ORLANDO, Fla. – The U.S. Department of Justice has filed a lawsuit against a Florida law firm, claiming they exploited Spanish-speaking homeowners with negative equity in their homes.
The lawsuit, filed in Orlando on Monday, claims Advocate Law Groups of Florida used television and radio ads aired primarily on Spanish-speaking stations to establish a clientele.
The lawsuit claims attorneys told their Spanish-speaking customers to stop paying their mortgages, but failed to get them new ones. The suit also claims the company charged high monthly fees of up to $550.
One Orlando family paid $18,500 in fees, according to the lawsuit.
Three of the Orlando-area families mentioned in the federal document lost their homes due to foreclosure.
ALG's attorneys fought back immediately, issuing a statement to News 6 concerning the lawsuit.
Attorney Joshua Entin said:
"The Department of Justice filed an action against the Advocate Law Groups of Florida alleging discrimination against Hispanics. Other than stating that certain radio advertisements were in Spanish they do not make, nor can they prove, any allegation that the Company or its principals illegally targeted Hispanics. The Advocate Law Groups of Florida was a traditional law firm with a multitude of practice areas, including foreclosure defense. In this regard, the firm was dedicated to assisting citizens of all backgrounds having financial hardships fight off foreclosures and aiding their quests for modifications of loans they could no longer afford to pay. Like any law firm they had many successes and some that were not successful, so it is unfortunate that a small, unrepresentative group of their client base are seeking to enrich themselves by asserting discrimination which never occurred. We look forward to litigating this case in Federal Court and having the work and mission of our clients vindicated."
The U.S. Department of Justice is seeking monetary damages for the customers affected by the foreclosures and civil penalties assessed against ALG.