The Federal Trade Commission (FTC) announced this week that they have a court order banning the operators of “2Apply” and “UW Solutions,” from the mortgage loan modification and debt relief business.
The court had discovered that one of the defendants, Tuan Dinh Duong, was well aware of the false claims and directed the illegal scheme, which violated the FTC Act and the Mortgage Assistance Relief Services (MARS) Rule. The court also entered default judgment against four co-defendants.
The defendants had lied to homeowners by claiming that they were a government agency or consumers’ lenders or servicers, and stating that they could lower their monthly mortgage payments and interest rates or prevent foreclosure. They also charged advanced fees which are illegal – an initial $495, plus monthly fees that averaged about $399.
The original complaint was filed in July 2014. Under this final order, the defendants are also prohibited from making material misrepresentations about any financial or other products or services, and a judgment of more than $1.7 million, which represents the amount of money consumers lost, according to the FTC.
The court entered a summary judgment against Duong on March 1, 2016, and a default judgment order against Christian D. Quezada, CD Capital Investments LLC, CD Capital LLC and GDS Information Services Inc. on August 22, 2016. Litigation continues against Gabriel D. Stewart.