TRENTON
– Attorney General Paula T. Dow and
Division of Law Director Robert Hanna announced
today that a New Jersey loan modification
company and its owners have agreed to an
$11.45 million judgment to settle civil
charges they defrauded homeowners who sought
help in staving off mortgage foreclosure.
Defendant New Hope Property, LLC, of Bellmawr,
Camden County, has agreed to a judgment
of $10 million to settle allegations its
company, New Hope Modifications, took money
up front from customers in return for promised
mortgage rescue help – a prohibited
business in New Jersey. In addition, New
Hope is permanently barred under the settlement
from selling debt adjustment, loan modification
or foreclosure relief services in New Jersey.
Brian Mammoccio, identified as a registered
agent of New Hope in New Jersey, agreed
to a $1.2 million judgment to settle allegations
against him. Mammoccio, of Mullica Hill,
Gloucester County, has also consented to
the revocation of his mortgage solicitor’s
registration, and has agreed to never again
apply for any license, registration or authority
from the state Department of Banking. Donna
Fisher, also identified as a registered
agent of New Hope, must pay the state $250,000
and has consented to revocation of both
her individual lender’s license and
her mortgage solicitor’s registration.
Fisher, also of Mullica Hill, has agreed
to never again apply for any licensure from
the Department of Banking.
“This
is an important outcome, one that should
send a clear message to anyone who may be
tempted to seek profit in the financial
misery of others during these tough times,”
said Attorney General Dow. “We are
committed to identifying and investigating
this type of fraud, and we will take appropriate
action where we find it.”
“This
company, and these individuals, made money
by selling false hope to trusting people
during their darkest financial hour,”
Dow added. “It is appropriate that
their professional licenses are revoked,
and that they will never again be permitted
to operate in our state.”
Filed
in March 2009 in New Jersey Superior Court
in Camden County, the state’s original
four-count lawsuit charged New Hope with
violations of the Consumer Fraud Act, state
advertising regulations and the Debt Adjustment
and Credit Counseling Act.
The
state’s investigation revealed thousands
of victims nationwide.
In addition to charging New Hope with taking
substantial up-front payments and failing
to deliver any services, the lawsuit charged
that New Hope had been engaged in unlicensed
debt adjustment activities in New Jersey
since 2007. The suit also charged that New
Hope fraudulently sought to generate consumer
confidence by creating the impression it
was associated with the nationally-respected,
non-profit foreclosure prevention program,
the Hope Now Alliance. Among other services,
members of the legitimate Hope Now Alliance
offer free credit counseling with federally-approved
and state-licensed counselors.
The
state’s lawsuit charged that New Hope
failed to return the payments of clients
who sought refunds once they realized they
were getting no mortgage rescue help, and
sought to shut down a Web site through which
New Hope had been offering its loan modification
services in New Jersey and across the nation.
(According to a Consent Judgment memorializing
the settlement and filed recently with the
state Superior Court, New Hope LLC and New
Hope Modifications no longer operate, and
the Web site is permanently shut down.)
The
New Hope Modifications matter was handled
on behalf of the state by Deputy Attorney
General Megan Lewis, Chief of the Division
of Law’s Affirmative Litigation Section
and Deputy Attorney General Lisa D. Kutlin
of the Affirmative Litigation Section and
Deputy Attorney General Gregory McHugh of
the Division of Law’s Banking, Insurance
and Insurance Fraud Section. Deputy Attorney
General Raymond Chance, Chief of the Division
of Law’s Banking, Insurance and Insurance
Fraud Section and Deputy Attorney General
Samuel Scott Cornish of the Affirmative
Litigation Section also provided assistance.
The investigation was conducted by Investigator
Joseph Iasso of the Division of Consumer
Affairs, Office of Consumer Protection.
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