Massachusetts Attorney General and gubernatorial hopeful Martha Coakley is taking a slew of thieves to court who posed as non-profit foreclosure prevention organizations and preyed on troubled homeowners on the verge of losing their abodes. The group allegedly spent upwards of $350,000 in illegal advance fees on personal expenses and has done so since 2009.
The defendants — identified by Coakley’s office as Obeilson Roosevelt Matos of Framingham, Gailon Arthur Joy of Boylston, Pricila Trancoso Silva of Revere, John Charles Schumacher of Lancaster, and Paula Carvalho of Framingham — took advantage of those facing foreclosure under the guise of “Alliance for Affordable Housing (AFAH) and the Global Advocates Foundation Inc., both located in Everett as well as the Alliance for Hope Network, Inc., in Framingham,” according to the press release.
Coakley said of the matter in a statement, “Through our HomeCorps program, our office has obtained direct relief and free services for homeowners, and we will continue our efforts to combat deceptive foreclosure rescue schemes that take advantage of struggling borrowers.”
Interestingly, such a quandary also has municipal relevance as a question was posed in last night’s Boston mayoral debate of which both candidates were asked how they would promote better behavior between lenders and borrowers. City Councilor John Connolly vowed to work with the District Attorney and Attorney General (who may be Coakley if her Governor’s bid doesn’t come into fruition) to hawk on predatory lenders like the aforementioned accused.
In more aggressive fashion, State Rep. Marty Walsh promised to use the bully pulpit of the mayor’s office to make banks talk to borrowers who are in dire straits, which may subsequently weed out faux lenders.
The Attorney General’s office enacted 940 CMR 25.00, a set of regulations “that prohibit soliciting or accepting an advance fee in connection with foreclosure-related services, or advertising services without disclosing exactly what is offered to avoid foreclosure, among other unfair practices.”
The AG’s office also wants to make it abundantly clear that anyone facing foreclosure or have been foreclosed on may receive help from the HomeCorps program which offers a collection of prevention and recovery services.
