A North Texas builder is suing a Dallas developer and a real estate funding group, seeking millions in damages.

Megatel Homes builds houses, townhomes and apartments across the region. It filed a lawsuit against Grapevine-based United Development Funding and Centurion American Development Group, saying the two firms "conspired to take advantage of Megatel."

Among Megatel's charges is a claim that Centurion American sold sites in its new communities that had been pledged to Megatel to other homebuilders in order to raise cash.

"As alleged in the petition, our client believes that defendants conspired against their company to unfairly remove it from significant projects and to gain financial benefits to which defendants were not entitled," William A. Brewer III, partner at Brewer, Attorneys & Counselors and counsel for Megatel, said in a statement.

United Development and Centurion American were also scrutinized last year by federal investigators over allegations of wrongdoing. United Development paid an $8 million fine to the Securities and Exchange Commission for misleading investors.

Centurion American, one of the largest developers of Dallas-Fort Worth-area home communities, wasn't implicated in the SEC actions after months of investigations.

Centurion America CEO Mehrdad Moayedi said Megatel's legal action has no merit.

"Centurion has a long-standing relationship with reputable builders in North Texas," Moayedi said in a statement. "The allegations contained in the lawsuit have no basis in law or fact and will most likely be summarily dismissed."

Megatel alleges in its lawsuit that United Development and Centurion "misappropriated in excess of $100 million in value from Megatel over dozens of transactions."

The suit charges the two firms with breach of fiduciary duties, breach of duty of good faith and fair dealing, and conspiracy to tortuously interfere with a contract, among other claims.

Megatel is asking for more than $100 million in damages.

Megatel Homes was founded in 2006 by brothers Aaron and Zach Ipour and has grown to be one of the largest builders in D-FW.

Centurion is a major D-FW developer with projects ranging from suburban communities to downtown historic projects, including the Statler Hotel.

United Development Funding raised money from investors to finance residential projects, including some built by Centurion American.

Centurion CEO Moayedi said the lawsuit against his firm is a result of problems at Megatel.

"This lawsuit is a sign of a desperate man grasping for a lifeline," he said. "In the past six months, $15.2 million worth of contracts with Megatel have been terminated for failure to close lots, and on a number of remaining contracts, they are continually in default.

"As a result of Megatel's own poor business judgment, they have an inventory in excess of 600 unfinished and unsold homes."