Friday, January 07, 2011

Colorado AG Scores $181K+ Judgment Against Foreclosure Rescue Operator For Clogging Courts With Frivilous Filings, Clipping Homeowners w/ Upfront Fees

In Denver, Colorado, The Denver Post reports:
  • A man accused of running a company called "America's Foreclosure Defense" and preying on elderly and vulnerable people has been ordered to pay $181,266 in restitution and fines to the state, Colorado Attorney General John Suthers announced Tuesday.

  • Sherron L. Lewis Jr., 54, has been barred from providing foreclosure-relief services. Lewis was accused in a suit filed by the attorney general of filing frivolous lawsuits that clogged the courts. Suthers alleged that Lewis used deceptive and misleading schemes that Lewis claimed would stop the foreclosure process.

  • Suthers said Lewis had no legal experience, had improperly raked in thousands of dollars of upfront fees and had "grossly misused and abused the judicial system." The $181,266 judgment against Lewis was ordered after he failed to respond to the state's lawsuit over his activities.

  • A Jefferson County district court judge ordered Lewis in August to pay more than $76,000 in restitution to victims, including an elderly Illinois woman, Suthers said. The fines ordered against Lewis in August stemmed from his alleged practice of collecting upfront fees and acquiring an interest in his victims' properties as part of his services, both of which violated Colorado law, according to the attorney general.(1)

Source: Man pays fines, restitution to state in case alleging frivolous lawsuits.

(1) For the Colorado AG press release, see Attorney General announces $181,266 judgment against Denver man who provided fraudulent foreclosure-relief services.

For the relevant court documents, see: