Maryland Commissioner of Financial Regulation Issues Cease and Desist Order to Perry & Associates

BALTIMORE, MD (November 15, 2011) – The Maryland Department of Labor’s (DLLR) Office of Financial Regulation announced today that it has issued a Proposed Final Order to Cease and Desist against the Law Offices of Perry and Associates, LLC, Virginia Attorney Michael A. Perry, and Anthony Dolphus for inappropriate conduct surrounding an aggressive media campaign that solicited homeowners at risk of foreclosure for mortgage loan modifications for an upfront fee in violation of Maryland law. The parties named have 20 days to file an exception to the proposed order, which was signed by Commissioner Mark Kaufman.

“I applaud the Office of Financial Regulation for taking swift action to protect homeowners,” said Maryland Labor Secretary Alexander M. Sanchez. “The instant action is a reminder of the commitment Governor O’Malley has made to address the national foreclosure crisis and fight mortgage fraud.”

The print and radio advertising campaign littered sidewalks and intersections across Maryland counties with more than 650 street signs advertising low interest rate loan modifications. A Cease and Desist Order was issued in July 2011. On August 8, 2011, the Law Offices of Perry and Associates filed for a restraining order against the State of Maryland and Office of the Commissioner of Financial Regulation in Baltimore County Circuit Court claiming an exemption from compliance with the protections afforded Maryland consumers under the Maryland Credit Service Business Act and other provisions of State law.

The Office of Administrative Hearings conducted the hearing upon the delegated authority of the Commissioner and found as a matter of law that the parties did not have a license, were not exempt from obtaining a license, and collected upfront fees while engaging in credit services business activities with 82 Maryland consumers prior to completely performing all the credit services contemplated by an attorney retainer agreement. A civil penalty of $489,000 has been imposed and restitution ordered for Maryland consumers.

“It was absolutely necessary for the Office of Financial Regulation to take immediate action,” said Deputy Commissioner Anne Balcer Norton. “The Office of the Commissioner of Financial Regulation will continue to aggressively fight the unscrupulous practices of for-profit foreclosure rescue firms seeking to profit off of vulnerable homeowners facing foreclosure in Maryland today.”

Homeowners at risk of foreclosure should contact the Maryland Hope hotline at 1-877-462-7555 or go to the MDHope website to find a non-profit housing counseling agency for assistance.

The Department of Labor, Licensing and Regulation protects and empowers Marylanders by safeguarding workers, protecting consumers, providing a safety net and cultivating a thriving workforce that can meet the demands of Maryland’s dynamic economy. Follow DLLR on Twitter (@MD_DLLR) and Facebook.

Updated November 16, 2011