WASHINGTON --
The Federal Trade Commission has banned eight individuals and companies from selling mortgage-relief services, settling charges that they used false advertising to deceive homeowners facing foreclosure.
In the settlements announced Monday:
Steven Oscherowitz, affiliated with a firm called Federal Loan Modification Law Center, was ordered to pay $11.5 million. His firm charged clients as much as $3,000, most of which was required in advance. The firm often failed to deliver loan modifications, the FTC said.
Loss Mitigation Services and Direct Lender were ordered to pay a total $6.2 million. Dean Shafer, Marion Anthony "Tony" Perry and Bernadette Perry were banned from selling the services, but the $6.2 million judgment against them was suspended because of their inability to pay. The FTC said they falsely promised loan modifications if homeowners paid as much as $5,500. They couldn't be located for comment.
Salvatore and Nicholas Puglia of Hope Now Modifications and Hope Now Financial Services Corp. were ordered to pay $5.3 million. The FTC said that judgment will be suspended when they surrender all the money in their bank accounts, which had been frozen by the court.
The agency said the Puglias and the firms falsely claimed they were linked with the federal government's Hope Now program and that they could achieve modifications in nearly all cases - or would refund customers' money.
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