FTC Action: Court Bans Mortgage Relief Scammers from Debt Relief Business

WASHINGTON, D.C. – (RealEstateRama) — The operators of an alleged mortgage relief scam that preyed upon distressed homeowners are banned from the mortgage loan modification and debt relief business under a court order obtained by the Federal Trade Commission.

FTC

The order stems from a case the FTC brought in July 2014 against five defendants as part of a federal-state law enforcement effort called Operation Mis-Modification. According to the FTC, the defendants, operating under the fictitious names “2Apply” and “UW Solutions,” falsely claimed they could lower consumers’ mortgage payments and interest rates or prevent foreclosure, pretended to be affiliated with a government agency or consumers’ lenders or servicers, and illegally charged advance fees – an initial $495, plus monthly fees that averaged about $399.

In granting the FTC’s request for summary judgment against Tuan Dinh Duong, the court found that Duong knew about 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.

Under the final orders, the defendants are banned from selling secured or unsecured debt relief products or services, and prohibited from making material misrepresentations about any financial or other products or services. The orders impose a judgment of more than $1.7 million, which represents the amount of money consumers lost.

The U.S. District Court for the Central District of California entered the order as a permanent injunction on August 22, 2016.  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.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).  Like the FTC on Facebook(link is external), follow us on Twitter(link is external), read our blogs and subscribe to press releases for the latest FTC news and resources.
Federal and State Agencies Stop Phony Mortgage Relief Schemes

CONTACT INFORMATION

MEDIA CONTACT:
Frank Dorman,
Office of Public Affairs
202-326-2674

STAFF CONTACT:
Mark Glassman,
Bureau of Consumer Protection
202-326-2826

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Federal Trade Commission

The Federal Trade Commission (FTC) deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy.

The FTC pursues vigorous and effective law enforcement; advances consumers’ interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develops policy and research tools through hearings, workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies.

Contact:

202-326-3224
1-877-FTC-HELP (1-877-382-4357)

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