Indiana Attorney General files complaint against New York-based CIG Realty
At least 3 people in Indianapolis dealt with co.
INDIANAPOLIS - Hoosiers counting on a New York-based company to help them buy a home are reporting they've been cheated out of money and a house.
The Indiana Attorney General's Office has filed a complaint against CIG Realty, accusing the company of violating the Home Loan Practices Act and failing to obtain a certificate of authority to do business in Indiana.
According to the complaint, CIG offered people with poor credit a way of financing the property they wanted. Attorney General Greg Zoeller said CIG required clients to make a down payment before the company would make an offer on a property for the buyer.
"Customers made upfront payments before realizing the company was going to place a low-ball offer on the property or in some cases not submit an offer to the seller at all," Zoeller said in a statement released Friday. "This company not only operated in Indiana illegally, but it failed to refund deposits and took advantage of customers' desires to own their own home."
Customers were also required to sign a contract that would have made them bring the property to a habitable condition within three months of closing and pay for any future repairs, and the contract stated that the customer could be evicted by CIG Realty.
At least three people in Indianapolis paid $3,000 to $5,000 to become eligible for the program, and only one of the three has received a partial refund of $500.
The state's complaint, filed in court on Monday, is seeking restitution and fines.
Call 6 Investigator Rafael Sanchez is talking to the victims and will continue to update this story as it develops.
The company, with a last known address of PO Box 74 in Plainview, New York, has shut down its website.
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