Agency: Federal Trade Commission (FTC)Los Angele
Description: On April 3, 2009 the Federal Trade Commission filed a complaint in U S District Court Central Division of California. The complaint alleges that this company, and several associated companies, market mortgage loan modification and foreclosure relief services to homeowners who are in financial distress, delinquent on their mortgages, or in danger of losing their homes to foreclosure. According to the FTC’s complaint, the defendants charge consumers from $1,000 to $3,000 in fees for these services, much of which must be paid up-front, but fails in numerous instances to obtain the promised loan modifications. In radio advertisements, the FTC alleges, the defendants induce homeowners to call its toll-free number by misrepresenting that it is part of or affiliated with the federal government, although it is not. According to the complaint, the companies often fail to answer or return consumers’ calls or provide updates about the status of their loan modifications, and assures consumers that negotiations with their lenders are proceeding when, in fact, little or no effort has been made to contact the lender. The case is currently pending.
Date of Action: 4/3/2009
Agency: Federal Trade Commission (FTC)Los Angele
Description: On April 24, 2009, the Federal Trade Commission filed an Order for Preliminary Injunction, against this company, their principals, and their affiliates. The Order was entered when the Court, after considering the pleadings, exhibits, memoranda, and declarations, concluded that there was good cause to believe that the Defendants might be engaging in, and may continue to engage in violations as were previously charged in the FTC Complaint filing April 6. 2009.
The order was filed in the public interest freezing certain assets of the defendants in order to assure the Court’s ability to grant effective final relief by preventing the destruction, transfer, or concealment of documents or records.
The Order restrains and enjoins the defendants from transferring, selling, liquidating, or otherwise concealing or destroying any assets; from representing, guaranteeing, the likelihood, expressly or by implication, that the company will obtain a modification of any term of a consumer's home loan, deed of trust, or mortgage; or obtain a pre-foreclosure sale, short sale, or deed-in-lieu of foreclosure. The Order also prohibits the company from stating or implying during the course of business that they are able to stop, prevent, or postpone any home mortgage foreclosure sale; save any consumer's residence from foreclosure; obtain or arrange lower or affordable monthly mortgage payments for any consumer; or obtain or arrange lower interest rates on any home loan, deed of trust, or mortgage for any consumer. It also prevents the defendants from assisting others in the loan modification process.
Further prohibitions include, but are not limited to; representing that any of the Defendants are affiliated with, endorsed or approved by, or otherwise connected to, the United States government, any governmental homeowner assistance plan, or any government agency; destroying, mutilating or otherwise disposing of, in any manner, directly or indirectly, any documents or records that relate to the business practices, or business or personal finances, of any of the Defendants, or other entity directly or indirectly under the control of any of the Defendants. The Order also prohibits the practice of selling their customers personal information to other companies, and specifically prohibits the practice of requesting or receiving payment or consideration in advance of performing loan modification or foreclosure relief services, and refusing to provide refunds, when services are not performed as agreed. The case is currently pending.
Date of Action: 4/24/2009
Agency: Federal Trade Commission (FTC)Los Angele
Description: On June 26, 2009, The FTC filed an amended complaint adding several new defendants in the action currently pending against Federal Loan Modification Law Center, LLP, and six related defendants. The original complaint, filed on April 3, 2009, charged the defendants with misrepresenting that in exchange for a large up-front fee, they will obtain a mortgage loan modification or stop foreclosure in all or virtually all cases, and by misrepresenting that they are affiliated with or endorsed by the U.S. government.
The amended complaint adds the following defendants to the case: Venture Legal Support, PLC; Federal Loan Modifications; SBSC Corporation; and Steven Oscherowitz. The Commission alleges that the additional defendants participated in the challenged practices independently and as part of a common business enterprise. The amended complaint also adds MGO Capital and Legal Turn, LLC as relief defendants. Relief defendants are individuals or entities that did not participate in the alleged deceptive practices, but financially benefitted as a result. The case is currently pending.
Date of Action: 6/26/2009
Agency: Attorney Generals where no BBB (AG)
Description: On July 29, 2009, the Wisconsin Department of Financial Institutions filed an Order banning this company from selling services or otherwise conducting business in the State of Wisconsin. The Order was filed in the public’s interest when the Department received no response to its attempts to contact the company for information. The company also was not in compliance with Wisconsin state licensing laws for their industry.
The order requires the firm not only to provide refunds to six customers who complained to the state, but to all residents of Wisconsin with whom it conducted business. The order requires the company to provide a list of Wisconsin customers by Aug. 21, along with a list of the refunds it provided.
According to the Department, most of the Wisconsin residents who complained asserted that the company had promised refunds to customers whose mortgages were not modified. When the customers asked for refunds, the company failed to provide them.
If the company fails to respond to the Order, the case may be submitted to the State Attorney General’s office for pursuit of forfeitures.
Date of Action: 7/30/2009
Agency:
Description: On August 4, 2009 the State Bar of California announced that they moved to place this company's principal, Nabile Anz on involuntary inactive status last month after receiving 39 complaints. According to the Bar, in late 2008 Anz set up the Federal Loan Modification Law Center (FLM), operating out of several offices, complete with telemarketers, and signed up 8,300 clients in six months. Over a four-month period, FLM purportedly received 200,000 phone calls from prospective clients. The firm claimed it obtained successful loan modifications for 942 clients and had some 5,400 active clients last April.
But the bar accuses Anz of more than a half-dozen ethical violations. FLM was set up to preclude the involvement of lawyers in determining whether to accept a client and in fact case evaluators were trained to accept virtually every client, according to bar prosecutors. There was no legal analysis of clients’ cases and Anz’s system of paying case evaluators guaranteed they would lie to potential clients in order to receive their commissions.
In their application to halt Anz’s activities, bar prosecutors wrote: “It should come as no surprise that the scheme to defraud clients unraveled and that (Anz) abandoned his clients … after he took and kept the fees the clients had paid to FLM, which the clients desperately needed to pay their mortgages.”
Anz has a hearing before the State Bar Court Aug. 18.
Date of Action: 8/4/2009
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