FTC Halts William D. Goodrich & 7 Companies

FTC Halts Allegedly Phony Mortgage Relief Scheme

Victimizing Thousands of Consumers, Marketers Falsely Touted Legal Assistance and “Forensic Audits” for Homeowners Facing Foreclosure

Loan Modification Notification flyer sent by defendants targeting distressed homeowners indicating how they may be eligible for assistance with mortgage payments, credit score repair, mortgage rate reduction, etc.

The Federal Trade Commission filed suit in federal court to halt a mortgage relief scheme that allegedly deceived and preyed on distressed homeowners by charging them $2,000 to $4,000 based on bogus foreclosure rescue claims.

The defendants allegedly falsely claimed they would provide legal help to save consumers’ homes from foreclosure and lower their mortgage payments, then charged them up-front fees in violation of federal law, delivering little or no help, and driving them deeper into debt.

The temporary restraining order signed by the court shuts down the defendants’ websites, freezes their assets, and provides for appointment of a receiver pending trial.

The defendants marketed their scheme in a variety of ways, which included using an official looking mailer that implores consumers to act quickly before they “FORFEIT LEGAL RIGHTS,” or face a “statute of limitations and government program deadlines,” according to the FTC.  Three individuals – Ratan Baid, Madhulika Baid, and William D. Goodrich – and seven companies falsely promised lower monthly payments and interest rates, and conversion of adjustable-rate mortgages to fixed ones, the FTC complaint alleged.  Many consumers who called the toll-free numbers were falsely guaranteed a loan modification that supposedly would make their payments more affordable, that they would get results within 60 to 90 days, or that Goodrich, an attorney, would use his impressive legal experience on their behalf, according to the complaint.

A page from the Goodrich Legal Services website operated by the defendants, offering legal services including bankruptcy, loan workouts, bankruptcy and commercial remedies, real estate law, and debt restructuring.
The defendants also marketed their scheme online, through telemarketing calls and with television and radio ads, according to the complaint.  The defendants’ websites touted a range of financial services, including bankruptcy advice, credit counseling, and “forensic mortgage audits.”  One of the sites described how these “audits” can help consumers hold onto their homes or lower their mortgage payments.  It falsely claimed that the “audits” could uncover any “lending violations” committed by lenders, and that the information could be used “to gain leverage in a successful loan modification,” the complaint stated.

In reality, however, the defendants generally did not provide the promised loan modification or help consumers avoid foreclosure, either directly or through the “forensic mortgage audits.”

The complaint charges the defendants with violating the Federal Trade Commission Act and with violating the Mortgage Assistance Relief Services Rule, which bans mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable.

The complaint also names as defendants Apex Solutions, Inc.; William D. Goodrich, Attorney, Inc.; A to Z Marketing, Inc.; Apex Members, LLC; Backend Inc.; Expert Processing Center, Inc.; and Smart Funding Corp.

The Commission vote authorizing the staff to file the complaint and seek temporary restraining orders against the defendants in this case was 4-0.  The FTC filed the complaint and request for a temporary restraining order in the U.S. District Court for the Central District of California on June 18, 2013, and the court entered the temporary restraining order the following day.

NOTE:  The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest.  The case will be decided by the court.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Betsy Lordan
Office of Public Affairs

Steven W. Balster
FTC East Central Region

520 White Plains Road, Suite 500,
Tarrytown, NY 10591
Fax: (949) 242-2812
Email: yissgood@yahoo.com


1 reply

  1. Address lookup
    canonical name attorneygoodrich.com.
    aliases http://www.attorneygoodrich.com
    Domain Whois record

    Queried whois.internic.net with “dom attorneygoodrich.com”…

    Registrar: GODADDY.COM, LLC
    Whois Server: whois.godaddy.com

    Referral URL: http://registrar.godaddy.com


    Status: clientDeleteProhibited
    Status: clientRenewProhibited
    Status: clientTransferProhibited
    Status: clientUpdateProhibited

    Updated Date: 11-jul-2013
    Creation Date: 27-jul-2010
    Expiration Date: 27-jul-2014
    Last update of whois database: Thu, 05 Sep 2013 12:39:03 UTC <<<

    Queried whois.godaddy.com with "attorneygoodrich.com

    Registrar URL: http://www.godaddy.com
    Updated Date: 2013-07-11 13:16:27
    Creation Date: 2010-07-27 14:40:06

    Registrar Expiration Date: 2014-07-27 14:40:06
    Registrar: GoDaddy.com, LLC
    Registrant Name: Registration Private
    Registrant Organization: Domains By Proxy, LLC
    Registrant Street: DomainsByProxy.com
    Registrant Street: 14747 N Northsight Blvd Suite 111, PMB 309
    Registrant City: Scottsdale
    Registrant State/Province: Arizona
    Registrant Postal Code: 85260
    Registrant Country: United States

    Admin Name: Registration Private
    Admin Organization: Domains By Proxy, LLC
    Admin Street: DomainsByProxy.com
    Admin Street: 14747 N Northsight Blvd Suite 111, PMB 309
    Admin City: Scottsdale
    Admin State/Province: Arizona
    Admin Postal Code: 85260
    Admin Country: United States
    Admin Phone: (480) 624-2599
    Admin Fax: (480) 624-2598
    Admin Email: ATTORNEYGOODRICH.COM@domainsbyproxy.com

    Tech Name: Registration Private
    Tech Organization: Domains By Proxy, LLC
    Tech Street: DomainsByProxy.com
    Tech Street: 14747 N Northsight Blvd Suite 111, PMB 309
    Tech City: Scottsdale
    Tech State/Province: Arizona
    Tech Postal Code: 85260
    Tech Country: United States
    Tech Phone: (480) 624-2599
    Tech Fax: (480) 624-2598
    Tech Email: ATTORNEYGOODRICH.COM@domainsbyproxy.com


    Network Whois record
    Queried whois.arin.net with "n

    NetRange: –
    OriginAS: AS26496
    NetHandle: NET-50-62-0-0-1
    Parent: NET-50-0-0-0-0
    NetType: Direct Allocation
    Comment: Please send abuse complaints to abuse@godaddy.com
    RegDate: 2011-02-02
    Updated: 2012-02-24
    Ref: http://whois.arin.net/rest/net/NET-50-62-0-0-1

    OrgName: GoDaddy.com, LLC
    OrgId: GODAD
    Address: 14455 N Hayden Road
    Address: Suite 226
    City: Scottsdale
    StateProv: AZ
    PostalCode: 85260
    Country: US
    RegDate: 2007-06-01
    Updated: 2012-03-15
    Comment: Please send abuse complaints to abuse@godaddy.com
    Ref: http://whois.arin.net/rest/org/GODAD

    OrgTechHandle: NOC124-ARIN
    OrgTechName: Network Operations Center
    OrgTechPhone: +1-480-505-8809
    OrgTechEmail: noc@godaddy.com
    OrgTechRef: http://whois.arin.net/rest/poc/NOC124-ARIN

    OrgAbuseHandle: ABUSE51-ARIN
    OrgAbuseName: Abuse Department
    OrgAbusePhone: +1-480-624-2505
    OrgAbuseEmail: abuse@godaddy.com
    OrgAbuseRef: http://whois.arin.net/rest/poc/ABUSE51-ARIN

    OrgNOCHandle: NOC124-ARIN
    OrgNOCName: Network Operations Center
    OrgNOCPhone: +1-480-505-8809
    OrgNOCEmail: noc@godaddy.com
    OrgNOCRef: http://whois.arin.net/rest/poc/NOC124-ARIN

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