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Mortgage Fraud Crackdown Includes Many Local Cases

The US Justice Department says that since March, law enforcement officials around the country have made nearly 500 arrests as part of a push to prosecute mortgage fraud. Twenty-six of those came out of the US Attorney's Office of the Northern District of Ohio. Also, the State Attorney General, Richard Cordray, announced two new civil suits against foreclosure rescue firms. One of those companies got Cleveland homeowner Linda Dominic in trouble. She paid Cleveland-based JLS Financial Services $1395 to help her get a loan modification and still ended up in foreclosure.

Linda Dominic: I got a letter from JLS we can help you with a home modification, call this number. Well I called this number and they got me.

Officials at JLS didn't return calls for comment. Homeowner Linda Dominic says she's working with a local credit counseling agency as well as the Ohio Attorney General's office to try and save her house.