"We Are Not Bound By State Borders!" Proclaims Indiana AG In Launching Attack On Alleged Ohio-Based Loan Modification Racket

In Fort Wayne, Indiana, The Indianapolis Star reports:

• The Indiana attorney general's office claims a Cincinnati-based loan modification firm signed fraudulent agreements to help nearly 600 Hoosier homeowners avoid foreclosure. Foreclosure Assistance USA told the homeowners they would help prevent foreclosure in claims made on websites and radio and in direct-mail advertisements and phone solicitations, the attorney general's office said in a statement.(1)

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• "The suit also claims FA USA violated Indiana law by failing to have a $25,000 surety bond while accepting money up front from customers for services that had not yet been performed," the statement said. "The company is also accused of deceptive acts including misrepresenting to consumers that the consultants were experts in the area of foreclosure prevention or possessed in-depth knowledge of the industry."

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• "Out-of-state companies often don't believe the Indiana attorney general's office has jurisdiction over their practices," Attorney General Greg Zoeller said in the statement. "That's simply not true. The vast majority of foreclosure consultant scams originate outside Indiana and this enforcement action reflects that we are not bound by state borders."

For the story, see Suit: Ohio foreclosure firm scams 600 Indiana homeowners.

For the Indiana AG press release, see Out of state but not out of reach, Attorney General goes after Ohio-based foreclosure consultant company.

(1) The Ohio attorney general filed a similar lawsuit against Foreclosure Assistance USA in 2009 in a Hamilton County, Ohio, court, the story states.