Firms With Pillar Ties Get Subpoena

New York Attorney General Eric Schneiderman has issued subpoenas to two investment firms that own stakes in a paperwork-processing firm under investigation regarding questionable foreclosure practices, according to people familiar with the situation.

Mr. Schneiderman, who took office in January, recently sought information from Tailwind Capital and Ares Capital Corp., these people said. The subpoenas are “very thorough” and “broad-ranging,” said one person familiar the matter, who declined to be more specific.

Recipients of subpoenas must produce testimony or documents, typically sought as part of an investigation. Mr. Schneiderman’s move is a sign that investment firms that have sought to profit from the boom in foreclosures could be drawn into various probes by U.S. and state regulators of so-called robo-signing and other foreclose-paperwork problems.

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