New York Attorney General Andrew Cuomo has filed lawsuits against two loan modification companies for engaging in nationwide foreclosure rescue scams.
The suits name National Modification Service in Farmingdale, N.Y., and company founder Joseph Romano, and Infinity Mitigation Corp., Infinity Fund Group in Bohemia, N.Y., along with owner and principal Neil Singer.
The defendants allegedly targeted homeowners who faced foreclosure, then promised that their homes could be saved, but failed to provide any services, according to the suits, which Cuomo's office filed yesterday.
"As New Yorkers and others across the country fight to stay afloat in these tough times, we continue to see dishonest companies preying on vulnerable homeowners," Cuomo said in a prepared statement. "These companies pretend to be reaching out a helping hand, but instead they push consumers further down into debt and, in some cases, into foreclosure."
Cuomo is one of many state attorneys general aggressively pursuing rogue companies in the accounts receivable management industry,
The lawsuits further allege that the companies charged upfront fees of several thousand dollars to homeowners - a violation of New York state law.
The companies used misleading advertising and false representations, including claims of a more than 90% success rate. The companies promised a 100% money-back guarantee but did not provide customers that were scammed with refunds, often refusing to even answer customers' calls, the suits allege.
Cuomo is seeking to shut down both companies and provide customers restitution and damages. He also wants to prevent both companies and their owners from providing foreclosure rescue services in the future.
Penalties and costs sought from the companies and their principals sought by the lawsuit could total more than $1 million.
