August 24, 2009
States continue to reign in companies in the foreclosure rescue
business, most of which take money from desperate homeowners and
provide little or nothing return. Florida Attorney General Bill
McCollum has sued a Kissimmee-based company over allegations it
targeted Hispanics in a foreclosure rescue fraud scheme.
JPB Consulting Inc. and its president, Juan P. Bordali, allegedly charged up front fees of more than $1,000 per customer to homeowners about to lose their homes, but never performed any services. Charging fees up front before completing foreclosure rescue services is a direct violation of Floridas Foreclosure Rescue Fraud Prevention Act.
Preying on people about to lose their homes and tricking them into believing that genuine help is being offered is cause for outrage McCollum said.
An investigation conducted by members of the Attorney Generals Economic Crimes Division, working as part of the Attorney Generals Mortgage Fraud Task Force, determined that JPB Consulting and Bordali marketed the companys services primarily to those in the Hispanic community using posters and signs in neighborhood stores and flyers handed out on sidewalks and street corners. The company also used radio and TV ads to solicit clients.
According to the lawsuit, unsuspecting consumers were charged up front fees ranging from over $1,000 to $3,500 and were promised foreclosure relief. The complaint says the company performed no services for its clients.
The Attorney General's investigation further revealed the company was advised by a law firm in February that it was acting in violation of the law, but the company continued to collect the illegal up-front fees.
The Attorney Generals Office knows of over 30 victims, but believes the company may have hundreds of clients. JPB Consulting, Inc. is also known as JB Consulting, which sometimes does business under the name "Mortgage Modification Solutions."
The Attorney General's lawsuit asks that the company be shut down and requests the defendants be permanently barred from charging up-front fees and failing to provide services. The lawsuit also seeks civil penalties of $15,000 per violation, full victim restitution, and reimbursement for the cost of the states investigation and litigation.
