Nation

Following a federal class-action lawsuit filed last month on behalf of up to 400 homeowners in the Washington D.C. area, the attorney general of the nation’s capitol filed another lawsuit against mortgage company Metropolitan Money Store Corp.

Attorney General Linda Singer filed the complaint on behalf of at least 27 area residents who claim to have lost $60 million in equity through the Prince George's County-based Metropolitan.

The lawsuit seeks restitution and damages for the homeowners, naming as the company as a defendant, along with owner Joy Jackson and her husband, Kurt Fordham, as well as 10 others.

According to the lawsuit, Metropolitan purported to be a foreclosure rescue operation, but instead drained the equity from the homes of their victims.

Investigators say that Metropolitan targeted homeowners with at least $100,000 in equity.

Metropolitan allegedly would provide real estate investors with $10,000 and take ownership of the homes on the verge of foreclosure.

The homeowners were promised one year rent-free and the chance to buy back their homes after a year, according to investigators.

Once the houses changed hands, though, Metropolitan allegedly would borrow as much as possible against the value of the home, stripping the equity from property.

The prior class-action lawsuit claims that approximately 400 homeowners lost $60 million in equity through Metropolitan.

The new lawsuit looks to help the homeowners stave off foreclosure by voiding the contracts between the homeowners and the defendants.

Additionally, Singer wants the defendants to pay restitution along with civil penalties up to $1,000 for each violation of the District's Consumer Protection Procedures Act.

A federal investigation by the FBI and the Secret Service into possible mortgage fraud by company employees, while the attorney general's office began investigating Metropolitan in May.