Attorney General's Weekly Newsletter
Volume 9, Issue 52 • January 6, 2012

This week we stopped two companies for alleged fraudulent activity under the guise of providing foreclosure-rescue related services. These companies preyed on Florida’s distressed homeowners who were already experiencing financial hardships. The laws that protect Floridians from deceptive practices and homeowners during the course of a residential foreclosure must be abided by, and I am pleased that the Court granted our motion to stop these companies from defrauding Floridians.

I filed a lawsuit and obtained a temporary injunction and limited asset freeze against MGD Management, LLC, and CRS Marketing, LLC for misleading distressed homeowners by marketing "strategic default" services which purported to keep the consumers in their homes "for free" for three years without paying the mortgage, taxing authorities, homeowners association, or home owners insurance.

According to the complaint, the companies promised assistance with the defense of their foreclosure action and represented that the fees paid to the defendants included all legal fees other than bankruptcy filings; advised consumers to ignore any communication from their lenders/creditors unless it came registered mail; and failed to provide legal services.

The Broward County Circuit Court issued a temporary injunction barring the company and its principal, Mark Dalen, from marketing, advertising or providing foreclosure-related rescue services until further order of the Court. The Court also granted a limited asset freeze on the bank accounts of the companies at issue. The injunction order requires that MGD, CRS, and Mark Dalen cease all such misrepresentations and precludes the companies from transferring any assets other than in the normal course of business.

We are committed to protecting Floridians, and people who are facing possible foreclosure should not be scammed during the process of trying to get help.

In the News
Capital Soup -Attorney General Pam Bondi Issues Statement Regarding National Slavery and Human Trafficking Prevention Month
Miami Herald -Bondi sues foreclosure rescue firms accused of defrauding customers
Washington Post – Supreme Court to consider if drug dog Franky’s sniff at front door is unconstitutional search

Protecting Floridians
National Slavery and Human Trafficking Prevention Month

Attorney General Bondi released the following statement regarding the federal government’s proclamation that January is National Slavery and Human Trafficking Prevention Month, which will culminate with the annual celebration of National Freedom Day on February 1.

“Human trafficking is a $32 billion industry that exploits and abuses men, women and children. National Slavery and Human Trafficking Prevention Month raises awareness and encourages discourse among federal, state, local, faith-based and other organizations on how to end human trafficking.

“I am working closely with House Judiciary Committee Chairman William Snyder and other legislative leaders on a proposal to strengthen existing laws and make Florida a zero-tolerance state for human trafficking.”

Attorney General Pam Bondi Issues Statement on Gulf Coast Claims Facility’s Resumption of Payments

On Tuesday, Attorney General Bondi issued the following statement regarding the Gulf Coast Claims Facility’s announcement that it will resume oil spill claim payments.

"Mr. Feinberg has made the right decision to resume oil spill claim payments and will not further delay the claims process. Individuals who suffered financial losses due to the oil spill deserve to receive fair compensation quickly,” stated Attorney General Pam Bondi.

Agencies Collaborate to Prevent Domestic Violence and Protect Children

Recognizing that everyone in each community has a role in keeping domestic violence survivors and their children safe, Attorney General Pam Bondi, Department of Children and Families (DCF) Secretary David Wilkins and Tiffany Carr, President of the Florida Coalition Against Domestic Violence, launched the Northwest Florida Regional Domestic Violence and Child Welfare Initiative. Click here to read the full release.