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California and federal government secure $3 million in refunds for mortgage fraud victims

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~ California and the federal government have successfully secured $3 million in refunds for victims of a mortgage fraud scheme, announced the California Department of Financial Protection and Innovation (DFPI) today. This comes as a result of an enforcement action taken by DFPI, in collaboration with the Federal Trade Commission (FTC), against a company that falsely promised to reduce mortgage payments and prevent foreclosures during the COVID-19 pandemic.

The refunds will be distributed to over 1,800 consumers, with about half of them being from California. Governor Gavin Newsom expressed his gratitude for the joint effort between state and federal partners in cracking down on fraud and holding perpetrators accountable. He stated, "This case shows what's possible when we work together with purpose to deliver justice for victims."

DFPI Commissioner KC Mohseni also commended the collaboration between agencies, saying, "We will continually pursue all avenues to prevent scammers from preying on and profiting off Californians, including vulnerable homeowners trying to keep a roof over their families' heads."

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The fraudulent scheme was orchestrated by a group of individuals who used multiple business names such as Golden Home Services, Academy Home Services, and Home Matters USA. They operated telemarketing call centers to target distressed homeowners and falsely claimed to be associated with federal COVID-19 and mortgage relief programs.

After an investigation by DFPI, a federal judge in the Central District of California found these companies guilty of misleading vulnerable homeowners into sending their mortgage payments to the scammers in hopes of lowering their interest rates and saving their homes. The court ordered them to pay millions of dollars in penalties and restitution and banned them from telemarketing and debt relief businesses.

The FTC is now mailing refund checks to affected homeowners, which should be cashed within 90 days. Consumers with questions about their payment can contact the refund administrator or visit the FTC refund web page for more information.

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In addition to regulating financial services and fostering responsible innovation, DFPI also regulates debt-relief companies, mortgage lenders, and servicers in California. The state encourages consumers who have experienced unfair, unlawful, deceptive, and abusive practices from a financial service provider to file a complaint with DFPI online.

Governor Newsom has also recently issued a proclamation declaring a statewide general election on November 3, 2026. This comes as California leads the nation in job creation, with approximately 131,534 jobs added over the past year. The governor also visited Long Beach to highlight California's dominance in aerospace and space technology companies.

As Californians continue to combat fraud and report it through stopfraud.ca.gov, the state remains committed to protecting its citizens from fraudulent activities. Consumers are encouraged to report any suspicious activity and learn more about California's efforts to combat fraud.

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