Injunction Obtained Against Loan Modification Scammers

Allison Tussey —  January 11, 2012 — Leave a comment

MGD Management, LLC and CRS Marketing, LLC have been sued and temporarily enjoined for alleged fraudulent activity under the guise of providing foreclosure-rescue related services. These companies preyed on Florida’s distressed homeowners who were already experiencing financial hardships.

The companies were sued for misleading distressed homeowners by marketing “strategic default” services which purported to keep the consumers in their homes “for free” for three years without paying the mortgage, taxing authorities, homeowners association, or home owners insurance.

According to the complaint, the companies promised assistance with the defense of their foreclosure action and represented that the fees paid to the defendants included all legal fees other than bankruptcy filings; advised consumers to ignore any communication from their lenders/creditors unless it came registered mail; and failed to provide legal services.

The Broward County Circuit Court issued a temporary injunction barring the company and its principal, Mark Dalen, from marketing, advertising or providing foreclosure-related rescue services until further order of the Court. The Court also granted a limited asset freeze on the bank accounts of the companies at issue. The injunction order requires that MGD, CRS, and Mark Dalen cease all such misrepresentations and precludes the companies from transferring any assets other than in the normal course of business.

The laws that protect Floridians from deceptive practices and homeowners during the course of a residential foreclosure must be abided by, said Pam Bondi, Florida Attorney General, who filed the lawsuit.  We are committed to protecting Floridians, and people who are facing possible foreclosure should not be scammed during the process of trying to get help.

Be Sociable, Share!

Allison Tussey

Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

*