Attorney General Madigan Files Lawsuit Against Chicago Area Business for Alleged Mortgage Rescue, Debt Reduction Fraud
November 17, 2010
Lisa Madigan is at it again and is out there protecting the right so the consumers. Mortgage and credit card debt relief has been on the mind of those hardest hit with the downturn in the economy and this is the time they need most protection from predators.
Attorney General Lisa Madigan today filed a lawsuit in Cook County Circuit Court against three men and their businesses, alleging repeated instances of fraudulently soliciting consumers for mortgage and credit card debt relief in violation of the state’s Mortgage Rescue Fraud and Credit Services Organization Acts.
Madigan’s lawsuit charges the Chicago-based Omega Business Center was an umbrella organization for several entities that solicited consumers through print and radio advertising in the Polish community to reduce their mortgages and bring down credit card debt but did not provide the promised services. The lawsuit alleges the organization charged consumers upfront fees for services that were never provided, and never issued refunds to customers who canceled their contracts.
Also named as defendants in the lawsuit were Michael Borowiak, of Niles, president of Omega Tax and Accounting and manager of Omega Investment and Development; Jorge Paredes, of Chicago, principal of Wall Street Inc.; and Jay Fortier, of Oak Park, manager of Halbulst Asset Management LLC. These businesses, along with others registered with the state, all worked under the Omega Business Center, claiming to offer mortgage and credit card debt reduction assistance, the lawsuit states.
“Homeowners should be wary of any debt-assistance business that requires upfront fees for their services,” Attorney General Madigan said. “Mortgage rescue scam artists should be aware that my office aggressively investigates these allegations and will pursue those who prey on unsuspecting homeowners.”