James Timothy Malis, 66 and son Nicholas Malis, 37, were indicted by a grand jury on several felonies in connection with their operation of a mortgage fraud scam. A 13 count indictment for each defendant was returned by a grand jury charging the defendants.
Operating under the name Home Defense Foundation (HDF) and Legacy Group International (LG International), Nicholas and James Malis allegedly pushed “qualified written requests” (under RESPA laws) and “real estate mortgage investment conduit investigations” (such a “loan audits” and “securitization audits”) promising clients these services would uncover various violations, including the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act, the Fair Credit Reporting Act and/or the Fair Debts Collections Practices Act.
The pair allegedly claimed that upon uncovering these violations clients would be entitled to a legal remedy resulting in either a reduction of their loan to the current market value and to the current market interest rate or an award of damages. Both allegedly claimed that HDF and LG were affiliated with a “network of attorneys” that would represent clients in either an individual lawsuit or in a multi joinder plaintiff lawsuit against clients’ lenders.