Candidate Quits Board of Ameriquest

Massachusetts Democratic gubernatorial candidate Deval Patrick said Monday that he was stepping down as a board member of the parent company of beleaguered mortgage giant Ameriquest, saying he wanted to focus on the election and has helped set the lender on the right path.

Patrick has weathered criticism from Democratic rival Atty. Gen. Tom Reilly, who has tried to use Patrick’s connection to the mortgage company to chip away at Patrick’s base of support among the party’s more liberal voters.

In 1996, Ameriquest entered into a $4-million settlement with the Justice Department after the company was accused of predatory lending practices. In March 2005, it also settled a $50-million class-action lawsuit charging it had defrauded borrowers in four states.

In January, the Orange-based company announced a $325-million settlement with 49 states -- including Massachusetts -- after it was accused of failing to disclose the high fees it was charging owners when it refinanced their homes for equity loans.

Patrick, a former general counsel at Coca-Cola Co., alluded to the criticism in a letter sent to supporters Monday. He said he would step down by July 1 as a board member of ACC Capital Holdings Corp., Ameriquest’s holding company.

He also defended his work for the company, saying he made its business dealings more transparent and put it at the forefront of accountability in the sub-prime lending market.

Reilly has tried to use Patrick’s connection to the company against him.

In a recent televised debate, Reilly turned to Patrick and asked him to disclose how much Ameriquest paid him.