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Mortgage Rescue Firm Owner to Pay $805,000 to N.J.

Oct. 18 (Bloomberg) -- The owner of several New Jersey loan-modification companies agreed to pay $805,000 to resolve civil allegations that he defrauded homeowners trying to avoid foreclosure, the state’s attorney general said.

Stephen Pasch of Greenbrook Township settled claims that his New Day Financial Solutions Inc. collected upfront fees from homeowners after promising them help on mortgage modifications, a practice banned by state law, Attorney General Paul Dow said today in a statement. Lawyer Ejike Uzor of Newark, New Jersey, and two of his companies also agreed to pay $25,000 to resolve the case.

“These companies exploited people who looked to them for hope and paid them for help,” Dow said in the statement. “This type of activity is reprehensible anytime, but particularly during tough economic times.”

Both men agreed to a permanent ban on soliciting consumers for any business related to loan modification, debt adjustment or credit repair, according to Dow. Pasch agreed to a 10-year ban on applying for a banking license from the state.

Pasch’s other companies include American Credit Repair & Settlement, NDROA Inc. and Paramount Debt Settlement USA. The Uzor companies were Uzor Financial Solutions and Ejike N. Uzor & Associates. The men also fraudulently used a purported non-profit known as American Financial Advocacy Council, Dow said.

A state Superior Court judge signed a consent judgment for Uzor on Sept. 29 and for Pasch on Sept. 7, according to documents released today.

To contact the reporter on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net.

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.

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