Michigan AG Files 19 Criminal Complaints Setting Forth 69 Charges Against Individuals, Firms Running Alleged Advanced-Fee Loan Modification Operations

From the Office of the Michigan Attorney General:

• Attorney General Mike Cox [] announced the filing of 19 criminal complaints and a total of 69 charges against illegal advanced fee "foreclosure rescue" operations accused of defrauding Michigan families of thousands of dollars. Nine Michigan mortgage companies are accused of illegally charging homeowners facing foreclosure upfront fees for mortgage modification assistance.

• The defendants claimed they would help homeowners by working with their lenders in an attempt to modify the borrower's mortgage. After paying the upfront fee, borrowers found that the companies made no real attempt to secure a modification and were subsequently unable to get their money back. Many of the victims lost their homes to foreclosure.

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• Several companies and individuals charged are accused of obtaining money through false statements to consumers. This charge is a five year felony. In addition several are accused of charging upfront fees before services were rendered, a violation of the Credit Services Protection Act, and with making misleading statements. Each of the charges carries a penalty of up to 90 days in jail and/or a fine of $1,000 in addition to the requirement that the companies make full restitution to each of their victims.

For the list of criminal defendants, and the charges attributable to each, see Cox Files Criminal Charges Against 19 for "Foreclosure Rescue" Scams.

For a story update, see Livingston Daily: Felonies dropped in mortgage-fraud case (A Howell businesswoman admitted Friday to charging customers money upfront for loan-modification services, but she denied failing to perform the services promised and denied pocketing any money).