Illinois Attorney General Lisa Madigan's office filed lawsuits against three companies based in the state for alleging committing debt settlement and mortgage rescue fraud.
Debt Care Financial Group Inc., of Chicago, and its president Malgorzata Baran, according to one lawsuit, charged consumers at least $66,000 for debt settlement and loan modification services that were never performed.
A lawsuit filed against Flagship Mortgage Corp., Starlex Financial Consulting LLC and employees Jeffrey Entratter and Neil Borland, alleges that consumers lost more than $4,800 in upfront fees for loan modification services that were never performed.
The state also sued E.A.C. Financial LLC, of Chicago, and owners Everett Pope and Colbi Andry, for mortgage rescue fraud.
All three lawsuits seek to have the businesses shut down with restitution paid to consumers and penalties paid to the state. The cases also seek to prevent the companies from providing mortgage rescue and debt settlement services in Illinois.
Jeffrey Flees, president of Worthington, Ohio-based Flagship, said he had no knowledge of the suit but that the company's Deerfield, Ill. office - the source of the alleged wrongdoing - had been closed and Entratter no longer works for the company.
