d
Category ssearcha Category csearchoe Movies r Savings2ndmortgage h Movies nMsearchv Movies e Category / o Movies t Savings2ndmortgage csearchm
esearchtd Category ssearcha Category csearchoe Movies r Savings2ndmortgage h Movies nMsearchv Movies e Category / o Movies t Savings2ndmortgage csearchmesearcht
Attorney General Sues Foreclosure Rescue Operations for Fraud and Racketeering
Defendants Allegedly Preyed on Homeowners Desperate to Avoid Foreclosure
TRENTON – Attorney General Anne Milgram today announced the filing of lawsuits charging a total of 37 mortgage loan providers, mortgage industry employees, lawyers and other defendants with consumer fraud and civil racketeering for using predatory “foreclosure rescue” schemes to persuade desperate homeowners to sign over their homes.
The state alleges that the defendants obtained at least $13.5 million worth of fraudulent loans to further their foreclosure rescue schemes. In addition, the state alleges that defendants stole at least $3 million in homeowner equity.
In two separate but related state complaints, the defendants are charged with exploiting the financial hardship and fear of homeowners by convincing them to surrender their homes to third-party or “straw” buyers as part of complex “sale/lease-back” transactions. Homeowners were told that, by signing over their property titles to third-party buyers, they would be able to still live in their homes as renters while repairing damaged credit, and then, in the future, buy back their dwellings.
In reality, the state lawsuits charge, the solvency and renewed home ownership promised by such deals did not materialize. Instead, defendants collected most of the sale/lease-back proceeds for themselves, thereby stripping the homes of their equity value. Struggling homeowners were left with few or no means to pay rent or re-establish their credit. Some of the homeowners have been evicted from their homes, while others remain and continue to pay rent. In some instances, defendants continue to collect the rent but do not apply the rent payments to the mortgage, leaving the homes once again in foreclosure.
“The conduct charged in these lawsuits is unconscionable. These defendants preyed on people who were facing foreclosure and searching for a lifeline that would enable them to get back on their feet and remain in their homes,” said Attorney General Milgram. “Having placed their hope and trust in these defendants, victims ended up far worse off than they were before. It is critical that we root out this kind of fraud and protect consumers who go seeking help from finding complete financial ruin instead.”
Filed on October 15 in New Jersey Superior Court in Bergen County, the state’s lawsuits are against Vest Financial LLC, formerly of Paramus, along with 16 other defendants, and JP Global Property Management, Inc., of Bloomfield, along with 19 other defendants. Five defendants are common to both complaints.
Together, the two complaints allege violations of both the New Jersey Consumer Fraud Act and the New Jersey Racketeer Influenced and Corrupt Organizations Act involving a total of 48 properties. The properties are located in 14 counties including Atlantic, Bergen, Burlington, Cape May, Essex, Gloucester, Hudson, Mercer, Middlesex, Monmouth, Ocean, Passaic, Somerset and Union.
The state alleges that defendants in the Vest complaint stole at least $1.25 million in homeowner equity, while defendants in the JP Global case stole at least $1.75 million in homeowner equity.
As a result of the defendants’ conduct, at least $4 million in fraudulently obtained rescue loans are in default.
The Vest Financial lawsuit names as defendants five corporations and 12 individuals. The JP Global Property Management complaint names as defendants three corporations and 17 individuals.
Among other things, the lawsuits seek court-imposed penalties, restitution for consumers and permanent injunctions banning companies named as defendants from offering foreclosure rescue or credit repair services to consumers. The lawsuits also seek to have the records of the defendants impounded, and the assets of each defendant frozen, with no ability to dispose of any assets.
The two lawsuits are:
Milgram v. Vest Financial, L.L.C: The State’s four-count complaint charges Vest and the other defendants with soliciting consumers facing foreclosure or otherwise experiencing money troubles that could lead to losing their homes.
According to the lawsuit, the defendants advertised “foreclosure rescue” services over the Internet and radio, and by word-of-mouth within the real estate and mortgage broker communities.
The defendants are accused of falsely leading homeowners to believe that surrendering the titles to their homes would save them from foreclosure when, in fact, entering into such a straw-buyer arrangement would only imperil them further while enriching the defendants.
Among other things, the defendants are charged with civil racketeering. Predicate offenses listed in the racketeering count of the lawsuit include theft by deception, forgery, bank fraud and money laundering. The suit also charges violations of the Consumer Fraud Act including unconscionable business practices and making false promises; misrepresentations and knowing omissions of fact; and violation of state advertising regulations. The alleged conduct took place between 2005 and early 2008.
Defendants other than Vest Financial named in the lawsuit, all but one of them from New Jersey, include:
pWww Savings2ndmortgage Category Movies Savings 2nd Mortgage HOW'S YOUR WORLD.... - Bravenet Blogt Savings 2nd Mortgage xWww Savings2ndmortgage Category Movies Savings 2nd Mortgage HOW'S YOUR WORLD.... - Bravenet Blogy q Savings 2nd Mortgage High