California and federal government secure $3 million in refunds for mortgage fraud victims

SACRAMENTO — The California Department of Financial Protection and Innovation (DFPI) announced today that more than 1,800 consumers — about half of them from California — who were victims of a multiyear mortgage fraud scheme, will soon receive refunds totaling nearly $3 million. DFPI, along with the Federal Trade Commission (FTC), secured a court order against the company in 2024 after a DFPI enforcement action uncovered that the company falsely promised to reduce homeowner’s mortgage payments and prevent foreclosure during the COVID-19 pandemic.

“This case shows what’s possible when state and federal partners work together with purpose to crack down on fraud, hold bad actors accountable, and deliver justice for victims. I’m grateful for the work of our Department of Financial Protection and Innovation and for their continued commitment to protecting Californians.”

“We are pleased to be able to give refunds to people who have been scammed out of their hard-earned money,” said DFPI Commissioner KC Mohseni. “We will continually pursue all avenues to prevent scammers from preying on and profiting off Californians, including vulnerable homeowners trying to keep a roof over their families’ heads.

In February 2024, a federal judge in the Central District of California found that a group of individuals orchestrated a fraudulent mortgage assistance relief scheme by misleading vulnerable homeowners into sending their mortgage payments to the scammers in the hopes of ultimately lowering their interest rates and saving their homes.

The scheme used over a dozen business names, including Golden Home Services, Academy Home Services, and Home Matters USA. The scammers operated telemarketing call centers and used them to contact distressed homeowners, leading them to believe that their fraudulent programs were associated with federal COVID-19 and mortgage relief programs. After an investigation by DFPI, the court ultimately banned these companies and their operators from the telemarketing and debt relief businesses and ordered them to pay millions of dollars in penalties and restitution.

The FTC is now mailing refund checks to affected homeowners. Recipients should cash these checks within 90 days, as indicated on the check.

Consumers with questions about their payment should contact the refund administrator, JND Legal Administration, at 1-(833) 674-0067, or visit the FTC refund web page for answers to frequently asked questions. The FTC never requires people to pay money or provide account information to get payment. DFPI protects consumers, regulates financial services, and fosters responsible innovation. DFPI also regulates debt-relief companies, mortgage lenders, and servicers, and other financial institutions in California.

The state encourages consumers who have experienced unfair, unlawful, deceptive, and abusive practices from a financial service provider to file a complaint with DFPI online: https://dfpi.ca.gov//file-a-complaint/

See fraud? Report It.

Californians can learn more about California’s efforts to combat fraud and report it directly through stopfraud.ca.gov.