Owner of AZ Mortgage Firm Settles Fraud Cause With AG's Office

November 6, 2013
Phoenix Business Journal  
mortgage lending news

Stan Nii-Addo Allotey Jr., the owner of Arizona-based Mortgage Relief Group, has settled a consumer fraud case with Arizona Attorney General Tom Horne for $90,000. Under the terms of the agreement, he has been barred from conducting related business operations. Allotey and Mortgage Relief allegedly misled consumers into paying loan-modification service fees that ranged from $995 to $3,245, as well as upfront fees, by misrepresenting the ability to prevent foreclosure.

According to Horne, the lawsuit was filed after Allotey refused to cooperate with the AG's investigation. In the consent judgment, Allotey admitted to violating the Arizona Consumer Fraud Act, Arizona Telephone Solicitations Act, and the Arizona Foreclosure Consultant Regulation Law. In May, Horne also won a $380,000 default judgment against Mortgage Relief, then doing business as Mortgage Assistance Group, in Maricopa County Superior Court.

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