National Homeownership Assistance Foundation Ltd. (NHAF), Worthington, Ohio, and Stephens Investment & Financial Services dba Lifeline Financial Legal Home Solutions, Fort Lauderdale, Florida, have been sued by Ohio Attorney General Richard Cordray in Franklin County, Ohio, Common Pleas Court.
NHAF and its managing partner, Casimir S. Suwinski, Delaware, its general manager, Casimir S. Suwinski Jr., New Albany, Ohio, and its president, Arden Banks, Grove City, Ohio, are accused of allegedly charging homeowners on average $2,500 for foreclosure prevention services, such as securing loan modifications from mortgage servicers, and then not providing the service. The operation is accused of taking more than $59,000 from Ohioans.
In the case against Lifeline, the charged include accusations that the operation of claiming that it could “reduce your payments up to 10-50%,” or “lower your interest rate.” After charging thousands of dollars, the company failed to deliver the service. Lifeline also misled consumers by misrepresenting its legal expertise and the availability of legal services, including “retained legal experts.”
Additionally, a suit was filed in Stark County, Ohio, Common Pleas Court against 1st American Law Center Inc., Oceanside, California. In the filing, 1st American is accused of charging homeowners as much as $4,000 for foreclosure prevention assistance services such as negotiating loans and accepting payment for these services without delivering on its promises.
All three foreclosure rescue operations have been charged with multiple violations of Ohio law, including failure to deliver, misrepresentation and unfair or deceptive acts or practices. AG Cordray is seeking civil penalties from each of the companies in addition to full restitution for consumers. Further at AG Cordray’s request, the court has ordered an attachment of NHAF‘s assets, pending resolution of the case.
With these lawsuits, the Ohio AG has taken formal legal action against 14 foreclosure rescue scam operations targeting Ohioans since he took office in January 2009. The lawsuits are part of a broader effort to hold companies accountable for violating Ohio law in the wake of the foreclosure crisis. Cordray also has sued three mortgage servicers for unfair or deceptive loan modification practices. The lawsuits against Carrington Mortgage Services, American Home Mortgage Servicing Inc. and Barclays Capital Real Estate dba HomEq Servicing for violations of Ohio’s Consumer Sales Practices Act introduce an unprecedented legal strategy into the fight against foreclosure.