Illinois AG sues 3 firms for mortgage rescue fraudIllinois AG sues 3 firms for mortgage rescue fraud

The Illinois Attorney General's office filed lawsuits Tuesday against three firms alleging that they committed mortgage rescue or debt settlement fraud.

In one suit, the state charged that Debt Care Financial Group Inc., of Chicago, and its president Malgorzata Baran, charged consumers at least $66,000 for debt settlement and loan modification services in the Polish community that she never performed.

Another suit, filed against Flagship Mortgage Corp. in Deerfield, Starlex Financial Consulting LLC and employees Jeffrey Entratter and Neil Borland, alleges that consumers lost more than $4,800 in upfront fees for loan modification services that were never performed.

The state also filed a suit against E.A.C. Financial LLC, of Chicago, and owners Everett Pope and Colbi Andry, for mortgage rescue fraud.

All of the suits, which were filed in Cook County Circuit Court, seek to have the businesses shut down and restitution paid to consumers, penalties paid to the state and that the parties be prevented from providing mortgage rescue and debt settlement services in Illinois.

Jeffrey Flees, president of Worthington, Ohio-based Flagship said he had no knowledge of the suit but that the company's Deerfield office had been closed and Entratter no longer was employed by the company. The company maintains a local office in Elmhurst.

Entrettar said he was unaware any lawsuits. “We stopped doing any modifications years ago and any clients that I’m aware of that did not get modifications were refunded,” he said. "Anyone who is owed money will be compensated."

Borland, reached for comment, said, "I have no comment on it because I don't know anything about it."

Efforts to reach the other companies and individuals named in the suits were unsuccessful.