Sunday, June 17, 2012

Iowa AG Again Comes Up Empty In Probing Fraud; Loan Mod Scam Outfit Targeted In Civil Suit Was Already Defunct, Operator Need Not Pay $40K Fine

In Des Moines, Iowa, the Des Moines Register reports:
  • An Urbandale man has been barred from consulting homeowners about foreclosure and will be required to pay a $40,000 fine if he breaks a consent order, said Iowa Attorney General Tom Miller.

  • Miller alleges that Bruce M. Spurlock, 65, violated Iowa’s consumer fraud act by collecting money for foreclosure consulting services before fully performing all services as a co-owner of the now-defunct Arizona businesses called Discount Mortgage Relief and Mortgage Relief.

  • Discount Mortgage Relief closed in 2010 after the Arizona attorney general sued the company, alleging homeowners had paid the company thousands of dollars for “guaranteed” home-loan modifications they didn’t receive.

  • Spurlock denied violating Iowa’s consumer fraud act but agreed to the consent judgment, officials said.

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