A family that operated two Florida-based companies that promised to help distressed homeowners obtain loan modifications has agreed to surrender $2.2 million in assets to settle charges that the companies’ representatives violated laws governing telemarketers.

The Federal Trade Commission shut down Kirkland Young LLC in November 2009, alleging that the company and manager David Botton misrepresented themselves as mortgage lenders, servicers, or their affiliates, and made false promises to homeowners that they would help them obtain loan modifications.

A month later, the FTC added a related company, Attorney Aid LLC, as a defendant, along with Botton’s sister, April Botton Krawiecki, and father, Samy Botton.

In a complaint and other court filings, the FTC charged the companies conducted a national telemarketing campaign that led distressed homeowners to believe they were being contacted by their mortgage lender, loan servicer, or an affiliated company.

A family that operated two Florida-based companies that promised to help distressed homeowners obtain loan modifications has agreed to surrender $2.2 million in assets to settle charges that the companies’ representatives violated laws governing telemarketers.

The Federal Trade Commission shut down Kirkland Young LLC in November 2009, alleging that the company and manager David Botton misrepresented themselves as mortgage lenders, servicers, or their affiliates, and made false promises to homeowners that they would help them obtain loan modifications.

A month later, the FTC added a related company, Attorney Aid LLC, as a defendant, along with Botton’s sister, April Botton Krawiecki, and father, Samy Botton.

In a complaint and other court filings, the FTC charged the companies conducted a national telemarketing campaign that led distressed homeowners to believe they were being contacted by their mortgage lender, loan servicer, or an affiliated company.

Employees of the companies allegedly identified themselves as working in the "loan modification department," and informed homeowners that they had received their application for a loan modification.

In many instances, the homeowners had contacted their lender or loan servicer asking for a loan modification, the FTC said in its complaint, aiding the companies’ representatives in gaining their trust.

The companies’ representatives claimed they could obtain loan modifications with substantially lower monthly payments and interest rates, the government charged. Homeowners were asked to use their credit cards to pay an upfront fee before they had received anything in writing about the services provided by the company, the FTC said.

Homeowners were then sent a package of documents in the mail, including a supposed "loan mitigation/modification" contract, and other documents to sign and return.

In "all or virtually all instances," the defendants failed to obtain the promised mortgage loan modifications, the FTC said in its complaint.

In agreeing to settle the charges, the Bottons and Krawiecki did not admit wrongdoing. The settlement imposes a $6.1 million judgment that will be suspended when Samy Botton has paid $300,000; David Botton has surrendered all of his real property, including a Long Beach, Calif., condominium, a 2003 BMW M3, and a boat; April Botton Krawiecki has surrendered real property including a West Hollywood, Calif., condo.

Kirkland Young LLC and Attorney Aid LLC have surrendered all of their assets, worth $2.2 million, the FTC said in a press release. A consent order bans both companies and all three individuals from offering mortgage relief services.

Under new rules that took effect Jan. 31, the FTC now bars for-profit companies that provide loan modification services from collecting advance fees.

In announcing the Mortgage Assistance Relief Services (MARS) rule in November, the FTC said it had brought more than 30 cases against companies that made false claims about their ability to negotiate loan modifications, short sales or other foreclosure relief.

The MARS rule also includes new disclosure requirements for real estate professionals who represent sellers in short-sale negotiations, discuss their clients’ delinquent mortgage situations, or refer clients to companies that specialize in loan workouts.

The FTC’s model language for disclosures was drawn up with consumers dealings with loan modification companies in mind, and can be confusing if applied to transactions between real estate agents and their clients, Inman News columnist Ken Harney wrote last month.

The National Association of Realtors has asked the FTC to clarify the MARS rules by carving out exceptions where disclosures might not be required or coming up with disclosure language that is more applicable to home sellers, Harney said.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×