FTC – The Commission has agreed to settlements in its case against Freedom Foreclosure Prevention Services, LLC that, pending court approval, would ban Jeffrey Segal and Michael Workman from working in the loan modification industry and bar them from misrepresenting material facts in selling any goods or services.
The settlements also would impose suspended judgments of $5,462,432, based on the defendants’ inability to pay. Segal and Workman allegedly ran a bogus mortgage foreclosure relief operation that misrepresented both the “loss mitigation” services it offered and the earnings potential of the business opportunity it sold.
(See June 22, 2009 press release http://www.ftc.gov/opa/2009/06/freedom.shtm). The Commission vote to authorize staff to file each of the stipulated final orders was 4-0, with Commissioner J. Thomas Rosch concurring in part and dissenting in part.
A copy of his statement is available at http://www.ftc.gov/os/2009/11/091124roschstmt.pdf.
The orders were filed in the U.S. District Court for the District of Arizona.
Federal Trade Commission v. Freedom Foreclosure Prevention Services, LLC, an Arizona limited liability company, Loss Mitigation Training Centers of America, LLC, an Arizona limited liability company also doing business as Mastermind Consulting Group, Jeffrey C. Segal, individually and as an officer of Freedom Foreclosure Prevention Services, LLC and Loss Mitigation Training Center of America, LLC, and Michael R. Workman, individually and as an officer of Freedom Foreclosure Prevention Services, LLC.
(United States District Court for the District of Arizona)FTC File No. 092 3061
November 24, 2009
Stipulated Final Order for Permanent Injunction and Monetary Judgment Against Defendant Jeffrey Segal
Stipulated Final Order for Permanent Injunction and Monetary Judgment Against Defendant Michael Workman
I wrote about these clowns in June 2009:
http://loanworkout.org/2009/06/freedom-foreclosure-prevention-services-llc-sued-by-the-ftc/
Freedom Foreclosure Prevention Services and their group of kitchen table home savers look to be in a bit of trouble with the FTC. One thing is for sure, I am not surprised one bit!
I have been following the loan modification industry since early 2007 and this company has been trolling the foreclosure and loan modification waters for victims since then. I am not sure how long they have been around and how many victims there are, but the impression I got from their very first advertisement was that they were nothing more than a get rich ponzi scheme.
In the past you would see their ads everywhere on Craigslist and mortgage forums. Make $10,000 a month saving homes. All you have to do is sign up, pay $2,000 and you’ll be rolling in the Benjamin’s in no time and driving shiny new cars.
Of course, thousands of down on their luck, money hungry out of work ex-loan officers jumped on the Freedom Foreclosure Prevention bus to ponzi heaven. I am sure they then went to work using their sales skills and past client list to milk millions from unsuspecting homeowners.
Now it looks like the FTC has finally hooked the biggest loan modification shark of the sea……
