Wednesday, October 5, 2011

Rhode Island AG Shuts Down Two Loan Modification Rackets Accused Of Stiffing Homeowners Out Of Promised Services After Clipping Them With Upfront Fees

From the Office of the Rhode Island Attorney General:

  • Attorney General Peter F. Kilmartin announced the Office of Attorney General prevailed in shutting down two fraudulent mortgage modification consultants and securing $5,500 in restitution for three consumers.


  • As a result of consumer complaints received in 2010 the Office of Attorney General conducted an investigation into two individuals holding themselves out as representing Mortgage Modification Center, IMOD Corporation and Latin Service International, which all claimed to provide mortgage modification and foreclosure services.(1)

For the Rhode Island AG press release, see Attorney General Kilmartin Shuts Down Fraudulent Mortgage Modification Consultants and Secures Restitution for Homeowners.

(1) According to the press release:

  • The investigation discovered that the individuals, David Conti and Lucy Ruiz, were advertising and soliciting consumers in violation of several laws including the Deceptive Trade Practices Act and the Mortgage Foreclosure Consultant Regulation Act.

    The Attorney General alleged that since at least April 2009, Conti and Ruiz advertised, marketed and sold purported mortgage loan modification and foreclosure rescue services, with a focus on targeting the Hispanic community.

    Conti and Ruiz also engaged in a scheme to swindle distressed homeowners by enticing them with promises of negotiating loan modifications with lenders, representing that they could secure lower, fixed interest rates, principal reductions, lower monthly payments and forgiveness of arrearages.

    Conti and Ruiz required homeowners to pay an upfront fee ranging from $1,000 to $3,000 in advance of providing services. It is further alleged that, Conti and Ruiz refused to refund homeowners’ money despite not performing the services for they were contracted.

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