Columnist To Florida Law Enforcement: Enough Already With The Civil Suit Probes; Start Criminally Prosecuting Foreclosure Rescue Scammers

In Sarasota, Florida, a recent column by Tom Lyons in the Sarasota Herald Tribune calls for Florida law enforcement authorities to stop limiting their efforts in combatting foreclosure rescue scams to civil investigations, and begin bringing criminal prosecutions against the perpetrators:

• The average citizen is no expert in real estate law, and doesn't want to be. It's pretty dry stuff. [Gulfcoast Legal Services attorney] Elizabeth Boyle was glad a civil jury hung in there as she presented document after document to show how a company called Profitmax had taken advantage of a desperate Sarasota County woman. [...] The jury awarded [homeowner Wanda] Costa $93,000 [see Home rescue was a scam, jury says].(1) But "awarded" doesn't really mean the woman will ever get the money, which is supposed to pay her back for lost equity and other costs. The judge hasn't even approved the verdict yet, and who knows if the money would ever be paid anyway.

• I congratulate the jury on the attempt and I hope it helps. But here's what I really wonder: If a jury can figure out that Costa was scammed, why the heck can't law enforcement and prosecutors do the same? How about filing criminal charges in cases like this, and going for jury verdicts that foreclosure-help sharks would really care about?

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• Florida's attorney general's office claims to be paying attention. It organized a task force that has 73 active investigations, supposedly. But I am underwhelmed. I must see 50 suspicious-looking roadside signs advertising foreclosure assistance every time I drive to work. Heck, the AG's office says it has 180 such companies that are considered of interest, and cases haven't been filed yet for any of those. And guess what: In every one, if anything is ever filed, the plan is to make each a civil case, not one where anyone ever has to worry about spending time behind bars. Could a scammer dare ask for a better set up?

For the entire column, see Hollow court victories no deterrent to scams.

(1) According to an earlier story, Boyle plans to try another case in December against the same defendants - Gideon Rechnitz, Thomas Cook and their companies - alleging the same scam. Rechnitz owns nine other properties in Sarasota and Manatee counties, apparently under the same scheme, which makes him the trustee on a trust with the homeowner's name on it.