(Bloomberg) -- Federal prosecutors and the Federal Bureau of Investigation in New York are looking into Arbor Realty Trust Inc. on the heels of short seller attacks about the lender’s practices and disclosures, according to people familiar with the matter.
The investigators are inquiring about lending practices and the company’s claims about the performance of their loan book, said the people, who asked not to be named discussing an ongoing investigation.
“We routinely cooperate with regulatory inquiries and are very confident that we conduct ourselves properly,” Arbor said in a statement. “We look forward to our second-quarter earnings call.”
Viceroy Research and short sellers have alleged that Arbor’s loans are distressed and the value of the firm’s loan portfolio has been overstated.
A spokesperson for the Manhattan US Attorney’s Office declined to comment. The FBI didn’t immediately respond to requests for comment.
(Updates with comment from Arbor in third paragraph.)
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