A federal court has imposed a $3.89 million judgment against Samuel Paul Bain and three of his companies - U.S. Homeowners Relief Inc., Waypoint Law Group Inc. and American Lending Review Inc. - for their role in an allegedly fraudulent mortgage modification and foreclosure relief scheme.

The default judgment concludes the Federal Trade Commission's case against U.S. Homeowners Relief defendants, six of whom already have agreed to settle charges. Collections & Credit Risk reported on the case against U.S. Homeowners Relief in November 2010 (see story).

The settlements against the defendants require the payment of millions of dollars in ill-gotten gains, and permanently ban all six from selling any mortgage assistance or debt relief products or services.   

The scheme involving Bain and his companies allegedly charged consumers up to $4,250 for a promise to reduce their mortgage payments, interest rates and sometimes even their loan balances.

The court order bans Bain and the firms from telemarketing - and from providing or claiming to provide - debt relief and mortgage relief services to consumers. It also prohibits the defendants from making any unsupported claims about the benefits, performance and efficacy of financial products, and from misrepresenting any relevant fact about a product or service, or about the terms and conditions of a sale.

The judgment against Bain and his companies will be referred to the U.S. Treasury Department for collection.  The U.S. District Court for the Central District of California entered the default judgment and order.  

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