CROWN POINT, Ind. (Legal Newsline) - Indiana Attorney General Greg Zoeller announced two lawsuits on Monday against foreclosure consultants that allegedly took more than $2,600 from local homeowners and failed to provide services or refunds.
The California-based Certified Legal Processing and Legal Preparation Services and the Nevada-based Blue Chip Group Inc. allegedly operated illegally in Indiana by entering into contracts with Indiana homeowners without proper certification. The defendants allegedly took advance payments and failed to render promised services or provide refunds.
"The tough economy paired with already struggling homeowners has meant big business for scammers who aim to prey on their victims' desperation to stay in their homes," Zoeller said. "Too good to be true offers backed by phony guaranteed refunds can leave homeowners in worse financial shape including the loss of their homes. Our office continues to investigate and prosecute those who take advantage of Hoosiers and send the message that these types of illegitimate businesses are not welcome in our state."
Certified Processing and Shaun Lambert, the company's owner, allegedly collected $1,400 in upfront fees from a resident in Porter County for foreclosure consultant services. Blue Chip Group and William Damiter, the company's owner, contracted with two residents for similar services. The companies allegedly failed to provide the contracted services, failed to obtain certificates of authority from the secretary of state's office and did not register required $25,000 surety bonds with Zoeller's office.
The businesses allegedly both violated the Home Loan Practices Act, the Mortgage Rescue Protection Act, the Credit Services Organization Act and Indiana's Deceptive Consumer Sales Act.
Zoeller's lawsuits seek restitution for the victims, injunctions against the companies, civil penalties and attorney fees.