AG's lawsuit claims foreclosure scam
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Massachusetts Attorney General Martha Coakley yesterday filed a lawsuit and obtained a temporary restraining order against four defendants allegedly involved in a foreclosure-assistance scam.
Coakley filed suit in Suffolk Superior Court against Florida-based Loan Modification Group Corp. and Mitigation LLC, as well as the companies' principal, Daniel H. Fox, and its website operator, Chris Fuelling.
Coakley said they allegedly preyed upon Massachusetts residents facing foreclosure.
The action came as Coakley and federal regulators yesterday launched a campaign to educate the public about schemes that take advantage of homeowners struggling to save their homes.
"Our office has seen an emergence of scams that prey upon Massachusetts residents on the verge of foreclosure," she said.
Coakley's office alleges the defendants offered to help homeowners negotiate loan modifications in return for up-front fees of as much as $2,000.
The complaint claims their practices were "unfair and deceptive" because they solicited fees in advance of services and failed to disclose details of what they would provide.
A preliminary injunction hearing is scheduled for April 16.
Fox could not be reached for comment, and Fuelling said he is innocent of any wrongdoing.
