Feeds

Shutters brought down on mortgage foreclosure racket

Sub-prime scam

Beginner's guide to SSL certificates

A bogus mortgage foreclosure prevention operation that traded in misery has been shut down by a US court.

The court acted in an action brought by the Federal Trade Commission against Freedom Foreclosure Prevention Services, Loss Mitigation Training Center of America, Jeffrey C. Segal, and Michael R. Workman. The defendants offered to help families in danger of losing their homes after missing mortgage payments.

In exchange for the equivalent of one month’s mortgage payment, the applicants offered a "loss mitigation" service that they claimed was able to prevent foreclosure in 97 percent of cases by securing loans on revised terms. Applicants were cynically advised not to consult with lenders, at the supposed risk of losing a "money-back guarantee."

In reality, according to an FTC complaint, loan modification were completed in only six per cent of cases and applicants were routinely stonewalled when they attempted to claim refunds.

According to the FTC's complaint, the defendants also claimed that self-employed consultants could earn up to $6,000 a month selling their services - providing they paid $1,500 up front for a "loss mitigation business opportunity" starter kit. Wages would be earned, it was claimed, by referring homeowners to the defendants and by recruiting new consultants. However, no consultant ever earned the claimed income at any point between November 2003 and January 2009.

Freedom Foreclosure Prevention Services and later Loss Mitigation Training Center of America were allegedly both run by Segal. Each firm touted for consultants through its web site. Segal also allegedly used email marketing in an attempt to persuade former Freedom Foreclosure workers to work for the Loss Mitigation Training Center, an almost identical business that picked up the baton from Freedom Foreclosure around the start of the year.

Freedom Foreclosure Prevention Services and Loss Mitigation Training Center of America were held in violation of multiple counts of the FTC Act which bans deceptive trading practices. The US District Court for the District of Arizona granted a preliminary injunction against the defendants last week after imposing a temporary restraining order last month. The FTC plans to chase the four defendants in the case for damages. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
SMASH the Bash bug! Apple and Red Hat scramble for patch batches
'Applying multiple security updates is extremely difficult'
Apple's new iPhone 6 vulnerable to last year's TouchID fingerprint hack
But unsophisticated thieves need not attempt this trick
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Who.is does the Harlem Shake
Blame it on LOLing XSS terroristas
Researchers tell black hats: 'YOU'RE SOOO PREDICTABLE'
Want to register that domain? We're way ahead of you.
Stunned by Shellshock Bash bug? Patch all you can – or be punished
UK data watchdog rolls up its sleeves, polishes truncheon
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Desperate VXers enslave FREEZERS in DDoS bot
Updated Spike malware targets Asia
Heatmiser digital thermostat users: For pity's sake, DON'T SWITCH ON the WI-FI
A stranger turns up YOUR heat with default password 1234
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.