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Horne Asks for Injunction Against Phoenix-Area Individuals Accused of Deceptive Mortgage Loan Mod Practices

PHOENIX (Thursday, April 28, 2011) -- Attorney General Tom Horne requested that a Maricopa County Superior Court judge prohibit two Phoenix-area individuals who offer mortgage loan modification and legal document preparation services from continuing alleged unlawful and deceptive practices.

The defendants, Robert Daniel Hayes and Camerin Charles Hawthorne, engage in mortgage loan modification activities under the names Mediation Services and Metropolis Loans. Defendant Hawthorne also advertises certified legal document preparer services under the business name The Bankruptcy Store. The complaint alleges that Mediation Services, on behalf of itself and Metropolis Loans solicited consumers over the telephone for mortgage loan modification services in return for advance fees of approximately $2,500 that became illegal under federal law on January 31, 2011. The State also alleges that Mediation Services falsely represented that is was affiliated with consumers' lender CitiMortgage, that consumers were pre-approved for a modification, and that attorneys would represent its clients in getting a loan modification. The State further alleged that the Defendant Hawthorn falsely represents that he, and his business The Bankruptcy Store, are certified by the Arizona Supreme Court as legal document preparers.

“The housing crisis and overall poor economy bring out the worst in these predators,” Horne said. “The allegations my office have filed represent an unconscionable breach of trust and a willingness on the part of these defendants to reap financial gain by deceiving vulnerable consumers. I am asking the court to impose a restraining order on these defendants to make sure these practices end and I am also asking that the court demand restitution for all the victims.”

A hearing has been scheduled in Maricopa County Superior Court for May 20, 2011.