Gene Percudani, one of the leading figures in the Pocono region housing scandal in which builders lured minority New York City residents to homes in the Poconos, many of which were ultimately foreclosed on, recently settled his civil lawsuit with the state of Pennsylvania.
Kevin Harley, a spokesperson for the state attorney general's office, said while Percudani admitted no wrongdoing, he agreed to pay a $250,000 fine, money that will be used by the AG's office for public protection investigations and education.
Percudani, who owned Raintree Homes and Chapel Creek Mortgage Banker, among other companies involved in the alleged fraud scheme, was permanently banned by the state from the mortgage business.
"We tried to pursue criminal charges but the grand jury didn't find enough evidence to indict," said Harley, who added that civil lawsuits against Percudani's former partner Gerald Powell and Dominick Stranieri, the group's appraiser, are still pending.
Percudani is not off the hook with the federal government, which has named him in a lawsuit that alleges he conspired with Chase Manhattan Mortgage to defraud roughly 100 home buyers. The federal lawsuit is set for trial in Scranton, Pa., early next year.
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