The Federal Trade Commission (FTC) announced today that it settled a lawsuit with Gabriel D. Stewart who was the final defendant in an alleged mortgage relief scam that preyed upon distressed homeowners. The FTC said that he would also be banned from selling mortgage or debt relief services.
Stewart and his co-defendants operated the companies, “2Apply” and “UW Solutions” and falsely claimed they could lower homeowners interest rates through loan modifications or prevent foreclosure. They also falsely represented that their firms were affiliated with a government agency or consumers’ lenders or servicers, and illegally charged advance fees.
The original case was filed in July 2014 as part of a federal-state law enforcement effort, Operation Mis-Modification. Stewart was the last defendant co-defendants.
The FTC also ordered the defendants to pay $1.7 million that is partially suspended and requires Stewart to pay $105,487, representing the amount of money he received from the scam. The full judgment will become due immediately if Stewart is found to have misrepresented his financial condition, according to the FTC.