Pa. mortgage broker faces civil lawsuit in alleged Ponzi scheme

HARRISBURG, Pa. - Pennsylvania Attorney General Tom Corbett filed a lawsuit Friday seeking restitution for hundreds of homeowners who said they were victimized by the owner of a defunct mortgage company who was convicted of fraud.

The civil lawsuit alleges that Reading-based broker Wesley A. Snyder, his wife and seven employees violated state consumer-protection laws when they cheated customers in central and eastern Pennsylvania out of nearly $40 million in an extensive Ponzi scheme.

Corbett said he filed the lawsuit in response to more than 700 complaints his office received. Most were from Pennsylvanians, but a handful came...