TALLAHASSEE, Fla. (Legal Newsline) - Florida Attorney General Bill McCollum announced today that his Mortgage Fraud Task Force is suing 10 companies and 15 individuals for their alleged roles in a Central Florida mortgage fraud scheme.

The suit alleges that the group obtained more than $37 million in mortgage loans for at least 60 homes and siphoned off more than $6 million of the loan proceeds for their personal use.

"In this particular situation, the economy is the victim," McCollum said. "This group of individuals systematically defrauded banks and mortgage lenders, stealing millions for their own personal use and leaving a gaping hole in the system."

According to the suit, the crimes were committed between July 2005-Jan. 2007. Three of the defendants allegedly defrauded banks by recruiting straw buyers with good credit and then using them to create false loan applications to purchase homes.

The suit also alleges the ring conspired with realtors to artificially inflate the purchase prices of homes, thus enabling them to obtain larger mortgage loan amounts.

McCollum is seeking injunctive relief prohibiting the defendants from continuing their behavior. He is also requesting $10,000 per violation of Florida's Deceptive and Unfair Trade Practices Act.

Those named in the lawsuit are: American Heritage Mortgage Group, Inc., Security One Mortgage Corp., Security Trust Title LLC, Trincity Trucking Inc., Allen Boyarsky, Stephen Mahadeo, E. Brooke Co. LLC, Longdenville Investment & Management Inc., American Heritage Commercial Capital, P & R Funding Corporation, Steele Property Investments, Inc., Bethann Schuldiner, Anthony Didonato, Steve Groden, Brad Frank Groden, 1st Capital Mortgage Associates, Inc., Heather Showalter, Jeanette Lugo, Magdalene Williams, Norma Lopez, Kenneth West, Marcus Habeeb, Luis Delgado, Aziz Mohammed and Betty Bedeau.