Wednesday, July 10, 2013

Indiana AG Tags Two Out-Of-State Law Firms In Separate Civil Suits Alleging Illegal Loan Modification Ripoffs

From the Office of the Indiana Attorney General:

  • Two Florida-based foreclosure consultant companies face state lawsuits [] after taking more than $7,500 from local homeowners and not providing services or refunds.

    Indiana Attorney General Greg Zoeller filed lawsuits in Morgan County against CapLaw, P.A. and Jeffrey A. Smith Law Group, P.A. According to the complaints, the companies illegally solicited Indiana residents and entered into contracts with homeowners promising to obtain home loan modifications in exchange for upfront fees.
  • Defendant CapLaw, P.A., also known as the Law Office of James F. Caplan, P.A., and its owner James F. Caplan collected $1,200 to $3,300 in up-front fees from two consumers.

    Jeffrey A. Smith Law Group, P.A., also known as JAS Law Group and Jeffrey A. Smith Law Firm, and its owner Jeffrey A. Smith are accused of taking $3,034 from a Martinsville resident after promising to obtain a home loan modification.

    Both defendants are accused of taking the money and not rendering the promised services or providing refunds. The companies did not register $25,000 surety bonds with the Attorney General’s Office. These bonds are required before services can be performed, including collecting money up front. They also did not obtain certificates of authority from the Indiana Secretary of State’s Office to conduct business in Indiana.

    According to the lawsuits, both businesses violated the Credit Services Organization Act, the Mortgage Rescue Protection Act, the Home Loan Practices Act and Indiana’s Deceptive Consumer Sales Act. Zoeller is seeking injunctions against the companies, restitution for the victims, civil penalties and attorneys' fees.

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