Cooper gets default judgment
RALEIGH, N.C. (Legal Newsline) - North Carolina Attorney General Roy Cooper announced on Monday that he has received a default judgment that will permanently ban an allegedly fraudulent foreclosure rescue company and its owner from operating in the state.
Reginald Keith Turner, doing business as Hazelton Management and The Carley Group, allegedly collected up-front fees for foreclosure rescue services, which is against North Carolina law.
Under terms of the judgment, Turner is prohibited from engaging in any foreclosure assistance, loan modification or debt relief work in the state.
Turner is also required to pay $32,804 in refunds to 24 consumers and $50,000 in civil penalties to local public schools.
"Taking people's money and then failing to help them just pushes homeowners even closer to foreclosure," Cooper said. "We'll keep going after these foreclosure rescue schemes that prey on fear and promise false hope."
Turner was warned by Cooper's office to end his practices in 2008, but instead he allegedly changed the name of his company and continued.
Cooper then filed a lawsuit against Turner, alleging that he charged homeowners an advance fee of as much as $2,500 but did little or nothing to help with saving their homes.
In June, Turner left North Carolina and ended his business practices there after Cooper won a temporary court order against Turner's foreclosure rescue work.
"Homeowners who can't get answers from their lenders are more likely to fall for foreclosure scams," Cooper said. "Foreclosure is inevitable in some cases, but when possible consumers deserve a fair chance to modify their loans and keep their homes."