NC Upfront Fee Loan Modification Racket Gets Clipped For 80K+ In Restitution, Civil Penalties After Pocketing Cash In Exchange For Broken Promises

In Raleigh, North Carolina, the Greensboro News & Record reports:

• A company that operated in Colfax and Charlotte has been banned from doing foreclosure assistance work in the state. The state Attorney General's office said [] that Reginald Keith Turner, who did business as Hazelton Management and The Carley Group, is prohibited from doing foreclosure assistance, loan modification and debt relief work in the state.

• In a case decided last week by Wake County Superior Court Judge Lucy Inman, Turner was ordered to pay $32,804 in refunds to 24 consumers and $50,000 in civil penalties to local public schools.

• The Attorney General’s Office said it first warned Turner to stop violating the law in late 2008. Instead, he reopened his business under a new name, The Carley Group, and continued taking consumers’ money.

• The state then filed suit against Turner, alleging that he charged homeowners an advance fee of as much as $2,500 but did little or nothing to help save their homes. Turner shut down his operations and left North Carolina after the state won a temporary court order against his foreclosure rescue work in June 2010.(1)

Source: State bans foreclosure rescue firm that operated in Colfax.

For the NC AG press release, see Phony foreclosure rescue outfit banned from reopening in NC.

(1) Go here for a list of other foreclosure rescue rackets shut down by the NC AG.