Delray Beach Investor Sues Florida Foreclosure Rescue Firm
A Delray Beach investor, who claims he was lured into investing thousands to salvage properties facing foreclosure, has filed suit against a Broward County foreclosure rescue company to recover his money.
Matthew W. Anderson sued Equity Investment Capital Management, the firm that owns foreclosure rescue firm Florida Housing Council, in Broward County Circuit Court on Aug. 23.
FHC and Moussa have been sued by homeowners in Broward, Palm Beach and Miami-Dade counties in recent years, alleging fraud and deceptive practices. Some Florida mortgage holders said FHC officials created the impression the company is a federally funded agency that helps homeowners in financial distress.
The latest suit alleges that Weinstein and the Moussas conspired to defraud Anderson as they solicited him to put more than $80,000 into real estate investments. Anderson, who’s seeking unspecified damages in the civil lawsuit, claimed the investments did not yield any profits.
“Our client invested in these properties thinking that he would have some kind of interest,” said Matthew Fornaro, an attorney representing Anderson. “We commiserate with the homeowners because they are equally victims. But at the same time [Anderson] paid [the debt] and has some interest now.”
In addition to the lawsuit, Anderson asked Palm Beach housing market Circuit Court to add him as a third party in a pending lawsuit filed against FHC and Moussa by a Loxahatchee couple, seeking to regain ownership of their home.
The lawsuit comes at a time when foreclosure fillings have soared in South Florida and across the nation. The real estate market is no longer seen as a place where investors can make a quick profit.
Consumer advocates say the suit also highlights the risks of homeowners hiring a foreclosure rescue firm when facing financial difficulties. A better strategy, experts advise: Homeowners should work with their lender to create a plan that will move them out of financial difficulty.
Jack Moussa could not be reached for comment despite phone calls to his attorney and e-mail messages to Moussa and his attorney. But in earlier interviews, he has denied any wrongdoing. Rose Moussa and Weinstein could not be reached despite phone calls and messages seeking comment.
Rose Moussa is Jack Moussa’s ex-wife and principal for Star Realty Investment Corp. and Star Enterprises LLC, an investment company.
Fornaro said that Jerome Weinstein, who is the president of the Florida condo association where Anderson was living at the time, approached him with the business opportunity.
“He thought he was investing in a legitimate transaction,” Fornaro said.
But James Brady, attorney for Roy and Connie Hull, said the agreement did not involve his clients.
The Hulls filed suit against FHC in September 2005, months after they sought the company’s help. The couple had fallen behind in paying homeowners association fees after Roy Hull suffered a stroke that paralyzed him and forced him to stop working.
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