California Attorney General Rob Bonta announced a legal settlement on May 27, promising relief to 1,500 homeowners who fell victim to “predatory” real estate schemes coordinated by MV Realty, a Florida-based company accused of deceptive business practices in Napa and Santa Barbara counties.
The settlement was reached just ahead of a trial scheduled for June stemming from a lawsuit in which MV Realty was accused of operating a scam promising “immediate cash payments to financially vulnerable homeowners” in exchange for exclusive rights to act as listing agent if the homeowners sold their homes in the next 40 years. Some homeowners were misled into agreements forcing liens on their properties, tying up their homes and preventing the owners from seeking refinancing loans unless they paid MV Realty tens of thousands in “early termination fees.”
The Santa Barbara County District Attorney’s Office joined Napa County and the state attorney general in the legal action against MV Realty in 2023, seeking relief for the homeowners who were led into the deceptive agreements. The settlement totals $2.5 million against MV Realty, with $1.3 million in restitution and $1.2 million in civil penalties.
“Californians have a right to expect that when they contract with a real estate company that the company will act in their best interests,” said Santa Barbara District Attorney John Savrnoch. “This settlement provides an example of how California authorities will respond when a company fails in its duties to its customers by trying to take advantage of them through a predatory and unfair scheme.”
In addition to monetary restitution and penalties, MV Realty must terminate all liens and void existing homeowner contracts. The company, its chief executive officer, and its chief operating officer are also barred from any licensed real estate business in the state for the next five years.
“At a time when Californians are facing an affordability crisis, exploitation like this only adds pressure on households struggling to make ends meet — and it is unacceptable,” Bonta said in a statement on May 27.
While no details were provided regarding how many homeowners were affected in Santa Barbara County, the state attorney general’s office found that MV Realty began doing business in California in early 2022. Napa and Santa Barbara counties joined the lawsuit in December 2023, leading to an injunction requiring the MV Realty to terminate its unlawful liens. Since then, MV Realty filed for bankruptcy, though the bankruptcy case was dismissed by district courts in Florida in 2024.
“It was a privilege to work with our colleagues at the Attorney General’s Office and the Santa Barbara District Attorney’s Office in obtaining a settlement that holds MV Realty accountable, provides meaningful relief to impacted homeowners, and reinforces that California will take action against predatory practices that exploit the financially vulnerable,” said Napa County District Attorney Allison Haley.
