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, March 22, 2016
Michigan AG Hits Foreclosure Rescue Operator w/ 35 Felony Charges For Allegedly Clipping Financially Distressed Homeowners w/ Phony Loan Modification Racket, Credit Card Debt Management Service
From the Office of the Michigan Attorney General:
Michigan Attorney General Bill Schuette [] announced that his Homeowner Protection Unit has filed thirty-five felony charges against Pasquale Longordo, 39, of Birmingham, and his company Modify Loan Experts, LLC, for allegedly stealing money from Michigan residents who were facing mortgage foreclosures or needed help managing their credit card debt. Longordo also faces an additional three misdemeanor charges.
"People who abuse the trust of their clients during a vulnerable time, for their own personal benefit, will be held accountable for their actions,” said Schuette. “I applaud the work of my Homeowner’s Protection Unit for the diligence of their investigation and hope that this case can bring some relief for his victims.”
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Longordo and Modify Loan Experts allegedly promised victims that they would have an attorney assigned to represent them and negotiate mortgage modifications on their behalf with mortgage companies. However, this did not happen and many victims lost their homes as a result.
Additionally, Longordo, who also operated a credit card debt management service, allegedly told debt management victims he was putting their funds into an escrow account and that he would use the payments to negotiate their debt with credit card companies. In reality, Longordo put the victims’ funds into a regular bank account and allegedly used that account like his personal ATM.
During this time, Longordo allegedly received unemployment compensation although he was ineligible, and he failed to file taxes for several of his companies.
Foreclosure Rescue Scam Victim Restitution Fund
In August 2013, Schuette announced the launch of a $7.5 million Foreclosure Rescue Scam Victim Restitution fund as a part of the Homeowner Protection Fund monies received by the State of Michigan to resolve the National Mortgage Settlement. This program is intended to provide restitution payments for victims of foreclosure scams who would otherwise never see a penny of court-ordered restitution.
For more information on the mortgage settlement, including a consumer alert and a Frequently Asked Questions document available for download on the Attorney General’s website.
In addition to operating Modify Loan Experts, Longordo operated under the company names Modify Debt Experts LLC, Experts LLC, Modify Credit Experts, and DLC Group.
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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