MELVILLE (AP) - Long Island-based Lend America has closed its loan-making operation and has laid off most of its 600 workers.

Tuesday's action came a day after federal authorities revoked the company's license to make loans insured by the Federal Housing Administration.

Federal authorities filed a 155-page civil complaint in October accusing the lender of shoddy underwriting and lying about borrowers' credentials to get FHA backing, which means whoever owns the loan holds no risk.

FHA-backed loans made up at least 90 percent of the company's business. After the subprime collapse, the FHA became the primary insurer for non-prime mortgages.

The FHA on Monday fined the company $512,500 and federal officials said a criminal investigation and arrests have not been ruled out.

Spokesman John Lovallo said Lend America executives declined comment.