Mortgage modification company owner settles fraud allegations

The owner of New Day Financial Solutions Inc. agreed to pay New Jersey up to $805,000 to settle allegations that he defrauded homeowners trying to avoid foreclosures, said state Attorney General Paula T. Dow.

The state claimed New Day and other companies owned by Stephen Pasch of Somerset County broke New Jersey law by taking upfront fees from homeowners for mortgage modification help. Pasch also owns American Credit Repair and Settlement, NDROA Inc. and Paramount Debt Settlement USA. In a related case, attorney Ejike N. Uzor of Newark agreed to settle similar state claims for $25,000. Uzor's two companies, Uzor Financial Solutions and Ejike N. Uzor and Associates were also named in the state's 2009 lawsuit.