STATE OF FLORIDA OFFICE OF THE AITORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

Transcription

1 !' a / 1 o 11 u 5 9 r:ax 3 o 5 n 4;:; 9 o s Infante Zumpano Hudson l4l 0002/0014 STATE OF FLORIDA OFFICE OF THE AITORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS IN THE MATTER OF: AG Case # L INVESTIGATION OF 411 HOME HELP CORP., TRINITY MORTGAGE CORP., MARIA L. ORTEGA and MANUEL PEREZ ASSURANCE OF VOLUNTARY COMPLIANCE PURSUANT to the provisions of Chapter 501 of the Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act, the OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, hereinafter referred to as the "Department", caused an investigation ~o be made into the business practices of 411 HOJ\1E HELP CORP., TRINITY MORTGAGE CORP., MARJA L. ORTEGA and MANUEL PEREZ. Respondent, 411 HOME HELP CORP. is currently registered with the State of Florida as an inactive non profit corporation incorporated on February 28, It's most recently listed principal place of business is 2408 N.W. 37th Place, Doral, Florida and it's president listed as MARIA ORTEGA at that same address. Respondent, TRINITY MORTGAGE CORP. is currently registered with the State of Florida as an active Florida corporation incorporated on October 29, 1998 and conducts business in the State of Florida. Said entity has a principaj place of business of 2408 N. \V. 87'h Place, Doral, Florida and it's president is listed as Maria Ortega at that same address Respondent, MARJA L. ORTEGA, has been a mortgage broker since September 25, 1998, with an inactive license effective September 3, Respondent, MANUEL PEREZ, was a mortgage broker, with a license effective December 9, 2004, but placed in an inactive status on September 3, If f,,o s

2 ()3/28/ : 00 B~AX lnfante Zumpano Hudson!410003/0014 MARIA ORTEGA and MANUEL PEREZ have participated as the principals in the business activities of 411 HOME HELP CORP. and TRJNITY MORTGAGE CORP. which operated out of its' primary business ]ocation in Miami-Dade County, Florida during all relevant time periods. Respondents, 411 HOME HELP CORP., TRJNITY MORTGAGE CORP., MARJA ORTEGA and MANUEL PEREZ (hereafter "Respondents") are prepared to enter into this Assurance of Voluntary Compliance ( hereafter "Assurance") without an admission that Respondents have violated the law and for the purpose of resolution of this matter with the Department. The Department, by and through the undersigned Assistant Attorney General, and the undersigned Director of the Economic Crimes Division, being in agreement, accept this Assurance in termination of this investigation, as set out in the terms of this Assurance, pursuant to Section (6), Florida Statutes, and by virtue of the authority vested in the Department by said statute. I. STIPULATED FACTS 1.1 During the time frame beginning February 28, 2008 and thereafter, Respondents engaged in the business of offering foreclosure rescue services to homeowners who had defaulted under the terms of their home mortgages, were about to enter the foreclosure process, or were currently involved in foreclosure proceedings. Specifically, among other things, Respondents have offered, for an advance fee, to assist consumers with arranging an alternative payment pjan with the homeowner's lender for the purpose of avoiding foreclosure, or of obtaining refinancing, or modification of their mortgages. 1.2 The Department has investigated allegations that Respondents are not fully compliant with provisions of Florida Statute which prohibits collection of client payments prior to completion of foreclosure-related rescue services and which also include requirements for foreclosure-related rescue services written agreements. 1.3 Respondents and the Department desire to resolve all issues arising during the course of this investigation as to 411 HOME HELP CORP., TRJNITY MORTGAGE CORP., MARJA L. ORTEGA and MANUEL PEREZ. 2 fft,,? s

3 ")3/ : 00 J!',i\X lnfante Zumpano Hudson 14!0004/ This Assurance is based upon the stipulated facts set forth in Paragraphs 1.1 through 1.3 above. The Department shall not be estopped from taking further action in this matter should the facts described herein be shown to be incorrect in any material way, or the Assurance not be complied with in full by Respondents. II. TERMS 2.1 Respondents have voluntarily ceased accepting new clients for 411 HOME HELP CORP. and TRINITY MORTGAGE CORP. Immediately following the execution by all parties of this Assurance, the remaining loan modification cases, which are listed in Exhibit "A" present]y being handled by Respondents shall be resolved within 90 days. As of the date of their signatures on this Assurance, the individual Respondents will not make use of the name 411 HOME HELP CORP. or TRINITY MORTGAGE CORP. for any purpose related to loan modification services, or any other foreclosure rescue services. Once the existing loan modification cases have been completed, or refunds made to the consumers listed on Exhibit "A", neither ORTEGA, PEREZ, nor anyone on their behalf, will create any other legal entity for the purpose of providing foreclosure rescue services to consumers. Neither ORTEGA nor PEREZ will work for any company in any phase of foreclosure rescue services fojlowing the resolution of the loan modification cases pending on the effective date of this Assurance. 2.2 Respondents and their representatives, agents, employees, successors, assigns or any other person who acts under, by, through, or on behalf of Respondents, directly or indirectly, or through any corporate or other device, shall comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes. 2.3 Respondents shall make the terms and conditions of this Assurance known to the Respondents' managers, members, officers, directors, and successors as weji as anyone involved in an ownership, or employment capacity in any other businesses in which either ORTEGA or PEREZ are involved. It is further agreed by the parties that Respondents, ORTEGA and PEREZ, shall be responsible for making the substantive terms and conditions of this agreement known to the officers, employees, agents, representatives, or any 3 ja(..i>

4 '03/28/ :00 ~'AX Infante Zumpano Hudson ~ 0005/0014 other persons that are substantially affected by this Assurance and are involved in RESPONDENTS' businesses, projects and activities. The obligation imposed by this paragraph is continuing in nature and shall apply to new officers, employees, agents, representatives or any other persons who become engaged in Respondents' business activities, including any future business activities in which Respondents, ORTEGA or PEREZ engage. 2.4 It is further agreed by the parties that none of the Respondents shall effect any change in the form of doing business, or the organizational identity of any of the existing business entities, or create any new business entities, as a method of avoiding the terms and conditions set forth in this Assurance. 2.5 Nothing in this Assurance shall be construed as a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against the Respondents. 2.6 Florida Statute , effective October I, 2008, prohibits foreclosure-related rescue businesses, such as Respondents, from collecting payment from clients prior to the completion of foreclosure-related rescue services. Respondents agree to refund clients identified in Exhibit A (a listing of all clients that were charged and paid an upfront fee for foreclosure-related rescue services on or after October I, 2008 through the date of the execution of this Assurance) in accordance with the following: a. No refund is required for the improper collection of the fee in advance of services, if Respondents have obtained a loan modification for the client which reduces the monthly mortgage payments of the chent, as of the date of the signing of this Assurance by ORTEGA and PEREZ. b. No additional refund to the client is required if the Respondents have previously refunded all of the consumer(s) funds prior to the effective date of this Assurance. c. No additional refun,d is required for the improper collection of the fee in advance of services, if within 90 days of the effective date of this Assurance, Respondents complete the contracted 4 MW

5 03/28/ :00 ~AX Infante Zumpano Hudson /0014 foreclosure-related rescue services of the clients listed in Exhibit A. Commencing thirty (30) calendar days after the effective date of this Assurance, Respondents shalj provide the Department an update each thirty (30) calendar days to identify the status of each client account included in Exhibit "A" until aji modification files have been closed by either a modification having been obtained reducing the client's monthly mortgage payment, or a full refund made to the consumers listed. At any time during the 90 days following the effective date of this Assurance, any consumer listed in Exhibit A requests a refund of the payment made by them to Respondents, the client's money is to be refunded and all documents provided to Respondents by the consumer, or obtained by Respondents for the consumer, wil1 be delivered to the consumer by Respondents. d. If Respondents fail to complete the contracted foreclosurerelated rescue services of obtaining a mortgage modification within 90 days of the effective date of this Assurance, Respondents shall fully refund each client listed in Exhibit A whose foreclosure-related rescue services have not been completed, with proof of same being provided to the Department. III. STIPULATED PAYMENT 3.1 The parties agree that Respondents, ORTEGA and PEREZ shall each contribute a total of $10, (TEN THOUSAND DOLLARS) to the State of Florida, Office of the Attorney General, Department of Legal Affairs, pursuant to Section , Florida Statutes, in payment of all legal fees, costs and investigative fees regarding this investigation. All payments shall be made by cashier's check or other certified funds, made payable to Department of Legal Affairs Revolving Trust Fund. The first payment shall be submitted to Theresa Bland Edwards with the original Assurance executed by Respondents and their counsel. The following three payments will be sent to Florida Attorney General's Office, PLOOl The Capitol, Tallahassee, FL 32399, ATTENTION: Mr. Gerald Johnson, Business Manager, Economic Crimes. lf{p 5

6 .0312s~io11 12:01 FAX Infante Zumpano Hudson /0014 Payments shall be made as follows: $2, (TWENTY FIVE HUNDRED DOLLARS) from each individual Respondent, ORTEGA and PEREZ shall accompany the signed and notarized Assurance provided to the Attorney General by Respondents; $2, (TWENTY FIVE HUNDRED DOLLARS) shall be due and payable from each individual Respondent, ORTEGA and PEREZ, in the same manner as set forth above, thirty days from the date of the acceptance of this Assurance by the Director of the Economic Crimes section of the Office of the Attorney General; $2, (TWENTY FIVE HUNDRED DOLLARS) from each individual Respondent, ORTEGA and PEREZ on or before the expiration of sixty (60) days from the date of the acceptance of this Assurance by the Director of the Economic Crimes section of the Office of the Attorney General; A fol1rtll and final payment of $2, (TWENTY FIVE HUNDRED DOLLARS) from both ORTEGA and PEREZ shall be made no less than 90 days following the acceptance of this Assurance by the Director of the Economic Crimes section of the Office of the Attorney Genera]. 3.2 Time is of the essence as to each payment described in this paragraph. 3.3 The Office of the Attorney General is waiving payment of any statutory penalties for violation of Florida Statute 501, of up to $15, 000 per violation, by any of the RESPONDENTS in consideration of the parties' entry into this Assurance. 3.4 The original Assurance, bearing the notarized signatures of ORTEGA and PEREZ and the first of the above-described payments will be delivered to the attention of: Theresa Bland Edwards, Assistant Attorney General, Office of Attorney Genera], Economic Crimes Division, 110 SE 6th Street, 10th Floor, Fort Lauderdale, FL Consumers who request refunds based upon conditions identified in paragraph 1.2 above will be refunded within thirty calendar days of their request. The schedule referenced in Exhibit A will be maintained current to accurately reflect the status of consumer refunds and or foreclosure-related service actions, with the current status provided to the Attorney General each 30 days from the effective date of this Assurance. '-!Go 6

7 03/ :01.FAX Inf ante Zumpano Hudson /0014 IV. BUSINESS RECORDS 4.1 Respondents agree to retain documents and other information reasonably sufficient to establish compliance with the provisions herein, and shall provide access to such documents and information to the Department within 24 hours of such request. V. FUTURE VIOLATIONS 5.1 It is hereby agreed by the parties that any failure to comply with the terms and conditions of this Assurance is by statute prima facie evidence of a violation of Chapter 50 I, Part II, Florida Statutes, and will subject Respondents to any and all civil penalties and sanctions authorized by law, including attorney's fees and costs. 5.2 In the event that a court of competent jurisdiction makes a determination that a violation of any condition of this Assurance has occurred, then Respondents shajl be jointly and severally liable for a Consent Judgment against them in the amount of $200, (TWO HUNDRED THOUSAND DOLLARS) in penalties, attorney's fees and costs. VI. CLOSURE OF INVESTIGATION 6.1 It is further agreed by the parties that upon the receipt of the agreed upon payment from Respondents, confirmation of the completion of mortgage modifications or payment of restitution to the consumers listed on Exhibit" A", attached to this Assurance, the Office of the Attorney General agrees to close its civil investigation into the activities of 411 HOME HELP CORP., TRINITY MORTGAGE CORP., MARIA L. ORTEGA and MAJ\.TTJEL PEREZ as set forth above. The parties agree that this Assurance has been entered into based on the truthfulness of the information provided by Respondents, MARIA L. ORTEGA, and MANUEL PEREZ. VIII. EFFECTIVE DATE OF ASSURANCE OF VOLUNTARY COMPLIANCE 7 'fl!!

8 03/28/ :01 ~AX Inf ante Zumpano Hudson / It is further agreed by the parties that the effective date of this Assurance shall be the date of its execution and delivery by all the parties, including each of the parties reflected by the signature lines below. Acceptance by the Office of the Attorney General shall be established by the signature of the Director of Economic Crimes. The receipt by the Office of the Attorney General of any monies pursuant to the Assurance does not constitute acceptance by the Director of Economic Crimes, and any monies received shalj be returned to Respondents at the addresses indicated below the signature lines of the Respondents if this Assurance is not accepted and executed by the Director of Economic Crimes. 7.2 It is further agreed that facsimile copies of signatures and notary seals may be accepted as original for the purposes of establishing the existence of this agreement. IX. NOTICE TO PARTIES 8.1 It is further agreed that future notice to any of the parties to this Assurance may be made by notice sent certified mail to the addresses set forth below llllless either party notifies the other by certified mail of another address to. which notices should be provided. X. CONSTRUCTION OF AGREEMENT 9.1 It is further agreed that the parties jointly participated in the negotiation of the terms of this Assurance. No provision of this Assurance shall be construed for, or against, any party, on the grounds that one party had more control over establishing the terms of this Assurance, than another. In witness whereof, Respondents, 411 HOME HELP CORP., TRINITY MORTGAGE CORP., MARJA L. ORTEGA and MANUEL PEREZ have caused this Assurance to be executed in the county and state listed below, as of the date affixed thereon. By my signature I hereby affirm that l am acting both in my individual capacity and within my authority as corporate representative, and that by my signature 1 am binding myself and the business to the terms and conditions of this 8 HU>

9 03/ 28/ : 02 f'ax Infante Zumpano Hudson ~ 0010/0014 STATE OF FLORIDA) COUNTY OF BROWARD) BEFORE :NIB, an officer duly author owledgments in the State of Florida, MARIA L. ORTEGA, ersonally appeare individually, and as President of 411 HOME HELP CORP., a non-pro corporation and TRINITY MORTGAGE CORP. a Florida corporation. She acknow]edged before me that she execmuted the foregoing instrument for the purposes therein stated on the.4fi. day of _ ~, 2011 and that each above statement is true and correct. ' ed to before me this ~ay of,_/n~f1a""'-'-"1j~ll-+-\-' NO 9 llf{p

10 (print, type, or stamp commissioned Notary Public) Personally known or Produced Identification (check one) Type of Identification Produced: MANUEL PEREZ, individually 2408 N.W. 8?1h Place Doral, Florida MANUEL PEREZ, as Director of 41 lhome HELP CORP., a non-profit corporation 2408 N.W. 87th Place Doral, Florida STATE OF FLORIDA) COUNTY OF BROWARD) BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, MANUEL PEREZ, personally appeared, individually, and as director of 411 HOME HELP CORP., a non profit corporation. He acknowledged before me that he executed the foregoing instrument for the purposes therein stated on the day 2011 and that each statement above is true and correct. Subscribed to before me this day of, NOTARY PUBLIC (print, type, or stamp commissioned Notary Public) 10

11 03/28/ :02 FAX Infante Zumpano Hudson l4l Personally known or Produced Identification (check one) Type of Identification Produced: Infante, Zumpano, Hudson & Miloch, LLC Counsel for Respondents, ~ 411 Home Help Co., Trinity Mortgage Corpf,(3'./ Mari?~~~~~~~======~ Emil R. Infante, Esq. 500 South Dixie Highway Su Coral Gables, Florida Tel Dir Fax emil.infante@izhm law.com WVvW. izhmlaw.com OFFICE OF THE ATTORNEY GENERAL ssistant Attorney General 110 S.E. 6th Street, 9th Floor Fort Lauderdale, FL (954) (954) facsimile Theresa.Edwards@myfloridalegal.com l I µw

12 03128./ :02' FAX Infante Zumpano Hudson /0014 son irstctor, Economic Crimes Division epartment of Legal Affairs OFFICE OF THE ATTORNEY GENERAL The Capitol Tallahassee, FL (850) AJA