The Consumer Financial Protection Bureau (CFPB) announced it reached a stipulated final judgment with the last two defendants of a case it filed in September.
The case involved allegations against a foreclosure relief services company based in Texas, Certified Forensic Loan Auditors, LLC, and the company’s president and CEO, Andrew Lehman.
The CFPB alleged that the company and Lehman charged unlawful advance fees in connection with marketing and selling financial advisory and mortgage assistance relief services to consumers in violation of Regulation O and the Consumer Financial Protection Act.
CFLA and Lehman were the only remaining defendants in the lawsuit, which was filed in September 2019. The California district court previously entered a final judgment resolving allegations against Michael Carrigan, CFLA’s former auditor.
The stipulated judgment bans CFLA and Lehman from the industry and imposes a suspended judgment for redress of $3 million and civil money penalties of $40,000 because of an inability to pay. Redress to harmed consumers would be paid out of the CFPB’s civil penalty fund.
The complaint alleged that CFLA made deceptive and unsubstantiated claims about the efficacy and content of its services, as well as false claims about the experience and qualifications of the people performing those services. The bureau also alleged that the company’s conduct constituted abusive acts or practices in violation of the CFPA.
Finally, the CFPB alleged that CFLA and Lehman charged consumers illegal upfront fees in violation of Regulation O, which governs the offering or provision of mortgage assistance relief services.