Judge shuts down mortgage modification companies temporarily - Fox29 WFLX TV, West Palm Beach, FL-news & weather

Judge shuts down mortgage modification companies temporarily

By Chuck Weber email

WEST PALM BEACH, FL (WFLX)-Late Friday a judge in West Palm Beach granted the state Attorney General's request for a temporary injunction, shutting down FHA All Day and three other mortgage modification companies.

Jason Vitulano and his four companies are accused of ripping off customers to the tune of $8 million dollars.

Friday lawyers with the state Attorney General's office came to court with a garbage bag full of shredded documents. The state says it's proof the companies tried to destroy evidence.

Among victims testifying was Carlos Wade of Port St. Lucie. He said after he became disabled, he faced foreclosure. So Wade said he forked over $3400 up front to save his home. But Wade says he soon was unable to contact the company and ultimately received nothing. Up front payments are now illegal in Florida.

In her opening statement at the hearing, Samantha Feuer of the Attorney General's Office said, "With Jason Vitulano at the helm as ring leader, the companies have been scamming, cheating and lying to people over the past eight months, and have been absolutely shameless about it."

But Michael J. Sacks, a lawyer representing Vitulano countered, "A lot of the people were actually benefited, I'm informed. Not all of these modifications go through. They are not a guarantee."

Judge Jack Cox granted the temporary injunction freezing the companies' operations, and specified the companies must have a court order to move more than $1,000. The judge set another hearing for this Thursday.

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