Victims of a pandemic-era fraud operation will finally see some of their money returned two years after regulators penalized the perpetrators of a mortgage relief scam. 

In the joint lawsuit filed by the Federal Trade Commission and the California Department of Financial Protection and Innovation, judges issued a decision that led to a multimillion-dollar judgment against the operators of Home Matters USA in 2024. Courts ruled against the Los Angeles-based enterprise, supporting plaintiff accusations that the company misled over 3,000 struggling homeowners nationwide over four years in its marketing of a sham loan modification program. Many of the victims were veterans or senior citizens. 

The FTC will mail checks worth $3 million in total to 1,821 affected individuals, with approximately half of the awardees residing in California. Refund management will be overseen by JND Legal Administration.  

"This case shows what's possible when state and federal partners work together with purpose to crack down on fraud, hold bad actors accountable and deliver justice for victims," California Gov. Gavin Newsom said in a press release. 

"We will continually pursue all avenues to prevent scammers from preying on and profiting off Californians, including vulnerable homeowners trying to keep a roof over their families' heads," added state DFPI commissioner KC Mohseni. 

The Home Matters USA scheme

Targeted homeowners sent payments to Home Matters USA, which operated under at least a dozen different business names, for services that were never delivered after receiving assurances of lower interest rates and foreclosure prevention when signing up for its program. Representatives of the company falsely claimed at times that they were affiliated with federal Covid-19 relief initiatives in the scheme that began as early as 2018, according to the initial lawsuit. 

Under various names, including Golden Home Services, Atlantic Pacific Service Group, Westwood Advocates, the fraud perpetrators ran telemarketing call centers to contact property owners under financial duress. Home Matters USA eventually managed to pocket millions of dollars from vulnerable victims seeking mortgage relief. 

The 2024 judgment banned the company and its associated entities from involvement in telemarketing or debt relief and issued penalties totaling $19 million. In the lawsuit, plaintiffs pointed out several other states with purported Home Matters USA victims, including Connecticut, North Carolina, Ohio, Oregon and Washington. 

The awarding of damages comes as financial services providers look closely at regulations and enforcement at the state level for guidance on future policy, as federal oversight de-escalates in the second Trump administration. 

Last month, Gov. Newsom appointed former Consumer Financial Protection Bureau Director Rohit Chopra to head a new agency that will monitor a range of industries from cannabis to finance in the Golden State. As CFPB director under former President Biden, Chopra came under frequent criticism for regulatory overreach as the agency's watchdog.