Detroit Area Attorney Charged with 30 Felonies
The Homeowner Protection Unit, under the jurisdiction of the Attorney General’s Office, has filed thirty felony charges against Attorney Steven Barry Ruza and his company. These charges come in the wake of a mortgage foreclosure investigation that revealed an enormous, ongoing scam which made hundreds of thousands in profit, and cost more than one hundred people their homes.
Ruza’s company, Home Legal Group PLC, offered to help people who were losing their homes to mortgage foreclosure by negotiating with their lender. HLG promised consumers that they could receive mortgage modifications that would save their homes. None of them did.
The promises, as it turns out, were empty. Ruza and his business did little or nothing to help homeowners with their financial problems. They did however, take payments upfront. Non-refundable payments, for services that they never intended to make good on. According to the court documents, those few instances where a mortgage modification actually was obtained, the terms were so bad that the homeowners lost the home to mortgage foreclosure anyway. Either that or the necessary paperwork was never passed on, so the transaction could never take place.
According to the Attorney General’s webpage, “Foreclosure Rescue Companies prey on consumers facing foreclosure. These companies demand an up-front payment to “work” with your lender, and most never deliver the services as promised.”
Under Michigan law, it is illegal for a mortgage foreclosure rescue company to accept money upfront in exchange for negotiating with an individual’s lender. The Attorney General’s Office defends the rights of consumers by enforcing the Credit Services Protection Act, and investigating any allegations of scams against foreclosure rescue companies in the state.
Ruza and his company are facing 30 felony charges, including a single count of racketeering, which is a 20 year felony. In addition, Ruza is facing a single count of attempted false pretenses of $1,000 or more but less than $20,000, and two counts of attempted false pretenses over $20,000 but less than $50,000, both five year felonies.
The remaining twenty-six charges are all counts of obtaining money through false pretenses, which under Michigan law is a felony punishable by up to five years in prison, and the possibility of a $10,000 fine.
Ruza and his company were arraigned in the 48th District Court before Magistrate Nelson Klein. The Magistrate set bond at 1 million dollars cash/surety for Ruza, and also a $500,000 cash/surety for Home Legal Group.
Ruza is scheduled to appear in court next on June 4th. His preliminary examination has been scheduled for June 11th before Judge Marc Barron.