At Least Ten Individuals, Firms Found Liable In Civil Suit For Running Equity Stripping Racket Disguised As Foreclosure Rescue Help

The Maryland Mortgage Fraud Task Force members recently announced this successsful civil lawsuit by the Office of the Maryland Attorney General - Consumer Protection Division:

• The Office of the Maryland Attorney General, Consumer Protection Division, filed a complaint in Baltimore City Circuit Court against [a foreclosure rescue group], alleging that the defendants promised to save consumers' homes from foreclosure and restore their credit when, instead, they attempted to take title to the homes and strip the home equity.

• On November 9, 2009, the court entered summary judgment as to liability in favor of the Consumer Protection Division and against each of the defendants except Reggie Simmons. A trial was held on November 23rd and 24th, 2009 to determine Simmons' liability, and the appropriate measure of damages, restitution, penalties and costs for each of the defendants. A decision has not yet been issued by the court. The case was originally investigated and referred by the Maryland Department of Labor, Licensing and Regulation - Division of Financial Regulation.

Source: Maryland Mortgage Fraud Task Force Announces Progress And Plans (Consumer Protection Division v. Rodney Spellen, et al.).

(1) Those named as defendants were: Rodney Spellen, Mid Atlantic Consulting, Inc., Jemel Lyles, Absoloot Ventures Inc., Brian Boyd, 1st Choice Property Management Firm, Inc., Sahar Ali, Alan Muniu, Phillip George, Certified Title & Escrow, Inc. and Reggie Simmons.