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Florida attorney general files lawsuit against three companies for loan modification scam

Attorney General Bill McCollum today announced he has filed a lawsuit against three businesses operating in Miami-Dade County, FL

The allegations involve deceptive and unfair trade practices regarding their involvement in a foreclosure rescue scam affecting homeowners nationwide.

The Florida Attorney General’s Economic Crimes Division began investigating Kirkland Young LLC, in July after receiving numerous consumer complaints against the company.

During the course of the investigation it was discovered that Attorney Aid LLC and ABK Consultants were affiliated with Kirkland Young LLC.

Mike Rockwood has modified five of his own loans, including his personal residence and investment property. He has created a top-notch workbook to walk you through the steps of fighting to get the best terms on your loan modification.

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The companies allegedly charged up-front fees for loan modification services, and misrepresented to consumers that lenders required “qualifying payments” in order to qualify for modifications.

The companies also charged “back end” fees upwards of $1,299 for the first mortgage modification and approximately $499 to $699 for a second mortgage modification.

To facilitate the collection of additional fees, consumers were required to set up escrow accounts with the attorneys affiliated with the companies, misleading consumers into believing they were retaining attorney representation for their loan modification. The funds fraudulently collected in the attorney escrow accounts were used for the benefit of all the defendants.

The Attorney General’s lawsuit seeks a permanent injunction prohibiting defendants from engaging in any business activity generally dealing in or related to the residential and commercial real estate businesses, restitution on behalf of all victimized consumers, civil penalties in the amount of $10,000.00 for each violation of the Deceptive and Unfair Trade Practices Act and reimbursement for attorneys fees and costs related to the investigation.

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Related posts:

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  3. Florida loan modification company faces class action lawsuit
  4. New Florida law requires mortgage broker license to stem loan modification scams
  5. Florida loan modification company leaves family with nothing after taking their money

Tags: ABK Consultants, Attorney Aid LLC, Florida Attorney General’s Economic Crimes Division, florida home loan modification scam, florida loan modification scam, Kirkland Young LLC

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4 Responses to Florida attorney general files lawsuit against three companies for loan modification scam

  1. The Scoop on 04/02/2010 at 11:50

    Is The Florida Attorney General Politically Motivated?
    By: Eme

    Did you ever ask yourself, what does the Attorney General do? What is the
    job description, the salary and what results has the Attorney General made
    in Florida for Floridians?

    The elected position of Florida Attorney General has many responsibilities.
    One key responsibility is to protect Floridians from fraud. Investigating and
    prosecuting fraud and ponzi style schemes are a staple to protect innocent
    people from abusive business practices.

    When the Attorney General, Bill McCollum, received over 47 complaints from
    individuals all across the country regarding a south Florida business and
    specifically, two individuals involved with the company, the Florida Attorney
    General’s office reply? Send your complaint to this department or that
    department. After two years of frustration, the 47 complaintents contacted an
    investigative reporter looking for help. The Florida Attorney General’s office
    reply – if you aren’t a reporter for the large newspapers, which will give me a
    lot of political coverage, I’m not interested. Is the Florida Attorney General’s
    office interested in doing a job or furthering his political career?

    The Florida Communications Fraud Act passed by the Florida Congress makes
    any scheme to defraud another individual a crime. Prosecutions occur every
    day with far less evidence than that supplied on consumer fraud and the
    Attorney General’s office is more interested in Bill McCollum’s political future?

    The slogan – To Serve and Protect does not mean your own political future but
    those who elect you to work on their behalf.

  2. Home Affordable Modification Program (HAMP): Free Pre Foreclosure Help for Seminole County « Seminole County FREE! Pre Foreclosure Help Blog on 20/06/2010 at 06:57

    [...] Home Affordable Modification Program (HAMP): Free Pre Foreclosure Help for Seminole County By Richard – Any questions? Call 407-421-3447, on May 5th, 2010 The Home Affordable Modification Program (HAMP) is a federal program that provides FREE Pre Foreclosure Help for Seminole County residents. Remember, the program is FREE SO DO NOT PAY any fees to a third party company to help you with a loan modification! It is illegal for these companies to charge up front fees and the Florida Attorney General’s office recently sued three Miami-Dade companies for ripping off Florida homeowners through a loan modification assistance scam. You can read about the investigation here. [...]

  3. Carol Wright on 13/08/2010 at 18:45

    Please Can someone help me , Citi gave me a loan mod I paid the mod now they tell me I don’t make enough money to pay for it I have been paying it for 15 months and have not missed any, Its the same income I had when it was given to me I am a Hardship mod, self employed taking care of a sick mother my son and pregnant wife to be. My Hub died and took 2/3rds of my income,I am self employed hairdresser, so you have to look at the gross, not the net because of the deductions I have as a small business. I rent my space where I work . This is such a scam, we need a class act law suit.

  4. Gail Simmons on 14/08/2010 at 09:45

    Carol, I’m so sorry to hear about your situation.

    If you want to keep your home, you may want to consider the strategy to buy some time to reapply for a loan mod and delay a foreclosure using one of the tools recommended. Take a look at:

    Also, you may want to see if the loan mod application you gave Citi has any errors that will boost your current income to meet their guidelines. Consider getting Mike’s loan mod workbook for help in this area: /tools/loan-modification-workbook-secrets-to-get-approved-fast
    Best wishes

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