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Perpetrators of Maryland Foreclosure Prevention Fraud Scheme Convicted

Foreclosure sign in front of modern house

In a recent press release, the Maryland wing of the U.S. Attorney’s Office announced the conviction in federal court of three executives of companies that offered fraudulent foreclosure prevention services.  Continue reading for details about the case, and if you are facing foreclosure, contact a genuine, experienced foreclosure defense attorney for help.

Defendants create fraudulent foreclosure defense scheme

According to the evidence presented at trial, defendants, a Maryland married couple and a woman from Georgia, operated a business in Maryland called MJ Loan Auditor Group, LLC (MJLAG).  The defendants told victim homeowners that, for a fee, MJLAG could help modify the victims’ home mortgage loans to prevent foreclosure, eliminate all debts and liens against the property, and even obtain money from the lenders by suing them.  Defendants would tell the homeowners that they needed to purchase one or more “audits” of the mortgage loans in order to uncover illegal or fraudulent behavior by the lenders, which would then be used as evidence in lawsuits against the lenders and in loan modification negotiations.

Defendants issued “contract fee agreements” that contained the seal of the National Association of Mortgage Underwriters (NAMU), even though the defendants were in no way affiliated with NAMU.  The defendants would tell homeowners to submit baseless complaints to the lenders and to state and federal agencies, and to stop paying their mortgages.  They would also tell homeowners already in foreclosure to file for bankruptcy to delay or prevent the foreclosure.  None of the efforts by defendants were appropriate methods for preventing foreclosure, and the “audits” offered by defendants were fraudulent and ineffective to prevent foreclosure.

Jury convicts defendants after trial

The case went to trial, and after eight days of deliberations, the jury convicted the defendants for mail fraud, wire fraud, and conspiracy.  For conspiracy, the defendants each face a maximum 20 year prison sentence, and for wire fraud defendants face a maximum 20 year sentence for each of ten counts.  Two of the defendants were ordered detained pending sentencing. 

If you’re in need of effective and trustworthy legal help defending against a foreclosure, contact the Maryland offices of the Bankruptcy and Mortgage Law Center at Haeger Law for a free consultation at 888-463-3520.