Lawsuits Filed Alleging Foreclosure Rescue Scams

admin —  December 13, 2010 — Leave a comment

Jason L. Lynn, 33, and Lynn’s company, Superior Financial Group, Patrick C. Brunner, 31, and Brunner’s company, Platinum Financial Group, Jerry Ohu, 36, and Ohu’s company, Fortune Financial Group, Gregory D. Hoffman, 41, and William J. Schultz, 36, all Colorado residents, have all been accused of defrauding homeowners in Denver, Boulder, Broomfield and Adams counties in Colorado through deceptive foreclosure rescue schemes.

All of these defendants are suspected of defrauding homeowners out of substantial equity in their homes through an elaborate foreclosure rescue scheme in violation of the Colorado Foreclosure Protection Act.

According to the complaints filed in Denver, Colorado District Court, consumers facing foreclosure were approached by the defendants with a proposal to save their homes. The defendants promised to use the equity in the homes to halt the foreclosures and, in some cases, to make improvements to the properties. Homeowners were instructed to transfer title to their properties to investors arranged by defendants, who would then lease the properties back to the original homeowner with an option to repurchase their homes. The complaints allege that many homeowners were subsequently evicted and that none of them were ever able to exercise their repurchase options. All of the equity in their homes was lost to the defendants.

The lawsuits seek permanent injunctions against all of the defendants, disgorgement of all proceeds of these illegal transactions and civil penalties.

Colorado Attorney General John Suthers made the announcement. 

These lawsuits are the latest actions the Office of the Attorney General has pursued against foreclosure-rescue and loan modification businesses since 2006, when the foreclosure crisis began in Colorado.

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