Practice Indefinitely Foreclosed
The Maryland Court of Appeals has imposed an indefinite suspension by consent of an attorney sued by the State Attorney General for mortgage rescue fraud.
A press release from the Attorney General’s office in June 2014
Attorney General Douglas F. Gansler today announced that his Consumer Protection Division filed lawsuits against two law firms for allegedly operating illegal loan modification schemes that charge consumers large upfront fees, but often do not help them avoid foreclosure or modify their loans. The lawsuits are part of a joint federal-state sweep by the Consumer Financial Protection Bureau, the Federal Trade Commission and 15 states targeting over 30 firms and programs that prey on struggling homeowners or those facing foreclosure.
“Although we’ve been able to secure more than $1.5 billion in relief for distressed Maryland homeowners through the National Mortgage Settlement and other legal victories, we still see bad actors trying to take advantage of consumers,” said Attorney General Gansler. “Consumers should never pay upfront fees to companies that may leave them in worse shape than when they started. Local nonprofit housing counselors provide the same services at no cost.”
The Consumer Protection Division charged Brooklyn, New York-based Litvin Law Firm, P.C., and its principal, Gennady Litvin, and the Law Office of Maria R. Flynn, L.L.C., and Ms. Flynn, based in Crofton, Maryland, with violating various Maryland statutes, including the Consumer Protection Act, the Maryland Credit Services Business Act, the Maryland Mortgage Assistance Relief Services Act and the Protection of Homeowners in Foreclosure Act.
Both companies use their status as law firms as a marketing tool to provide the appearance of legal representation and an air of trustworthiness, while providing little or no legal services, misrepresenting the success of the services that they do provide and charging illegal advance fees. After collecting upfront fees, these operations often fail to negotiate successful loan modifications, placing their victims at even greater risk of financial loss and foreclosure.
(Mike Frisch)