Mass. AG Sues Loss Mit Scammers

fice of Massachusetts Attorney General Martha Coakley has filed a lawsuit and obtained a temporary restraining order against four defendants for their alleged involvement in a foreclosure rescue scam. The complaint, filed in Suffolk Superior Court, alleges that Loan Modification Group Corp.; Mitigation LLC; the companies' principal, Daniel H. Fox; and Web site operator Chris Fuelling sought to capitalize on the foreclosure crisis and prey upon Massachusetts residents facing the loss of their homes. In addition to the lawsuit, Coakley's office is launching a campaign to educate the public about these scams. This campaign includes a consumer advisory, as well as public service announcements featuring Coakley that are being made available to public-access stations throughout the state. "While we will continue to pursue those who perpetrate these scams, it is also vital that the public be aware of the tactics being used so that they can take steps to protect themselves," Coakley says. In the lawsuit, the attorney general's office alleges that the defendants' business practices were unfair and deceptive; in violation of the Massachusetts Consumer Protection Act, because they 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; and would guarantee a loan modification that would improve the homeowner's financial situation dramatically and save the home from foreclosure. Under the terms of the temporary restraining order, granted by Judge Linda E. Giles, the defendants and their employees are prohibited from soliciting or accepting any fees from Massachusetts homeowners for providing foreclosure-related services and publishing any false, deceptive or misleading documents concerning their ability to offer loan modifications. A hearing for a preliminary injunction has been scheduled for April 16, 2009. SOURCE: Office of Attorney General Martha


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