PHOENIX - Phoenix-based Asset Creation charged victims thousands of dollars for "loan modification" services, then hung them out to dry, Arizona Attorney General Terry Goddard said. The company advertised in Spanish that it could cut people's mortgage payments in half and offered a money-back guarantee, but couldn't back any of it up, Goddard said.
Asset Creation charged "enrollment fees" ranging of $1,680 to $3,430, but fail to get loans modified and refused to refund the money as it promised.
Asset Creation and its sole member Marvin Williamson falsely claimed that they had been performing loan modifications since 2003. But Goddard says in Maricopa County Court that Williamson didn't form the company until 2005, and did not begin offering loan modifications until 2008.
Williamson offered a "client proposal" that projected a "new loan amount, interest rate, and term" about 20 percent lower than their current payment, Goddard says. But Asset Creation had no knowledge or control over whether lenders would negotiate with it on behalf of any consumer.
Goddard seeks restitution, fines for consumer fraud, and an injunction.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.