Attorney General Kathy Jennings announced July 23 the Department of Justice’s Consumer Protection Unit reached a settlement with two California-based companies, requiring them to stop advertising and selling mortgage loan modification and debt relief services in Delaware and to provide restitution to Delaware consumers.

In the cease-and-desist agreement, CPU alleges that Roosevelt Law Center P.C. and Miracles for Homeowners Marketing Inc., and their principals, Thomas Moore and Benjamin Borazghi, operated a foreclosure rescue scam targeting Delaware homeowners.

According to CPU, Roosevelt and Miracles targeted Delaware homeowners struggling to make their mortgage payments with more than 1,000 deceptive flyers, and collected thousands of dollars in upfront fees from Delawareans who responded. CPU alleges that the “services” purportedly provided by these companies had little or no value, and a number of homeowners ultimately lost their homes to foreclosure.

“People who are trying to save their homes are living through a nightmare, often amid other serious hardships,” said Jennings. “There are real programs that can offer these homeowners hope, including programs within the Department of Justice, but the ugly truth is that many scammers see opportunity in others’ misfortune. My office is here to help homeowners facing foreclosure, and we will not tolerate the despicable scams that prey on our most vulnerable residents.”

Under the agreement, Roosevelt, Miracles, Moore and Borazghi are required to pay restitution of $22,275 to nine Delaware homeowners, in addition to $70,000 in civil penalties. The agreement also prohibits the companies and their principals from directly or indirectly offering any mortgage loan modification or debt relief services in Delaware going forward.

Homeowners who wish to report a foreclosure rescue scam should contact CPU at 800-220-5424. Legitimate foreclosure prevention programs are also available through CPU’s Office of Foreclosure Prevention, including Delaware’s Residential Mortgage Foreclosure Mediation Program. More information is available at de.gov/consumer.

CPU’s work in this matter was handled by Deputy Attorney General David Weinstein and former Deputy Attorney General Gillian Andrews, with assistance from Special Investigator Joe Rago and Paralegals Ryan Martin, Kelly Drzymalski and Shannon Faulk.