Media contact: Janet C. Hart, CFEE (704) 927-8617 office
CHARLOTTE, N.C. – June 23, 2009 - The Better Business Bureau is warning consumers about
Charlotte-based, mortgage consultant, Michael Grieco, who previously owned Home
Assure LLC, a mortgage foreclosure “rescue” business. He is now doing business
under the name Assurance Consulting Group in Charlotte.
On May 1, 2009, the Federal Trade Commission secured a
Stipulated Preliminary Injunction and Order for Other Equitable Relief against
Michael Grieco, alleging deceptive acts or practices in connection with the sale
of mortgage foreclosure rescue services in violation of Section 5(a) of the FTC
Act. The FTC injunction ordered Mr. Grieco and Home Assure to cease operations.
(A summary of the FTC Injunction is
included below).
Link to FTC’s related court orders: http://www.ftc.gov/os/caselist/0823192/index.shtm.
Link to FTC’s related news release: http://www.ftc.gov/opa/2009/04/hud.shtm.
On
October 30, 2008, N.C. Attorney General Roy Cooper held a news conference at
the Better Business Bureau in Charlotte to announce that he was filing suit
against Home Assure and its owner, Michael Grieco, and two other Charlotte area
mortgage foreclosure “rescue” companies.
On November 28, 2008, Mr. Grieco, entered into a Consent Order with the
N.C. Attorney General to effectively cease operations in N.C.
(A summary of the N.C. Consent
Order is included below).
Link to related news release from N.C.
Attorney General: http://www.ncdoj.com/News-and-Alerts/News-Releases-and-Advisories/Press-Releases/AG-Cooper-goes-after-Charlotte-foreclosure-rescue-.aspx
In the past 13
months, the Better Business Bureau has received 19 complaints from consumers in
14 states about Home Assure (BBB rating “F”). Fifteen of the 19 complaints
remain unanswered or unresolved and one is still pending. Complainants state
that they paid $1,500-2,500 to Home Assure for mortgage modification or
foreclosure prevention services, but Home Assure failed to fulfill its
advertised promises. Complainants allege that they have not been able to reach
Home Assure to find out the status of their mortgage modifications or to obtain
a refund of monies paid.
Home Assure was located at 11006 Rushmore Drive, Suite
375, in Charlotte, but those offices are now vacant. Their website, www.homeassure.com, lists information
about how to contact a court-appointed, Temporary Receiver.
Mr. Grieco is now
operating a similar business in Charlotte under a new name, Assurance
Consulting Group, (Tel: 704-271-9427). The business address is a private
mailbox at 9716 Rea Road, PMB#116, Charlotte, N.C. 28277.
The BBB
urges homeowners who are in danger of losing their home to foreclosure to contact
their lenders directly, instead of working with third party mortgage
foreclosure/modification businesses.
Most banks and mortgage companies have modification programs to assist
homeowners who are struggling with their mortgages.
Consumers
can check out a business and get a free Reliability Report online by visiting www.bbb.org or by calling the BBB (toll-free in N.C.
and S.C.) at 1-877-317-7236.
###
Summary
of N.C. Consent Order
On November 26,
2008, the business (defendants, Home Assure, LLC and Michael Grieco,
individually, and in his capacity as Vice President of Home Assure, LLC),
entered into a Consent Order with the office of the North Carolina Attorney
General.
It is ordered,
based on the record and with the consent of the parties, that the Defendants,
their agents, employees, and all persons acting in concert with them are
temporarily and preliminarily enjoined from:
(1) advertising,
soliciting, or offering any foreclosure assistance or debt adjusting services
to North Carolina residents;
(2) entering into
contracts, soliciting, collecting or receiving fees or other consideration from
North Carolina consumers for foreclosure assistance or debt adjusting services,
in violation of G.S. 14-423;
(3) performing,
conducting, or engaging in foreclosure assistance services in the State of
North Carolina in violation of North Carolina law, except that the Defendants
may complete services on behalf of customers who have already paid for
foreclosure assistance services prior to the entry of this Consent Order;
(4) disposing of
any funds received from North Carolina consumers in connection with the
Defendants' debt adjusting or foreclosure assistance services, except to pay
money to consumers' mortgage loan creditors or to return funds to consumers;
and
(5) destroying,
removing, transferring, erasing, or otherwise disposing of any business or
financial records, relating to the Defendants' debt adjusting or foreclosure
assistance services, or relating to moneys obtained from any consumer in
connection with any such services.
Summary
of Federal Trade Commission Injunction
On May 1, 2009, the Federal Trade Commission secured a
Stipulated Preliminary Injunction and Order for Other Equitable Relief against
Michael Grieco alleging deceptive acts or practices in connection with the sale
of mortgage foreclosure rescue services in violation of Section 5(a) of the FTC
Act.
The Commission's Motion to Enter Stipiulated Preliminary
Injunction and Order for Other Equitable Relief Against Michael Grieco is
granted as follows:
1. Grieco's activities as alleged in the complaint are in or
affecting commerce as defined in 15 U.S.C. 44.
2. The Commission asserts that there is good cause to believe
that Michael Grieco has engaged in and is likely to continue to engage in acts
and practices that violate Section 5(a) of the FCT Act.
3. Good cause exists to believe that immediate and irreparable
injury, loss, or damage to the court's ability to grant final and effective
relief for consumers in the form of monetary redress will occur from the sale,
transfer, or other disposition or concealment by Grieco of assets or records
during the pendency of this action unless Grieco is immediately restrained and
enjoined by order of this court. There is thus good cause for an asset freeze
to ensure the possibility of consumer redress and other effective final relief.
4. Good cause exists for requiring Grieco to produce an
accounting of his business assets, sworn financial statements, profit-and-loss
statements, and sworn personal financial statements.
5. The court found that good cause exists for the continued
appointment of the Temporary Receiver over the defendants Home Assure, LLC, and
B Home Associates LLC, d/b/a Expert Foreclosure, and this order incorporates
the provisions of the April 16, 2009, order relating the Temporary Receiver.