An order by a Jefferson County judge has effectively shut down the alleged mortgage fraud operations of Sherron L. Lewis Jr.
Judge R. Brooke Jackson on Aug. 13 granted a preliminary injunction sought by Colorado Attorney General John Suthers. On July 26, Suthers filed a lawsuit against Lewis and his companies under the Colorado Consumer Protection Act. The companies included America’s Foreclosure Defense LLC, Real Foreclosure Solutions Inc.; and Lewis Silver Rossman & Levine LLP.
The preliminary injunction shuts down the operations until the case moves forward to a trial. Lewis has not yet responded to questions from InsideRealEstateNews, regarding the last development in his case, which also includes a bankruptcy filing in Illinois. Separately, Suthers filed an objection regarding the bankruptcy.
Victims need to be repaid
In his order, Judge Jackson ordered Lewis to repay a total of $76,050 to alleged victims of his schemes. That includes $24,000 to Luis E. Castro, $40,500 to Norma C. Williams in Park Ridge, Ill.; and $12,00 to Deutsche Bank for a rental property at 1680 S. Decatur St., in Denver. The judge also ordered Lewis to return a home in Park Ridge to Williams and the Decatur Street property to Deutsche Bank.
Jackson denied Lewis’ motion to remove his case to federal court and his motion to dismiss. Lewis has been representing himself. Suthers, in the lawsuit, charged that Lewis has “engaged in the unlicensed practice of law,” encouraging homeowners to file frivolous legal challenges that almost always are dismissed and cost them thousands of dollars. Also, Suthers said in that lawsuit that ”Lewis has grossly misused and abused the judicial system,” and has “induced homeowners through misleading and deceptive practices” to transfer an interest in their homes to him.
Quadriplegic targeted
In 2008, Lewis targeted a quadriplegic man in Jefferson County, Suthers said in the lawsuit. The man paid Lewis thousands of dollars to prepare multiple lawsuits challenging foreclosures. The courts dismissed the lawsuit and a court awarded fees and costs against the homeowners as a “result of the legal pleadings and arguments asserted by Lewis,” according to court documents.
Judge Jackson, in his preliminary injunction, said the Lewis will “suffer no under hardship” as a result of the injunction, “because Defendants have no right to continue to engage in unlawful and deceptive trade practices or collect money from consumers as a result of such unlawful and deceptive conduct.”
Lewis barred from foreclosure consulting
Under the injunction, Lewis is barred from:
1. Soliciting or accepting payment for services of any kind in connection with foreclosure or mortgage assistance, foreclosure or mortgage relief, foreclosure or mortgage consulting, mortgages or real estate.
2. Providing any advice, consultation, direction, instructions, or recommendations to any person concerning any legal proceeding, legal event, including foreclosure notice s or proceedings, or legal transaction, including the preparation of legal pleadings
3. Advertising, selling, marketing, displaying, offering or performing foreclosure or mortgage assistance, foreclosure mortgage relief, foreclosure or mortgage consulting, mortgage or real estate services.
4. Publishing, distributing, or disseminating any information, including written, oral or video, relating to foreclosure or mortgage assistance, foreclosure or mortgage relief, foreclosure or mortgage consulting, mortgage or real estate
And no later than Aug. 20, Lewis must: deactivate all Internet sites, domain names, URL addresses, registrations and “any other forms or materials that advertise, market, discuss, or solicit any business relating to foreclosure or mortgage relief, foreclosure or mortgage assistance, or legal issues relating to foreclosure. Also no later than Aug. 20, Lewis, in writing, must give Suther’s office a complete list of everyone he has entered into an agreement with since June 1, 2006, regarding foreclosure assistance and consultation, as well as the outcome of any cases.
