Attorney General Settles with Vladislav Zagranichny
and Community Mortgage Group
Used Attorney General Press Releases to Lure New Customers
MD (May 27, 2009) - Attorney General Douglas F. Gansler
today announced that his Consumer Protection Division has reached
a settlement with Vladislav Zagranichny and his company, Community
Mortgage Group, Inc., regarding their alleged deceptive use of
press releases issued by the Office of the Attorney General. The
press releases at issue announced the settlements the Office had
reached with Household Finance Corporation and Ameriquest Mortgage
Company concerning their lending practices.
According to the Division, Zagranichny mailed the press releases
announcing the Household settlement to consumers and instructed
them to contact his now defunct company, Mortgage City Corporation.
In a second advertising campaign, Zagranichny mailed the press
release announcing the settlement with Ameriquest Mortgage Company
to consumers with language added to the release instructing consumers
to call his second company, Community Mortgage Group. The Division
alleged consumers were misled into believing they should contact
Zagranichny and his companies in order to receive their restitution
payments under the Household and Ameriquest settlements.
“The Consumer Protection Division was created to protect
Maryland consumers from being deceived by fraudulent businesses
or individuals,” said Attorney General Gansler. “It
is especially egregious when a company uses materials from my office
to target the very same consumers we are trying to protect.”
Zagranichny and Community Mortgage Group denied that they violated
any Maryland laws but agreed to cease using any advertising containing
any names, logos, or other references that implied that the ads
had any government origin, sponsorship, endorsement or affiliation.
Mr. Zagranichny and his company also agreed to pay an $80,000 penalty.