A loan-modification company based in Southern California allegedly spent $70,000 a week on radio and television advertising for its sales force to generate 500 calls a day from desperate homeowners facing foreclosure around the country.

Employees reportedly manned 44 office cubicles, working staggered shifts in "a well-appointed telephone boiler room" to generate about $6.2 million in revenue for Anaheim, Calif.-based H.E. Servicing Inc. and related businesses, but helping only about one in 10 of the nearly 3,000 borrowers who paid up-front fees of $1,000 or more.

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