Nevada moves against another mortgage firm

With scrutiny of mortgage investments increasing in Southern Nevada, the state Division of Financial Institutions has moved to revoke the license of yet another company -- Moneyline Financial Inc.

The action comes as the state is also seeking an order to halt the operations of All State Financial Group Services. The state filed a complaint June 18 seeking a court order mandating that Robert King III cease operations at All State because he does not have a license. King has yet to respond to the complaint.

In the case of Moneyline, company owner Anita Wizeman agreed to voluntarily surrender her license after the state served her with notice of a license revocation hearing, officials said. Wizeman couldn't be reached for comment.

About six complaints had been lodged against the company, said Deputy Attorney General Terri Williams. Among the allegations was that Wizeman converted investor funds for personal use.

Investor Stanley Kaufman of Las Vegas filed a complaint in January 1997 against Moneyline. He represents about 40 investors who provided loans for construction projects with Wizeman serving as a liaison to match investors with builders.

Kaufman and his fellow investors were expecting a 12.5-percent to a 13.5-percent return on their deals. He said initially things went well, but eventually the money started disappearing once it was in Wizeman's hands.

"She took money for dozens of construction projects," Kaufman said. "The money disappeared."

He said his dealings have landed him in court to gain properties in which he invested so he can sell them to cut his losses. About 10 of those cases are pending.

Kaufman estimates his losses at about $1 million and still counting if legal fees are included.

"It's a smaller version of the Harmon case," he said, referring to the Harley L. Harmon Mortgage Co.

In that case, the state revoked the license of Harmon, a former state assemblyman, after investors in construction loans failed to recoup their money. The Financial Institutions Division has been criticized for failing to shut Harmon's operation down sooner.

A legislative subcommittee held hearings June 30 on mortgage investments and another hearing is slated this month.

Division of Financial Institutions Commissioner Scott Walshaw said the division is continually investigating mortgage companies, stemming from both complaints and from annual audits of companies. He didn't have the number of current investigations. Priority is given to auditing companies that handle other people's money, he said.

"It isn't that frequent that we revoke somebody's license," Walshaw said.

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