Faulty loan modification and foreclosure efforts, and fraudulent debt settlement services have plagued the nation in recent years. However, this week marks good news for those who fell victim to several mortgage relief and debt resolution scammers. Having caused consumer losses near $40 million, The Federal Trade Commission has announced steep penalties for several companies.
Giving Up Their Goods
U.S. Mortgage Funding, Debt Remedy Partners, LowerMyDebts.com and four individuals have all been ordered to pay for their acts. The FTC shut down operations of these scammers long ago, but has since been in the middle of a court battle finding resolution for the victims. The FTC also has banned future operations for some, prohibited others from advertising or soliciting services in a way that violate industry regulations and are requiring scammers to fork over some of their valuables in return.
Mahler and Debt Remedy Partners will be shut down and required to pay out of pocket restitution payments to victims. Mahler’s personal yacht, Cadillac and a Rolex will also be liquidated in the process. Incandela and Gendason, U.S. Mortgage Funding and LowerMyDebts.com are facing a $19 million restitution judgment and criminal charges that could land them with a prison sentence.