Florida AG Tags Alleged Loan Modification Racket With Civil Suit; Court Slaps Operators With Temporary Asset Freeze, Shut Down Order

From the Office of the Florida Attorney General:

• Attorney General Pam Bondi announced that her office filed a lawsuit on Friday against three South Florida companies that allegedly were charging upfront fees for loan modification services to homeowners facing foreclosure. Charging upfront fees for these services is illegal, per F.S. 501.1377.
• Home Owner Protection Economics, Inc., DC Financial Group, Deleverage America, Inc. and owners Dennis Fischer, and Christopher S. Godfrey purportedly collected thousands of dollars monthly in upfront fees for loan modification services that were never provided. As a result of the lawsuit filed by the Attorney General’s Office, the Palm Beach County Circuit Court ordered the defendants’ assets be frozen and that they be forbidden from operating until further order of the court.
• An investigation conducted by the Attorney General’s Economic Crimes Division indicated that these companies, located in Delray Beach, were allegedly charging upfront fees ranging from $495 to $2,000 for foreclosure-related loan modification services that were never rendered.
• Allegedly, the defendants falsely represented to homeowners that they would work with lenders to reduce the homeowners’ debt and prevent foreclosure, when in reality the lender banks were never contacted on the homeowners’ behalf. The companies were allegedly soliciting hundreds of homeowners nationwide via telemarketing, direct mail, e-mail and Internet, print and TV advertising.

For the Florida AG press release, see Attorney General Bondi Files Lawsuit Against Three South Florida Companies for Foreclosure Rescue Fraud.