DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced on Wednesday that his office has filed separate lawsuits against three businesses and five individuals accused of defrauding homeowners.
Complaints were filed against Jason L. Lynn and his company, Superior Financial Group; Patrick C. Brunner and his company, Platinum Financial Group; Jerry Ohu and his company, Fortune Financial Group; Gregory D. Hoffman; and William J. Schultz.
In each suit, the defendant allegedly defrauded homeowners out of substantial equity by orchestrating an elaborate foreclosure rescue scheme. The suits allege that the actions of all the defendants violated the Colorado Foreclosure Protection Act.
The suits allege that those facing foreclosure were normally approached by the defendants with a plan to save their homes. Homeowners were tricked into signing away their properties through promises that the equity in their homes could be used to halt foreclosures, Suthers claims.
Homeowners were allegedly instructed to transfer the title to their properties to investors arranged by the defendants, who would then lease the properties back to the original homeowner with an option to repurchase their homes. Often, the homeowners were even asked to make improvements, Suthers says.
Suthers alleges that many homeowners were subsequently evicted and none were ever able to exercise their repurchase options. All equity in their homes was lost to the defendants.
Suthers is seeking court orders for permanent injunctions against all of the defendants and disgorgement of all proceeds of all illegal transactions. He is also asking the court for civil penalties against them.