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Oakland County Business Owners Face Court Appearance in Foreclosure Fraud Case
As reported by Chad Halcom in Crain’s Detroit Business yesterday, four Oakland County business owners are appearing in court to answer charges of foreclosure rescue fraud, though just one so far faces possible jail time in the case, the Michigan Attorney General’s office announced today.
The AG’s office brought a total of 18 charges against Madison Heights-based Save My Home USA Co. Inc., Birmingham-based Help4homeowners, Livonia-based Michigan Economic Reinstatement Program L.L.C. and Payment Doctors of Livonia. Also charged personally was MERP’s owner, Mark Aloe.
Matt Frendewey, communications advisor for the AG’s office, said owners or principals of the four companies will appear in court today to answer the criminal charges — but only Aloe faced charges personally because he is the only company owner the state could tie directly to criminal acts.
Jason McCallum is owner of Save My Home in Madison Heights and Payment Doctor is owned by Katherine Small.
The charges stem from an undercover operation by the Attorney General’s office, and include 17 counts of violating Michigan’s Credit Services Act. An additional count of unauthorized use of the Great Seal of the State of Michigan was lodged against MERP and Aloe only.
“Preying on residents in the process of losing their homes is not only shameful, it’s illegal,” Attorney General Mike Cox said in a statement. “Today we are sending a message that mortgage rescue fraud will not be tolerated.”
Charges included:
• Four MCSA violations against Save My Home. State officials allege the company took $595 to $2,000 from customers and advised some not to communicate with their primary mortgage lender.
• Three MCSA violations against Help4homeowners. State officials claim the company charged before services, falsely claimed a 97 percent success rate and one employee admitted having no loan training.
• Two MCSA violations against Payment Doctors, for false claims and payment before services.
• Four MCSA violations against Michigan Economic Reinstatement Program L.L.C. and Aloe, for charging $360 to $3,000 before completion of services, false claims and business cards with the state seal even though MERP was not an agency of the State of Michigan.
Cox also sent out inquiry letters to 17 other out-of-state businesses, including five in California and four in Florida, warning that their practices may violate state law and seeking more information.
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