SBLS in the News

5 May 10	"American Modification Agency" Scam Declared 'Illegal' By Manhattan Judge After SBLS Suit The Long Island-based American Modification Agency (AMA or Amerimod) that was sued by South Brooklyn Legal Services has been found by a judge to have engaged in fraudulent, deceptive and illegal business practices by promising to save clients’ homes in exchange for hefty upfront fees and then often doing little or nothing in return. The ruling by Manhattan Supreme Court Justice Emily Jane Goodman stems from a suit filed last year by state Attorney General Andrew Cuomo in response to cases such as that of a Queens couple represented by South Brooklyn Legal Services, a program of Legal Services NYC. The plight of the SBLS clients who’s case in part led the Attorney General’s Office to pursue a criminal prosecution of AMA is detailed by an April 13 Crain’s New York article: “The decision, which came down last week and was announced by Mr. Cuomo on Tuesday, found that Amerimod made numerous false claims in its advertisements, including misrepresenting the number of homes it had saved. The judge also ruled that Amerimod falsely claimed to have a 90% to 100% success rate, to be licensed by a government agency and to be affiliated with ‘legal experts.’ [...] Aoah and Equintal Middleton of St. Albans, Queens paid AMA $1,990 in December 2007, but instead of getting a lower mortgage payment, they got a foreclosure notice. They are still awaiting a modification. ‘Judge Goodman’s ruling and injunction will ensure that vulnerable homeowners will be protected from AMA’s fraudulent business practices,’ said Ms. Middleton’s attorney, Cyrus Dugger, of South Brooklyn Legal Services. ‘In addition, it serves as a warning to the countless other New York “distressed property consultants” who continue to target New York homeowners.’” The case was referred to the Manhattan District Attorney’s Office for a criminal investigation, according to Crain’s. (Foreclosure Prevention) \| More SBLS in the news >

5 May 10

"American Modification Agency" Scam Declared 'Illegal' By Manhattan Judge After SBLS Suit

The Long Island-based American Modification Agency (AMA or Amerimod) that was sued by South Brooklyn Legal Services has been found by a judge to have engaged in fraudulent, deceptive and illegal business practices by promising to save clients’ homes in exchange for hefty upfront fees and then often doing little or nothing in return.

The ruling by Manhattan Supreme Court Justice Emily Jane Goodman stems from a suit filed last year by state Attorney General Andrew Cuomo in response to cases such as that of a Queens couple represented by South Brooklyn Legal Services, a program of Legal Services NYC.

The plight of the SBLS clients who’s case in part led the Attorney General’s Office to pursue a criminal prosecution of AMA is detailed by an April 13 Crain’s New York article:

“The decision, which came down last week and was announced by Mr. Cuomo on Tuesday, found that Amerimod made numerous false claims in its advertisements, including misrepresenting the number of homes it had saved. The judge also ruled that Amerimod falsely claimed to have a 90% to 100% success rate, to be licensed by a government agency and to be affiliated with ‘legal experts.’ [...]

Aoah and Equintal Middleton of St. Albans, Queens paid AMA $1,990 in December 2007, but instead of getting a lower mortgage payment, they got a foreclosure notice. They are still awaiting a modification.

‘Judge Goodman’s ruling and injunction will ensure that vulnerable homeowners will be protected from AMA’s fraudulent business practices,’ said Ms. Middleton’s attorney, Cyrus Dugger, of South Brooklyn Legal Services. ‘In addition, it serves as a warning to the countless other New York “distressed property consultants” who continue to target New York homeowners.’”

The case was referred to the Manhattan District Attorney’s Office for a criminal investigation, according to Crain’s.

(Foreclosure Prevention) | More SBLS in the news >