Wednesday, October 22, 2008
Bloomfield & Paramus Companies Charged in Foreclosure Scam
Attorney General Anne Milgram today announced the filing of lawsuits charging a total of 37 mortgage loan providers, mortgage industry employees, lawyers and other defendants with consumer fraud and civil racketeering for using predatory “foreclosure rescue” schemes to persuade desperate homeowners to sign over their homes.
The state alleges that the defendants obtained at least $13.5 million worth of fraudulent loans to further their foreclosure rescue schemes. In addition, the state alleges that defendants stole at least $3 million in homeowner equity.
The state’s lawsuits are against Vest Financial LLC, formerly of Paramus, along with 16 other defendants who include the head of the Paramus town council, and JP Global Property Management, Inc., of Bloomfield, along with 19 other defendants. Five defendants are common to both complaints.
The defendants are charged with consumer fraud and civil racketeering.
The two complaints allege the defendants victimized 48 homeowners, taking advantage of their financial woes and fear of losing their homes by persuading them to take part in sale/lease back schemes.