Attorney General Mayes Sues MV Realty for Predatory Scheme Targeting Financially Vulnerable Homeowners, Violating Consumer Fraud Laws

PHOENIX – Attorney General Kris Mayes announced today that her office filed a lawsuit under the Arizona Consumer Fraud Act and Arizona Telephone Solicitations Statutes against MV Realty of Arizona, LLC; MV Brokerage of Arizona, LLC; MV Realty PBC, LLC, and other related entities, and their corporate officers Antony Mitchell, Amanda Zachman, and David Manchester.
 
The State’s Complaint alleges that MV Realty operated a predatory scheme that provided immediate cash payments to financially vulnerable homeowners in exchange for the exclusive right to be their listing agent if they ever sold their homes.

MV Realty misled homeowners about the terms of its “Homeowner Benefit Program” and deceptively recorded Memorandums that functioned as liens on Arizona homeowners’ property records, which prevented homeowners and their successors from transferring their homes unless they paid MV Realty thousands of dollars in so-called “Early Termination Fees.” The Memorandums could also impede homeowners from refinancing their homes or getting home equity loans.

“MV Realty misled homeowners about the true nature of the Homeowner Benefit Program. Arizona homeowners who fell victim to MV Realty’s deceptive sales practices were trapped by the liens placed on their homes and stripped of their hard-earned equity,” said Attorney General Mayes.  “My office will not allow predatory companies to take advantage of and profit from Arizona homeowners by making false promises.”

According to the complaint, Defendants widely and aggressively marketed the Homeowner Benefit Program in Arizona using deceptive online, telephonic, and digital marketing, including illegal telemarketing to consumers registered on the National Do Not Call Registry. MV Realty did not disclose the true nature of the deal or its predatory terms. Among other things, it did not disclose that there will be a lien placed against the home, that there is a 40-year contract term, that the agreement is binding on a homeowner’s heirs, or that homeowners will have to pay a large Early Termination Fee if the homeowner lists the property for sale with another real estate agent, transfers title to a family member, or simply wishes to cancel the agreement.
 
The State’s complaint seeks civil penalties, restitution, and injunctive relief, including terminations of the Memorandums recorded against homeowners’ properties. 
 
This case is being handled for the Arizona Attorney General’s Office by Assistant Attorneys General John Raymond Dillon IV, Alyse Meislik, and Amanda Salvione. 
 
If you believe you are a victim of consumer fraud, you can file a complaint with the Arizona Attorney General’s Office.  You can also contact the Consumer Information and Complaints Unit in Phoenix at (602) 542-5763; in Tucson at (520) 628-6648; and outside of the metro Phoenix area at (800) 352-8431. 

A copy of the complaint is available. Exhibit A and exhibit B are also available.