Attorney Permanently Barred from Engaging in Debt Relief Practice
A lawyer and his law firm accused by the Federal Trade Commission (FTC) of scamming homeowners with empty pledges of mortgage relief failed to convince the 11th Circuit of the merits of their scheme. The FTC claimed the attorney violated several federal statutes and regulations in connection with the sale of mortgage assistance relief services. The lawyer collected an upfront fee of $1,000-$4,000 from his clients and sometimes charged a monthly fee of at least $300, promising odds at obtaining mortgage relief of 85 – 100%. Most received no relief and some ended up in foreclosure. The FTC won a judgment of $13.5 million in restitution and the defendant was permanently barred from offering debt relief services.