Maryland AG sues MV Realty and executives over alleged illegal

The Maryland Attorney General has filed criminal and civil charges against MV Realty and its top executives, accusing the companies of an illegal consumer‑lending scheme that tied homeowners to 40‑year agreements and excessive fees [1]. At the same time, separate lawsuits allege that private‑equity firm Monroe Capital funded and directed the nationwide rollout of the same “Homeowner Benefit Agreement” program [2][3].

Key takeaways

• The state alleges MV Realty’s “Homeowner Benefit Agreements” acted as high‑interest loans secured by liens on homes, violating Maryland lending laws [1].
• Executives charged include CEO Antony Mitchell, COO David L. Manchester, and officer Amanda J. Zachman [1].
• Plaintiffs claim Monroe Capital provided a $40 million credit facility and oversaw the program’s expansion into 33 states, prompting a federal RICO and antitrust lawsuit [2][3].
• The agreements require homeowners to pay at least 3 % of the home’s value to terminate, and include an undisclosed $500 administrative fee [1].
• A hearing on the Attorney General’s action is set for Sept. 8, 2026, while the class‑action suit seeks damages for over 38,000 affected homeowners [2][3].

Attorney General’s charges against MV Realty

Maryland Attorney General Anthony G. Brown’s Consumer Protection Division says MV Realty entered into “Homeowner Benefit Agreements” that offered modest cash advances but imposed long‑term liens and high interest rates. The state contends the agreements violate licensing requirements, interest‑rate caps, and the rule that loans under $4,000 cannot be secured by real‑property liens. According to the complaint, each agreement lasts 40 years, binds heirs and successors, and obligates homeowners to pay at least 3 % of the property’s value when the home is sold or transferred. The division also alleges an undisclosed $500 “administrative fee” was charged for using MV Realty’s services. The AG is seeking a cease‑and‑desist order, termination of all agreements, restitution, civil penalties and costs. A hearing is scheduled for September 8, 2026 [1].

Lawsuits target Monroe Capital’s role

While the state action focuses on MV Realty, plaintiffs in a separate federal case argue that Monroe Capital was the “architect” of the scheme. The lawsuit, filed in the U.S. District Court for the District of Maryland, claims Monroe Capital supplied a $40 million credit facility and directed marketing and strategy, enabling MV Realty to expand its program to 33 states. The complaint cites violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), the Sherman Antitrust Act, and state consumer‑protection statutes. Plaintiffs—including Maryland residents Justin Keller and Hailey Kardux and North Carolina homeowner Patricia Bandy—describe being trapped by the 40‑year liens and forced to pay large termination penalties, such as Bandy’s $12,000 payment to exit the agreement. The suit seeks class‑wide injunctive relief for an estimated 38,000 homeowners, compensatory damages, and a nationwide injunction [2][3].