The state Department of Financial Institutions has announced a preliminary injunction in King County against Seattle-based Chesterfield Mortgage Investors Inc.
A receiver, Mel R. Codd, was appointed for CMI, according to an agency news release.
CMI and its president, Charles Chesterfield, entered into a consent order with DFI in which, among other things, CMI agreed to the revocation of its mortgage broker-dealer registration.
The agency’s action was based on an August examination “during which DFI examiners found that CMI had misused investor funds. The company’s president, Charles M. Chesterfield, told DFI examiners CMI had taken funds from early loan payoffs and had used the funds for other purposes, instead of repaying the investors who had purchased participation investments in those loans.”
Beginning next Tuesday, investors who have questions about the receivership can call Codd at CMI at 206-464-8770.
Investors who have questions about their CMI investments can call DFI at 1-800-372-8303 .