Sutton man fined $600K for foreclosure scam
Attorney General Maura Healey said that actions need to be taken against those who prey upon people going through foreclosures.
A Sutton man involved in the operation of a group of businesses that falsely advertised themselves as nonprofit foreclosure prevention organizations has been ordered to pay more than $600,000 for soliciting and spending illegal advance fees received from distressed homeowners, Attorney General Maura Healey announced Friday.
Gailon Arthur Joy of Sutton was found liable in court for 68 violations of the Massachusetts Consumer Protection Act. According to the AG’s office, Joy induced homeowners to give deposits of up to 25 percent of their gross monthly incomes, claiming the deposits were necessary to be eligible for federal and other mortgage relief programs. The businesses portrayed themselves as tax-exempt, nonprofit organizations, according to the AG, but operated like for-profit businesses, seeking financial gain for their officers and directors.
“This defendant made false promises to help people stay in their homes, but instead took their money to benefit himself and his colleagues,” AG Healey said in a statement. “This judgment should send a strong message that orchestrating foreclosure scams to prey upon vulnerable homeowners will not be tolerated in Massachusetts.”
The order requires Joy to pay more than $600,000, including $367,371 in restitution, $170,000 for civil penalties and $65,535 in attorneys’ fees and costs. Joy is prohibited from providing foreclosure-related services, serving as an escrow agent or accepting deposits from Massachusetts consumers for any goods or services.
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