Tuesday, June 26, 2012

Minnesota Regulator Takes Action Tagging Outfit That Allegedly Used Correspondence Simulating Government Docs To Dupe Homeowners Into Loan Mod Ripoffs

From the Minnesota Department of Commerce:

  • In a coordinated effort with federal law enforcement agencies that executed search warrants at three locations associated with C.C. Brown Law Office in Utah Tuesday, Commissioner Mike Rothman issued a statement of charges against Charles Craig Brown, Chad Gettel, and C.C. Brown Law, LLC for allegedly engaging in unlicensed mortgage modification activities in Minnesota.
  • The statement of charges issued by the Commissioner includes allegations that C.C. Brown Law, Charles Craig Brown, and Chad Gettel:

    1) Operated in Minnesota without an appropriate license.
    2) Collected advance fees from Minnesotan consumers totaling more than $134,000 to work with the customers’ lenders to modify the terms of their mortgages.
    3) Failed to deposit the up-front fees in a trust account as required by Minnesota Statutes.
    4) Accessed customers’ bank accounts using E-checks, which resulted in unauthorized withdrawals.
    5) Neglected to return advance fees upon request, after failing to complete the loan modification.
    6) Misled consumers by using advertisements that appeared to be sent by the government, using perforated, government-style checks, prequalification numbers beginning with the letters “U.S.” and “Housing & Economic Recovery Program (PL 110-289)” on the outside of the envelope.
For the Commerce Department press release, see Commerce Department teams up to crack down on unlicensed loan modification companies (Commissioner Rothman issues statement of charges against C.C. Brown Law on behalf of consumers).

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