States Charge Fraud by 'Mortgage-Relief' Operation

August 8, 2014
CBS Connecticut 
mortgage lending news
The attorneys general of Connecticut and Florida have lobbed federal charges at legal operations that took advantage of financially strapped homeowners.
In exchange for hefty upfront payments and additional monthly fees, the two law firms promised to help borrowers avert foreclosure or secure mortgage modifications but then did little or nothing to aid them.

According to the lawsuit, Connecticut-based Resolution Law Group and Florida-based Berger Law Group sent what looked like class-action notices to distressed borrowers. The notifications indicated that victims were potential plaintiffs in litigation against their lender or servicer and gave a deadline to enroll. Borrowers were then subjected to aggressive sales tactics that ultimately bled them of $4.75 million.

Connecticut AG George Jepsen and Florida AG Pam Bondi have won a restraining order against both companies and individuals associated with them, who have already been penalized for a similar scheme in California.

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