Home Owner Protection Economics, Inc., DC Financial Group, Deleverage America, Inc., Delray Beach, South Florida, and owners Dennis Fischer, and Christopher S. Godfrey have been sued for allegedly charging upfront fees for loan modification services to homeowners facing foreclosure. Charging upfront fees for these services is illegal. The defendants purportedly collected thousands of dollars monthly in upfront fees for loan modification services that were never provided. The Palm Beach County Circuit Court ordered the defendants’ assets be frozen and that they be forbidden from operating until further order of the court.
Investigation indicated that these companies were allegedly charging upfront fees ranging from $495 to $2,000 for foreclosure-related loan modification services that were never rendered. Allegedly, the defendants falsely represented to homeowners that they would work with lenders to reduce the homeowners’ debt and prevent foreclosure, when in reality the lender banks were never contacted on the homeowners’ behalf. The companies were allegedly soliciting hundreds of homeowners nationwide via telemarketing, direct mail, e-mail and Internet, print and TV advertising.
Based on the order, the businesses and individuals are prohibited from engaging in loan modification services or accepting any upfront fees while the litigation is pending. The lawsuit seeks a permanent injunction prohibiting the defendants from charging upfront fees, as well as restitution on behalf of all victimized homeowners, civil penalties of $15,000 for each violation of the Foreclosure Fraud Prevention Act, and reimbursement for fees and costs related to the investigation.
Florida Attorney General Pam Bondi announced the lawsuit filed by her office. The investigation was conducted by the Attorney General’s Economic Crimes Division.
Homeowners who may have been victimized can file a complaint by visiting the Attorney General’s Web site at www.myfloridalegal.com or by calling the fraud hotline at 1-866-966-7226. More information about the Attorney General’s efforts in combating mortgage fraud, along with helpful information for homeowners in distress, is also available on www.myfloridalegal.com.