Tuesday, March 20, 2012

Non-Profit Group Targets Another Suspected Foreclosure Rescue Racket In Civil Suit; Accuses Long Island Law Firm With Peddling Faulty Loan Mod Help

The Lawyers' Committee for Civil Rights Under Law(1) recently announced:

  • The Lawyers' Committee for Civil Rights Under Law (Lawyers' Committee) and pro bono counsel Davis Polk & Wardwell LLP (Davis Polk) have filed their fourth lawsuit against a network of for-profit loan modification companies.

  • The suit, Masheyeva v. Law Offices of David M. Green, was filed in New York Supreme Court in Nassau County, on behalf of 18 homeowners from New York and six other states. It alleges that the loan modification scam, operated by multiple corporate and individual defendants centered around David M. Green and his Nassau County-based firm, Law Offices of David M. Green, defrauded vulnerable homeowners out of tens of thousands of dollars by falsely promising—for substantial upfront fees—to obtain much-needed mortgage modifications on their behalf, but then consistently failing to deliver results.

  • The case seeks to recover monetary damages, including the illegal upfront fees paid by plaintiffs, and injunctive relief to put an end to the deceptive practices of the named defendants. The Lawyers’ Committee and Davis Polk are representing the plaintiffs free of charge. (Click here to view Complaint)

  • The scheme at issue in this case is alleged in the complaint to have operated as follows:

    1) In exchange for sizable advance fees of up to $5,000, collected in violation of New York law, defendants promised to work directly with plaintiffs’ lenders to renegotiate their home loans and to secure lower monthly payments and interest rates, and, in some instances, avoid impending foreclosure.

    2) They lured plaintiffs by touting their specialized experience in the industry, offering the services and expertise of seasoned attorneys, and claiming to have personal connections with key employees of plaintiffs’ lenders.

    3) Ultimately, defendants performed little to no work on plaintiffs’ loan modification applications, typically failing to make any contact with their lenders.

For more, see Lawyers' Committee & Davis Polk File Fourth Suit Targeting Loan Modification Scam in Nassau County.

(1) The Lawyers' Committee for Civil Rights Under Law, a nonpartisan, nonprofit organization, was formed in 1963 at the request of President John F. Kennedy to involve the private bar in providing legal services to address racial discrimination.

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