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1 IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, vs. Plaintiff, FORECLOSURE RESCUE SERVICES, LLC, d/b/a FORECLOSURE RELIEF SYSTEMS LLC, a Delaware limited liability company, FINANCIAL RELIEF SERVICES, LLC, A Florida limited liability company, LEASE AND OWN REALTY, LLC, a Florida limited liability company, CIELO INVESTMENT FUND, LLC, a Florida limited liability company, and E. DALVO DECASTRO, VALESKA JACUES, and MARLYS JOHNSON, Defendants ~/ COMPLAINT Plaintiff, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA (hereinafter referred to as "Plaintiff'), sues Defendants FORECLOSURE RESCUE SERVICES, LLC, d/b/a FORECLOSURE RELIEF SYSTEM, an inactive Delaware limited liability company, FINANCIAL RELIEF SERVICES, LLC, a Florida limited liability company, LEASE AND OWN REALTY, LLC, a Florida limited liability company, CIELO INVESTMENT FUND, LLC, a Florida limited liability company, and individuals E. DAL VO DECASTRO, VALESKA JACUES, and MARLYS JOHNSON (hereinafter collectively referred to as "Defendants"). 1

2 JURISDICTION 1. This is an action pursuant to Florida's Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes ("FDUTPA"). The action seeks declaratory, equitable and injunctive relief, civil penalties, and attorney's fees and costs. 2. This Court has jurisdiction pursuant to the provisions of Chapter 501, Part II, Florida Statutes. 3. Plaintiff is an enforcing authority of Florida's Deceptive and Unfair Trade Practices Act as defined in Chapter 501, Part II, Florida Statutes. Plaintiff has conducted an investigation, and the head of the enforcing authority, Attorney General Pamela Jo Bondi has determined that an enforcement action serves the public interest. See Exhibit A. 4. Venue is proper in this Circuit under Sections and as the actions at issue herein accrued in Miami Dade County, Florida, as well as other counties within the State. 5. Defendants, at all times material hereto, were in the business of providing goods or services as defined within Section (8), Florida Statutes, solicited consumers within the definitions of Section (7), Florida Statutes, and were engaged in a trade or commerce within the definition of Section (8), Florida Statutes. FACTUAL BACKGROUND 6. Defendant FORECLOSURE RESCUE SERVICES, LLC, d/b/a FORECLOSURE RELIEF SYSTEM is an inactive Delaware limited liability company authorized to do business in the state of Florida with a registered agent at the address of 2125 Biscayne Blvd, Ste. 100, Miami, Florida Defendant FINANCIAL RELIEF SERVICES, LLC was a Florida limited liability company authorized to do business in the state of Florida with its principal place of business 2

3 registered as 301 Arthur Godfrey Rd, #502, Miami Beach, Florida Defendant LEASE AND OWN REALTY, LLC. ("Lease and Own") is a Florida limited liability company authorized to do business in the state of Florida with its principal place ofbusiness registered as 555 NE 15 St, #CU16, Miami, Florida Defendant CIELO INVESTMENT FUND, LLC ("Cielo") is a Delaware limited liability company authorized to do business in the state of Florida with a registered agent at the address of 1221 Brickell Ave, Ste. 900, Miami, Florida FORECLOSURE RESCUE SERVICES, LLC and FINANCIAL RELIEF SERVICES, LLC operated for all practical purposes as one and the same entity and/or are alter egos of each other. Each are collectively referred to herein as "FRS." 11. Defendant E. DALVO DECASTRO ("DeCastro") is an individual and resides in the state of Florida at 301 Arthur Godfrey Road, Suite 502, Miami Beach, Florida Defendant DeCastro is the owner, operator and/or manager of FRS, Financial, Lease and Own, and Cielo, and has actual and legal authority and control over the acts and practices of said entities as well as personally participated in the actions at issue herein. 12. VALESKA JACUES ("Jacques") is an individual and resides in the state of Florida at 8224 SW 157 CT, Miami FL Defendant Jacques had actual and legal authority and control over the acts and practices at issue as well as personally participated in the actions at issue herein. 13. MARLYS JOHNSON ("Johnson") is an individual and resides in the state of Florida at 1506 SW 15 ST, Miami, FL Defendant Johnson had actual and legal authority and control over the acts and practices at issue as well as personally participated in the actions at issue herein. 3

4 14. For the time period of at least October 1, 2008 through at least December 31, 2009, Defendants marketed and purported to provide a "short-closure" program to homeowners facing foreclosure that promised to refinance the consumer's home with a "Billion Dollar Real Estate Fund" for "half the old mortgage and about half the old payments." 15. The express purpose of the Defendants' services was "possible foreclosure avoidance." See Exhibit B (FRS Work Engagement at Recitals). A. FRS, Lease and Own, and Cielo 16. FRS, Lease and Own, and Cielo are functionally one and the same entity and/or alter egos of each other. DeCastro is the sole member of both FRS and Cielo, and is one of two members of Lease and Own. Both DeCastro and Jacques served as the day to day managers of FRS and actual control over the acts and practices of FRS. 17. Lease and Own represented itself as "an affiliated company of FORECLOSURE RELIEF SYSTEM." See Exhibit C (Welcome letter). In its welcome letter to new consumers, Lease and Own expressly indicated that Lease and Own and FRS are "all working very hard" to keep the consumer in their home. Johnson served as the day to day manager with authority to control and actual control over the acts and practices of Lease and Own. 18. The contract between the consumer and FRS required the consumer to hire the property management company recommended by FRS, namely Lease and Own. See Exhibit B (FRS Work Engagement~ 12). 19. The Property Management Agreement with Lease & Own expressly provided that Lease & Own was "managing the premises to assist Foreclosure Relief Systems, LLC to address and attempt to prevent foreclosure." See Exhibit D (Property Management Agreement) at References by FRS and Lease and Own to the services provided by Defendants 4

5 routinely used the terms FRS and Lease and Own interchangeably, and both consumers and vendors understood the entities to be functionally equivalent. 21. Cielo purportedly served as the "billion dollar" investment fund that would refinance the consumers' homes, but, on information and belief, in actuality did little business other than to allow DeCastro to write off his personal expenses, occasionally loan money to FRS, and pay the legal expenses of all three entities, FRS, Lease and Own, and Cielo. B. Promised Services 22. Defendants promised consumers that FRS would provide a wide range of servtces: That ~e services provided by Foreclosure Relief System, LLC for my property will include the following application processing. debt analysts, prop~ app~is~l, property inspection, explanation of program and process; negotiation with my bank. legal representation in court. negonattons WJth mvestors to assume my debt and eventual refinance of my debt to me or a third-party 'f th.. I successful. These services will be provided at no initial cost to me and the company will collect its payment during or 1 at ~e ~ 0 = 15 I of the process fro~-~~-~~~~~-~~~~ted_or n~~ affi!.~ted with the company. on ton See Exhibit E (FRS Services & No Guarantee Disclosure). Defendants' promises also included providing "mortgage note forensics," "negotiation with the lender(s)," "presenting foreclosure legal services," and "negotiating with investors to assume Owner(s)' debt or asset and financing a new loan." See Exhibit B (FRS Work Engagement at 1 10). 23. In addition to expressly representing to the consumers that FRS would provide legal representation in court, Defendants also represented that the "foreclosure attorney" would provide specific services: 5

6 Additional Services Provided By Your Foreclosure Attorney The Attorneys you have hired wlll immediately begin the following services to assist in the defense of your property and negotiations of your loan. 1. A Forensic Analvr;is of your Original loan Documents... Closing Package; a. This permits the lawyer and negotiators to determine if the Bank that gave you your Loan broke any regulations or laws. 2. A Bank Valuation of the current value of your property: a. This allows the lawyer and negotiators to get the best price possible for your loan when purchasing it from the bank. 3. A Four Point Inspection of your property condition internal and external: a. This gives the lawyer and negotiators flexibility with the investors and bank. See Exhibit F ("Additional Services Provided by Your Foreclosure Attorney"). 24. Defendants' representations were untrue, and Defendants did not provide the services they had promised. 25. Defendants routinely failed to provide debt analysis, property appraisal and property inspection for the consumers as promised. On information and belief, Defendants did not contact the consumers' mortgage lenders and did not provide the promised refinancing serv1ces. 26. Defendants routinely failed to provide the promised legal representation (in court or otherwise) for many of its consumers. The attorneys that did actually provide some legal representation to consumers did not provide the promised "forensic analysis," "bank valuation" or "four point inspection." See Exhibit G (M. Torres Tr. at 18:3-17; M. Vadilla Tr. at 10:25-11: 13; B. Barakat Tr. 21:10-22:1 ). 6

7 C. Fees 27. Defendants promised that the "escrow funds will not be used to pay for property evaluation, negotiation, inspection and any work done by [FRS]." EXI"t:~sf:S ~O'f PAlO RV ESCROW FliSDS lht ~.~crow 1\md'i WJ!I nm U!'ed to pay for property c\aluaunn. negotmttott mspect10n and work done b: For~:.'tlt)sur~ Relief Systcn1 in an attempt ttl ~ve the Owner from 1\x'lmg the pro~rty. See Exhibit H (Escrow Account Agreement). 28. In addition, Defendants promised that FRS would pay any legal fees for consumers' foreclosure defense. Defendants required consumers to sign blank engagement agreements for the purported attorneys, in which the agreements expressly provided that FRS, not the consumer, would pay the legal fees: I. Flat Fee Schedule. Our fees have been arranged, documented and will be paid by Foreclosure Relief I System, LLC and no charges will be sent to the client being represented herein Retainer. To fonnally engage our firm, we will require a NON-REFUNDABLE fee retainer that will be provided by FRS. The fee retainer will be applied toward the above mentioned flat fee. We reserve the I right to request an additional cost and fee retainer depending on matters that arise. See Exhibit I (Legal Engagement Agreement). 29. In addition, Defendants represented to consumers that "the Consultant [FRS] will be responsible for these monies if the system is unsuccessful." The agreement between FRS and the consumers promised that if the foreclosure goes through, the consumer would not be charged for the maintenance of the property and the consumer "will be completely reimbursed": 7. Services & Costs: The services the Consultant provides to the Owner(s) wi!l be charged only after success is achieved, and will be collected from an escrow account established for the subject property by and between the Owner(s) and a third party management company. The third party costs for the maintenance of the subject property and escrow account wlll be the responsibility of the Consultant if the system is not successful in keeping the property from foreclosure and any cost incurred by the Owner(s) will be completely reimbursed. The services and costs provided by the Consultant and by third parties are described below: See Exhibit B (FRS Work Agreement at -,r 7). 7

8 30. These representations were not true. Contrary to the Defendants' promises that there would be no charge for the services provided by FRS and that FRS would pay the legal fees, the consumers' escrow accounts were routinely charged for these services: Date Description Debits Credits Balance 10/10/08 DEPOSIT $ $ 2, $ 2, /10/08 DEPOSIT $ $ 2, $ 4, /1()/08 DEPOSIT $ $ 2, $ 6, /11/08 legal fees $ $ $ 5, /7/09 HOAPayment $ $ $ 5, /12/09 DEPOSIT $ $ 2, $ 7, /4/09 legal Fees $ $ $ 7, /16/09 HOAPayment $ $ $ 7, /19/09 DEPOSIT $ $ 2i $ 9, /3/09 DEPOSIT $ $ $ 9, /7/09 legal fees s $ $ 8, /20/09 Property Inspection $ $ $ 8, /25/09 DEPOSIT $ $ 2, $ 10,752.0() 4/17/09 DEPOSIT $ $ 2, $ 12, /20/09 DEPOSIT $ $ 2, $ 14, /28/09 SPO $ $ $ 14, /1/09 DEPOSIT $ $ 2, $ 16, See Exhibit J (Account Activity FLPB-A210). 31. Lease and Own managed the consumers' "escrow" accounts and authorized the use of the consumers' escrowed funds to pay these fees and other various expenses to Lease and Own as well as FRS, including monthly management fees, contrary to the Defendants' promises. These amounts were charged to consumers in connection with the promised foreclosure-related rescue services prior the completion of the promised services. 32. Moreover, despite promises that the monies would be refunded if the program failed, the consumers were not refunded the monies paid out from their escrow accounts when the purported refinancing was not successful. Rather, even for those consumers who received some refund, Defendants retained two months' worth of escrow payments, as well as the BPO fees, inspection fees, and legal fees. The same two months' worth of management fees was 8

9 charged by both FRS and Lease and Own, purportedly either as a cancellation fee or as the minimum payment required for the services of Lease and Own. 33. The acts and practices described above are in violation of the Florida Deceptive and Unfair Trade Practices Act Section et seq., as well as Florida Statutes Section Hundreds of Florida consumers have been victimized by Defendants' unlawful acts and practices. DECEPTIVE AND UNFAIR TRADE PRACTICES CHAPTER 501, PART II FLORIDA STATUTES 34. Plaintiff adopts, incorporates herein andre-alleges paragraphs 1 through 33 as if fully set forth hereinafter. 35. During the pertinent period of time, commencing at least as of October 1, 2008 and continuing through at least December 31, 2009, Defendants engaged in various unfair, deceptive, or unconscionable trade practices as hereinafter set forth, in violation of Chapter 501, Part II, Florida Statutes. Defendants engaged in a systematic pattern of conduct designed and intended to induce consumers to purchase their services via a series of unfair, deceptive, or unconscionable acts or practices. 36. Section (1), Florida Statutes, declares that unfair, deceptive, or unconscionable acts or practices in the conduct of any trade or commerce are unlawful Section , Florida Statutes, governs the provision of foreclosure-related rescue services, which are defined as follows: "Foreclosure-related rescue services" means any good or service related to, or promising assistance in connection with: 1. Stopping, avoiding, or delaying foreclosure proceedings concerning residential real property; or 2. Curing or otherwise addressing a default or failure to timely pay with respect to a residential mortgage loan obligation. 9

10 (2)(a), Fla. Stat. 38. Defendants' services were expressly marketed and sold as designed for "possible foreclosure avoidance" and "for a potentially refinance [sic] of the subject property" which was necessarily in default under the existing mortgage commitment. See Exhibit B (FRS Work Engagement at Recitals). As such, the services are "foreclosure-related rescue services" as defined by Section The Property Management Agreement with Lease & Own expressly provided that Lease & Own was "managing the premises to assist Foreclosure Relief Systems, LLC to address and attempt to prevent foreclosure." See Exhibit D (Property Management Agreement) at 20. As such, the services provided by Lease & Own, like the services provided by FRS, qualify as foreclosure-related rescue services under Florida law. 40. Cielo was expressly intended to purchase the non-performing loan from the lender in order to cure the outstanding default. As such, the services of Cielo are also foreclosurerelated rescue services. 41. Section makes it a prohibited act to "[s]olicit, charge, receive, or attempt to collect or secure payment, directly or indirectly, for foreclosure-related rescue services before completing or performing all services contained in the agreement for foreclosure-related rescue services." A violation of Section is a per se violation of FDUPT A. 42. In a blatant attempt to avoid these prohibitions on upfront payments for foreclosure-related rescue services, Defendants required the consumers to make up front payments to Lease and Own, rather than FRS. However, as FRS and Lease and Own are alter egos and functionally one and the same, both are liable for violating Section by collecting upfront fees and/or collecting fees for foreclosure-related rescue services before 10

11 completing or performing all the services contained in the agreement. 43. Section also precludes any entity from engaging in foreclosure-related rescue services "without first executing a written agreement with the homeowner for foreclosurerelated rescue services" which contains express disclosures. Neither Lease and Own nor Cielo complied with the written agreement requirements of Section for the foreclosurerelated rescue services they provided to consumers. 44. Defendants DeCastro, Jacques and Johnson are liable as primary participants for the acts and practices of FRS, Lease and Own, and Cielo, in that they had actual authority and/or directly participated in the acts and practices at issue. 45. As a result of Defendants' actions, individual consumers sustained harm including, but not limited to, irreparable damage in the form of loss of their homes in reliance on Defendants' misrepresentations, damage to their credit, and waiver of otherwise available defenses in foreclosure actions. In addition, despite demands made by consumers for reimbursement, Defendants have failed and refused to refund consumers as promised. 46. As set forth above, Defendants have engaged in deceptive acts or practices in violation of the provisions of Chapter 501, Part II of the Florida Statutes. 47. Plaintiff is entitled to injunctive and equitable relief under Florida Statutes Section , and civil penalties up to $10,000 per incident or $15,000 if the consumer is a senior citizen or handicapped person pursuant to Florida Statutes Section and WHEREFORE, the Plaintiff, STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS, OFFICE OF THE ATTORNEY GENERAL, prays that the Court provide the following relief: 11

12 1. Grant permanent injunctions against the Defendants, their officers, agents, servants, employees, attorneys and those persons in active concert or participation with the Defendants who receive actual notice of this injunction, prohibiting and enjoining such persons from engaging in any business activity or operations offering, soliciting, providing or otherwise generally dealing in or related to foreclosure-related rescue services, including but not limited to credit restoration or repair, mortgage negotiation or assistance, foreclosure defense, loss mitigation, debt reduction, mortgage financing, sales and/or brokerage. a. Assess against the Defendants jointly and severally civil penalties in the amount of at least ten thousand dollars ($1 0,000.00) for each act or practice found to be in violation of Chapter 501, Part II, Florida Statutes. b. Awarding such equitable or other relief as is just and appropriate pursuant to Section (3), Florida Statutes, including but not limited to restitution and/or disgorgement of all illegally obtained funds; c. Award reasonable attorneys' fees pursuant to Section , Florida Statutes. d. Grant such other relief as this Honorable Court deems just and proper. / Dated: June {S, Respectfully Submitted, PAMELA JO BONDI Attorney General for the State of Florida ~: ===---_::_~/-... Theresa Therilus, Florida Bar No Office of the Attorney General Department of Legal Affairs 110 S.E. 6th Street, Tenth Floor Ft. Lauderdale, FL Telephone (954) Facsimile (954)

13 IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, vs. Plaintiff, Case No.: FORECLOSURE RESCUE SERVICES, LLC, d/b/a FORECLOSURE RELIEF SYSTEMS LLC, a Delaware limited liability company, FINANCIAL RELIEF SERVICES, LLC, A Florida limited liability company, LEASE AND OWN REALTY, LLC, a Florida limited liability company, CIELO INVESTMENT FUND, LLC, a Florida limited liability company, and E. DALVO DECASTRO, VALESKA JACUES, and MARLYS JOHNSON, Defendants DETERMINATION OF PUBLIC INTEREST I COMES NOW, PAMELA JO BONDI, ATTORNEY GENERAL, STATE OF FLORIDA, and states: 1. Pursuant to Section 20.11, Florida Statutes, I am the head of the Department of Legal Affairs, State of Florida (hereinafter referred to as the Department). 2. In this matter, the Department seeks injunctive and equitable relief, disgorgement, and civil penalties caused by an act or practice performed in violation of Chapter 501, Part II, Florida Statutes. 3. I have reviewed this matter and I have determined that an enforcement action serves the public interest. Dated: May _, 2012 By:o~,~ PAMELA J BONDI ATTORNEY GENERAL, STATE OF FLORIDA EXHIBIT g:a I

14 FRS WORK ENGAGEMENT FRS Doc. 18p / Page 1 of 5 This Agreement is by and between, Monigue Charles henceforth referred to as "Owner(s)" who is the Fee owner(s) of record of the subject property located at: 758 NE 127 Street N. Miami, Fl (Address) and FORECLOSURE RELIEF SYSTEM, LLC henceforth referred to as with main offices at 2125 Biscayne Blvd, suite 100 Miami Fl NOW, THEREFORE, in order to represent the Owner(s) and engage third parties regarding debts, the parties, being legally bound, agree as follows: RECITALS The Owner(s) is unable to make the monthly mortgage deposits for the subject property, either from personal income, collected rents and unable to sell the subject property, due to present market conditions. The Owner(s) has been unable to refinance the mortgage. The Owner(s) has received a Default Notice, is not in compliance with mortgage commitment and is now facing foreclosure. The Owner(s) is requesting the Consultant's services and is entering the Consultants proprietary System, by authorizing the Consultant to directly evaluate, appraise, inspect the subject property and negotiate the mortgage(s) on the subject property with lending institution and investors for a potentially refinance of the subject property and possible foreclosure avoidance. The Owner(s) understands and accepts that the Consultant's work is not guaranteed to keep the subject property from foreclosure and is on a Best Efforts Basis. TERMS The terms hereto and henceforth agreed to by the undersigned parties: 1. Descriptive Headings: The descriptive headings used herein are for convenience of reference only and do not have any effect in determining the rights or obligations of the involved parties. 2. Short-Closure (the System): Short-Closure is the act of buying a non-performing asset from a lending institution and financing the current Owner(s) with a new LOWER debt and lower monthly deposits. The Consultant has developed the Short-Closure System and considers it proprietary, unique and worthy of confidentiality by the Owner(s). 3. Subject Property in the System a. Ownership: The ownership of the subject property will now and during the process remain unchanged. The Consultant deals strictly with the debt on the subject property, not with the ownership of the subject property. b. Conditions: The Owner(s) represents, warrants and understands that the subject property being placed in the system will be used to collateralize a future debt instrument, and must be in good order, repair, and in a safe, clean condition at the time of this signing and that the subject property will be maintained in good conditions to enable the financing of the subject property with a new loan. To the best of the Owner(s)'s knowledge the subject property is in good condition and is not in need of repairs or replacement of items including but not limited to roof, water leaks, pipe, sewage problems, broken appliances, terminates, bugs or rodent infestation, rotten wood or metals, broken fences, cement damage, broken tiles, cracked or missing tile marble, malfunctioning air conditioning/heating unit or any other type problems or repairs that would keep someone from wanting to lease and/or buy the subject property and making it not a suitable collateral for a future loan. The Consultant reserves the right to remove my subject property from their system, if any physical or mechanical problems are discovered with the subject property, whether or not the Owner(s) knew of the problem before entering the system. c. Taxes: The Consultant is not responsible for subject property taxes. If the Consultants work is successful, any due taxes will be paid by new lender. d. Property Insurance: The Consultant nor third party companies working for the subject property will be responsible for property insurance. EXHIBIT Ill lnitialt/\ (. Initial Initial_ I

15 FRS Doc No. 18p Page 2 of 5 e. Damages to Subject property. In the event the Premises are destroyed or rendered wholly uninhabitable by fire, storm, earthquake, hurricane or other casualty whether the negligence of the Owner(s), or third-party tenant, or not, this agreement shall terminate. f. Inspection: The Consultant shall have the right at all reasonable times during the term of this Agreement and any renewal thereof to enter the subject property(s) for the purpose of inspection. g. Subject Property Liability: The Owner(s) agrees to hold the Consultant harmless for any damage that may occur to the subject property during the system period, either by a third-party or a natural disaster. 4. Owner(s) Financial Hardship: The Owner(s) herein is disclosing personal and family financial hardship, that has led to the none performances of the mortgage obligation on the subject property. The Owner(s) financial state has now deteriorated to the point where other vital obligations are going unpaid due to the previous mortgage obligation. 5. System as a Last Resort: The Owner(s) has been advised to seek all remedies to the foreclosure situation presently facing the subject property, prior to joining the Short-Closure System. The Owner(s) has assured Foreclosure Relief System, LLC that entry in the system was a last resort after all other avenues were exhausted, including but not limited to, renting the property, selling the property, borrowing money and attempting to pay the mortgage. 6. *ualification: The Owner(s) understands that in order to qualify for the system the following conditions must be met: a. The current owner(s) of the "subject property" must have owned it for at least 8 months. b. At least 6 payments must have made on the current debt(s). c. All persons on title and loan must agree with and sign this contract. d. All persons on title and loan have been educated on the process through a presentation. e. The Home Owner Association (HOA) Association on the subject property must be paid to date. f. The underlying subject property must not be listed for sale or short sale. g. The underlying subject property must be in good condition. h. The underlying subject property cannot have liens other than from banks. i. The Owner(s) may not be in or considering filing bankruptcy. j. The Owner(s) has not paid FRS or any third party to join our system. k. The occupant of the subject property must be the one who will be making the monthly payments. NOTE: If the Consultant realizes through the process that any one of these conditions have not been met the Consultant may cancel the Owner(s) from the system, with no need for evidence. 7. Services & Costs: The services the Consultant provides to the Owner(s) will be charged only after success is achieved, and will be collected from an escrow account established for the subject property by and between the Owner(s) and a third party management company. The third party costs for the maintenance of the subject property and escrow account will be the responsibility of the Consultant if the system is not successful in keeping the property from foreclosure and any cost incurred by the Owner(s) will be completely reimbursed. The services and costs provided by the Consultant and by third parties are described below: 8. Escrow Account: An escrow account will be set up. The Owner(s) must pay monthly into this escrow account an amount equal to a future mortgage amount, which will be described in the escrow agreement, with the objective of proving the Owner(s) can afford a future mortgage payment (means testing). These payments will be offered to the current lender(s) of the Owner(s), who may or may not accept these payments. If the payments are accepted by the lender(s) all the services provided by the Consultant will cease and the Owner(s) will deal directly with the lender(s). Out of these escrow payments, the third party management company hired by the Owner(s) will be paid and the Consultant is responsible for these monies if the system is unsuccessful. If the Consultant is unsuccessful in "Short-Closing" or if the Owner(s) decides to cancel, all funds left in the escrow account, after subtraction of legal fees, association fees and credit reporting will be returned to the Owner(s) within 10 days. The specific costs and services with any third party will have separate agreements signed directly between the Owner(s) and the third party. The payment amount and rules of the escrow account will be specified in a separate agreement. i. Provider: Lease And Own Subject property Management, LLC

16 ii. Cost: Escrow and Subject property Management fees. FRS Doc No. 18p Page 3 of 5 9. Legal Services: The Consultant will present the Owner(s) some legal firm options, but the Owner(s) may use a law firm of their choosing that must be approved by the Consultant. The fees will be a flat fee preestablished. The Owner(s) authorizes the legal firm to disclose any information regarding the foreclosure process of the subject property to the Consultant. i. Provider: Legal firm chosen by the Owner(s) ii. Cost: Between $ & $1,400.00, subtracted from the escrow account. 10. Consultant Services: The Consultant will negotiate with the lender(s), acquire the old debt or nonperforming asset and find investors to finance the Owner(s) a lower debt and lower monthly payments. This encompasses application processing, debt analysis, subject property appraisal, subject property inspection, explanation of the systems, mortgage note forensics, negotiation with lender(s), interaction with subject property management and real estate company, presenting foreclosure legal services, negotiating with investors to assume Owner(s)' debt or asset and financing a new loan. i. Provider: Foreclosure Relief System LLC. ii. Cost: 1. If unsuccessful for any reason including cancelation at any time there is no cost to the Owner(s). 2. If successful all the monies accumulated in escrow will be charged. Additionally fees will be included in the new lower debt and 7% of the new lower debt will be included when refinancing out of the lending instrument set up by the Consultant. This will all be specified in a good faith estimate and the contract of the new debt. 11. Loan Forensics Fees: The Consultant has a partnership with a Loan Forensics company that will analyze the current loan and find potential errors the current lender might have committed. Aiding the legal team in court and the Finance Consultant in negotiating with the lender. i. Provider: Loan CSI, LLC ii. Cost: One Hundred Dollars ($100.00) subtracted from the escrow account. 12. Professional Subject property Management: The Consultant requires and the Owner(s) agrees to hire a professional property management company recommended by the Consultant. The system requires that the subject property does not fall into disrepair, that association fees and legal fees are paid on time and that credit reporting occur. The Owner(s) will hire a subject property management company and the Consultant pay for all expenses if the subject property is lost to foreclosure. a. HOA or Condominium fees: The Subject property Management Company will pay the Home Owners Association and or Condominium fees for the subject property(s) if there are any. These fees vary with each subject property. i. Provider: Lease & Own Subject property Management, LLC ii. Cost: Varies with each association and subtracted from the escrow account. b. Real-Estate Fees: If the Owner(s)' subject property(s) is an investor subject property(s) and is not occupied. The Consultant will use a third party company to lease, manage and maintain the subject property on behalf of the Owner(s) while subject property is in the system. A separate agreement will be signed for properties requiring subject Property management. i. Provider: Lease and Own Property Management LLC. ii. iii. Cost: 2 months rental fee collected over 120 days subtracted from the escrow account. Term: The term of this contract is one year from the time of signing. If not canceled by Consultant, Owner(s) or Property Management Company.

17 FRS Doc No. 18p Page 4 of Cancellation: The Owner(s) may cancel at any time. Even if cancellation is done after 5 day recession period all monies in escrow will be returned to the Owner( s} within 1 0 days. 14. Financing of Subject Property: a. This is an Option: If the Consultant is able to purchase the Owner(s)' current debt or asset, the Owner(s) will be offered to dismiss the old debt in exchange for a new debt. The Owner(s) may choose at that time to accept the offered financing instrument or cancel. b. General Targeted Parameters: The Consultant will attempt to attain the following parameters for the new loan: i. Debt instrument type: The debt will be financed through an interest only contract for deed. ii. Subject property Occupation: During the life of the contract for deed the subject property must be occupied by the owner. iii. Ownership: The Owner(s) will have equitable interest in the title of the property. iv. Balloon: The loan must be paid off within 3-5 years. v. Interest Rate: The loan interest is rate is 12% Fixed. vi. Payments: Monthly payments will be 1% of the outstanding debt per month, not reducing the principal amount. vii. Equity: The debt will be lowered then the then current market value of the subject property. viii. Payoff: the loan may be paid off at any time with a refinance or sale of subject property with no additional cost other then the 7% fee charged by the Consultant. ix. PRICING: The new pricing will depend on the negotiations with the lenders. The target price will be at least 35% lower than the current debt with all costs included. The Owner(s) will agree with the new pricing before the Consultant finalizes the agreement to finance. 15. Severability: If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. 16. Modification: The parties hereby agree that this document and its Addendum contains the entire agreement between the parties and this Agreement shall not be modified, changed, altered or amended in any way except through a written amendment signed by all of the parties hereto. 17. Liability: The Owner(s) hereby holds the Consultant and/or their heirs, assigns or principals, agent and employees harmless and fully indemnifies same (including but not limited to attorney's fees and costs, court costs and all other litigation expenses}, with respect to the matters set forth herein. 18. Confidentiality: The Owner(s) acknowledges that during investigation and after engaging of the Consultant's Proprietary "Short-closure System" the Owner(s) will have access to certain confidential and proprietary materials and documents belonging to the Consultant. The Owner(s) will not disclose the confidential information to any third party, other than its legal advisors and will not utilize the Proprietary System in whole or in part to compete with the Company, directly, indirectly, for financial or any other advantages. The Owner(s) acknowledges that the Company would suffer harm by breaching the obligation of confidentiality. In the event of breach the Company shall be entitled to obtain injunctive relief without being required to post a bond as well as any other legal remedies which may be available. 19. Waiver of Jury Trial: OWNER(S) HAVE SPECIFICALLY WAIVED THE RIGHT TO A JURY TRIAL CONCERNING ANY DISPUTES WHICH MAY ARISE CONCERNING THIS AGREEMENT, SPECIFICALLY BUT NOT LIMITED TO, ANY ISSUES INVOLVING TENANT'S LEASE. 20. No Guarantees: The Short-closure System is not guaranteed of partial or full success. The Consultant will work on a Best Effort Basis to get a continuance in foreclosure court, negotiate with lender(s) and refinance debts through investors. The Owner(s) shall remain liable to the lender(s) until the mortgage(s) is refinanced or the lender(s) forecloses the Owner(s)' subject property. The current!ender(s) may refuse the offer made by investors secured by the Consultant. The Consultant has NOT agreed to bring the mortgage(s) to date to avoid foreclosure proceedings or default. IF THE CONSULTANT IS UNABLE TO PURCHASE THE OWNER(S)' DEBT(S) OR ASSET BEFORE FORECLOSURE, THE SUBJECT PROPERTY WILL GO INTO FORECLOSURE AND BE LOST.

18 FHS Doc No. 18p Page 5 of Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. Neither this Agreement nor any term hereto may be changed, waived, discharged or terminated orally, but only by an instrument in writing, signed by the parties. The provisions of the Agreement shall be binding upon the successors, assigns, beneficiaries and/or heirs of each party hereto. Any disagreement or dispute between the parties hereunder shall be submitted to Arbitration in Dade County, Florida and shall be determined by and in accordance with the rules and regulations of the American Arbitration Association then in effect. The prevailing party in any such action shall be entitled to recover from the other party legal expenses and any punitive damages imposed at the settlement. 22. Legal Advice: The Owner(s) has been told and given time to seek legal advice to review this and any other agreements between the Owner(s), Foreclosure Relief System and any third party as it relates to the subject property herein and the Owner(s) involvement in the Short-Closure System. The Owner(s) understands that he/she/they may cancel at any time in the future, without punitive action from the Consultant and without need for cause. HOMEOWNER'S RIGHT OF CANCELLATION YOU MAY CANCEL THIS AGREEMENT FOR FORECLOSURE-RELATED RESCUE SERVICES WITHOUT ANY PENALTY OR OBLIGATION WITHIN 5 BUSINESS DAYS FOLLOWING THE DATE THIS AGREEMENT IS SIGNED BY YOU. THE FORECLOSURE-RESCUE CONSULTANT IS PROHIBITED BY LAW FROM ACCEPTING ANY MONEY, SUBJECT PROPERTY, OR OTHER FORM OF PAYMENT FROM YOU UNTIL ALL PROMISED SERVICES ARE COMPLETE. IF FOR ANY REASON YOU HAVE PAID THE CONSULTANT BEFORE CANCELLATION, YOUR PAYMENT MUST BE RETURNED TO YOU NO LATER THAN 10 BUSINESS DAYS AFTER THE CONSULTANT RECEIVES YOUR CANCELLATION NOTICE. TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A STATEMENT THAT YOU ARE CANCELLING THE AGREEMENT SHOULD BE MAILED (POSTMARKED) OR DELIVERED TO FORECLOSURE RELIEF SYSTEM, LLC. AT 2125 BISCAYNE BLVD. SUITE 100, MIAMI FL NO LATER THAN MIDNIGHT OF THE FIFTH DAY FROM SIGNING. IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR LENDER OR MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT. YOUR LENDER OR MORTGAGE SERVICER MAY BE WILLING TO NEGOTIATE A PAYMENT PLAN OR A RESTRUCTURING WITH YOU FREE OF CHARGE. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year written below. Monique Charles, Owner x:jai.ja~, Owner Date: 11/03/08 x:, Owner x: ~ ~

19 Dear Resident: WELCOME FROM Lease And Own Property Management, LLC [an affiliated company of FORECLOSURE RELIEF SYSTEM) "Lease And Own Program" The Property you are now leasing is facing foreclosure. In an attempt to avoid foreclosing the owner has entered into the FRS "Property Relief Program". FRS and its affiliated Companies and Consultants have begun negotiations with the Bank(s), and Home Owner's Association and will provide legal representation in court. This program is not guaranteed. If successful, the resident that has leased this property from the owner through Lease and Own Property Management has the option of owning this property, building equity and gaining mortgage payment creditability. The representatives at FRS and Lease and Own Property Management, will keep you posted of the legal representation and financial negotiations. We are all working very hard to make this property yours. Our staff will give you ample notice of the results of our efforts and offer alternatives if we are not successful. Your timely monthly payments are important, as they will be used by our investors to qualify you for ownership of this property and by our company to report your payments to the credit bureau. If you do have a problem paying your rent, please contact the office prior to the delay and we will work with you to find a property that you can afford. Finally, if you need updates on the occurrence in court with your property please call our Management For Short-Closure updates please call our Short-Close dept.@ Be patient, court issues take 2 months to address and short-closure can take as long as 7-10 months. We hope that you will take great care of this property, as it will hopefully be yours soon! Lease and Own does not do minor repairs or maintenance, but we are here for you if there is a major occurrence during your lease period. In closing, we are all very busy helping clients in need, please be patient and await our communications. Thank You for Joining! EXHIBIT c J5 ~ ~, <''----

20 Lea:::.c.. ~ Own Doc. 20 I Page 1 of 3 Property Management Agreement THIS PROPERTY MANAGEMENT hereinafter (the "Agreement") by and between Lease and Own Property Management, LLC hereinafter ("Agent") and GREGORY L DAVIS, SCYNTHIA A DAVIS, hereinafter ("Owner(s)") and shall commence on October 15,2008. (the COMMENCEMENT DATE) WITNESSETH WHEREAS, Agent desires to be hired as the real-estate representative of the fee owner of certain real property located at: 1763 PIERCE DR LAKE WORTH, FL 33460, in the County of Palm Beach, in the State of Florida, (herein referred to as the "Premises"). WHEREAS, Owner(s) desire to have the Premises be part of the foreclosure intervention program know as the "Property Relief Program", and the program requires the Premises be professionally managed and or leased by a third-party real-estate company to insure the Premises has only bank-related problems during the program; WHEREAS, Owner(s) desires to hired the Agent to manage the Premises with full responsibility of a Premises manager and real-estate company including but Limited to; interaction with homeowners association, insurance company, water company, repairmen, credit reporting, collection of monthly obligation payments, the establishment of an escrow account for the property, leasing of the property and interaction with the 1st mortgage position lending institution to offer accumulated monthly obligation payments, after expenses, under the terms and conditions as contained herein; NOW, THEREFORE, in consideration of the covenants and obligations contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties herein agree as follows: 1) TERM. This Agreement shall terminate on 10/14/2009 ('Termination Date") one (1) year from the Commencement Date first written above. The agreement will terminate automatically on the Termination Date or as provided for in paragraph 1a,b,c, in this agreement. a. This Agreement shall continue on a month-to-month basis until the Owner(s) Premises has successfully completed the "Property Relief Program" by Foreclosure Relief System, LLC or the Premises is removed from the program or the Premises is lost to foreclosure. Agent will inform Owner(s) in writing if the agreement terminates. b. If at any time the Owner(s) or the Agent desires to terminate this agreement, Owner(s) and Agent may do so by providing to other Party with written notice of intention to terminate. Such notice to terminate must be provided to the other Party at least 30 days prior to the desired date of termination of this agreement. c. If the Premises is not leased to a third-party or the Owner(s) is not making the required monthly obligation payments in the required timely manner, the Agent may and will terminate this agreement with no further cause. Only legal fees, credit reporting and Home Owners Association fees will be charged of the owner(s), all management fees charged and accumulated funds will be refunded. 2) MONTHLY OBLIGATION. Under the terms of this Agreement, "Monthly Obligation" shall consist of the entire monetary obligations required to be paid for the maintenance, operating and legal expenses of the Premises, so it may remain in the "Property Relief Program". This monthly obligation is payable to the property escrow account via the Agent by the Owner(s) or a Lessee secured by Agent. Funds will be directed to an escrow account established for the Premises, under the terms of this and other agreements signed by the Owner(s). EXHIBIT 11) Initial~ Ini&-- Initi h

21 Lea!:>,-.. 1?. Own Doc. 20 I Page 2 of 3 3) OBLIGATION DUE. Under the terms of this Agreement, "Obligation" due shall be the entire monetary payment owed monthly by Owner(s) or a third-party (as part of a Lease Agreement) for the upkeep of the Premises to be received and deposited by the Agent in an escrow account established for the Premises. a. Owner(s) or a Lessee shall pay "Monthly Obligation Payments" of: $2,125 ( TWO THOUSAND ONE HUNDRED TWENTY FIVE DOLLARS) 4) ESCROW ACCOUNT. The Agent with the Owner(s) permission will establish an escrow account for the Premises to collect monthly obligation payments from the Owner(s) or a Lessee. Funds paid towards the escrow will be first used to cover all charges and expenses for the maintenance and upkeep of the Premises. Funds not used for this purpose will be accumulated in the escrow and then offered to the Owner(s) lender in first mortgage position. If the "Property Relief Program" is unsuccessful in keeping the Owner(s) in the property, all accumulated funds in the escrow account that were not requested by 1" 1 position lender, will be returned to the Owner(s) within 10 days of written request. If the Program is successful, funds that remain in the escrow at the end of the program, will be given to Foreclosure Relief System to facilitate and enable a new loan for the Owner(s). 5). SECURITY DEPOSIT. There will be NO Security Deposit, as the Owner(s) or a Lessee will only pay one ~Monthly Obligation Payment". 6) DUE DATE. The due date for the monetary obligation payments under this agreement shall be either the 1st or the 15th day of each calendar month depending on the Commencement Date and shall be considered advance payment for that month. If not received on the 1st or the 15 1 h depending on the Commencement Date, monetary obligation will be considered overdue and delinquent on the 2nd or 16th day of each calendar month. 7} GRACE PERIOD AND LATE CHARGE. In the event that any payment required to be paid by Owner(s) hereunder is not received within ten (10) days of when due, Owner(s) shall pay to escrow account, in addition to Monthly Obligation Payment, a "late fee" in the amount of $50.00 Dollars. NOTE: In the event that any payment by Owner(s} or third party is returned for insufficient funds ("NSF") or if a stop payment is placed, Agent may require in writing that payment be made by money order or cashier's check. A $30 fee will be charged for every returned check. 8) LEASING OF PREMISES BY AGENT. The Agent as the Premises manager for the Owner(s), will have the expressed and herein written permission by the Owner(s) to lease the Premises to any third- party "If the Premises has been given to the Agent for this purpose" or "If the Owner(s) chooses after living in the Premises to have it leased to a third-party by the Agent", The agent may not at any time lease the Premises if the Owner(s) does not wish to have it leased. 9) REPAIRS AND MAINTANANCE. The Agent will not be responsible for repairs and upkeep of the property. 10) REFUND OF REAL-ESTATE AND MANAGEMENT FEE. The Agent will collect a property management and realestate fee equivalent to (2) two months worth of monthly obligation payments, for the services provided for the Owner(s) property from the escrow account. The fee will cover services for up to (1) one year, regardless of how many months the Agent provides the management and real estate related services. The FULL AMOUNT of the fees will be returned to Owner(s), if the Owner(s) leaves the program prior to a successful conclusion or if the property is lost to Foreclosure. These fees have been negotiated with FRS and it is the responsibility of FRS to reimburse Lease and Own Property Management, LLC. 11) LENDING INSTITUTION OFFERING AND PAYMENT: The Agent will alert the lender with the first mortgage position that payments are being made and collected in the Premises escrow account. These funds will be offered and sent to the Lender by the Agent at the lenders request. 12) CREDIT REPORTING. The Agent will be reporting to a credit reporting agency timely monthly obligation payments on behalf of the Owner(s). 13) CONDITION OF PREMISES. Owner{s) represents and warrants that Premise has been examined and that it is in good order, repair, and in a safe, clean condition at the time of this signing. 14) UTILITIES. Owner(s) or Tenant leasing the Premises shall be responsible for arranging for and paying for all utilities, including but not limited to lights, water, gas, waste removal services required for the Premises. 2

22 Lea:::.. ::_ l Own Doc Page 3 of 3 15) DAMAGE TO PREMISES. In the event the Premises are destroyed or rendered wholly uninhabitable by fire, storm, earthquake, or other casualty not caused by the negligence of Owner(s), or third-party tenant, this agreement shall terminate from such time, except for the purpose of enforcing rights that may have then accrued hereunder. In the event that Agent exercises its right to repair such uninhabitable portion, the monthly obligation payment shall be used to cure damage to the premises and such part so injured shall be restored by Agent as speedily as practicable, after which the full monthly payment obligation shall be forwarded to the escrow as before. 16) INSPECTION OF PREMISES. Agent shall have the right at all reasonable times during the term of this Agreement and any renewal thereof to enter the Premises for the purpose of inspecting the Premises and all buildings and improvements thereon. And for the purposes of making any repairs. Agent and its agents shall further have the right to exhibit the Premises and to display the usual "for sale", "for rent" or "vacancy'' signs on the Premises at any time if Premises needs to be sold or rented. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations or additions that do not conform to this Agreement or to any restrictions, rules or regulations affecting the Premises. 17) INDEMNIFICATION. AGENT SHALL NOT BE LIABLE FOR ANY DAMAGE OR INJURY TO THE OWNER(S) FAMILY, GUESTS, INVITEES, OR EMPLOYEES OR TO ANY OTHER PERSON ENTERING THE PREMISES OR ANY BUILDING THAT IS A PART OR LIES UPON THE PREMISES, OR TO GOODS OR EUIPMENT, OR IN THE STRUCTURE OR EUIPMENT OF THE STRUCTURE OF WHICH THE PREMISES ARE A PART, AND OWNER(S) HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD AGENT HARMLESS FROM ANY AND ALL CLAIMS OR ASSERTIONS OF EVERY KIND AND NATURE. THIS INDEMNIFICATION INCLUDES, BUT IS NOT LIMITED TO, ANY DAMAGE OR INJURY WHICH MAY BE INCURRED BY OWNER(S), FAMILY, GUESTS, INVITEES OR EMPLOYEES OR TO ANY OTHER PERSON FOR DAMAGE OR INJURIES THAT ARISE FROM ANY CONTACT, ATTACK OR INTERACTION FROM OR WITH ANY ANIMALS, WHETHER SUCH DAMAGE OR INJURY OCCURS ON THE PREMISES OR OFF, AND OWNER(S) HOLDS HARMLESS THE AGENT FROM ANY AND ALL CLAIMS OR ASSERTIONS OF EVERY KIND AND NATURE FOR ANY DAMAGE OR INJURY OWNER(S) ATTRIBUTES TO ANY ABSENCE OR FAILURE OF FENCING THAT MAY BE ON OR SURROUNDING THE PREMISES. 18) GOVERNING LAW. This Agreement shall be governed, construed and interpreted by, through and under the Laws of the State in which this agreement was signed. 19) SEVERABILITY. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. 20) FORECLOSURE DISCLOSURE. THIS PREMISE IS BEING MANAGED AND POTENTIALLY LEASED BY AGENT WITH THE OWNER(S) AND FUTURE TENANT FULLY AWARE OF THE THREAT OF FORECLOSURE. AGENT IS MANAGING THE PREMISES TO ASSIST FORECLOSURE RELIEF SYSTEM, LLC TO ADDRESS AND ATTEMPT TO PREVENT FORECLOSURE. IN THE EVENT FORECLOSURE RELIEF SYSTEM IS NOT SUCCESSFUL IN THE NEEDED CONTINUANCE IN FORECLOSURE COURT ORlAND IN NEGOTIATING WITH THE FINANCIAL INSTITUTION THAT HAS THREATEN TO FORECLOSE, THE AGENT WILL BE NOTIFIED BY FRS AND IMMEDIATELY GIVE NOTICE TO THE OWNER(S) AND ADVISE OWNER(S) OF THE POTENTIAL PERIOD OF TIME UNTIL THE OWNER(S) CAN REMAIN IN THE PREMISES PRIOR TO A JUDGMENT OF FORECLOSURE AND OR A SALE DATE. OWNER(S) MAY, AT OWNER(S) DISCRETIONS, GIVE NOTICE TO AGENT AND TERMINATE THIS AGREEMENT WITHIN 30 DAYS AS PROVIDED FOR HEREIN UNTIL THE FORECLOSURE SALE DATE. Agent Representative and Owner(s) as of the date first written above, have agreed and signed below: As To Agent: Lease an Own Tenant Management, LLC As To Owner( s ): As To Owner(s): As To Owner( s ): Sig Sign: Initials~ Initials