Mortgage Relief Company Closes Amid Investigation - 8 News NOW

Mortgage Relief Company Closes Amid Investigation

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A local company that claims it can stop foreclosures closed its doors Monday. A sign posted at the U.S. Justice Foundation tells clients it is filing for bankruptcy, but the I-Team has learned that's only part of the story.

The I-Team has been looking at the U.S. Justice Foundation, and its owner Jack Ferm, for some time. So has the state Attorney General's Office, the District Court, the Federal Court, and the state bar.

The company claims it can stop foreclosures by helping people to sue their mortgage companies themselves. Though it's unclear how many if any of those suits have been successful, they've captured the courts attention.

Ferm has been ordered by both the state and the federal court to explain why he shouldn't be held in contempt for practicing law without a license. He is not an attorney.

Outside of the U.S. Justice Foundation offices Monday afternoon, angry clients pounded on the door demanding answers. Many of the victims have lawsuits pending or have been unsuccessful with their legal efforts and many paid upfront for services. "We're trying to save our house and we give them upfront already $1,500," said Alfred Bengson.

A note on the door says the bankruptcy was, "Necessary due to a lack of funding as our clients have failed to honor their commitments and the foundation simply ran out of funding."

"We came and my daughter paid her money down, over $3,000. They said that they could help her," said Nona Stein. "It's unscrupulous. I don't know how anybody can do this to people that come for help."

While waiting outside, customers met a man serving paperwork to the office from an attorney representing eight more customers who say they were taken advantage of.

"It is possible that some criminal charges maybe pursued. Most of all, we want all of the clients who came to us to get their money back," said Patrick Llewellyn.

Sources say additional legal action will be taken against the Ferm and the foundation later this week.

Efforts to contact the foundation were unsuccessful.

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