TALLAHASSEE, Fla. (Legal Newsline) - Florida Attorney General Pam Bondi filed a lawsuit and obtained a temporary injunction and limited asset freeze on Thursday against two foreclosure management companies that allegedly misled distressed homeowners.
CRS Marketing LLC and MGD Management LLC, both with offices in Broward County, allegedly marketed strategic default services. These services claimed to keep the consumers in their homes "for free" for three years without paying taxing authorities, the homeowners association, home insurance or the mortgage, Bondi said.
"These companies preyed on Florida's distressed homeowners who were already experiencing financial hardships," Bondi said. "The laws that protect Floridians from deceptive practices and homeowners during the course of a residential foreclosure must be abided by, and I am pleased that the court granted our motion to stop these companies from defrauding Floridians."
The companies allegedly promised assistance with the defense of homeowners' foreclosure actions and represented that the fees paid to the defendant included all legal fees other than those for bankruptcy filings. The companies, however, failed to provide legal services and advised consumers to ignore any communication from their lenders and creditors unless it came via registered mail.
The Broward County Circuit Court issued a temporary injunction barring the companies and their principal, Mark Dalen, from advertising, marketing or providing foreclosure-related rescue services until further order of the court. The court also granted a limited asset freeze on the bank accounts of the companies at issue. The injunction order requires that Dalen, CRS and MGD cease all misrepresentations and precludes the companies from transferring any assets other than those required in the normal course of business.