The Attorney General's office has shut down 2 very large loan modification offices, and both are pending lawsuits due to improper legal services and actions.

The first office, which is a South Florida loan modification company , has had it's company's assets frozen until a lawsuit filed against the company could be

heard in court. Miami-based Mortgage Crisis Solutions Association, LLC and owner

Donald Gillette are accused of charging homeowners in foreclosure up-front fees as

high as $2,995 for loan modification services, but never providing the services.

Additionally, the lawsuit alleges Gillette and his company improperly advertised legal

services and counsel.

"We sought this injunction to better protect this company's victims," said Attorney

General McCollum. "Judging from the complaints we have received, many people have

been sorely taken advantage of by this company and Mr. Gillette."

The lawsuit, filed yesterday by the Attorney General's Economic Crimes Division in

Miami-Dade County Circuit Court, was accompanied by an injunction which requested

the court freeze the company's assets and prevent it from destroying any evidence of

the violations of Florida law.

According to the request for injunctive relief, the defendants - including three related

companies and a high-level Gillette employee - obtained clients by claiming expertise in

helping homeowners prevent foreclosure. The defendants also claimed they could

provide "practical information and education on legal alternatives, mediation,

negotiation, defense and proactive steps to save [homes] and equity and deal with the

threat of foreclosure" even though none of the defendants is an attorney.

One of the victims who filed a complaint with the Attorney General's Office stated

Gillette and his company failed to provide her with representation at a foreclosure

hearing and a foreclosure sale and advised her to file for bankruptcy without reason.

The woman paid Gillette nearly $13,000 but was denied a refund.

A related company, Property Solutions Specialists, Inc., is also named in the lawsuit

and allegedly guaranteed to make available all laws applicable to the homeowners'

situation to better assist them with the defense against foreclosure, even though the

company is not a legal services entity.

The lawsuit alleges multiple violations of the Foreclosure Rescue Fraud Prevention Act

and the Florida Deceptive and Unfair Trade Practices Act. Full victim restitution has also

been requested. A copy of the lawsuit has been served on Gillette and his employee, Flynn McCarthy.

The second company, which is a Miami company has allegedly engaged in foreclosure rescue fraud. According to the lawsuit, Lincoln Lending Services, LLC targeted Hispanics facing foreclosure and charged up-front fees for loan modification services, both in violation of the Foreclosure Rescue Fraud Prevention Act.

"Our citizens should not be targeted when they are in a time of financial distress and

are desperately trying to protect their homes," said Attorney General McCollum.

According to consumer complaints, Lincoln Lending advertised for mortgage

foreclosure assistance and rescue services. The complaint alleges that to get around

the statutory prohibition against up front charges, the company would have consumers

pay $2,700 for "forensic analysis" services, then sign a contract for alleged modification

services. The forensic analysis fee was allegedly created to circumvent the new law,

which the Attorney General helped create last year. Lincoln's business of offering legal

services, directly or indirectly, constitutes the unauthorized practice of law and violates

FS 877.02(1).

The Attorney General's Economic Crimes Division determined Lincoln Lending also

forwards consumers to an attorney working under the business names of Florida

Foreclosure Law Center, LLC and Florida Homeowner Assistance Center, LLC.

The lawsuit petitions the Court to issue a temporary injunction against the company

while litigation continues. It also seeks consumer restitution and ultimately a permanent

injunction prohibiting the company and its owner, Rita Gomez, from engaging in similar

business practices.