CLEVELAND, OH – June 17, 2010 – (RealEstateRama) — As part of a national mortgage fraud sweep dubbed “Operation Stolen Dreams,” Ohio Attorney General Richard Cordray today announced lawsuits against two Ohio foreclosure rescue businesses for failing to provide services for which consumers paid. JLS & Associates Financial Services LLC (JLS), based in Cleveland, and Freedom Equity Savings LLC (FES), located in the Columbus area, are accused of defrauding homeowners across the state out of thousands of dollars.
“Both of these businesses targeted Ohioans throughout the state who were in dire need of foreclosure prevention help,” said Cordray. “They promised services that were not delivered and in many cases consumers ended up worse off than they were before they dealt with these companies. With these cases, we not only intend to put an end to the practices, but to get restitution for each of the victims.”
JLS, located at 5700 Brookpark Road in Cleveland, is accused of charging consumers more than $1,000 each in upfront fees with the promise to save their homes from foreclosure. In the end, the promised services were not provided and some consumers’ homes ended up in foreclosure. The lawsuit charges JLS with several violations of Ohio’s Consumer Sales Practices Act, including failure to deliver and unfair, deceptive and unconscionable acts or practices. The case, filed in Lucas County Common Pleas Court, seeks civil penalties, injunctive relief and victim restitution.
FES, based at 324 Cramer Creek Court, Suite 205 in Dublin, is registered to do business in Ohio as well as nine other states: Florida, Georgia, Iowa, Illinois, Indiana, Maryland, Oregon, Tennessee and Texas. The company utilizes a sophisticated-looking website and phone solicitations to attract consumers and charges up to $3,250 in fees. The lawsuit also alleges that upon contact, FES claims that it can arrange loan modifications for consumers that will result in a reduction of monthly payments. The lawsuit, filed in Franklin County Common Pleas Court, charges FES with violations of the Consumer Sales Practices Act including: failure to deliver; making misleading statements of opinion; unfair, deceptive and unconscionable acts or practices and violations of Ohio’s Debt Adjuster Act and Telephone Consumer Protection Act. Cordray is seeking civil penalties, injunctive relief and victim restitution.
In addition to these two new cases, as part of “Operation Stolen Dreams” Cordray secured default judgments in the following three foreclosure rescue scam cases:
State of Ohio v. Foreclosure Assistance USA, Inc./American Foreclosure Professionals Inc., Hamilton County Court of Common Pleas
State of Ohio v. United Law Group Inc., Franklin County Court of Common Pleas
State of Ohio v. Foreclosure Home Assistance LLC d/b/a Global Home Rescuers, Artice Gordon and Wanda Sanchez-Gordon, Cuyahoga County Court of Common Pleas
All three default judgments required the businesses to stop operating in Ohio and to pay civil penalties and consumer restitution.
Since taking office in January 2009, Cordray has filed lawsuits against 11 foreclosure rescue businesses operating in Ohio including those announced today and has issued more than 30 cease and desist notices. He has secured default judgments against five of those companies for $900,000 in civil penalties and restitution.
Operation Stolen Dreams is a mortgage fraud sweep initiated by United States Attorney General Eric Holder as part of the United States Financial Fraud Enforcement Task Force.
Consumers who believe that they are victims of foreclosure rescue scams should file complaints with the Attorney General’s office at www.SpeakOutOhio.gov or (800)-282-0515.
To review the complaints filed in today’s cases, click here. To read the default judgments in full, click here.
Media Contacts:
Kim Kowalski: (614) 728-9692
cell: (614) 893-6018
Ted Hart: (614) 728-4127
cell: (614) 743-2286
