Medford Capital does have a compliance department, Urkov said. On advice of his attorney, Urkov declined to go into detail about what due diligence the firm did before lending money to the trust controlled by Soskin and Lee.
Prosecutors have said that Soskin and Lee were unemployed when they bought the $800,000 house in December.
Medford Capital loans money to people for non-owner occupied residential and commercial real estate deals, Kaufman said.
"Medford caters to a growing niche of investors, developers, rehabbers, corporations, probate estates, and sub-prime money borrowers who seek specialty financing for real estate property, but due to various circumstances, do not meet the stringent requirements of conventional real estate underwriting guidelines or need access to financing faster than a conventional lending institution can provide," according to its website.