Facts

In 2009, the Federal Trade Commission (FTC) received complaints regarding Lucas Law Center, a law firm that advertised mortgage loan modification and foreclosure avoidance services.

The FTC filed suit against Lucas Law Center and Future Financial Services (FFS), alleging it was a joint enterprise. The FTC also filed suit against Paul Lucas, owner of Lucas Law, Christopher Betts, owner of FFS, and Frank Sullivan, the manager of FFS, alleging violations of the Federal Trade Commission Act.

PLAINTIFF'S CONTENTIONS:
The FTC contended that the law firm told clients they would contact lenders on their behalf in order to modify mortgage and prevent foreclosures, as well as telling clients they would refund upfront fees if they failed to secure such modifications. The FTC claimed that the firm made minimal to no effort to contact lenders and failed to engage in any negotiations. The FTC further alleged that the firm would not issue refunds until clients sought legal assistance.

DEFENDANTS' CONTENTIONS:
The defense denied the allegations, and contended that all clients received full or nearly full refunds when requested.

Result

The court found that the firm falsely represented it would provide refunds, awarding the FTC $6,120,200 in damages.