Horne: Mortgage relief company settles fraud case - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

Horne: Mortgage relief company settles fraud case

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PHOENIX (CBS5) -

A mortgage loan company has settled with the Arizona Attorney General's Office for deceptive loan modification services.

Attorney General Tom Horne said Stan Nii-Addo Allotey, Jr., and his company, Mortgage Assistance Group, are barred from conducting any foreclosure consulting business and engaging in telephone solicitation sales.

In the Consent Judgment, Allotey admitted to violating the Arizona Consumer Fraud Act, the Arizona Telephone Solicitations Act, and the Arizona Foreclosure Consultant Regulation Law. He was ordered to pay $90,000 in restitution and civil penalties.

In May 2013, Horne also obtained a Default Judgment against the company. The judgment requires the company to pay $380,000 in restitution and civil penalties.  Allotey initially refused to cooperate with the state's investigation. He spent one week in jail until he complied with the court's civil Contempt Order, Horne said. 

The lawsuit alleged that since at least February 2008, the company deceived consumers into paying fees, ranging from $995 to $3,245, for loan modification services by misrepresenting their ability to help consumers obtain mortgage relief and save their homes.

Horne said Allotey and his company were also accused of using deceptive means to lure financially distressed homeowners into paying up-front fees with promises that the company would prevent foreclosure and save the consumers' homes by negotiating modifications of mortgage loans.

"Cases such as this should be a reminder that nobody should ever agree to pay up-front fees for loan modification assistance services - these services are available for free," Horne said in a statement. 

The Arizona Foreclosure Help-Line, 1-877-448-1211, refers consumers to HUD-approved housing counseling agencies who provide loan modifications and other services at no cost.

People who believe they have been a victim of consumer fraud should call the Arizona Attorney General's Office of Consumer Information & Complaints Unit at 602-542-5763, 520-628-6504 or 800-352-8431.

Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

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