Florida AG Urged To Follow Massachusetts AG's Lead On Foreclosure Rescue
The Miami Herald reports:
For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).
The Florida Attorney General already has the authority to prosecute (either through civil or criminal action) the "sale leaseback" type of foreclosure rescue scams. When applying the "substance over form" rule, these sale leaseback foreclosure rescue arrangements are generally nothing more than disguised loans; and in most cases, they are disguised usurious loans.
For the Florida usury statute, see Chapter 687, Florida Statutes - Interest and Usury. For links to Florida case law supporting the proposition that these deals are nothing more than disguised loans, see Florida AG Investigating Foreclosure Rescue Operators ("Editorial Note").
For a court case illustrating exactly how an Attorney General in an another jurisdiction went about establishing that the sale leaseback transactions of two foreclosure rescue operators were nothing more than disguised loans, and then succeeded in criminally prosecuting them for charging interest on the disguised loans in excess of the maximum amount allowed by law, see Browner v. Dist. of Columbia, 549 A.2d 1107 (D.C. 1988).
For links to stories from around the country where foreclosure rescue operators are being criminally charged for engaging in fraudulent equity stripping arrangements that are typically structured as sale leaseback transactions, see Foreclosure Rescue - For Criminal Prosecutors Only.
- "A Broward legal aid organization is urging Florida Attorney General Bill McCollum to adopt emergency measures to curb foreclosure prevention scams, arguing the fraud has reached epidemic proportions and shows no sign of slowing down. Legal Aid Service of Broward County asked Florida's attorney general last week to enact regulations similar to the plan Massachusetts Attorney General Martha Coakley instituted in her state in June. Coakley did not wait for legislative action but claimed authority under that state's existing laws to issue regulations aimed at ending home-rescue frauds. The Broward group similarly wants swift legal action and says McCollum has the authority to do it under Florida's Deceptive and Unfair Trade Practices law or through an executive order from the governor. The group also seeks reform by Florida legislators."
For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).
Editorial Note
The Florida Attorney General already has the authority to prosecute (either through civil or criminal action) the "sale leaseback" type of foreclosure rescue scams. When applying the "substance over form" rule, these sale leaseback foreclosure rescue arrangements are generally nothing more than disguised loans; and in most cases, they are disguised usurious loans.
For the Florida usury statute, see Chapter 687, Florida Statutes - Interest and Usury. For links to Florida case law supporting the proposition that these deals are nothing more than disguised loans, see Florida AG Investigating Foreclosure Rescue Operators ("Editorial Note").
For a court case illustrating exactly how an Attorney General in an another jurisdiction went about establishing that the sale leaseback transactions of two foreclosure rescue operators were nothing more than disguised loans, and then succeeded in criminally prosecuting them for charging interest on the disguised loans in excess of the maximum amount allowed by law, see Browner v. Dist. of Columbia, 549 A.2d 1107 (D.C. 1988).
For links to stories from around the country where foreclosure rescue operators are being criminally charged for engaging in fraudulent equity stripping arrangements that are typically structured as sale leaseback transactions, see Foreclosure Rescue - For Criminal Prosecutors Only.
posted by Home Equity Theft Reporter at 8:51 AM
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