In the latest action against a wave of mortgage scams, a Massachusetts judge has granted a temporary restraining order against a Florida firm, preventing it from doing business in the state of Massachusetts.
In the latest action against a wave of mortgage scams, a Massachusetts judge has granted a temporary restraining order against a Florida firm, preventing it from doing business in the state of Massachusetts.
Massachusetts Attorney General Martha Coakley filed a suit yesterday against Daniel H. Fox, principal of Loan Modification Group Corp. and Mitigation LLC of Aventura, Fla., alleging that the firms sought to capitalize on the foreclosure crisis and prey upon people facing the loss of their homes.
Judge Linda E. Giles granted a temporary restraining order against the firms.
The complaint, filed in Suffolk (Mass.) County Superior Court in Boston, alleges that the defendants, calling themselves “loss mitigation specialists,” offered to help homeowners avoid foreclosure by negotiating loan modifications with their banks.
The defendants “solicited fees in advance of services, failed to disclose the precise details of the services offered and how they would assist homeowners in avoiding foreclosure,” the attorney general’s office said in a statement.
The defendants advertised their services through telephone solicitations, e-mails and websites and charged upfront fees of up to $2,000 before providing any services.
Paul Calli, the lawyer representing Mr. Fox, who is based in the Miami office of firm of Carlton Fields in Tampa, Fla., was not immediately available for comment.
Under the terms of the restraining order, the defendants are prohibited from soliciting or accepting any fees from Massachusetts homeowners and publishing any misleading documents.
This week, U.S. Attorney General Eric Holder announced that the FBI is investigating more than 1,200 mortgage fraud cases, reflecting a 400% increase in cases compared with five years ago.
A hearing for the preliminary injunction has been set for April 16.
