State AGs Target Califormia Upfront Fee Foreclosure Rescue Operator

American Housing Authority ("AHA"), a California-based company in the business of providing foreclosure consulting services in exchange for an upfront fee has been recently sued by the Attorneys General for Illinois and Ohio for alleged conduct in connection with its foreclosure consulting business.

In Illinois, Attorney General Lisa Madigan filed suit against AHA (doing business as American Housing Help) and its president, Brandon Roberts, for violating Illinois ' recently-enacted Mortgage Rescue Fraud Act, as well as the Consumer Fraud and Deceptive Business Practices Act and alleges that AHA and Roberts defrauded homeowners by falsely promising to help them escape foreclosure, taking their money as a fee, and then failing to provide any real help.

In Ohio, Attorney General Marc Dann filed suit against AHA and, according to the complaint, affiliate American Housing Financial, Inc. ("AHF") - principal place of business in Phoenix, Arizona - for violating a number of Ohio consumer protection laws. The complaint in this case identifies Brandon Roberts as AHA's president, and Mace Miller as AHF's president.

For more on the Illinois case against AHA and Roberts, see:

• Illinois AG Press Release
• Copy of lawsuit - State of Illinois vs. American Housing Authority

For more on the Ohio case against AHA and AHF, see:

• Ohio AG Press Release
• Copy of lawsuit - State of Ohio vs. American Housing Authority, American Housing Financial.

A recent media report mentions American Housing Authority in connection with an alleged problem that a Texas resident facing foreclosure reportedly had with the foreclosure consulting services (see Texas Homeowner Facing Foreclosure Falls For Upfront Fee "Rescue" Offer). No word if any official investigation has taken place in that reported incident.