Ohio attorney general Mike DeWine has filed a lawsuit against a foreclosure rescue company, its affiliates and owner for violating multiple state consumer laws.
Diversified Real Estate Consultants allegedly never had a license to operate business activity in Ohio. According to the lawsuit, DREC is a Florida registered company.
The mortgage assistance company charged and accepted fees of $500 to $3,495 from Ohio homeowners, promising in return to reduce their monthly mortgage payments or obtain better interest rates. The company promised a 100% money-back guarantee if it failed to provide these services to homeowners.
Despite the company’s claims, consumers who participated in these services received no help and no refunds.
“This company continually misled consumers,” DeWine said. “It charged substantial upfront fees for services and results that it promised but never delivered. It also encouraged homeowners to default on their mortgage loans, falsely stating that defaulting on their loans would help them get a loan modification. Such statements are completely false and caused homeowners to risk losing their homes.”
There are currently 37 total complaints against DREC going back to 2009, DeWine said. Of those complaints, 18 are unresolved, including seven complaints from Ohio consumers. In the 18 unresolved complaints, consumers reported total losses of more than $36,000.
The lawsuit is also charging Dream Management USA and Precision Processing Solutions International for providing DREC with research, analysis, and documentation processing services to conduct this fraudulent scheme.
Daniel DePasquale, owner and operator of DREC, Dream Management and Precision Processing, is an additional defendant being indicted in the lawsuit, which was filed in the Cuyahoga County Common Pleas Court on July 12.
In the lawsuit, the defendants are being charged with violating the Ohio Consumer Sales Practices Act, Debt Adjusters Act and Telephone Solicitation Sales Act. DeWine is seeking a declaratory judgment, injunctive relief, civil penalties, and full restitution for the consumers affected by this scheme.
