Ind. AG sues mortgage rescue companies

Bryan Cohen Feb. 8, 2012, 1:26pm


INDIANAPOLIS (Legal Newsline) - Indiana Attorney General Greg Zoeller announced four lawsuits on Wednesday against mortgage rescue companies that allegedly scammed Indiana consumers out of thousands of dollars.

LA Strattan Law Firm and Strategic Alliance of California, National Financial Services of Texas and United Capital of Maryland allegedly violated Indiana's consumer protection laws by taking more than $4,300 from customers.

The victims of the alleged fraud are from St. Joseph, Floyd and Marion counties. The state is seeking restitution, an injunction and civil penalties against the four companies.

"These actions are part of our much broader effort to crackdown on those who prey on already struggling homeowners," Zoeller said. "Indiana has made significant strides to protect consumers and these aggressive efforts will continue as the economy recovers from the national financial crisis."

The lawsuits allege that the companies also violated the Deceptive Consumer Sales Act, the Home Loan Practices Act, the Mortgage Rescue Protection Fraud Act and the Credit Services Organization Act. The defendants allegedly failed to register a $25,000 surety bond with Zoeller's office to conduct business officially as Indiana foreclosure consultants.

The four lawsuits bring the total number of actions taken by Zoeller's office against foreclosure rescue companies up to 95 since 2006.

More News