July 15, 2009

LANSING - Attorney General Mike Cox today announced that his office has filed 18 charges against four companies and one individual for committing foreclosure rescue fraud. Cox also issued warnings to 17 companies regarding complaints from residents about their practices. Michigan law prohibits "foreclosure rescue" companies, which provide foreclosure advice, from making misleading or false statements, or charging service fees before any service is completed.
    "Preying on residents in the process of losing their homes is not only shameful, it's illegal," said Cox. "Today we are sending a message that mortgage rescue fraud will not be tolerated."
    The charges resulted from the Attorney General's office conducting undercover operations based on complaints from homeowners and include one count of unauthorized use of the Great Seal of the State of Michigan and 17 counts of violating Michigan's Credit Services Act (CSA). The CSA prohibits charging fees before completing services when seeking to negotiate a loan on behalf of a homeowner. The Credit Services Act carries a maximum penalty of 90 days in jail and/or $1,000 fine, and allows the Attorney General's office to seek restitution for affected consumers.
    Misleading or false statements made by the companies included guarantees to prevent foreclosure and assertions consumers could avoid foreclosure regardless of their credit score, home appraisal, or debt to income ratio. Victims were charged between $595 and $3,000.
    Those charged include:

Save My Home USA of Madison Heights
    o Four counts of violating the CSA (43rd District Court, Oakland

       County)
    o Charged victims between $595 and $2,000 before completion of

       services and advised consumers not to communicate with their

       mortgage company.

Help4homeowners of Birmingham
    o Three counts of violating the CSA (48th District Court, Oakland

       County)
    o Falsely claimed a 97% success rate, charged before completion 

       of services, and its employee admitted they had no loan training.
Payment Doctors of Livonia

    o Two counts of violating the CSA (48th District Court, Oakland

       County)
    o Made false claims and charged before completion of services.

Michigan Economic Reinstatement Program (MERP) of Livonia and

   owner Mark Alan Aloe of Farmington Hills
    o Four counts of violating the CSA and one count of unauthorized

       use of the Great Seal of the State of Michigan (47th District

       Court, Oakland County)
    o Charged victims between $360 and $3,000 before completion of

       services, made false claims, and used business cards with state

       seal but did not work for the State of Michigan. Aloe faces 90    

       days in jail and/or a $1,000 fine.

    Attorney General Cox also sent letters to 17 other companies warning that their practices may be in violation of state law and requested more information about their business:

1. AFS Loan Modification Corp, Redondo Beach, CA
2. Apply 2 Save, Inc./Apply2Save, Coeur D'Alene, ID
3. Elect Group LLC, Deerfield Beach, FL
4. Equity Recovery Services, Towsen, MD
5. Federal Home Savers, Comniack, NY
6. Financial Solution Center, Corona, CA
7. Fresh Start Home Modification, Woodbury Heights, NJ
8. Fresh Start Program/Fresh Start Mortgage Assistance, Fresh Start Mortgage Solutions, Mortgage Assistance Solutions, Clearwater, FL
9. Hope Now Modifications, LLC, Cherry Hill Twp., NJ
10. IMC Financial, Clearwater, FL
11. Kirkland Young LLC, Miami Beach, FL
12. National Home Loan Assistance Program, San Diego, CA
13. New Hope Loan Modification, Bellmawr, NJ
14. Oceanview Investments, Oceanview Investment Services Corp.,

      Fort Lauderdale, FL
15. Peoples First Financial, San Diego, CA
16. Pope & Associates Mortgage, Ontario, CA
17. Savemtg.com, Galthersburg, MD

    Cox urged consumers who may have been victims of any of these companies to contact the Attorney General's office. He reminds consumers of four quick tips in order to help avoid foreclosure rescue fraud:
    1. When seeking help with foreclosure, homeowners can find free

        help by calling the Michigan State Housing Development 

        Authority at 866-946-7432.
    2. Homeowners are not required to pay to speak with their lender or

        servicer.
    3. Never pay up front for help with negotiating your loan or working

        with your servicer.
    4. If you believe you may be a victim or mortgage fraud or

       foreclosure rescue fraud, call the Attorney General's office toll-

       free at 877-765-8388.

    Attorney General Mike Cox has made prosecuting mortgage fraud a priority for his office. In 2008, Cox created a mortgage fraud unit and teamed up with the Michigan State Police and other law enforcement agencies to tackle the problem. In the last six months alone, Cox has charged one dozen people with mortgage fraud-related offenses. Cox's office has held seven mortgage foreclosure forums to help families stay in their homes during these difficult times.
    The defendants are being notified today and are expected to be arrested or turn themselves in shortly.
    A criminal charge is merely an accusation and the defendants are presumed innocent unless proven guilty.

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