Ohio AG Wins $300K+ Judgment In Loan Modification Foreclosure Rescue Scam; Fires Warning Shots Against 10 Others With Subpoenas, C&D Orders

From the Office of the Ohio Attorney General:

• Ohio Attorney General Richard Cordray [Monday] announced that a foreclosure rescue scam company operating out of Cincinnati has been shut down and now owes more than $300,000 in damages and civil penalties. The default judgment issued out of Hamilton County Common Pleas Court demands that Foreclosure Solutions and owner Timothy Buckley pay $225,000 in civil penalties and $79,565 in restitution for scamming Ohioans facing foreclosure.(1)

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• Also, in an unprecedented move, Cordray [Monday] issued 10 cease and desist demands with accompanying subpoenas to businesses suspected of operating rescue scams in Ohio. The cease and desists demand that the companies halt all predatory practices, and the subpoenas require information to substantiate current practices. The sweep is the first in a widespread investigation into rescue operations targeting Ohio. “This is a strong, preventative measure to keep foreclosure rescue scammers out of Ohio,” said Cordray. “It is a warning shot announcing that we have no tolerance for these predatory practices in our state.”

For the entire press release, see Cordray Puts Heat on Foreclosure Rescue Operations (Attorney General pursues more than $300,000 in restitution and penalties; Launches multi-state cease and desist sweep).

For the Ohio AG lawsuit, see State of Ohio v. Foreclosure Solutions L.L.C.

Go here for other posts and lawsuits against Foreclosure Solutions.

(1) According to the press release, from January 2003 through May 2008, Foreclosure Solutions solicited Ohioans who were going through foreclosure via direct mail and offered services to save their homes. The company then arranged in-person meetings and entered into written agreements with the promise to act as an agent to stop the foreclosure. After charging amounts ranging from $750 - $1,300 the company never provided the services promised and some Ohioans lost their homes.