First Wave In Nationwide Loan Modification Scam Eradication Effort Results In 189 Legal Actions In Coordinated Federal, State Sweep

Last week, the coordinated nationwide sweep, called "Operation Loan Lies," began with prosecutors filed 189 legal actions against loan modification firms accused of cheating homeowners desperate to adjust the terms of their currently unaffordable home loans. This sweep involves 25 government agencies, including the Federal Trade Commission, the U.S. attorney's office for the Central District of California, and 23 other agencies in 19 states. Go here for a summary of the Federal and state actions.

The following press releases were issued by some of those agencies involved in this nationwide scam eradication effort:

1) U.S. Federal Trade Commission:

• Federal and State Agencies Target Mortgage Foreclosure Rescue and Loan Modification Scams (FTC Leads “Operation Loan Lies” to Stop Fraud and Help Distressed Homeowners).

2) Arizona Attorney General's Office:

• Terry Goddard Announces National Crackdown on Mortgage Fraud.

3) California Department of Justice:

• Brown Sues 21 Individuals and 14 Companies Who Ripped Off Homeowners Desperate for Mortgage Relief.

3) Colorado Attorney General's Office:

• Attorney General Announces Actions Against Seven Loan-Modification Companies As Part Of Multistate Sweep.

4) Idaho Attorney General's Office:

• Wasden Recovers Money for Loan Modification Victims.

5) Illinois Attorney General's Office:

• Madigan Continues Pursuit Of Mortgage Rescue Fraud (Illinois Attorney General Files Four New Lawsuits, Joins Federal Trade Commission, U.S. Department of Justice in Move to Protect At-Risk Homeowners Nationwide).

6) Iowa Department of Justice:

• A.G. Shuts down “Foreclosure Rescue” Company (Miller: “Beware of foreclosure rescue scams. If you need help, call the free Iowa Mortgage Help Hotline at 877-622-4866”).

7) Kansas Attorney General's Office:

• Attorney General Six Joins ‘Operation Loan Lies' to Stop Fraud and Help Distressed Homeowners (Federal and State Agencies Target Foreclosure Rescue and Mortgage Modification Scams).

8) Maine Department of Professional and Financial Regulation, Bureau of Consumer Protection:

• State Regulators Order Foreclosure Rescue Companies to Cease Doing Business in Maine.

9) Maryland Department of Labor, Licensing, and Regulation, Office of the Commissioner of Financial Regulation:

• Maryland moves against loan consultants (from The Maryland Daily Record).

10) Michigan Attorney General's Office:

• Cox Charges Five for Foreclosure Rescue Fraud (Warns 17 other companies on consumer practices).

11) Missouri Attorney General's Office:

• Attorney General Koster joins FTC, California in suit against foreclosure consultant (obtains restraining orders against two fraudulent businesses).

12) New Jersey Attorney General's Office:

• Attorney General Announces Mortgage Fraud Lawsuits - 10 Defendants Charged in Two Separate Loan Modification Cases.

13) North Carolina Department of Justice:

• AG Cooper targets California schemes that prey on NC homeowners (NC cases part of national Operation Loan Lies).

14) Ohio Attorney General's Office:

• Cordray Sues California Foreclosure Rescue Operation for Fraud (Joins National Crackdown on Mortgage-Related Scams and Urges Federal Regulation ),
• Cordray Issues Statewide Foreclosure Rescue Scam Sweep (Seeks to shut down operations throughout Ohio).

15) Washington Attorney General's Office:

• State, federal sweep slams loan-mod scams (Firms operating in Washington state in government crosshairs for taking advantage of homeowners facing foreclosure).