Florida AG targets companies for preying on homeowners
Florida Attorney General Pam Bondi obtained a temporary injunction against two companies for preying on homeowners as part of an elaborate mortgage fraud scheme. The AG managed to freeze both firm's assets in addition to filing the injunction.
The attorney general claims the companies defrauded Florida borrowers out of thousands of dollars by operating a massive mortgage relief scam.
The Cambridge Land Trust Company, The Hartford Land Trust Company, Robert Vitale and other participants charged homeowners up-front fees and falsely guaranteed that the defendants would restore homeowners' equity in their homes, according to the complaint.
On Monday, the Broward County Circuit Court ordered the defendants to cease operations immediately.
"We have stopped these companies from preying on Florida’s distressed homeowners by stealing their money and making false promises regarding the future of their homes," said Attorney General Pam Bondi. "My office will continue to protect Florida homeowners from these scams."
The companies allegedly told borrowers they could restore the equity in a homeowner's property by working with attorneys to make the mortgage unenforceable, and then negotiate a new mortgage at current fair market value.
Additionally, both firms advised homeowners to transfer ownership of their property into a company-run land trust, which the companies falsely contended would shield the property from foreclosure, Bondi's office alleged.