referring real estate professionals. The mortgage broker defendants include several companies based in the Lehigh Valley area.

    Attorney General Henry urges consumers who believe they may have been affected by these business practices to file a complaint online or by calling the Consumer Protection Hotline at 1-800-441-2555. A copy of the complaint has been filed in the United States District Court for the Eastern District of Pennsylvania.