Arizona Attorney General Terry Goddard 2010 Annual Report

Public Advocacy Division (continued)
obtained a temporary re-
address consumer refund
sumers. We filed a complaint
working with to obtain a loan
ers with little or no chance
straining order prohibiting this
requests. Litigation is con-
against Asset Creation and its
modification. Those consum-
of being able to qualify to
loan modification company
tinuing.
principals in January 2010.
ers will receive a full refund
purchase the property due
from making misrepresentations
to consumers and from
receiving any money from
consumers. Since the TRO
was issued, the defendants
stipulated to a preliminary
injunction that prohibits the
company from making misrepresentations
to consumers
and requires it to promptly
• Asset Creation, LLC
This loan modification
company targeted Spanishspeaking
homeowners. It
advertised it could obtain a
50 percent reduction in mortgage
payment (for upfront
fees of more than $3,400)
and promised it could obtain
other specific results for con-
The Office’s fraud prevention efforts included the production of new brochures and
videos, including one on how to avoid charity scams and another called “Smart Seniors”
with advice on identifying scams and fraud.
The defendants appear to
have gone out of business
and have failed to comply
with discovery requirements.
Litigation is continuing.
• Santoya Financial
Company, LLC.
The unit obtained a consent
judgment against this Phoenix-based
company that was
engaged in loan modification
activities and misrepresented
its status as a HUD-approved
foreclosure counseling
agency in its ads. Soon after
we sued the company in July
2009, it stopped soliciting
consumers for loan modification
services and has since
fully refunded all consumers
who paid it money, except for
a few the company was still
if Santoya is unsuccessful in
obtaining a loan modification
for them. The consent
judgment includes injunctive
relief, $30,000 in civil penalties
and $5,000 in costs.
• Arizona Investments dba AZI
Rent-2-Own, et al.
Arizona Investments, Silverstein,
Zandonatti (AZI) with
the assistance of others, including
RE/MAX All Executives
and Tucson Mortgage, defrauded
or should have known
they were defrauding novice
real estate investors, lenders,
and rent-to-own homebuyers.
AZI facilitated deceptive loan
applications in furtherance
of a rental-property scheme
and engaged in a variety
of deceptive practices. The
deceptive “no qualifying”
advertising targeted consum-
to their poor credit and low
income, factors which AZI
deliberately ignored. Settlements
totaling $120,000
have been obtained against
three defendants so far.
• Ending upfront “rescue”
fees:
In addition to civil and criminal
enforcement actions, the
Attorney General led the fight
for a new law aimed at the
key factor contributing to the
growth of loan modification
scams: the ability to charge
large upfront fees. SB 1130
makes it illegal to charge
upfront fees for foreclosure
rescue services. Violations of
the new law can – and will –
be enforced under the Arizona
Consumer Fraud Act.
Arizona Attorney General Terry Goddard • 2010 Annual Report
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