Foreclosure rescue scheme crackdown continues
Consumer agencies nationwide have been targeting people and business preying on consumers in jeopardy of losing their homes.
Sherron L. Lewis, Jr., who the state says does not have a license to practice law, is accused of attracting clients through his website, Illegal Foreclosures and mailed marketing pieces. The complaint says he would gain an interest in clients' properties and charge upfront fees for services in violation of the Colorado Foreclosure Protection Act. Among the allegations is that Lewis charged a quadriplegic man $20,000 for legal services to challenge foreclosures on three properties. He also allegedly occupied the home of an elderly Illinois resident rent-free for a year. When the resident tried to repossess her home, Lewis sued her for racial discrimination.
"The allegations are completely untrue," Lewis told Consumer Ally. "This is a witch-hunt."
InsideRealEstateNews reports the Lewis has filed for Chapter 13 bankruptcy in Illinois. In the bankruptcy fillings, Lewis called the actions of the Colorado attorney general's office "corrupt."
He added, "Not only has the State Attorney General's Office failed miserably to protect and serve the citizens of Colorado as the law mandates, but it has deliberately ignored rampant abuses administered as a matter of custom, practice and policy having the force of law, that permits home theft by lawyers and persons or corporate entities absent legal authority by virtue of their own documents presented to the Colorado Courts."
The Colorado Supreme Court has cautioned Lewis to stop the unauthorized practice of law.
American Mortgage Consultants, the company's owner and principal employee were assessed $75,000 in fines and restitution in the judgment filed against them. The state said the company led consumers to believe it was affiliated with the federal government and insured.
The company was accused of using deceptive advertising and taking advantage of 170 consumers between January 2009 and March 2010.
More information on Colorado's efforts to battle mortgage fraud can be found at the Mortgage Fraud Information Center.