A company that purportedly invests in real estate notes has agreed to settle charges that it misled investors and used the capital raised for purposes other than promised.

McKinley Mortgage Co. LLC is an investment advisory firm in the business of raising capital from investors for the acquisition of deeds of trusts on real property.

The capital was placed into Alaska Financial Company III LLC, and promissory notes were issued by the fund with promises of returns between 6 percent and 8.25 percent.

Source: Mortgage Daily