Ohio Attorney General Richard Cordray has completely shut down one organization and subpoenaed 10 others suspected of running illegal foreclosure-rescue operations as part of the state’s effort to crack down on foreclosure prevention scams, according to a news release from the Ohio Attorney General’s office (“Cordray Puts Heat on Foreclosure Rescue Operations,” May 4, 2009).

Foreclosure Solutions, a Cincinnati-based foreclosure rescue company, solicited Ohio homeowners using direct mail marketing and promised homeowners the company could help save their homes, according to the judgment. Despite charging homeowners fees ranging from $750 to $1,300, Cordray says the company failed to provide any of the promised services, resulting in many Ohio residents losing their homes.

Cordray’s office has ordered Foreclosure Solutions to close down its operations and has forced owner Timothy Buckley to pay $225,000 in civil penalties and $79,565 in restitution for taking advantage of Ohio homeowners who were facing foreclosure.

“This is a textbook example of how these predators operate,” Cordray said. “They identify people who are in a vulnerable situation, persuade and manipulate them, and then take their money and run. It’s predatory and atrocious. We will not stand for it.”

The attorney general has also targeted 10 other companies suspected of running illegal foreclosure rescue operations in Ohio, the first part of a widespread investigation by the attorney general’s office into foreclosure rescue scams in the state.

Cordray’s office has issued 10 cease and desist orders requiring businesses to halt all predatory practices immediately. The Ohio attorney general has also subpoenaed those same organizations to produce documentation substantiating their current business practices.

“This is a strong, preventative measure to keep foreclosure rescue scammers out of Ohio,” Cordray said. “It is a warning shot announcing that we have no tolerance for these predatory practices in our state.”

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