What’s Up With Those Infamous Aurora Motels?

PI.com:

The mortgage investment company that held the notes on troubled Aurora Avenue North motels has been accused of improperly using investor funds.

The State Department of Financial Institutions has obtained a preliminary injunction against and the appointment of receiver for Chesterfield Mortgage Investors Inc.

The Seattle company continued to send investors monthly account statements with regular interest payments, without notifying the investors that the underlying loans had already been repaid and that the real property interest securing some of the loans had been released, according to state officials.