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Detroit area businesses, individuals caught in foreclosure rescue scam sting
Michigan Attorney General Mike Cox today announced the filing of 19 criminal complaints containing 69 charges against illegal advanced fee “foreclosure rescue” operations accused of defrauding Michigan families of thousands of dollars. Several of those complaints involve Wayne and Oakland county businesses and residents caught in the statewide sting.
The complaints accuse nine Michigan mortgage companies of illegally charging homeowners facing foreclosure upfront fees for mortgage modification assistance. After paying the upfront fee, borrowers found that the companies made no real attempt to secure a modification and were subsequently unable to get their money back. Many victims lost their homes to foreclosure.
The charges include multiple counts of felony and misdemeanor false pretenses and violations of the Michigan Credit Services Protection Act. “False pretenses” is the crime of obtaining money or property through knowingly making false statements intended to deceive the victims into delivering title to property.
“These companies took advantage of struggling Michigan families trying to hold onto the American dream,” said Cox.
Wayne County complaints involve Livonia resident Guy Humeniuk, Livonia-based Modification Company (aka The Modification Center in Livonia) and Westland-based Federal Modification.
Oakland County complaints involve West Bloomfield residents Steven Barry Ruza (aka Steven Barry) and Kevin Nafso, Commerce Township-based Global Loan Modification, Southfield-based Flagstone Partners Inc. and Legal Researchers, Highland resident Chris Martin, and Highland-based Home Rescue Corporation.
In 2008, Cox created a mortgage fraud unit, teaming with the Michigan State Police and other law enforcement agencies to tackle consumers’ complaints. His office has charged 46 people or companies with a mortgage fraud-related offense in the last 23 months.
Filed under: Flagstone Partners Inc., Foreclosure Fraud, Global Loan Modification, Home Rescue Corporation, Michigan, Michigan Attorney General
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