Illinois Attorney General Sues

Below is an article I saw on Crains Chicago business.

http://www.chicagobusiness.com/cgi-bin/news.pl?id=28897&seenIt=1

Madigan sues citing mortgage scam

By: Lorene Yue April 08, 2008

(Crain’s) — Attorney General Lisa Madigan filed a lawsuit against a Chicago company for allegedly scamming financially troubled homeowners by posing as a mortgage rescue firm.

Victory Consulting & Investments Inc. is accused of violating the state’s Consumer Fraud and Deceptive Business Practices Act. Walter C. Armstrong, the company’s general manager, was also named as a defendant in Ms. Madigan’s suit.

The suit claims that at least five homeowners lost their homes through Victory Consulting’s alleged deceptive practices.

“The last thing desperate homeowners on the verge of losing their homes need is a so-called mortgage rescue firm that does little more than separate homeowners from their money,” Ms. Madigan said in a statement.

Neither Mr. Armstrong nor a Victory Consulting representative could be reached for comment.

The suit, filed in Cook County Circuit Court, marks the 12th time Ms. Madigan has pursued legal action against a firm claiming to offer mortgage assistance.

The suit claims Mr. Armstrong and Victory Consulting employees posed as clergy members to gain the trust of homeowners struggling to make mortgage payments. Customers were solicited through advertisements or found through foreclosure notifications filed with Cook County, the suit said. ……..

This is good news. My clients have had some crazy dealings with people claiming to help them with their mortgage problems, only to have to resort to filing bankruptcy to resolve their problems. Some waste hundreds and thousands of dollars with these companies. I recently attended a meeting with the US department of Justice and they laid out a strong stance on mortgage fraud. They are investigating all sorts of angles and are cracking down on real estate fraud heavily.

As always, check with the Better Business Bureau to investigate if these are legit companies, and read up on the number of complaints filed.

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Terrance Leeders

Chicago Bankruptcy Attorney, husband, father, Cubs fan.

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