July, 06 2011, 10:37am EDT
For Immediate Release
Contact:
Stacie B. Royster
Lawyers' Committee Director of Communications
(202) 445-6101
sroyster@lawyerscommittee.org
Katie Harter
Davis Polk Public Relations Office
(212) 450-3039
katie.harter@davispolk.com
Homeowners Strike Back Against Two of New York's Largest Mortgage Scammers
Two justices of the New York State Supreme Court have issued sweeping orders to restrain the activities of alleged "loan modification" scammers, providing major victories for financially vulnerable homeowners.
NEW YORK
Two justices of the New York State Supreme Court have issued sweeping orders to restrain the activities of alleged "loan modification" scammers, providing major victories for financially vulnerable homeowners.
On July 5, 2011, Justice Thomas A. Adams of the Nassau County Supreme Court extended a temporary restraining order that restrains the activities and freezes the assets of a group of companies operating under the names "Express Home Solutions" and "Home Preserve Law Group."The ruling complements a similar order issued on June 28, 2011 by Justice John M. Galasso, also of the Nassau County Supreme Court, which enjoins a group of individuals operating a separate business under the name "Homesafe America."
The cases were brought by the Lawyers' Committee for Civil Rights Under Law ("Lawyers' Committee") and its pro bono counsel Davis Polk & WardwellLLP ("Davis Polk") on behalf of more than 30 homeowners who allegedly lost money to the two companies.Plaintiffs are seeking a combined $3 million in punitive damages against the alleged scam operations, as well as court orders permanently preventing their owners and employees from engaging in mortgage-related activities.
Among other claims, Plaintiffs are alleging that the scam companies violated a New York statute known as the "Deceptive Practices Act," which empowers injured consumers to operate as "private attorneys general": under the Act, an individual victim may seek an injunction against an alleged scammer on behalf of all consumers.Using this forceful yet rarely used remedy, non-profit organizations like the Lawyers Committee, in partnership with the private bar, can step in and shut down scam operations when state and local enforcement agencies lack the resources to do so.
"The Lawyers' Committee has now filed three cases in New York to fight these widespread fraudulent schemes, with a total of four cases pending nationwide" said Lawyers' Committee Chief Counsel and Senior Deputy Director Jon Greenbaum. "We are committed to fighting this scourge through lawsuits like these and through coordination with and assistance to federal, state and local law enforcement."
A "loan modification scam" relies on a simple scheme:a false promise to modify a homeowner's mortgage in exchange for an up-front payment.These operations specifically target lower- and middle-income families desperate for ways to lower their monthly mortgage payments.The perpetrators lure in victims by promising to re-negotiate their home loans, and then take homeowners' money without doing anything to help.
In some cases, the scammers convince their victims to stop making their monthly mortgage payments and cease communicating with their lenders during this "negotiation" period.By the time the homeowners realize they have been scammed, not only have they lost thousands of dollars in up-front payments, but they may have also entered default or foreclosure proceedings.
Express Home Solutions / Home Preserve Law Group
This is the second time the Lawyers' Committee and Davis Polk have filed a law suit against Express Home Solution ("EHS") and its related companies.On March 9, 2011, the Lawyers' Committee and Davis Polk filed a complaint against EHS, alleging that its representatives had scammed residents throughout the New York metropolitan area.The subsequent media coverage - including stories in The Wall Street Journal and New York Daily News - resulted in dozens of additional victims coming forward, many of whom have participated in this second lawsuit against EHS.
EHS allegedly scams its victims via cold calls, print advertisements, and in-person meetings.In some cases, it is alleged that EHS targets specific ethnic communities in an effort to maximize its profits.The company has changed its name several times, using such monikers as "Save My Home," "Express Modifications," and "Empire Home Savers."It is alleged that the company is now operating as "Home Preserve Law Group" in West Hempstead, New York.
Homesafe America, Inc.
The other law suit targets Homesafe America ("Homesafe") and its successor corporation, United Legal Solutions.Based in Levittown, New York, the companies are alleged to operate a constellation of websites, most of which are alleged to falsely imply that they are affiliated with government agencies or large financial institutions.Homesafe is further alleged to have paid Google tens of thousands of dollars each month to ensure that links to its websites appeared first when users searched for "loan modification" and other mortgage-related terms.
Court records indicate that Homesafe grossed more than $2 million in 2010 alone and, as of February 2011, had allegedly taken money from approximately 1,000 families across the country.In sworn affidavits, the company's owners have admitted to running an illegal scam, with one going so far as to state that "the entire operation is illegal."Remarkably, the company's misleading websites remain online to this date, thereby flaunting Justice Galasso's court order.(For more, see "Anatomy of a $2,000,000 Scam," attached to this release.)
About the Project
These lawsuits are part of a broad anti-scam coalition, called the Loan Modification Scam Prevention Network ("LMSPN").LMSPN also includes representatives from key governmental agencies, such as the Federal Trade Commission, the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Justice, the U.S. Department of the Treasury, the Federal Bureau of Investigation, and the offices of numerous state Attorneys General.Since the launch of the LMSPN database in February 2010, more than 15,000 homeowners have reported scams or potential scams, totaling over $35 million lost.Over 800 of those complaints come from New York State residents, with reported losses of over $3 million.
Homeowners who believe they have been the victim of a scam are encouraged to call either 311 in New York City or 888-995-HOPE (4673) or visit www.preventloanscams.org and click the link "Report a Scam!"Those who have a complaint against the entities named in the Homesafe and EHS cases should email scam.intake@davispolk.com.
The Lawyers' Committee and Davis Polk are representing victims free of charge.
The Lawyers' Committee is a nonpartisan, nonprofit organization, formed in 1963 at the request of President John F. Kennedy to enlist the private bar's leadership and resources in combating racial discrimination and the resulting inequality of opportunity - work that continues to be vital today.
(202) 662-8600LATEST NEWS
Amid Spying Fight, House Passes Fourth Amendment Is Not For Sale Act
"As FANFSA and the 702 reauthorization move to the Senate, lawmakers in that chamber need to take a stand for the rights of people in the United States," said one advocate.
Apr 17, 2024
While applauding the U.S. House of Representatives' bipartisan passage of a bill to ensure that "law enforcement and intelligence agencies can't do an end-run around the Constitution by buying information from data brokers" on Wednesday, privacy advocates highlighted that Congress is trying to extend and expand a long-abused government spying program.
The House voted 219-199 for Fourth Amendment Is Not For Sale Act (FANFSA), which won support from 96 Democrats and 123 Republicans, including the lead sponsor, Rep. Warren Davidson (R-Ohio). Named for the constitutional amendment that protects against unreasonable searches and seizures, H.R. 4639 would close what campaigners call the data broker loophole.
"The privacy violations that flow from law enforcement entities circumventing the Fourth Amendment undermine civil liberties, free expression, and our ability to control what happens to our data," said Free Press Action policy counsel Jenna Ruddock. "These impacts affect everyone who uses digital platforms that extract our personal information any time we open a browser or visit social media and other websites—even when we go to events like demonstrations and other places with our phones revealing our locations."
"We're grateful that the House passed these vital and popular protections," she added. "The bill would prevent flagrant abuses of our privacy by government authorities in league with unscrupulous third-party data brokers. Making this legislation into law with Senate passage too would be a decisive and long-overdue action against government misuse of this clandestine business sector that traffics in our personal data for profit."
Wednesday's vote followed the House sending the Reforming Intelligence and Securing America Act to the Senate. H.R. 7888 would reauthorize Section 702 of the Foreign Intelligence Surveillance Act (FISA), which allows for warrantless spying on noncitizens abroad but also sweeps up Americans' data.
The House notably included an amendment forcing a wide range of individuals and businesses to cooperate with government spying operations but rejected an amendment that would have added a warrant requirement to the bill, which the Senate could vote on as soon as Thursday.
Noting those decisions on the FISA reauthorization legislation, Ruddock stressed that "today's vote is a victory but follows a recent loss and ongoing threat as that Section 702 bill moves to the Senate this week too."
"As FANFSA and the 702 reauthorization move to the Senate, lawmakers in that chamber need to take a stand for the rights of people in the United States," she argued. "That means passing FANFSA and reforming Section 702 authority—and prioritizing everyone's First and Fourth Amendment rights."
Jeramie Scott, senior counsel and director of the Electronic Privacy Information Center's Project on Surveillance Oversight, also praised the House's FANFSA passage on Wednesday.
"The passage of the Fourth Amendment Is Not For Sale underscores the extent to which reining in abusive warrantless surveillance is a bipartisan issue," Scott said. "We urge the Senate to take up this measure and close the data broker loophole."
Kia Hamadanchy, senior policy counsel at ACLU, similarly said Wednesday that "the bipartisan passage of this bill is a flashing warning sign to the government that if it wants our data, it must get a warrant."
Hamadanchy added that "we hope this vote puts a fire under the Senate to protect their constituents and rein in the government's warrantless surveillance of Americans, once and for all."
Sen. Ron Wyden (D-Ore.), a critic of the pending 702 bill and FANFSA's lead sponsor in the upper chamber, called the the House's Wednesday vote "a huge win for privacy" and said that "now it's time for the Senate to follow suit."
Keep ReadingShow Less
Leaked Cables Show Biden Pressuring Nations to Oppose Palestine's UN Membership
"This is the evidence that President Biden's talk about a two-state solution is nothing but idle talk," said one former Lebanese diplomat.
Apr 17, 2024
As the United Nations Security Council prepares to vote Thursday on Palestine's bid to become a full U.N. member, the Biden administration—which claims to support Palestinian statehood—is lobbying UNSC nations in an effort to wrangle enough "no" votes so that the United States can avoid resorting to a veto.
Leaked cables obtained by The Intercept show U.S. pressure on Security Council members including Malta—which currently presides over the body—and Ecuador.
While claiming that President Joe Biden backs "Palestinian aspirations for statehood," one of the cables asserts that "it remains the U.S. view that the most expeditious path toward a political horizon for the Palestinian people is in the context of a normalization agreement between Israel and its neighbors."
"We therefore urge you not to support any potential Security Council resolution recommending the admission of 'Palestine' as a U.N. member state, should such a resolution be presented to the Security Council for a decision in the coming days and weeks," the document advises.
The U.S. argument essentially is that the U.N. should not create an independent Palestinian state by fiat—even though that's precisely how the world body voted in 1947 to establish the modern state of Israel.
The renewed push for Palestine's U.N. membership comes as Israel wages a genocidal war on the Gaza Strip. The Palestinian Authority, which hasn't controlled Gaza for nearly two decades, rejected the Biden administration's requests to hold off on seeking full membership.
"We wanted the U.S. to provide a substantive alternative to U.N. recognition. They didn't," one unnamed Palestinian official toldAxios on Wednesday. "We believe full membership in the U.N. for Palestine is way overdue. We have waited more than 12 years since our initial request."
As The Intercept's Ken Klippenstein and Daniel Boguslaw noted:
Since 2011, the U.N. Security Council has rejected the Palestinian Authority's request for full member status. On April 2, the Palestinian Observer Mission to the U.N. requested that the council once again take up consideration of its membership application. According to the first State Department cable, U.N. meetings since the beginning of April suggest that Algeria, China, Guyana, Mozambique, Russia, Slovenia, Sierra Leone, and Malta support granting Palestine full membership to the U.N. It also says that France, Japan, and Korea are undecided, while the United Kingdom will likely abstain from a vote.
Along with the United States, China, France, Russia, and the United Kingdom are permanent members of the UNSC, so they also have veto power.
Ahead of Thursday's planned vote, Spain has been doing its own lobbying in Europe to build greater support for Palestinian statehood. At a joint Tuesday press conference with Spanish Prime Minister Pedro Sánchez, Slovenian Prime Minister Robert Golob said the question is "when, not if, but when is the best moment to recognize Palestine."
Belgium—which is seeking economic sanctions against Israel in response to its genocidal war on Gaza—is expected to join Spain's push for Palestinian statehood after the country's European Union presidency expires in June.
Currently, 139 of the U.N.'s 193 member states recognize Palestine as an independent state.
Israeli Prime Minister Benjamin Netanyahu—who has also claimed to support a so-called "two-state solution"—has alternately boasted about thwarting Palestinian statehood.
Critics pointed to the leaked cables as more proof of U.S. duplicity and double standards on the Israel-Palestine issue.
"This is the evidence that President Biden's talk about a two-state solution is nothing but idle talk," Massoud Maalouf, a former Lebanese ambassador to Canada, Chile, and Poland, said on social media.
Keep ReadingShow Less
Database Exposes 'Illicit Network Undermining Democracy Around the World'
Yanis Varoufakis hailed the effort as "a treasure chest of well-researched reports on how the reactionaries of the world unite."
Apr 17, 2024
"Coups. Assassinations. Riots. Detentions. Disinformation. We know the tactics that have been deployed to undermine our democracies. But who is behind them?"
Progressive International (PI) asks and answers this and other questions with an extensive new database published Wednesday that connects the dots in what the leftist group calls the "Reactionary International"—a loose global network of right-wing leaders and organizations working to subvert democratic institutions.
PI calls it an "illicit network undermining democracy around the world."
"Today is a mask-off moment for the Reactionary International and the parties, politicians, judges, journalists, foundations, think tanks, tech platforms, NGOs, activists, financiers, and entrepreneurs that comprise it," PI said.
"After a year of preparation, we finally open the doors to our new research consortium, exposing the global network of reactionary forces that corrode our democracies, destroy our planet, and drive us closer to world war," the group added.
"The twin insurrections at the U.S. Capitol in 2021 and BrasÃlia's Three Powers Plaza in 2023 left no doubt about the international coordination of reactionary forces," PI argued. "Yet far too little is known about the entities of this network, their sources of financing, and their institutional allies operating inside our political systems."
Ultimately, PI aims to "support democratic systems to become more resilient to their insidious tactics."
From leaders like Hungarian Prime Minister Viktor Orbán, Indian Prime Minister Narendra Modi, and former U.S. President Donald Trump—the presumptive 2024 Republican presidential nominee—to evangelical Christian groups influencing laws in African countries criminalizing LGBTQ+ people and tech companies empowering ubiquitous state surveillance, Reactionary International is a who's-who of the world's right-wing forces.
A cursory search of the database's contents shows users can:
- Learn about Israel's NSO, Rayzone, and Team Jorge, and how a team of Tel Aviv tech entrepreneurs fuel unrest in Latin America;
- Meet the Grey Wolves, Turkey's roving death squad with links to President Recep Tayyip ErdoÄŸan and the ethno-nationalists in his governing coalition; and
- Explore the global network of the Falun Gong, its Trump-connected media outlet The Epoch Times, and its traveling dance troupe known as Shen Yun.
Yanis Varoufakis, a PI member and secretary-general of the left-wing Democracy in Europe Movement 2025, called the database "a treasure chest of well-researched reports on how the reactionaries of the world unite."
PI invites the public to contribute to the database.
"Together, we will not only name, shame, and expose the forces of the far right—but also dismantle their network of complicity," the group said.
Keep ReadingShow Less
Most Popular