The Federal Trade Commission has filed a lawsuit seeking to shut down a Southern California-based mortgage assistance operation accused of misleading financially struggling homeowners with false promises of mortgage relief tied to federal pandemic aid programs.

A federal judge in California granted the FTC's request for a temporary restraining order against National Amendment Assistance, also known as N.A.A., and several related companies, temporarily halting their operations while the case proceeds.

According to the FTC, the defendants falsely claimed they could secure lower mortgage rates and reduced monthly payments for homeowners through programs allegedly connected to the Coronavirus Aid, Relief and Economic Security (CARES) Act. The agency alleges the companies collected illegal upfront fees from consumers but failed to deliver the promised mortgage modifications.

"When Americans look for ways to cut costs and lower their monthly bills, they shouldn't have to worry about being targeted by mortgage scammers," Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said in a statement. "When scammers try to take advantage of ordinary consumers, the FTC will act swiftly and decisively to stop such scams."

The FTC alleges that since at least 2022, a network of companies controlled by Marinus Pieter Van Zweeden, Martin Howard Rub and Susan Jane Bustamante mailed solicitations to homeowners nationwide. The letters purportedly offered mortgage relief through a "CARES-Act Homeowner Assistance Fund" or a lender-specific mortgage adjustment program, and listed specific reductions in interest rates and monthly payments that consumers were supposedly eligible to receive.

The agency also alleges the companies falsely told some consumers they could stop making mortgage payments during a "grace period."

According to the complaint, the promised relief never materialized. Instead, the defendants allegedly collected consumers' fees and financial information without obtaining mortgage modifications. The FTC said many victims were already experiencing financial hardship and, after paying the fees, fell further behind on their mortgages, with some facing foreclosure or loan default.

The lawsuit accuses the defendants of violating the Federal Trade Commission Act, the Mortgage Assistance Relief Services Rule and the Gramm-Leach-Bliley Act. The FTC alleges the companies deceptively promised affordable loan modifications, falsely claimed affiliation with federal homeowner assistance programs, advised consumers not to make mortgage payments, collected unlawful upfront fees and obtained financial account information through false statements.

Named defendants include Accounting Business Consultants Inc. in California and Nevada, Accounting Servicing Providers Inc., Amster Beene Partners Inc., Assertive Loan Advisors Inc., Independent Accounting Consulting Inc., United Administration Counseling Inc., United Bookkeeping Services Inc., and their officers Van Zweeden, Rub and Bustamante.

The FTC is seeking consumer redress and other relief. The complaint was filed in the U.S. District Court for the Central District of California. The agency noted the allegations remain unproven and will ultimately be decided by the court.

The commission voted 2-0 to authorize the lawsuit.