Atalaya to Pay $2.8 Million to End N.Y. Subprime Probe (1)

Atalaya Capital Management LP has agreed to pay $2.77 million to New York regulators to settle allegations that a company it funded, Vision Property Management, operated an unlicensed mortgage-lending business that profited from predatory subprime home loans.

The settlement announced Aug. 27 with New York’s Department of Financial Services and attorney general calls for Atalaya to pay $2.4 million in consumer restitution, a civil penalty of $250,000 and additional relief of about $123,800, according to a statement from DFS.

The New York regulators said they determined that Atalaya was either aware or should have been aware that Vision was engaging ...