Two law firms and their lead attorney on Wednesday lost a default judgment in New York County Supreme Court after allegedly participating in a fraudulent mortgage rescue scheme, Collections & Credit Risk reported today. Litvin Law Firm; Litvin, Torrens & Associates PLLC; and the firms’ principal attorney Gennady Litvin were ordered to stop illegal business practices, including preying upon consumers by claiming to offer a full legal services plan that would help them avoid foreclosure. The court also ordered Litvin Law Firm and Gennady Litvin, which have recently filed for bankruptcy, and Litvin, Torrens & Associates to provide a full accounting so that New York Attorney General Eric Schneiderman’s office can determine an appropriate amount for restitution for victims, who commonly paid hundreds of dollars in monthly fees for services that were never provided. Last year, Schneiderman’s office filed a lawsuit against the firms and Gennady Litvin for allegedly offering fraudulent legal services and other foreclosure assistance to consumers in New York and other states.
