Washington, DC–(ENEWSPF)–April 6, 2012. At the request of the Federal Trade Commission, a federal court has imposed a court order with a $3.89 million judgment against defendant Samuel Paul Bain and three of his companies for their role in an allegedly fraudulent mortgage modification and foreclosure relief scheme.
The court order also bans Bain and his firms from telemarketing, and from providing, or claiming to provide, debt relief and mortgage relief services to consumers. It also bars the defendants from making any unsupported claims about the benefits, performance, and efficacy of financial products, and from misrepresenting any relevant fact about a product or service, or about the terms and conditions of a sale.
This default judgment concludes the FTC’s case against the U.S. Homeowners Relief defendants, six of which have already agreed to settle FTC charges. The settlement orders against those defendants require the payment of millions of dollars in ill-gotten gains, and permanently ban all six from selling any mortgage assistance or debt relief products or services. The action against the U.S. Homeowners Relief defendants is part of the agency’s ongoing crackdown on frauds targeting consumers in financial distress.
The scheme allegedly charged consumers up to $4,250 for a promise to reduce their mortgage payments, interest rates, and sometimes even their loan balances.
The Order against Samuel Paul Bain, U.S. Homeowners Relief, Inc., and two other companies, is the latest development in a series of actions the FTC has taken against scams targeting homeowners behind on their mortgages or facing foreclosure.
The judgment against Bain, U.S. Homeowners Relief, Inc., Waypoint Law Group, Inc., and American Lending Review, Inc. will be referred to the U.S. Treasury Department for collection. The U.S. District Court for the Central District of California entered the default judgment and order. (FTC File No. X100050; the staff contact is David Horn, FTC Northwest Region, 206-220-4483.)
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.