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By David Bracken, The News & Observer, Raleigh, N.C.
Sept. 24--State regulators are investigating two companies formerly run by a now-deceased Harnett County businessman who has been accused of orchestrating a Ponzi scheme.
The administrator for the estate of Raymond Mulkey Jr. has notified the state Department of Insurance about questionable data that was uncovered during a review of Mulkey's estate, department spokeswoman Kristin Milam said.
The department's Agent Services Division is conducting audits of two of Mulkey's insurance agencies, Mulkey & Associates and Southeastern Insurance Services. Those audits are ongoing, Milam said.
Mulkey, 63, was found dead in his home in North Myrtle Beach, S.C., on Aug.16. The Horry County, S.C., coroner has said a cause of death has yet to be determined.
Since Mulkey's death, several North Carolina community banks have discovered apparent fraud on loan applications and paperwork involving the extension of loans.
Dunn-based New Century Bank has said it could write off $11 million in loans because of alleged fraud committed by one of the bank's former directors.
Mulkey was a founding director of New Century, which has ties to a number of prominent Democrats. Former state Senate Majority Leader Tony Rand and former Secretary of Transportation Lyndo Tipped serve on the bank's board.
In a Securities and Exchange Commission filing made Wednesday, Four Oaks Bank in Johnston County said it expects to write off about $4 million in bad loans because of an apparent fraud by one of its customers. The bank did not name the customer.
According to filings with the N.C. Secretary of State's office, Mulkey had financial dealings with Four Oaks Bank. The bank declined to comment Thursday.
Mulkey was president of a number of finance, real estate and insurance companies, including Ray Mulkey Realty and NC Premium Finance Cos.
NC Premium Finance Cos., which included 45 Premium Finance entities and one called Budg-O-MaticFinance, financed auto insurance premiums for people with low income or poor credit.
Fayetteville attorney Lonnie Player Jr. said he represents seven clients who are trying to recover about $2.3million they invested with Mulkey and NC Premium Finance Cos. in recent years.
Player said he thinksMulkey was operating a Ponzi scheme.
david.bracken@ newsobserver.com or 919-829-4548
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To see more of The News & Observer, or to subscribe to the newspaper, go to http://www.newsobserver.com.
Copyright (c) 2010, The News & Observer, Raleigh, N.C.
Distributed by McClatchy-Tribune Information Services.
For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544).
Sept. 24--State regulators are investigating two companies formerly run by a now-deceased Harnett County businessman who has been accused of orchestrating a Ponzi scheme.
The administrator for the estate of Raymond Mulkey Jr. has notified the state Department of Insurance about questionable data that was uncovered during a review of Mulkey's estate, department spokeswoman Kristin Milam said.
The department's Agent Services Division is conducting audits of two of Mulkey's insurance agencies, Mulkey & Associates and Southeastern Insurance Services. Those audits are ongoing, Milam said.
Mulkey, 63, was found dead in his home in North Myrtle Beach, S.C., on Aug.16. The Horry County, S.C., coroner has said a cause of death has yet to be determined.
Since Mulkey's death, several North Carolina community banks have discovered apparent fraud on loan applications and paperwork involving the extension of loans.
Dunn-based New Century Bank has said it could write off $11 million in loans because of alleged fraud committed by one of the bank's former directors.
Mulkey was a founding director of New Century, which has ties to a number of prominent Democrats. Former state Senate Majority Leader Tony Rand and former Secretary of Transportation Lyndo Tipped serve on the bank's board.
In a Securities and Exchange Commission filing made Wednesday, Four Oaks Bank in Johnston County said it expects to write off about $4 million in bad loans because of an apparent fraud by one of its customers. The bank did not name the customer.
According to filings with the N.C. Secretary of State's office, Mulkey had financial dealings with Four Oaks Bank. The bank declined to comment Thursday.
Mulkey was president of a number of finance, real estate and insurance companies, including Ray Mulkey Realty and NC Premium Finance Cos.
NC Premium Finance Cos., which included 45 Premium Finance entities and one called Budg-O-MaticFinance, financed auto insurance premiums for people with low income or poor credit.
Fayetteville attorney Lonnie Player Jr. said he represents seven clients who are trying to recover about $2.3million they invested with Mulkey and NC Premium Finance Cos. in recent years.
Player said he thinksMulkey was operating a Ponzi scheme.
david.bracken@ newsobserver.com or 919-829-4548
-----
To see more of The News & Observer, or to subscribe to the newspaper, go to http://www.newsobserver.com.
Copyright (c) 2010, The News & Observer, Raleigh, N.C.
Distributed by McClatchy-Tribune Information Services.
For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544).
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