New Mexico AG Files Civil Suit Seeking To Slam Brakes On Attorney-Led Group Accused Of Duping Homeowners In Foreclosure Out Of Money, Title & Possession To Their Homes In Exchange For Phony Promises Of Legal Assistance

From the Office of the New Mexico Attorney General:

• [T]he Office of the Attorney General filed a lawsuit and sought a temporary restraining order against a New Mexico attorney, Johsua R. Simms, and a group of non-attorneys, who the Attorney General alleges take advantage of consumers in financial distress and who are trying to avoid a foreclosure on their homes. The non-attorneys often did business under the name "Praedium Preservation" and that business was headed by Mukthiar S. Khalsa.
  
  ***
  In its 56 page complaint, the Office of the Attorney General ("OAG") alleges that Simms and the non-attorneys violated both federal and state laws and abused court processes for their own gain.
  
  The OAG alleges that Defendants did so by engaging in a scheme to take money, deeds, and powers of attorney from consumers facing foreclosure after Defendants told consumers that Defendants could "fight the foreclosure" for the consumer. Instead, Defendants in some cases placed their friends or family in homes which are being foreclosed upon to live rent-free and failed to assist the consumer in the foreclosure.
  
  Also, the OAG alleges that these Defendants filed sham lawsuits and other false or deceptive pleadings in the courts and county clerks' offices for the purpose of delaying foreclosures or to trick judges into signing orders giving the defendants titles to homes.
  
  In addition, the OAG alleges that the non-attorneys engaged in the unauthorized practice of law by giving homeowners legal advice and pleadings to file in the homeowner's foreclosure case, and that Simms entered his appearance in some cases without the knowledge or consent of the homeowner.
  
  Consumers who have had contact with Praedium Preservation, Khalsa or Simms should call the OAG's Consumer & Environmental Protection Division at 505-222-9100.

Source: Attorney General Balderas Seeks Restraining Order to Protect Homeowners & Stop Sham Lawsuits.