David Saks: Homesafe America Shut Down for Scamming Homeowners

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Homesafe America Shut Down for Scamming Homeowners

Homesafe America Shut Down for Scamming Homeowners

Homesafe America Inc. and its successor corporation, United Solutions Law Firm, is the subject of a court order issued by Justice John M. Galasso of the Nassau County Supreme Court requiring it to cease operations. The sweeping order shuts down one of New York’s largest mortgage scam operations pending trial.  The order is the most substantial victory to date in a year-long legal campaign against loan modification scams in New York and nationwide. 

<?XML:NAMESPACE PREFIX = O ?>

The companies are alleged to have scammed more than a thousand low- and middle-income homeowners by falsely promising to help customers modify the terms of their mortgages.  The order also prevents Homesafe’s two founders – Guy Samuel and Scott Schreiber – from engaging in mortgage-assistance relief services. 

 The case, Mook v. Homesafe America Inc., began on June 28, 2011, when a group of fifteen homeowners sued the companies and nearly two dozen employees for fraud, deceptive practices, false advertising, and various other claims.  Among their demands, victims are seeking $1.5 million in punitive damages and an order permanently preventing all defendants from working in the mortgage assistance industry.  The homeowners are being represented free of charge by the Lawyers’ Committee for Civil Rights Under Law and Davis Polk & Wardwell LLP. 

Among other claims, Plaintiffs are alleging that the scam companies violated a New York statute known as the “Deceptive Practices Act,” which empowers injured consumers to operate as “private attorneys general”: under the Act, an individual victim may seek an injunction against an alleged scammer on behalf of all consumers.  Using this forceful yet rarely used remedy, non-profit organizations like the Lawyers’ Committee, in partnership with the private bar, can step in and shut down scam operations when state and local enforcement agencies lack the resources to do so.

Attorneys for the homeowners recently unearthed documents indicating that Samuel and Schreiber operated a string of companies that affected thousands of homeowners.  On July 26, 2011, Justice Galasso ordered Defendants to turn over nearly 70,000 pages of customer files, which the Lawyers’ Committee and Davis Polk are currently reviewing to determine the breadth of the operation.  These materials supplement documents discovered earlier this summer in which Samuel admitted to running an “illegal” operation that grossed more than $2 million in 2010. 

These lawsuits are part of a broad anti-scam coalition, called the Loan Modification Scam Prevention Network (“LMSPN”).  LMSPN also includes representatives from key governmental agencies, such as the Federal Trade Commission, the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Justice, the U.S. Department of the Treasury, the Federal Bureau of Investigation, and the offices of numerous state Attorneys General.  Since the launch of the LMSPN database in February 2010, more than 15,000 homeowners have reported scams or potential scams, totaling over $35 million lost.  Over 800 of those complaints come from New York State residents, with reported losses of over $3 million.

In addition to Mook v. Homesafe, the Lawyers’ Committee and Davis Polk have filed two other major lawsuits in New York, both against a network of companies operating in Nassau County, New York under the names “Express Home Solutions,” “Save My Home,” and “Home Preserve Law Group.”  On June 28, 2011, plaintiffs obtained a temporary restraining order against the companies and various owners and employees and are currently awaiting trial.

Homeowners who believe they have been the victim of a scam are encouraged to call either 311 in New York City or 888-995-HOPE (4673) or visit www.preventloanscams.org and click the link “Report a Scam!”  Those who have a complaint against the entities named in the Homesafe and EHS cases should email scam.intake@davispolk.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it

“We are committed to fighting this scourge through lawsuits like this and through coordination with and assistance to federal, state and local law enforcement,” said Lawyers’ Committee Chief Counsel and Senior Deputy Director Jon Greenbaum.

 

The Lawyers’ Committee and Davis Polk are representing victims free of charge. 

Courtesy Mortgage Fraud Blog




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • August 24 2011 10:29AM

Comments

This blog does not allow anonymous comments