Loan mod companies settle with FTC for $2.2M

Florida-based firms accused of misleading consumers

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.