Colorado AG targets foreclosure scams

Chris Rizo Nov. 25, 2009, 1:00pm

John Suthers (R)

DENVER, Colo. (Legal Newsline)-The Colorado attorney general has taken legal action against 10 mortgage loan modification companies mostly operating outside of the state, officials said.

Republican Attorney General John Suthers said Tuesday that the defendant companies failed to help Colorado consumers after charging them for services or engaged in deceptive advertising.

"These companies preyed on Colorado consumers who were looking for help trying to find a way out of foreclosure or those close to going under," Suthers said in a statement. "Consumers should not have to worry about businesses - inside or outside Colorado - using deceptive business practices or advertising to take advantage of their misfortune."

The effort by Suthers to crackdown down on foreclosure-rescue fraud was in conjunction with a Federal Trade Commission sweep.

The companies being sued by the attorney general are:

Abbotsford, LLC, doing business as and United Financial Solutions Group LLC located in Queen Creek, Ariz., and Phoenix;
Airan2, Airan-Pace, Crose & Fernandez, P.A. a law firm located in Coral Gables, Fla.;
American Summit Financial Services, Inc. and its owner, Peter Johnson, located in Boulder;
Best Interest Rate Mortgage Company (BIRMCO) and its owner Michael DiPlacido, located in Westmont, N.J.;
Financial Solutions Law Group, doing business as Financial Solutions, and Echo Loans and its owner Kelly David Christensen located in Rancho Santa Margarita, Calif.;
Hope 4 Homeowners America LLC and its owner Cheryl Barnett located in Birmingham, Mich.;
Key Mortgage Inc., located in Baltimore;
Gabee LLC, doing business as Modification HUB located in Granite Bay, Calif.;
Modify Loans Inc. located in Irvine, Calif.; and
Pier West Capital Inc., doing business as Loan Modification Solutions, located in San Clemente, Calif.

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