Pennsylvania Attorney General Michelle Henry filed a complaint against a group of mortgage brokers and their manager, Barry Newhart, alleging a kickback scheme that involved real estate agents directing potential homebuyers to the brokers.

According to the complaint, Newhart and the brokers offered agents discounted ownership in a joint venture brokerage company, as well as sporting event tickets, dinners and other things of value, in exchange for the agents steering clients to the mortgage brokerage.

The complaint alleges the brokers violated RESPA and Pennsylvania’s Unfair Trade Practices and Consumer Protection Law.

The brokerages include: Bright Financial Group, LLC; Conquest Mortgage, LLC; Flagship Home Loans, LLC; Legacy Mortgage Partners, LLC; Nittany Home Loans, LLC; and MCT Financial, LLC.

“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 in a press release. “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.”

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