Kittery Point couple settles in NH mortgage case

Posted July 16, 2011, at 12:30 p.m.

KITTERY, Maine — A Maine couple who lost about $850,000 through a failed New Hampshire mortgage firm have settled their claim for far less.

Al and Susan McIlvene of Kittery Point will receive $155,000 from the bankruptcy trustee of the estate of Meredith-based Financial Resources Mortgage.

The Portsmouth Herald reports key to their decision was a judge’s split ruling involving another investor who was sued by the trustee over paying back interest received on mortgages. The McIlvenes, who led the charge for many investors who lost millions of dollars to the firm, plan to stay active in the case.

Investors loaned money to the firm led by Scott Farah. He admitted pooling their funds to pay off other expenses in what authorities called a Ponzi scheme. He’s serving a 15-year prison sentence.