WASHINGTON, D.C. — In a victory for consumers across the nation, a notorious foreclosure relief scam operation has been hit with a hefty $12 million in consumer redress and penalties. The Consumer Financial Protection Bureau (CFPB) announced this resolution on Thursday, marking an end to a long-running enforcement suit against the perpetrators.
The offenders at the center of this case were Consumer First Legal Group, LLC and four attorneys: Thomas G. Macey, Jeffrey J. Aleman, Jason Searns, and Harold E. Stafford. These culprits charged millions of dollars in illicit advance fees from financially-distressed homeowners. They promised legal representation to these vulnerable individuals, a promise they failed to deliver on.
This case was part of a larger, coordinated effort to crack down on various foreclosure relief scam operations. The initiative, launched in 2014, included the CFPB, Federal Trade Commission (FTC), and 15 states. As part of this joint action, the CFPB filed three lawsuits, the FTC filed six, and the states took a whopping 32 actions.
The battle against these defendants has been fraught with challenges, including multiple appeals since the CFPB won a judgment against them in 2019. However, today’s settlement finally brings closure to the case.
Under the terms of the resolution, the defendants will be required to pay $10.9 million in consumer redress and a $1.1 million penalty into the CFPB’s victims relief fund. Additionally, the individual defendants face 8- or 5-year bans from working in the mortgage assistance industry, as per the original order of the district court.
This hard-won resolution sends a clear message to would-be scammers: predatory practices will not go unpunished. It also serves as a reminder to consumers to be vigilant and report any suspicious activities, especially when it comes to foreclosure relief promises.
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