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
Webcam hacker pervs in MASS HOME INVASION
You thought you were all alone? Nope – change your password, says ICO
You really need to do some tech support for Aunty Agnes
Free anti-virus software, expires, stops updating and p0wns the world
USB coding anarchy: Consider all sticks licked
Thumb drive design ruled by almighty buck
Attack reveals 81 percent of Tor users but admins call for calm
Cisco Netflow a handy tool for cheapskate attackers
Privacy bods offer GOV SPY VICTIMS a FREE SPYWARE SNIFFER
Looks for gov malware that evades most antivirus
Patch NOW! Microsoft slings emergency bug fix at Windows admins
Vulnerability promotes lusers to domain overlords ... oops
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.