Receiver’s Update – November 11, 2014
The FTC case against multiple Defendants has nearly been completed. Judgments have been entered, either by settlement or default judgment, as to: Backend Services, Inc.; Legal Marketing Group, Inc.; Millennium Law Center, P.C.; William D. Goodrich; William D. Goodrich Atty, Inc.; Top Legal Advocates, P.C.; Backend, Inc. f/k/a Mortgage Modification Center and d/b/a MMC, Inc.; Emax Loans, Inc.; Evergreen Law Offices PLLC; Nationwide Law Center, Inc.; United States Law Center, P.C.; Interstate Law Group, LLC; and SC Law Group, P.C. Defendant Amir Montazeran and Relief Defendant Business Team, LLC have appealed default judgments entered against them.
The remaining Defendants are Ratan Baid, and Madhulika Baid and their related entities – A to Z Marketing, Inc.; Apex Members, LLC; Apex Solutions, Inc.; Expert Processing Center, Inc.; and Smart Funding Corp. These Defendants have reached a tentative settlement with the FTC which is subject to final approval by the full Commission. On September 30, 2014, the Court continued the trial as to these Defendants to November 18, 2014 in order to give the parties time to complete the settlement.
It now appears that there will, at best, be only nominal net assets from the receivership for a consumer redress procedure, but the ultimate decision as to the nature and extent of a redress program will be made by the FTC.
Notice to Former Employees of A to Z Marketing, Smart Funding Corp., Apex Solutions, and Expert Processing Center – February 6, 2014
W2s for 2013 for employees of these businesses have been placed in the mail.
If your address has changed, please let us know by sending an email to email@example.com.
Receiver’s Update – January 31, 2014
The FTC case against Defendants is proceeding and the FTC recently filed a First Amended Complaint adding Top Legal Advocates, P.C., Evergreen Law Offices, PLLC, Backend Services, Inc., Emax Loans, Inc., Legal Marketing Group, Inc., Nationwide Law Center, P.C., United States Law Center, P.C., Interstate Law Group, LLC, Millennium Law Center, P .C. and SC Law Group, P.C. as Defendants. Absent a settlement, the case could extend through all of 2014 and possibly further.
The Receiver continues the process of accumulating the limited assets of the Receivership Entities and pursuing any available claims against third parties. It is still too early in the process to determine whether, and to what extent, there will be assets available for a consumer redress procedure for consumers victimized by Defendants.
Notice to Consumers – September 19, 2013
The Receiver’s office has learned that some consumers are receiving calls from people identifying themselves as working for or with Evergreen Law Offices or Top Legal Advocates. We do not know just who is placing these calls, but they are unauthorized and are in direct violation of the Preliminary Injunctions entered by the Court.
Evergreen Law Offices and Top Legal Advocates are no longer conducting business of any kind. If you receive such a call, please advise the Receiver’s office at firstname.lastname@example.org.
Notice to Former Employees re: Payroll
We have received many questions about payroll for the period prior to the receivership. Under the terms of the Temporary Restraining Order entered June 19, 2013 and the Preliminary Injunctions enter on July 12, 2013 and July 18, 2013, the Receiver may not use receivership funds to pay pre-receivership obligations without Court approval. The Receivership is now in the process of marshaling assets of the various Receivership Defendants. At this time, there is no plan and no ability for the receivership to cover any payroll that may have been due for the period prior to the receivership.
Receiver’s Update – August 16, 2013
The Court has now entered Preliminary Injunctions as to all parties. On July 12, 2013 a Preliminary Injunction was issued as to Defendant Backend, Inc. (Click here to read a copy.) In that Order, the following entities are identified as “Backend Receivership Defendants” subject to the receivership – Backend, Inc., Millennium Law Center, P.C., SC Law Group, Legal Marketing Group, Inc., dba Legal Marketing Group, Interstate Law Group, Accredited Law Group, Backend Services, Inc., Nationwide Law Center, United States Law Center, Mortgage Modification Center, and Emax Loans, Inc.
On July 18, 2013, the Court entered a Preliminary Injunction as to Defendants A to Z Marketing, Inc., Apex Members, LLC, Apex Solutions, Inc., Expert Processing Center, Inc., Smart Funding Corp., William D. Goodrich, Atty, Inc., Ratan Baid, Madhulika Baid, and William D. Goodrich. (Click here to read a copy.) In addition to the named Defendants, that Order also identifies Evergreen Law Offices and Top Legal Advocates as Receivership Defendants subject to the receivership.
The Receiver has terminated all loan modification operations of all the Receivership Defendants covered by the two Preliminary Injunctions. As part of that process, the Receiver sent a global email blast to all loan modification customers of Receivership Defendants advising them that all loan modification processing has been shut down and suggesting alternative sources for assistance, especially www.hopeloanportal.org.
Receiver’s Update – July 9, 2013
At a hearing on July 8, 2013, the Court extended the Temporary Restraining Order (“TRO”) as to Defendant Backend, Inc. and its related entities Nationwide Law Center and United States Law Center and indicated that it will enter a Preliminary Injunction on or before July 12, 2013. As such, operations at Backend, Nationwide Law Center, and United States Law Center remain suspended. Prior to that hearing, the Temporary Receiver filed a Supplemental Report as to Backend and its related entities. Click here to read that report.
At the earlier hearing on June 28, 2013, the Court authorized the Temporary Receiver to take possession of three additional loan modification operations affiliated with Backend – SC Law Group in Irvine, California; Millennium Law Center in Long Beach, California; and Interstate Law Group in Las Vegas, Nevada. The Temporary Receiver took possession of these operations on June 28, 2013 and July 1, 2013. Those operations have all been suspended. On July 5, 2013, the Temporary Receiver filed a Preliminary Report as to these three businesses. Click here to read that report.
The TRO remains in effect as to A to Z Marketing, Smart Funding Corp., and their related entities with a Preliminary Injunction hearing set for July 18, 2013. In the meantime, those operations remain suspended.
Receiver’s Update – July 5, 2013
Operations remain suspended. If you have immediate issues related to your loan modification, please contact your lender directly.
There are government resources which can assist in locating a non-profit housing counseling agency: HUD – http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
In addition, there are non-profit entities which can assist you in locating a non-profit housing counselor who will not charge for assisting with loan modification requests:
Hope Now, support and guidance for homeowners – http://hopenow.com/
Hope LoanPort – https://www.hopeloanportal.org/
These non-profits have participating counselors in all 50 states and can help you identify nearby counselors through the websites.
NOTICE OF RECEIVERSHIP – A to Z MARKETING, INC. AND RELATED COMPANIES
On June 18, 2013, the Federal Trade Commission commenced suit against A to Z Marketing, Inc. and certain affiliated entities. The Complaint alleges that Defendants have engaged in various forms of consumer fraud in connection with loan modification services, including violations of Section 5(a) of the FTC Act and the Mortgage Assistance Relief Services Rule (“MARS Rule”). (Click here to read a copy of the Complaint.) The case was filed in the U.S. District Court for the Central District of California (Santa Ana Division). FTC v. A to Z Marketing, Inc., et al., Case No. 2:13-cv-00919-DOC.
On June 19, 2013, the Court entered a Temporary Restraining Order (“TRO”) which included an asset freeze and the appointment of a Temporary Receiver to take control of the company’s operations. (Click here to read a copy of the TRO.) On June 20, 2013, the Temporary Receiver took possession of the business operations located at: 1400 Reynolds Avenue, Irvine, California; 17632 Irvine Boulevard, Tustin, California; and 2601 Main Street, Suite 1200, Irvine, California and immediately suspended all operations. He is now conducting a thorough review of the business.
The Temporary Receiver filed a Preliminary Report on June 27, 2013. (Click here to read a copy of the Report.)
The Court has set June 28, 2013 at 7:30 a.m. as the date and time for the hearing on whether a Preliminary Injunction should issue as to Defendant Backend, Inc. and any related entities. Backend has filed an opposition to the Preliminary Injunction. The hearing as to the other Defendants has been continued to July 15, 2013.
The asset freeze and the receivership apply to “Receivership Defendants” which are defined in the TRO (Paragraph K, page 8) as A to Z Marketing, Inc., Apex Members, LLC, Apex Solutions, Inc., Backend, Inc., Expert Processing Center, Inc., Smart Funding Corp., and William D. Goodrich, Atty, Inc., as well as any affiliates and subsidiaries that conduct any business related to the Receivership Defendants' provision of MARS and that the Temporary Receiver has reason to believe are owned or controlled in whole or in part by any of the Defendants.
The Temporary Receiver has established this website as a vehicle to communicate with consumers who may have done business with any of the Receivership Defendants. You may send specific questions to the receiver at email@example.com.
Notice to Clients of Defendants
Operations remain suspended. If you have immediate issues to a loan modification, you should contact your lender directly, a government-sponsored assistance groups such as www.HopeNow.com, or a lawyer in your local jurisdiction with expertise in loan modification.