July 12 (Reuters) - Arbor Realty Trust ( ABR ) is being

probed by Federal prosecutors and the Federal Bureau of

Investigation in New York months after short sellers attacked

the lender's practices and disclosures, Bloomberg News reported

on Friday.

Shares of the company fell more than 19% in afternoon

trading.

The Department of Justice and Arbor Realty ( ABR ) did not

immediately respond to Reuters' request for comment.

In 2023, short sellers, including Viceroy Research and NINGI

Research, published reports alleging that Arbor Realty Trust ( ABR ),

which invests in a diversified portfolio of structured finance

assets, had a distressed loan book.

Viceroy Research claimed that Arbor's underlying

collateral for the loans is vastly overstated, adding that the

loans do not qualify for refinancing anywhere and are nearing

maturity.

NINGI Research accused the company of concealing a 'toxic'

real estate portfolio of mobile homes with 'a complex web' of

real and fake holding companies for over a decade.

Arbor has countered these short reports, asserting that the

reports contain 'numerous inaccuracies' and 'misstatements'.

Federal investigators are now probing the New York-based

company's lending practices and its claims about the performance

of its loan book, Bloomberg reported, citing sources familiar

with the matter.