Sal Pane once sued by New York State for fraudulent mortgage modifications.
The man who was in charge of cleaning up Ebola in New York City is also a con artist who was once fined $12.5 million for fraudulent mortgage modifications.
Buzzfeed published a long-form piece Monday, which claims that Sal Pane, who was chosen by New York City to clean Dr. Craig Spencer’s apartment, is the same Sal Pane who was once investigated and subsequently sued by the New York Attorney General’s office for charging significant up-front fees for mortgage modifications and falsely advertising a success rate of between 90% and 100%.
Spencer was New York City’s first Ebola patient.
In 2009, HousingWire covered then-NY Attorney General Andrew Cuomo’s investigation of AmeriMod Modification Agency, which was owned by Pane.
“This economic climate has bred an environment in which scam artists and opportunists are able to prey on vulnerable consumers on the brink of losing their most valuable possession — their home,” Cuomo said at the time.
“Companies that charge homeowners up front fees for loan modification services, put homeowners into contracts that don’t disclose cancellation rights, or lure consumers with misleading claims violate not only our trust but the law.”
According to Buzzfeed’s article, Pane and AmeriMod advertised that their success rate was between 90% and 100%, but their actual success rate was about 43%.
From the Buzzfeed article:
They devoted much of their advertising budget to Spanish-speaking customers, then provided loan contracts that were only in English. And they took in up-front fees, then ducked their customers once those fees were collected.
Read more from Housingwire. Click here.