ROCKLAND – Five couples who claim they lost a combined $250,000 on modular homes that never were finished sued a midcoast bank Monday, alleging the lender assured them it would “hold their hand” through the financing process.

The couples filed lawsuits in U.S. District Court in Portland and in Knox County Superior Court, accusing Damariscotta Bank & Trust Co. of racketeering and fraud.

The couples, all from midcoast Maine, claim the Damariscotta-based bank led them to believe that Central Maine Home Sweet Homes Inc. of Rockport was a reputable builder of modular homes, but that the bank knew the construction company was on shaky financial grounds.

The federal and state lawsuits, which are nearly identical, allege that Central Maine Home Sweet Homes recommended to “virtually all of its customers” that they seek financing from Damariscotta Bank & Trust.

Officials of the bank and Thomas Birmingham of Windsor, owner of the now-closed Central Maine Home Sweet Homes, could not be reached for comment Monday.

A civil complaint was filed in U.S. District Court alleging two counts of violation of the federal Racketeer Influenced and Corrupt Organizations Act. A seven-count civil lawsuit was filed in Knox County Superior Court in Rockland, accusing the bank of fraud, negligent misrepresentation, breach of fiduciary duty, aiding and abetting, conspiracy, violation of the Deceptive Trade Practices Act and violation of the Unfair Trade Practices Act.

The plaintiffs in the cases are John and Dana Coleman of Rockport, David and Kristin Lawson of Rockland, Christopher and Gretchen Morse of Belmont, Michael and Margaret Frees of Searsmont, and Paul and Audrey Booker of Belgrade. The federal case involves only the bank as a defendant, but the state claim names the bank and bank employees Deborah Laite and Roger Smith as defendants.

According to the lawsuits, the modular home company closed its business Aug. 5, 2000, without finishing the construction of the plaintiffs’ houses. The homes, which were bought through Central Maine Home Sweet Homes, were constructed by New England Homes of New Hampshire and arrived at the home site 60 to 65 percent complete. The Rockport company then was to finish the homes with carpeting, fixtures, trim, interior paint, landscaping, heating and other such items.

The couples collectively lost more than $250,000, the complaint alleges, suffering financial losses in the form of down payments, additional construction costs, labor costs for finishing the construction of the homes, attorney fees to defend mechanic lien suits, severe emotional distress, loss of sleep and severe anxiety.

The plaintiffs’ lawyer, Dana Strout of Rockport, said Monday the deals involved 20 percent down payments to Central Maine Home Sweet Homes at the time of signing, some of which was then paid to the New Hampshire company. An additional 70 percent of the purchase price was due when the home was delivered. The final 10 percent was paid upon completion of the homes by Central Maine Home Sweet Homes, he said.

The complaints claim that the couples asked the bank loan officers about the bank’s experiences with CMHSH and the company’s reputation.

The plaintiffs allege that the loan officers reassured them that CMHSH was a good customer of the bank and was reputable, but that, in fact, the bank knew the company had written about 195 insufficient-funds checks for approximately $340,000 between January 2000 and the end of July 2000.

The lawsuit accuses the bank of covering overdraft checks for the builder, then trying to convince plaintiffs to advance money earlier than required, so the bank could reimburse itself.

The lawsuit states that the Colemans approved an advance payment, without knowing the alleged arrangement between the Rockport company and the bank. Then, once the advance was made against the Colemans’ construction loan, the bank allegedly took $15,290 of the Colemans’ money to pay itself without advising them of the event, the claim states.