Another alleged foreclosure rescue scam uncovered in Florida

Another Florida law firm was shut down by authorities over an alleged foreclosure rescue scam.

The Tampa-based Berger Law Group and several other entities and individuals were named in a federal lawsuit filed in the Middle District of Florida. Berger and the other defendants are accused of getting millions of dollars from homeowners across the nation through what are known as “mass joinder” lawsuits. Florida’s attorney general office worked with its counterpart in Connecticut on the investigation and suit.

Last month, North Palm Beach-based Hoffman Law Group was hit with a lawsuit and had its accounts frozen for a similar alleged scheme.

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“In a twist on the typical loan modification rescue scam designed to avoid regulatory scrutiny by creating the appearance of legitimacy, some veterans of such scams have shifted to selling homeowners’ participation in so-called ‘mass joinder’ lawsuits,” according to the complaint against Berger, as cited by the Palm Beach Post.

Berger and the codefendants allegedly took in nearly $5 million from homeowners through the scheme. [Palm Beach Post]Eric Kalis