The Federal Trade Commission reached a settlement with two Florida companies and three individuals who have been banned from the mortgage relief services business and must relinquish $2.2 million in assets for consumer refunds.
Kirkland Young LLC and its manager David Botton were accused in November 2009 of misrepresenting themselves as consumer mortgage lenders, servers or their affiliates and falsely promising they would modify consumer's loans. A court halted operations and froze the defendants' assets pending the case's resolution.
In December 2009 the FTC added Botton's sister, April Botton Krawiecki; their father, Samy Botton; and Attorney Aid LLC as defendants.
The lead counsel to an FTC receiver of Kirkland Young was not immediately available to comment Monday.
The settlement does not constitute an admission by the defendants that they broke the law, the FTC said.
The FTC said a $6.1 million judgment on Samy Botton will be suspended after he has paid $300,000.
David Botton has surrendered certain assets, including a condominium, a car and a boat.
April Botton Krawiecki surrendered a condo, according to the agency. Kirkland Young and Attorney Aid have surrendered all of their assets, valued at $2.2 million.
The case, in the U.S. District Court, Southern Florida, predates the recently issued Mortgage Assistance Relief Services rule, which bans providers of foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable.
