Broward Mortgage-fraud Case Summary
In a significant setback for Florida Attorney General Pam Bondi, the Fourth District Court of Appeals overturned an $8.3 million judgment against Outreach Housing, a Broward County mortgage company accused of defrauding homeowners during the 2007–2009 housing crisis. The appellate court ruled that the trial judge erred by summarily ruling in favor of the state without allowing Outreach a full trial. The decision also dismissed the damages award, including $880,000 in restitution and $7.45 million in penalties.
The case stemmed from allegations that Outreach falsely promised foreclosure assistance and mortgage modifications to struggling homeowners through TV commercials and online ads. Florida prosecutors argued that the company misled consumers and failed to deliver promised services. Outreach’s principal, Blair Wright, initially represented himself but later gained legal support from a pro bono team, including attorney Robyn Sztyndor. Sztyndor argued that Wright was unfairly denied the chance to present evidence.
The court also criticized the trial judge’s methodology for calculating damages. It stated that penalties should only apply to the 108 customers who filed formal complaints, rather than the broader group of 745 consumers who paid for Outreach’s services. The ruling sends the case back to trial, offering Outreach the opportunity to contest the allegations fully. Bondi’s office is currently reviewing the appellate court’s decision.