Thursday, August 25, 2011

Court Orders Pre-Trial Shut-Down For Alleged Long Island Loan Modification Racket Accused Of Ripping Off 1,000+ Homeowners

In Nassau County, New York, the New York Daily News reports:

  • A judge shut down a Long Island mortgage brokerage accused of ripping off hundreds of struggling homeowners through loan modification scams. Homesafe America Inc. and its successor corporation, United Solutions Law Firm, allegedly scammed more than 1,000 homeowners facing foreclosure by falsely promising to get mortgage reductions from banks.

  • The Levittown, L.I., firms allegedly charged homeowners across the country - including some in Brooklyn and Queens - illegal upfront fees ranging from $1,500 to $4,000. Then they did little or nothing for the money.

  • Nassau Supreme Court Justice John Galasso's order bars Homesafe's founders, Guy Samuel and Scott Schreiber, from engaging in mortgage-assistance services before trial. The order was sought by lawyers for 15 homeowners who hit Homesafe and United Solutions with a $1.5 million suit in June.

  • "They deserved to be shut down," said plaintiff David Thorpe, a retired cop from Prole, Iowa. "I don't know how many more countless others there are out there who are in the same boat I am and made the same stupid mistake that I did." A call to Schreiber's attorney was not returned. Samuel could not be reached.

Source: Judge slams door on mortgage ripoffs Homesafe America Inc. and United Solutions.

For an earlier post on these alleged rackets, see Pair Of Alleged Long Island Loan Modification Rackets Get The 'Freeze' As Judges Limit Firms' Activities, Order Hold On Assets.

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