FTC widens net in crackdown on mortgage relief scammers

Updated

The Federal Trade Commission has named new defendants and added new charges to its lawsuit against an operation that allegedly defrauded homeowners trying to lower their mortgage payments. The action is part of an ongoing crackdown on scams targeting consumers behind in their mortgage payments or at risk of foreclosure.

The FTC has added as defendants Bradford R. Geisen; Maurice Jackson; Patrick Butler; Credit Services Alliance Inc.; and CreditLawGroup, a law firm run by two of the original defendants, John W. Smith and Glenn E. Gromann. The original defendants also included The Debt Advocacy Center LLC; Smith, Gromann & Davidson P.A.; and Kevin McCormick.

According to the FTC's revised complaint, the new defendants, along with Smith and Gromann, offered "forensic audits" – checking a homeowner's loan documents for violations that would give them leverage in negotiating with lenders to obtain more favorable mortgage payments or a "short sale" (the sale of a house for less than the mortgage balance).

Attempts to reach the companies for comment were unsuccessful.

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