California AG Declares War On Loan Modification Scams; Will Target Bogus TV, Other Mass Media Ads Offering Useless Deals

In Los Angeles, California, the Los Angeles Times reports:

• State Atty. Gen. Jerry Brown pledged Saturday to investigate and prosecute businesses that charge struggling homeowners fees to help get more favorable terms for repayment of their mortgage loans. "We have lawyers, we have investigators, and we will go after those who break the law by falsely representing what they can do," Brown said at a congressional hearing in South Los Angeles.

• Brown, a Democrat planning to run for governor next year, vowed to focus specifically on bogus television ads that lure homeowners into expensive mortgage consulting deals that are useless. "We will document the rip-offs that are over the mass media as best we can," he said.(1)

For more, see California attorney general promises to tackle homeowner scams (At a congressional hearing in South Los Angeles, Jerry Brown says his office will investigate and prosecute firms that charge fees for bogus mortgage consultant deals).

(1) Unlike his counterparts in some states who are prosecuting loan modification foreclosure rescue fraud with civil lawsuits, Attorney General Brown has recently been bringing criminal actions against the alleged perpetrators charging grand theft and criminal violations of the state's foreclosure consultant statute. See:

• Attorney General Brown Sends Perpetrators of Loan Modification Fraud to Prison (press release, felony complaint);
• Brown Announces Arrest of Two Scam Artists Who Committed Loan Modification Fraud (press release, felony complaint, arrest warrant affidavit);
• People v. Santos (press release, felony complaint, arrest warrant affidavit).