Attorney General Eric Schneiderman is suing a local law firm and its namesake attorney, accusing them of running a fraudulent mortgage rescue scheme that ripped off financially vulnerable homeowners facing foreclosure.
The attorney general filed suit in New York County Supreme Court yesterday against Midwood-based Litvin Law Firm and Miami-based Litvin, Torrens & Associates, as well as their principal attorney, Gennady Litvin.
Litvin Law Firm is located at 1716 Coney Island Avenue, and Litvin lives in Brooklyn. The firm’s website claims it can provide “foreclosure defense in 31 states across the US,” as does Litvin’s About.me page. Their YouTube page has a handful of testimonial videos from satisfied clients, as well as legal tips from Litvin himself. And radio and TV ads touted connections to “state attorney generals and the federal government.”
But it was all a sham, according to the attorney general.
The suit claims that the law firms targeted struggling homeowners, then billed them monthly fees ranging from $595 to $750 each for services they would not – and often could not – offer.
Using third-party marketers, the firms picked up clients from across the nation, claiming that they would have a “custom made attorney defense team” that provided “a level of service that usually is only enjoyed by large corporate clients.” They said they’d do “forensic loan audits” to find errors in their mortgage documents and defend against foreclosure, winning concessions from lenders.
In reality, they only had offices in two states and were not permitted to provide foreclosure defense in many of the places where they enrolled clients. Homeowners in most cases never spoke to an attorney, never received representation, and never saw the benefit of the hundreds or thousands of dollars paid to the firms. Most wound up negotiating with lenders on their own, according to the attorney general.
The third-party marketers have already been taken to task by the Federal Trade Commission, agreeing to a permanent ban on mortgage and debt relief services and paying $3.6 million to pay back duped clients.
The Litvin Law Firm was given the boot from practicing in Rhode Island in January after that state’s attorney general found he was offering mortgage foreclosure assistance despite not being licensed in that state.
The attorney general is on the lookout for possible victims of Litvin’s scheme. If you believe you were a victim of the Litvin Law Firm; Litvin, Torrens & Associates; or any of its affiliated marketers, or if you believe you were a victim of another mortgage fraud, please file a complaint with the Attorney General’s Office. Complaint forms are available here. You may also call the Attorney General’s Consumer Hotline at 1-800-771-7755.
Schneiderman’s office is also reminding beleaguered homeowners of the free services available through the Home Owner Protection Program (HOPP), which uses funds from the National Mortgage Settlement to fund legal services and housing counseling across New York to provide foreclosure prevention services. Consumers can call 855-HOME-456 for help.