"Justice Department Files Lawsuit Against Colony Ridge Developer for Targeting Hispanic Homebuyers in Alleged Land Sales Scheme"
Colony Ridge, a Liberty County developer, is facing a lawsuit filed by the U.S. Department of Justice, accusing the company of targeting Hispanic borrowers through predatory loans and false statements. The developer allegedly used Spanish videos on TikTok to attract Latino buyers and employed high-pressure sales tactics, minimal down payments, and extended loans without verifying buyers' ability to repay. The homes sold by Colony Ridge had poor infrastructure and payment plans that were difficult to maintain, with interest rates reaching nearly 13%. The company would repurchase and resell properties when buyers fell behind on payments, often at higher prices. The lawsuit alleges that Colony Ridge misled borrowers about infrastructure, sold lots prone to flooding, and exploited language barriers. Colony Ridge's CEO denies the allegations and claims the lawsuit is baseless.