May 09, 2008
Attorney General Bill McCollum News Release
March 26, 2008
  en Español

Media Contact: Sandi Copes
Phone: (850) 245-0150

Broward Companies, Couple Sued for Foreclosure Rescue Scam

~ Scheme victimized more than 30 families, defrauding them out of hundreds of thousands of dollars in home equity ~


TALLAHASSEE, FL - Attorney General Bill McCollum today announced that his office has sued three Broward County companies and their owners for their alleged roles in a foreclosure rescue scheme. The lawsuit names Florida Housing Council, LLP; Equity Investment Capital Management, Inc.; Star Enterprises, LLC, and Jack Moussa and Rose Moussa as the participants in a deceptive operation that defrauded hundreds of thousands of dollars in home equity from numerous homeowners in the foreclosure process.

“The Attorney General’s Office is committed to protecting Florida’s citizens from fraudulent schemes designed to prey upon homeowners in potentially desperate situations,” said Attorney General McCollum. “We will aggressively pursue those who attempt to profit at the expense of citizens who are facing the foreclosure of their homes.”

Florida Housing Council allegedly identified homeowners in the foreclosure process and sent them an advertising mailer telling them to contact Florida Housing Council immediately to avoid foreclosure. Representatives of the companies would then persuade homeowners to sign documents, including complicated trust agreements and deeds, which conveyed the titles to their properties to trusts controlled by Florida Housing Council. The complaint states consumers were often charged various fees for signing the trust agreements even though no actual services were provided. According to the lawsuit, Jack Moussa also occasionally misrepresented to consumers that Florida Housing Council was a government entity.

Once the deeds were transferred, Florida Housing Council would allegedly charge the homeowners rent, and if rent was not paid, the homeowners would be evicted from their homes. Jack Moussa would supposedly either keep the homes or sell them for a profit. At least 38 homeowners in Florida have been affected and hundreds of thousands of dollars in homeowner equity has been taken.

The Attorney General’s lawsuit seeks damages against the defendants on behalf of Florida consumers and requests an injunction prohibiting the defendants from working in the real estate business in Florida. Civil penalties of $10,000 per violation of Florida’s Deceptive and Unfair Trade Practices Act are also being sought. Consumers who believe they may have been victimized by any of these defendants may contact the Attorney Generals Office at 1-866-966-7226 or online at http://myfloridalegal.com to file a complaint.

A copy of the lawsuit, filed today in Broward Circuit Court, is available online at: http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7D4LNF/$file/FHCComplaint.pdf