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Florida Sues Four Foreclosure Rescuers

States' crackdown on mortgage fraud continues

July 22, 2009

In a crackdown on such operations, Florida Attorney General Bill McCollum has filed a lawsuit against four related South Florida companies that allegedly charge up-front fees for loan modification services to homeowners facing foreclosure.

FHA All Day.Com and owner Jason Vitulano, as well as three other affiliated companies, purportedly collect up to $1 million in up-front fees on a monthly basis. The companies were allegedly soliciting hundreds of consumers nationwide via the internet and though telemarketing robo-calls which illegally used President Obama's voice.

An investigation conducted by members of the Attorney General's Economic Crimes Division, working as part of the Attorney General's Mortgage Fraud Task Force, found evidence that Vitulano and his companies were charging up-front fees as high as $5,000 for foreclosure-related loan modification services. Vitulano also allegedly claimed to have an attorney on staff available to assist homeowners, but investigators believe no attorneys are currently working on any of the loan modification files.

Consumers who complained to the Attorney General's Office also reported that the companies have not performed the promised services and that they were unable to contact the companies or get refunds. The Attorney General's Office has received over 300 complaints about Vitulano and his related companies.

The Attorney General's lawsuit seeks a permanent injunction prohibiting the defendants from charging up-front fees, restitution on behalf of all victimized consumers, civil penalties of $15,000 for each violation of the Foreclosure Fraud Prevention Act, and reimbursement for fees and costs related to the investigation. The companies are currently located in Deerfield Beach, Florida, but were previously located in Boca Raton and Delray Beach, Florida.

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