FTC Files Civil Suit Against Loan Modification Firm Accused Of Deceptive Practices While Clipping Homeowners For $3.3M+ In Upfont Fees

From the Federal Trade Commision:

• The Federal Trade Commission has charged a mortgage foreclosure “rescue” operation with falsely promising Spanish-speaking consumers who are behind on their mortgage payments that it would stop foreclosure.(1) Many people who paid the defendants ultimately lost their homes, and others avoided foreclosure only through their own efforts. At the FTC’s request, a federal court temporarily halted the defendants’ practices and froze their assets. The FTC seeks to stop the deceptive claims and obtain consumer redress from the defendants, whom consumers have paid at least $3.3 million.

For the entire press release, see FTC Sues Mortgage Foreclosure 'Rescue' Operation That Targeted Spanish-Speaking Consumers.

For copies of the lawsuit and the temporary restraining order, see FTC v. Dinamica Financiera LLC.

(1) The Commission charged the defendants with violating the FTC Act by falsely representing that they would obtain mortgage loan modifications or stop foreclosure in all or virtually all instances. The defendants are Dinamica Financiera LLC, Soluciones Dinamicas Inc., Jose Mario Esquer, and Valentin Benitez. The complaint was filed in the U.S. District Court for the Central District of California on May 19, 2009. The court entered a temporary restraining order on May 20, 2009, halting the defendants’ practices and freezing their assets pending a hearing on whether a preliminary injunction should be entered against the defendants.