Citing false advertising and other violations, the state of Washington has moved to revoke the business license of Roseville-based Paramount Equity Mortgage Inc.

In addition, Washington officials are seeking restitution and payment of a $500,000 fine.

In a statement of charges filed Monday with the Washington Department of Financial Institutions in Olympia, Wash., the state's Division of Consumer Services alleges that the Rose-ville mortgage broker engaged in activities that included "false, deceptive and misleading advertising"; deceptive fee disclosures; collection of unearned fees; and improper disclosures.

The documents name Hayden D. "Hayes" Barnard as president, co-founder and one-third owner of Paramount, and other company officials. Barnard's voice was frequently heard on Sacramento-area radio stations, touting Paramount Equity Mortgages.

Telephone calls seeking comment from Barnard and other Paramount officials were not returned. But in a statement released late Wednesday, the company said it considers the allegations "completely unjustified."

"We look forward to defending ourselves against all charges. Once we have the opportunity to present the facts of our case, we are confident we will be exonerated," the statement said.

The company said it has passed multiple state and federal audits and exams and has helped more than 15,000 homeowners "without a single unresolved customer complaint."

In its formal allegations, Washington officials cited radio advertisements aired on about 20 AM and FM stations in the state. They said the advertised messages ranged from misleading to untruthful.

The statement of charges filed Monday included specific language from one ad: "I'm Hayes Barnard, owner of Paramount Equity, and the recent launch of our mortgage bank is allowing us to offer rates lower than ever before."

State officials say Paramount is not a bank and is prohibited from using the term in its ads.

Washington officials also said Paramount aired a radio ad in April that claimed it was "one of the only mortgage banks in the country that could deliver mortgage rates of 5.5 percent with an annual percentage rate (APR) of 5.6 percent."

The statement of charges said Paramount misrepresented guarantees to beat competitors' rates and that the company's claims of "free appraisals" of homes actually were laced with hundreds of dollars in fees. It also said Paramount made claims about rates being at "historic lows" that it could not substantiate.

Officials in Washington state said their allegations were part of an investigation that began in January 2007. Anthony Carter, enforcement attorney on the case, said Washington state officials received complaints about Paramount from business competitors as well as consumers.

Deborah Bortner, director of the Division of Consumer Services within Washington's Department of Financial Institutions, said the Roseville firm has indicated it will challenge the allegations.

Bortner said no date has been set for a hearing but that it is common for companies facing allegations to negotiate prior to a hearing date.

"These are allegations. They have an opportunity to tell their side," Bortner said. "They were very unhappy that we filed this without telling them about it, but my answer to that is there is a certain tipping point where there are so many things wrong. … We think they violated the law."

Bortner said state officials plan to talk to the Federal Trade Commission about Paramount.

"This is not some funky little statute in Washington," she said. " … There are very serious federal violations as well."

Paramount's Web site says the company does business in California, Washington, Oregon, Arizona, Utah and Virginia.

Officials at the California Department of Corporations, which handles allegations similar to ones filed in Washington state, said they were aware of the complaint.

Department spokesman Mark Leyes said "there's been no action taken against" Paramount in California.

Washington officials say that Paramount closed about 1,750 loans in that state last year, collecting nearly $9 million in fees.

Officials said the Roseville company was granted a mortgage broker's license to do business in Washington on July 19, 2004.

Call The Bee's Mark Glover, (916) 321-1184.