Wednesday, April 8, 2009

Massachusetts AG Tags Four With Civil Charges In Alleged Loan Modification Scam

In Boston, Massachusetts, the Boston Business Journal reports:

  • Attorney General Martha Coakley’s Office filed a lawsuit and obtained a temporary restraining order against four defendants for their alleged involvement in a foreclosure scam.

  • The complaint, filed Monday in Suffolk Superior Court, alleges that Loan Modification Group Corp., Mitigation LLC, the company’s principal Daniel H. Fox and Web site operator Chris Fuelling sought to capitalize on the foreclosure crisis and prey upon Massachusetts residents facing the loss of their homes.

  • In the lawsuit, Coakley’s Office alleges that the defendants offered services to assist homeowners as “loss mitigation specialists” who are able to negotiate loan modifications to avoid foreclosure. The complaint further alleges that the defendants’ business practices were unfair and deceptive, in violation of the Massachusetts Consumer Protection Act, because they solicited fees in advance of services, failed to disclose the precise details of the services offered and how they would assist homeowners in avoiding foreclosure, and would guarantee a loan modification that would improve the homeowner’s financial situation dramatically and save the home from foreclosure.

For more, see AG files suit against foreclosure scams.

For the Massachusetts Attorney's press release, see AG Coakley Obtains Temporary Restraining Order against Perpetrators of Loan Modification Scam; Warns Public About Scams Targeting Homeowners:

  • [D]efendants would claim to be attorney-based, loan modification experts that could guarantee drastically reduced interest rates. In one telephone solicitation, a representative claimed that Fox’s firm was one of fourteen law firms recruited by the government to help people avoid foreclosure and help them stay in their home, when that was not the case.

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