On Tuesday, the Texas Attorney General filed a lawsuit against Gustavo Duarte and Alfredo Mendez, two men who ran a mortgage company known as City Mortgage Services, Inc., in the Dallas area. The suit alleges that employees of City Mortgage Services Inc. represented to low-income Spanish speaking clients that the company would act as a liaison between the borrower and the mortgage lender, saving the borrower money by increasing monthly payments and paying off their mortgages more quickly. The company charged an upfront fee for its services and then withdrew mortgage payments directly from the borrower’s bank accounts. It is alleged that payments were not submitted to the mortgage companies and that many victims are facing foreclosure.

A Dallas County district judge issued a temporary restraining order against the company, Gustavo Duarte and Alfredo Mendez. The attorney general also seeks to freeze their assets.