The owners of a defunct mortgage lender and a servicing company in New Hampshire have been indicted on federal fraud charges.

A grand jury has indicted Scott Farah, owner of Financial Resources Mortgage in Meredith, on charges of mail fraud and wire fraud. Donald Dodge, who ran the associated servicing company CL&M, was indicted on charges of wire fraud.

The U.S. Attorney’s office says the indictments were handed up Wednesday. A June 2 trial is scheduled. Prosecutors say Farah bilked lenders of more than $33.5 million by depositing money into general bank accounts maintained for the companies.

They also allege Farah and Dodge schemed to obtain money under false pretenses.

Source: http://www.businessweek.com/ap/financialnews/D9EVQ62G1.htm

“The mail fraud count, in count one, alleges a loss of a little over $33 million,” Assistant U.S. Attorney Donald A. Feith said.

The SEC also seeks return of investor dollars diverted to Center Harbor Christian Church. Farah’s father, the Rev. Robert P. Farah, is pastor of the church, and Scott Farah was its treasurer.

The SEC complaint, also filed with the U.S. District Court, alleges that Farah and Dodge, acting through their businesses, defrauded at least $20 million from at least 150 investors beginning as early as 2005.

Officials, who have investigated the case since November, have not said what happened to the millions of dollars in missing money, nor have they speculated on the likelihood of recovery.

“We’re going to do our best to try to track down assets and seize them if we get judgment against these folks, but it’s just impossible to say right now,” said John T. Dugan, associate director for enforcement at the SEC in Boston.

The two-count federal indictment alleges “diversion of funds obtained by Mr. Farah and held in the accounts of Mr. Dodge’s business, CL&M,” Feith said.