Illinois AG Hauls Another Foreclosure Rescue Operator Into Court For Alleged Violation Of State Law; Count Now Up To 15 Firms

From the Illinois Attorney General's Office:

• Illinois Attorney General Lisa Madigan [yesterday] continued her aggressive legal fight against mortgage fraud by filing a lawsuit against a St. Marys, Pa., company, which has been operating a mortgage rescue fraud scheme and preying on vulnerable Illinois homeowners on the verge of foreclosure.

• Madigan filed suit in Sangamon County Circuit Court against Aeroworks, LLC, doing business as Augustus Rae and Reed, and its president, John F. Reed. The suit alleges that the defendants violated the Mortgage Rescue Fraud Act and the Consumer Fraud and Deceptive Business Practices Act by falsely promising to help consumers save their homes after they have fallen behind on their mortgage payments.

• According to the complaint, the defendants charge consumers up to $1,185 in upfront fees for homeownership counseling and mortgage rescue services but rarely produce successful results. They also fail to give consumers the right to cancel at any time. The complaint alleges that the defendants accepted money from at least 215 consumers throughout Illinois during 2006 and 2007.

For more, see Madigan Sues Pennsylvania Company For Mortgage Rescue Fraud (Company Preys On Illinois Homeowners Facing Foreclosure).