The Federal Bureau of Investigation (FBI) and the Department of Housing and Urban Development (HUD) searched offices of Elias Realty and Financial Services in Livonia and Brighton in South Michigan Wednesday, Feb.27, for a possible mortgage fraud.
The FBI and the HUD did not comment on the reason for the raids as it was a sealed warrant. No arrests were made. Company officials have said that they will extend all possible co-operation to the Feds, reports Livingston Daily.
William Elias, owner of the real estate agency, was surprised to be greeted by FBI and HUD agents Wednesday. He said that operations will remain closed for now but will soon resume after the Feds have completed their investigation and evidence collection, reports ABC Action News.
"I don't have a lot of details other than the fact they're executing search warrants. They haven't arrested me or anything. They said they're investigating. It's a surprise to me. ... This is completely unwarranted," Elias said to Observer and Eccentric.
Elias said that it might have something to do with Elias Realty's complaints against Freddie Mac. The company had filed a lawsuit against Freddie Mac for defamation, unfair competition and business interference in January, 2013. The lawsuit had come after Freddie Mac refused to work with Elias Realty, complaining that it was swindling the public into short selling homes even when they did not have any financial problems., reports Fox Business.
"We sued them in federal court and I believe they filed complaints with a bunch of agencies," said Elias to Livingston daily.
Elias Realty specializes in short sales. The company has recorded tremendous growth in the past few years. However, the company has been caught in legal feuds that are disrupting its business.
Elias asserted that he has been trying to close a short sale deal, which isn't making any progress. According to Elias, the company got calls from a buyer for the short sale deal twice but when they found out Elias Realty was handling it, they backed out. Elias also believes that the company would come out unscathed as it was innocent and is not involved in any wrongful practices. They would keep doing business and cater to their clients, reports Observer and Eccentric.