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Class Alleges Foreclosure Rescue Scam

WHITE PLAINS, N.Y. (CN) - After homebuyers are victimized by unscrupulous lenders, the American Modification Agency defrauds them again by promising to modify their loans, but failing to perform and refusing to refund their money, citing its own unconscionable contracts, a class action claims in Federal Court.

Also sued are Island Pride Homes, Salvatore Pane Jr., Russell Izzo, Calvin Gordon, and James Anzelone.

Plaintiffs claim the defendants have collected fees from more than 7,000 victims through unconscionable and deceptive business practices.

Salvatore Pane Jr. is CEO of the American Modification Agency, according to the complaint. Izzo is its COO, Gordon is CFO and Anzelone is a "senior modification advisor."

Plaintiffs demand $100 million in damages for fraud, breach of contract and other violations. They are represented by Jeffrey Greene of White Plains.

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