Attorney General Pam Bondi News Release

January 5, 2012
Contact: Whitney Ray
Phone: (850) 245-0150

Attorney General Pam Bondi Sues Two Foreclosure Management Companies for Defrauding Homeowners Facing Foreclosure
Attorney General Bondi Achieves Temporary Injunction and Limited Asset Freeze

TALLAHASSEE, Fla. –Attorney General Pam Bondi filed a lawsuit and obtained a temporary injunction and limited asset freeze against two foreclosure management companies for misleading distressed homeowners. MGD Management, LLC, and CRS Marketing, LLC, both with offices in Broward County, marketed "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.

“These companies preyed on Florida’s distressed homeowners who were already experiencing financial hardships,” stated Attorney General Pam Bondi. “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.”

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. Additionally, the Court 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.

To view a copy of the complaint, please follow this link:$file/2011-12-29+MGD+Complaint.pdf