Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Mortgage relief scammers banned from mortgage business, (Sep 1, 2016)

By Jody Coultas, J.D.

The Federal Trade Commission was granted a stipulated order for a permanent injunction and a monetary judgment against loan modification companies in the federal district court in Jacksonville, Florida, according to a press release issued by the FTC today. The operation, which the FTC alleged violated Section 5 of the FTC Act, the Telemarketing Sales Rule, and the Mortgage Assistance Relief Services Rule, was banned from the mortgage loan modification and debt relief business (FTC v. Lanier Law, LLC, File No. 142 3038, Dkt. 3:14-CV-786-J-34PDB).

As part of a federal-state enforcement sweep, Operation Mis-Modification, the FTC charged the Florida operation with falsely promising financially distressed homeowners they would receive legal representation to prevent foreclosure or lower their mortgage payments and interest rates.

Homeowners were told the defendants would obtain a loan modification for them in exchange for up to $4,000 in advance, and sometimes an ongoing monthly fee of $300 or more. Some homeowners were told not to pay their mortgages. The scheme participants falsely claimed that, by auditing their mortgage documents for lender errors or lender fraud, they would be able to convince the lenders to modify the consumers’ home loans.

Under a stipulated order for permanent injunction, Edward William Rennick III, Surety Law Group LLP and Redstone Law Group LLC are banned from selling secured and unsecured debt relief products or services, and prohibited from misrepresenting any financial products and services, and from violating the Do Not Call Registry rules. The order imposes an $8 million judgment that will be suspended upon surrender of frozen assets.

On July 7, 2016, the court granted the FTC’s motion for summary judgment, finding that Michael W. Lanier, Rogelio Robles, Lanier Law LLC, Fortress Law Group LLC, Fortress Law Group PC and Liberty & Trust Law Group of Florida LLC made numerous misrepresentations to consumers. The FTC was granted a permanent injunction against the defendants and included a judgment of more than $13.5 million, which represents the defendants’ net revenues.

Companies: Lanier Law, LLC; The Law Offices of Michael W. Lanier; Fortress Law Group LLC; Liberty & Trust Law Group of Florida, LLC; Surety Law Group LLP; Fortress Law Group, PC; Redstone Law Group, LLC

News: ConsumerProtection FederalTradeCommissionNews