A number of different companies we’ve written about before have finally met the end of the line in their efforts to sell consumers mass joinder lawsuits against mortgage companies and expensive forensic loan audits.
The defendants behind an alleged mortgage relief scam have agreed to settle FTC charges that they deceived cash-strapped consumers into believing they could hold onto their homes and reduce their mortgage payments by either suing their mortgage lenders in so-called “mass joinder” lawsuits or buying “forensic loan audits.”
All of the defendants, including two individuals and seven companies, will surrender assets and be prohibited from making deceptive claims about any product or service, and all but one are banned from marketing mortgage- and debt- relief services.
As part of its continuing crackdown on mortgage relief scams, the FTC filed a complaint in 2012 against Santa Ana, California-based Sameer Lakhany and five companies he controlled. The agency later added three more defendants. The defendants allegedly victimized more than a thousand consumers with two related scams.
In the first alleged scam, Lakhany and defendants Brian Pacios, Precision Law Center, Inc., Precision Law Center LLC, National Legal Network, Inc., and Assurity Law Group, Inc., allegedly held themselves out as a specialty law firm called Precision Law Center, making the false promise to consumers that if they sued their lenders along with other homeowners in so-called “mass joinder” lawsuits, they could obtain favorable mortgage concessions from their lenders or stop the foreclosure process. According to the complaint, they charged $6,000 to $10,000 in advance, but failed to follow through with the suits, all of which were dismissed shortly after filing.
The second alleged scam, involving Lakhany and defendants The Credit Shop, LLC, Fidelity Legal Services LLC, and Titanium Realty, Inc., typically charged consumers between $795 and $1,595 for a so-called “forensic loan audit.” The complaint alleged that these defendants falsely portrayed themselves as nonprofit organizations using the domain names “HouseholdRelief.org,” “MyHomeSupport.org,” and “FreeFedLoanMod.org.” They told consumers the loan audits would find lender violations 90 percent of the time or more, and that this would force lenders to give them better mortgage terms. In fact, the complaint alleged that consumers rarely if ever obtained better mortgage terms as a result of these “forensic loan audits.”
The proposed settlements impose judgments reflecting the total consumer injury attributable to the defendants:
- The order against Lakhany and the companies he controlled – The Credit Shop, LLC, Fidelity Legal Services LLC, Titanium Realty, Inc., Precision Law Center, Inc., and Precision Law Center LLC – imposes a $3 million redress judgment. The judgment is partially suspended as to Lakhany based on his inability to pay.
- The order against Pacios and his company, National Legal Network, Inc., imposes a $1.75 million redress judgment and requires Pacios and the company to turn over virtually all of their known assets, including a Ferrari and two rental properties in Las Vegas owned by Pacios.
- The order against Assurity Law Group Inc. requires it to turn over to the FTC all funds it received in connection with the “mass joinder” scam, which amount to $100,000. – Source
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
More Articles About Precision Law Center
- What Happened in USA Case Against Rayan Vanderhoof? - October 18, 2021
- Did Dave Ramsey Really Pay Back His Creditors After Bankruptcy? - October 15, 2021
- How Can I Deal With My Student Loans After Bankruptcy? - October 14, 2021