Chicago Prosecutor Sues "Rescue" Scammer; Fines, Restitution Ordered

In this April, 2006 story, a Cook County judge fined ($250,000) and ordered restitution from ($115,000 to 74 victims) an Illinois man and his company for their activities involving the solicitation of upfront fees from homeowners facing foreclosure in exchange for false promises of saving their homes from forced sale. The court order also permanently banned them from providng services related to residential mortgage loans in Illinois.

This court action resulted from a civil lawsuit brought by the Cook County State's Attorney's Office Consumer Fraud Division charging violations of the Illinois Consumer Fraud and Deceptive Business Practices Act.

(It appears that, for those local county prosecutors' offices that have a consumer fraud section, bringing a civil lawsuit against certain scam artists may be an effective alternative to bringing criminal charges against them. There is no possibility of criminal convictions and jail time in a civil lawsuit; however, fines, restitution, and shutting down the scam operation are still possible. Additionally, the prosecutor's burden of proving wrongdoing is significantly lessened in a civil case than what it would be in a criminal prosecution; a civil lawsuit may be a good route to go if there isn't enough evidence to prove "guilt beyond a reasonable doubt", but enough to prove "liability by a preponderance of the evidence.")

For the whole story, see this Cook County Prosecutor's Press Release, $250,000 Fine Levied Against Fraudulent Foreclosure "Rescue" Business.
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