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Old 04-05-2009, 05:50 AM
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Default Florida AG obtains injunction against another loan modification outfit

Florida Attorney General Bill McCollum today announced that his office has obtained an injunction against a South Florida loan modification company and its owner to freeze the company’s assets until a lawsuit filed against the company could be heard in court. Miami-based Mortgage Crisis Solutions Association, LLC and owner Donald Gillette are accused of charging homeowners in foreclosure up-front fees as high as $2,995 for loan modification services, but never providing the services. Additionally, the lawsuit alleges Gillette and his company improperly advertised legal services and counsel.
[Ed. note. The complaint acutally lists four companies allegedly controlled by Gillette as follows:
  1. Mortgage Crisis Solutions Association, LLC
  2. Property Solutions Specialists, Inc
  3. One Source Communications, Inc
  4. Nationwide Financial Partners, Inc]
“We sought this injunction to better protect this company’s victims,” said Attorney General McCollum. “Judging from the complaints we have received, many people have been sorely taken advantage of by this company and Mr. Gillette.”

The lawsuit, filed yesterday by the Attorney General’s Economic Crimes Division in Miami-Dade County Circuit Court, was accompanied by an injunction which requested the court freeze the company’s assets and prevent it from destroying any evidence of the violations of Florida law.

According to the request for injunctive relief, the defendants – including three related companies and a high-level Gillette employee – obtained clients by claiming expertise in helping homeowners prevent foreclosure. The defendants also claimed they could provide “practical information and education on legal alternatives, mediation, negotiation, defense and proactive steps to save [homes] and equity and deal with the threat of foreclosure” even though none of the defendants is an attorney.

One of the victims who filed a complaint with the Attorney General’s Office stated Gillette and his company failed to provide her with representation at a foreclosure hearing and a foreclosure sale and advised her to file for bankruptcy without reason. The woman paid Gillette nearly $13,000 but was denied a refund.

A related company, Property Solutions Specialists, Inc., is also named in the lawsuit and allegedly guaranteed to make available all laws applicable to the homeowners’ situation to better assist them with the defense against foreclosure, even though the company is not a legal services entity.

The lawsuit alleges multiple violations of the Foreclosure Rescue Fraud Prevention Act and the Florida Deceptive and Unfair Trade Practices Act. Full victim restitution has also been requested. A copy of the lawsuit has been served on Gillette and his employee, Flynn McCarthy.

Consumers who wish to file a complaint about the company may do so by filing an affidavit with the Attorney General’s Office.
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