Federal Loan Modification Law Center, LLP

Government Actions

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 General - Other States
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

Agency: Department of Real Estate
Description: On January 13, 2010 the California Department of Real Estate filed a Cease & Desist Order against this company; it's DBA's and several of its officers and employees. The order was filed in the public interest when the Commissioners investigation concluded that the defendants were engaging in or attempting to engage in acts or practices in violation of California Business & Professions codes. These violations include, but are not limited to: advertising loan modification services and using advance fee agreements without first seeking approval by the DRE 10 days in advance of their use; soliciting and representing borrowers in negotiating, financing, and obtaining mortgage loans without department authorization of DBA';s used; and employing or compensating unlicensed persons.

The Order requires the defendants, doing business under their own name, or any other name to immediately desist and refrain from performing any acts within the State of California for which a real estate brokers license is required, unless or until compliance with all state laws has been met. In addition, the defendants were ordered to immediately desist and refrain from charging demanding, claiming, or collecting any advance fees on any form of mortgage loan forbearance services in connection with loans on residential property.

Date of Action: 1/13/2010

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