Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Tuesday, December 29, 2015
Convicted Lawyer Dodges Major Time In State Prison, 'Buys' His Way Into 12 Month Sentence In County Jail w/ 5 Years Probation After Coughing Up $262K Downpayment Towards $445K Restitution Order For Fleecing Homeowners In Mortgage Assistance Scam
From the Office of the Michigan Attorney General:
Michigan Attorney General Bill Schuette [] announced the sentencing of Stephen Barry Ruza, 52, of Orchard Lake, former owner of Home Legal Group Inc., for one felony count of Conducting a Criminal Enterprise. Ruza was sentenced to 12 months in Oakland County Jail, followed by five years of probation by Judge Nanci Grant in Oakland County’s 6th Circuit Court. Ruza pleaded guilty to the charges of defrauding his victims with a fake mortgage assistance scheme in September.
“Criminals who take advantage of hard working men and women want nothing more than to stay in their homes will not be tolerated,” said Schuette. “The conclusion of this case ensures another bad apple is off the street and I want to applaud my Homeowner Protection Team for their hard work on this case.”
At the time of sentencing, Ruza was ordered to pay $445,895.16 in restitution to the first 297 of his victims. Under stipulations of his plea deal, Ruza could be ordered to pay hundreds of thousands more in restitution based on the final number of victims. That count is still being determined.
His September guilty plea ensures that Ruza cannot operate as an attorney or run this kind of business again in the future. Prior to sentencing, Ruza completed the following:
Provided a list of the 50 satisfied Home Legal Group clients by October 1, 2015;
Paid $262,500 in restitution and will pay any remaining restitution as ordered by the court as a condition of probation; and
Agree to a psychological exam and complete any recommended counseling.
The initial payment of $262,500 will go directly to the victims. Additional restitution will be paid by the Michigan Homeowner Protection Fund, which Ruza is then required to reimburse.
Homeowners Protection Fund
Schuette worked with the legislature and Governor Rick Snyder to establish the $97 Million Michigan Homeowner Protection Fund and ensure these funds are directed toward victims of foreclosure scams or fraud. On August 1, 2012, Governor Snyder signed legislation creating the $97 Million Homeowner Protection Fund.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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