‘Imposters’ accused of scamming 200 homeowners facing foreclosure

Atty. Gen. Richard Blumenthal has issued an urgent warning to consumers about two foreclosure rescue companies allegedly masquerading as a law firm in Connecticut.

Blumenthal’s office is investigating and preparing action against the companies, coordinating with the Office of the Chief Disciplinary Counsel (OCDC), which has filed a lawsuit seeking a temporary restraining order and other legal remedies against the firms and associated individuals, including Kent Gross, Hazen Sturtevant and Nicola L. Zagarolo.

The OCDC alleges that these individuals - doing business as First Legal Group, P.A. and Nationwide Home Relief Law Group, P.A. - operated a law office in East Berlin, CT without a Connecticut law license.

The operators allegedly hired Connecticut lawyers, who did virtually no work for consumers.

They appear to have been operating in Florida, Connecticut and six or more other states.

Blumenthal said the “imposters” may have taken $750,000 or more from at least 200 Connecticut homeowners in distress, and provided little or no legal assistance in return.

“We urgently warn all consumers about these companies, and urge victims to call us, because many deserve their money back,” Blumenthal said.

The alleged bogus law firm is accused of charging fees for foreclosure mediation - a service that is provided free of charge by the courts, Blumenthal said.

Posing as a law firm specializing in home-rescue services, the firm is accused of “data-mining” court records for foreclosure actions, and then using direct mail and other marketing tactics to solicit homeowners.

Department of Consumer Protection Commissioner Jerry Farrell, Jr.  recommends that before consumers hire an attorney, verify that he or she is licensed to practice law in Connecticut by visiting the State of Connecticut’s Judicial Branch Web site.

And any homeowner seeking legal advice concerning a foreclosure needs to be sure the attorney is familiar with Connecticut’s foreclosure and debt collection laws, as well as federal laws concerning personal bankruptcy, Farrell said.

Consumers who have information or concerns about these two companies are urged to contact the Attorney General’s Office at 860-808-5420.

Posted Aug. 11, 2009