For Immediate Release
March 11, 2010
Assistant Attorney General Karen Gorham
Attorney General Michael A. Delaney, Banking Commissioner Peter C. Hildreth, and Manchester Police Department Chief David Mara announced today the arrest of Jeffrey Frost for failing to allow the Banking Department to examine records, violating a Banking Commissioner Order, and 2 counts of Unlicensed Mortgage Banking, all in violation of RSA 397-A.
Frost, 54, of Manchester, New Hampshire, is charged in connection with an investigation that began when Frost allegedly failed to allow banking department examiners access to his records when required to do so.
Complaints also allege that Frost engaged in unlicensed mortgage banking when, on behalf of two different LLCs of which he is a member, he funded two residential mortgages. Additionally, it is alleged that Frost violated an Order issued by Banking Commissioner Peter Hildreth on November 13, 2006 regarding predatory lending tactics, when he took $50,000 as a down-payment on a residence, and issued a $425,000 mortgage for three years, when it then became fully due and payable. It is alleged that the mortgage was funded without considering the borrowers repayment capacity or income as is legally required.
Arraignment will be scheduled in the Manchester District Court. The charges are all Class A misdemeanors, which carry a maximum penalty of 12 months in the House of Corrections and a $2,000 fine per charge.
These criminal charges are a result of a joint investigation conducted by the New Hampshire Attorney General's Office, the New Hampshire Banking Department and Manchester Police Department Financial Crimes Unit.
New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301