Firm allegedly bilked $4.7 million from homeowners
Fri August 8, 2014
Conn. takes action against Greenwich law firm accused of scamming distressed homeowners
The state of Connecticut is accusing a Greenwich law firm of bilking homeowners out of $4.7 million in an alleged mortgage rescue scam. State Attorney General George Jepsen has obtained a temporary restraining order against the firm.
The order was filed on Friday in US District Court in Florida against Greenwich-based Resolution Law Group and the Florida-based Berger Law Group.
Jepsen and Florida’s Attorney General Pam Bondi, allege in the lawsuit that since 2011 the two firms deceptively convinced distressed homeowners to pay upfront fees of up to $6000 to be included in a non-existent mass lawsuit against their mortgage lenders.
Homeowners were also allegedly induced to make $500 monthly payments for mortgage relief that never materialized.
“About a dozen Connecticut homeowners were sucked into it, hundreds nationwide, totaling about $4.7 million nationwide. But working with the Attorney General of Florida my office was able to get a restraining order shutting down this operation,” Jepsen said.
In addition to shutting down the alleged scam the lawsuit seeks restitution for affected homeowners and civil penalties against the two law firms and the other entities and individuals involved, the attorney general said.
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