Tustin, Calif.-based Veri-tax LLC, which provides tax verification and fraud management solutions, has been acquired by private investment firm Blue Horizon Capital for an undisclosed sum. The acquisition will provide additional capital and resources to support Veri-tax's growth initiatives.
As part of the transaction, Blue Horizon Capital will invest in the growth of the company and the expansion of its fraud detection, management and mitigation services. Veri-tax will maintain its name, management team, employees and headquarters.
Michael Chon, managing partner of Blue Horizon Capital, will join Veri-tax's Peter Pozzuoli as co-president of Veri-tax.
"The mortgage industry is undergoing a dramatic shift toward responsible lending," said Chon. "Through our investment in Veri-tax, we will help empower financial services institutions with the most advanced, reliable and powerful verification and fraud prevention solutions on the market."
Veri-tax provides electronic tax and income verification solutions that enable mortgage lenders, banks, and other issuers of consumer credit "to make informed decisions about the ability for potential borrowers to repay loans."
Veri-tax clients include two of the nation's top four banks, in addition to hundreds of lenders, originators and other financial institutions serving the mortgage and consumer credit sector.
"With more regulation on the way as a result of recently passed financial reform legislation, demand for better income and credit verification tools is set to explode," said Pozzuoli.
