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Interim trustee appointed for closed firms

December 02, 2009
MEREDITH — US Bankruptcy Court has accepted a request by the state Attorney General's office to start involuntary bankruptcy proceedings and appoint an interim trustee for Financial Resources Mortgage, Inc. and CL and M.

Proceedings began on the Meredith-based firms after their doors abruptly closed in mid-November. Now state agencies are working with the FBI to investigate the firm as lawsuits have piled up from investors.

According to a statement released from the Attorney General's office on Nov. 20, the State learned that money obtained from various investors had been used by the companies for the construction of housing developments and other construction projects, and individuals who obtained mortgages from the company and are ready and willing to make payments on their outstanding mortgages, have been unable to determine where to direct their payments. Some investors, who are fearful of losing their investments, have demanded direct payment from homeowners or threatened to take possession of property securing the various loans.

In the petition against the company, the statements says the state alleged Financial Resources shareholder Scott Farah and CL and M's shareholder Donald Dodge, have abandoned their respective businesses and individuals have contacted the AG's office claiming to have lost approximately $23 million owed to them by the two companies.

The state petitioned the New Hampshire division of US Bankruptcy Court in Manchester to appoint an interim trustee to manage assets and collect payments.

Associate Attorney General Richard Head said this request was granted and a hearing was scheduled for Wednesday at US Bankruptcy Court to give Farah and Dodge an opportunity to challenge the decision.

Head said attorneys for Dodge and Farah have been in contact with the Attorney General's office.

Steven Notinger of the Nashua-based Donchess, Notinger, and Tamposi was named the interim trustee for Financial Resources and CL and M.

The Donchess, Notinger, and Tamposi website contains information and instructions for those who sent payments to the two companies to send payments to and request information from Notinger.

"There are many of you," the webpage reads. "We have been appointed by the Bankruptcy Court to recover the assets of these entities and others and disburse them to creditors as efficiently as possible. We realize many of you are owed a significant amount of money. We intend to use this web site to provide you current information regarding the status of this case."

According to the website a meeting is being arranged with investors at Bankruptcy Court. Investors can attend in person or take part via conference call. A meeting date will be posted on the website and emailed to those who have been in contact with the firm.

"The purpose of this meeting is to answer any preliminary questions you may have," the website said. "There will be additional meetings and postings on this web site as the case progresses and you should refer to this web site periodically for updates."

For more information on the process, call Steven Notinger at 866-7266 or visit www.donchessnotinger.com.

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