Attorney General Ellen Rosenblum announced today that claim forms are going out to more than 23,000 Oregonians who may be eligible for payment under the national mortgage foreclosure settlement.

Qualifying Oregonians will each be eligible for cash payments of $840 or more. To be eligible, borrowers must have lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and had their mortgages services serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase or Wells Fargo.

The nation’s five largest mortgage servicers agreed to the payments as part of a $25 billion settlement with the federal government and attorneys general for 49 states and the District of Columbia.

The “Big Five” servicers have already paid $29.3 million to the state as part of the settlement. They have also pledged $300 million worth of loan modifications and other assistance to current customers.

About $1.5 billion of the settlement is earmarked for 2 million borrowers nationwide. The exact payment will depend upon the total number of borrowers who decide to participate.

“This payment is intended as partial compensation for the mortgage servicers’ improper conduct,” Rosenblum said. “By participating, borrowers do not give up any legal rights. They’re free to participate in this settlement and also pursue other legal remedies such as filing a lawsuit or participating in a class action, if they so choose.”

Borrowers must return their claim forms by Jan 18 to be eligible for payment. Last week, the national settlement administrator mailed notification postcards to the eligible borrowers nationwide. In Oregon, packets containing a letter from the Attorney General, claim form, instructions and answers to frequently asked questions are being mailed to eligible borrowers beginning today and continuing through Oct. 12.

Attorney General Rosenblum urged eligible Oregonians to complete their claim forms and return them as soon as possible in the envelope provided, or file them online at www.nationalmortgagesettlement.com. The deadline for all claims is January 18, 2013. Payment checks are expected to be mailed in mid-2013.

The one-page claim forms are simple to complete. However, borrowers who have questions or need help filing their claim can contact the settlement administrator, toll-free, at 1-866-430-8358, or by email to administrator@nationalmortgagesettlement.com. The information line is staffed Monday through Friday from (7 a.m. to 7 p.m. Central).

Eligible borrowers do not need to prove financial harm to receive a payment, nor do they give up their rights to pursue a lawsuit against their mortgage servicer or to participate in the Independent Foreclosure Review Process being conducted by federal bank regulators. More information about that program is available at www.independentforclosurereview.com.

Eligible borrowers may get a payment from this settlement even if they participate in another foreclosure claims process. However, any payment received may reduce payments borrowers may be eligible to receive in any other foreclosure claim process or legal proceeding.

Borrowers who believe they may qualify for a payment, but did not receive a notice because they have moved, should contact the settlement administrator directly to provide that information.

Borrowers should not need to pay anyone to file their claim.  Rosenblum warns all homeowners to be aware of settlement-related scams.  Do not provide personal information or pay money to anyone who calls or emails you claiming that they are providing settlement-related assistance.  If you believe someone is conducting a settlement-related scam, contact the Oregon Department of Justice at 503-378-6002.

The national settlement followed state and federal investigations, which alleged that the five mortgage servicers, which between them control more than 60 percent of the market, routinely signed foreclosure-related documents outside the presence of a notary public and without personal knowledge that the facts contained in the documents were correct. This civil law enforcement action also alleged that the servicers committed widespread errors and abuses in their foreclosure processes.

Broad reform of the mortgage servicing process resulted from the settlement, as well as financial relief for borrowers still in their homes through direct loan modification relief, including principal reduction.

Oregon Attorney General Ellen Rosenblum To Present Recovered Money To Victim Of Telemarketing Scam

Department of Justice tracks Arizona promoters who prey on elderly

Oregon Attorney General Ellen Rosenblum on Tuesday will present $11,500 to Irvin Ratzlaff, a Salem man who invested thousands of dollars in bogus internet home-business schemes promoted by telemarketers.

Investigators from the Oregon Department of Justice Consumer Protection and Financial Fraud division convinced four different telemarketing companies to return a portion of Ratzlaff's money.

The Department of Justice has for months been investigating these telemarketers. They've uncovered more than 20 cases similar to Ratzlaff's. The victims range in age from 60 to 85.

Virtually all the promoters work for companies in or around Phoenix, Ariz. Some of the companies work together to sell contact lists or other follow-up products they claim will make the victims' home-based business become more profitable.

In fact, the businesses typically generate negligible sales. The $81,000 invested by Ratzlaff resulted in $600 in sales over three years.

"Individuals and businesses that prey on the vulnerable and elderly will be amongst the chief targets of the Oregon Department of Justice while I'm Attorney General," Rosenblum said. "I'm pleased the Oregon Department of Justice was able to recover a portion of Mr. Ratzlaff's money. Also, I want to thank the DOJ investigators who have tirelessly pursued this case."

Press event: Rosenblum, Ratzlaff and Department of Justice investigators will be available Tuesday at Ratzlaff's apartment building.

When: 11 a.m.

Where: Capital Manor, 1955 Dallas Highway NW, Salem

Directions: From downtown Salem, cross Marion Avenue bridge toward Highway 22 and Dallas. Take Rosemont Avenue/Capital Manor exit. Turn left onto Edgewater. Proceed a quarter-mile to Capital Manor, on the right.

Janssen Pharmaceuticals has agreed to pay $181 million to settle claims brought against it by Oregon Attorney General Ellen F. Rosenblum and 36 other Attorneys General alleging that the drug company used unfair and deceptive practices in marketing Risperdal and three related anti-psychotic drugs.

Oregon will receive more than $4.2 million in the case. Janssen is a subsidiary of Johnson & Johnson.

"This is our most important case settlement yet involving "Big Pharma," Rosenblum said. "Some of Oregon's most vulnerable citizens will be the beneficiaries. I am proud of the major contribution of the Oregon Department of Justice to this result -- particularly the efforts of Assistant Attorney General David Hart."

Hart, assistant attorney-in-charge of the Oregon Department of Justice financial fraud/consumer protection section, handled the case for the state.

The complaint, filed today in Multnomah County Circuit Court follows a four-year investigation. It alleges that Janssen marketed Risperdal, Risperdal Consta, Risperdal M-Tab and Invega for unapproved or off-label uses.

Federal Law prohibits pharmaceutical manufacturers from promoting their products for off-label uses. The complaint alleges that Janssen promoted Risperdal for off-label uses to both geriatric and pediatric populations, targeting patients with Alzheimer's disease, dementia, depression, and anxiety, when these uses were not FDA-approved and for which Janssen had not established that Risperdal was safe and effective.

It also alleges that Janssen paid doctors to learn about Risperdal's unapproved uses and gave lucrative consulting contracts to those who promoted and prescribed the drug.

In addition, the complaint alleges that when marketing Risperdal, Janssen misrepresented the risk of diabetes and weight gain associated with the drug and that Jansen marketed Risperdal in nursing homes despite the fact that there are other serious risks associated with using atypical antipsychotic drugs with this population.

As part of the settlement, Janssen agreed to change not only how it promotes and markets its atypical antipsychotics but also agreed to refrain from any false, misleading or deceptive promotion of the drugs. The company also agreed to disclose the specific health risks of the drugs on its product labels and to present balanced information about the drugs' effectiveness and risks in its promotional materials.

The Attorneys General of the following states and the District of Columbia participated in the settlement: Arizona, Alabama, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, Wisconsin and Wyoming.

SCAM ALERT: A Consumer Protection Alert from the Oregon Attorney General

Medical Card Scam On The Rise

Attorney General Ellen F. Rosenblum reminds Oregon consumers never to share their personal or financial information with anyone by email or over the phone. The Oregon Department of Justice has seen a recent influx in reports from senior citizens who received unsolicited telephone calls regarding updates to their medical cards. The scam artist behind these calls will then ask for the consumer's bank account and/or routing number in order to process the update.

These types of unsolicited phone calls and emails are "phishing" scams. The crooks behind them may already have some personal information about their victims (name, address, etc.), and they may claim to represent a familiar organization or government program. Oregon consumers should be aware that these are NOT legitimate phone calls.

The Department of Justice reminds Oregonians to follow some basic guidelines to avoid falling prey to phishing scams:

• NEVER respond to an email from someone seeking your personal information. No matter how authentic it may look or sound, consumers should promptly hit "delete."
• Do not click on links embedded in an email from someone you don't know. These links may contain viruses or malware designed to steal your personal information.
• NEVER engage a phone call from someone seeking your personal information. Legitimate groups you're affiliated with - insurance companies, banks and government programs like Medicare and Social Security - already have that information and will never ask you to provide it via email or unsolicited phone call.
• Don't answer the phone if the number is unavailable, originates from an unknown or private party or if you otherwise do not recognize the phone number. If the call is important, they'll leave a message.

The Oregon Department of Justice is committed to protecting the marketplace from fraud and scams. If you or someone you know has fallen victim and given out personal financial information call the Attorney General's Consumer Hotline for help at 1-877-877-9392 or file a complaint online.

Oregonians can protect themselves from receiving solicitation calls by registering both landline and mobile telephone numbers on the National "Do Not Call" Registry. Consumers may call toll-free at 1-888-382-1222 or sign up online at https://www.donotcall.gov. Registration is free.

Information about Identity Theft can be accessed on the Department's website at: http://www.doj.state.or.us/consumer/id_theft.aspx.

Manning brings over 30 years of experience in journalism to the Department of Justice

Attorney General Ellen Rosenblum today announced that long-time reporter Jeff Manning will serve as Public Information Officer (PIO) for the Oregon Department of Justice.

"I am delighted that Jeff has chosen to join us at DOJ," said Attorney General Rosenblum. "Jeff's reputation as a thoughtful and careful journalist will serve the Department and the public well."

Manning graduated from the University of Washington and brings with him to the Department of Justice 31 years of experience working at Oregon newspapers. He spent the past 18 of those years at The Oregonian, where he most recently served as a senior reporter concentrating on investigative projects.

Manning will assume his role at the Attorney General's Office on August 27 and begin working with Attorney General Rosenblum and the eight Divisions of the Department to promote DOJ and the important work it does for the citizens of Oregon. As PIO, Manning will play a key role in advising the Attorney General and Deputy Attorney General on new strategies to address DOJ's relationship with the media and the public at large.

Gerald Katchmer is charged with using social media to solicit sexually-explicit material from a minor

The Oregon Department of Justice today announced the arrest and arraignment of a Florida man charged with using the internet to solicit sexually-explicit material from a minor.

"The Oregon Department of Justice is committed to ensuring that our children are safe when they go online," said Attorney General Ellen F. Rosenblum. "We will not tolerate this kind of attempt to exploit their vulnerability."

Gerald N. Katchmer, Sr. (DOB: 11/01/49) was arraigned today in Marion County Circuit Court on one count each of Online Sexual Corruption of a Child in the Second Degree and Luring a Minor.

The Department of Justice's Internet Crimes Against Children Unit (ICAC) commenced a year-long investigation into Katchmer after ICAC special agents, using the Facebook profile of a fictitious 14-year old girl, received a "friend" request from a person purporting to be Gerald Katchmer. During the operation, Katchmer allegedly communicated on a daily basis from Florida to Oregon via social media and arranged to fly into Portland to meet with the person he thought to be the 14-year old girl. Special Agents from the Department of Justice arrested the defendant without incident last night, August 1st, as he exited a plane at Portland International Airport.

This case is part of a larger, proactive operation by the Department of Justice's Internet Crimes Against Children Unit (ICAC) involving sexual predators and their use of social media.

Every criminal defendant is considered innocent until proven guilty beyond a reasonable doubt in a court of law.

The public is strongly encouraged to report information involving on-line sexual exploitation of children to their local law enforcement agency or to the National Center for Missing and Exploited Children at www.cybertipline.com or by calling 1-800-843-5678. Tips can be submitted anonymously.

The Oregon Department of Justice Internet Crimes Against Children (ICAC) unit investigates and prosecutes predators who use the internet to target and sexually exploit children. The unit works with district attorneys, law enforcement agencies and regional task forces that investigate online predators. ICAC is the only program in Oregon that is equipped with the necessary resources to catch sex predators throughout the state.

Since its inception in 2005, more than 160 internet predators have been convicted as a result of Oregon ICAC's work.

Oregon Department of Justice announces "Get Back on the Road" campaign to mark the occasion

Attorney General Ellen Rosenblum today commemorates the start of Child Support Awareness Month and urges Oregonians to take part in recognizing the importance and value of child support in providing for the healthy development of future generations.

As part of Child Support Awareness Month in August, the Oregon Child Support Program is promoting a license release program for parents whose driver licenses are suspended for non-payment of child support. During the "Get Back on the Road" campaign, parents with suspended licenses are invited to call (800) 850-0228 to discuss how they can get their license reinstated.

"Providing for our children is a serious responsibility. We want all of our kids to grow up healthy, strong and able to achieve their potential," said Attorney General Rosenblum. "Child support services help ensure that a child's needs are met by both parents. Staff at our Division of Child Support and district attorneys' offices throughout the state are initiating campaigns like 'Get Back on the Road' to reengage parents in supporting their children. I want to thank all the parents who are providing child support for their children, and I hope every Oregonian who has fallen behind in making support payments uses August to get back on the road to providing for his or her child."

Governor John Kitzhaber also has proclaimed August 2012 Child Support Awareness Month in Oregon. A copy of the proclamation is attached to this release. August was first declared National Child Support Awareness Month by President Bill Clinton in 1995.

Collecting child support and ensuring that Oregon's children can rely on their parents to meet their basic needs is a critical function of the Department of Justice. License suspension is one tool available to the Child Support Program when a parent has the means to pay child support yet falls behind on the obligation.

"Our goal is not to keep people from driving but rather to encourage parents to be responsible for making their child support payments. By making a payment and signing an agreement to keep paying, these parents can get back on the road and take a positive step toward reengagement in their children's lives, both financially and emotionally," said Child Support Director Jean Fogarty.

The Oregon Child Support Program is a federally funded program administered by the Department of Justice, in coordination with district attorneys throughout the state. There are currently 12 state child support offices that work with district attorneys in 26 counties to provide services to both custodial and non-custodial parents, relatives and other caretakers who are entitled to child support.

Oregon's Program administers more than 227,000 child support cases and processes $1 million in child support payments every day. Services include establishing paternity, locating a non-custodial parent, establishing or modifying an order for child support, securing health care coverage for a child, determining the amount of support past due, enforcing support orders and providing accounting records.

Members of the public can learn more about the Child Support Program or request services through their local support office. For a list of Division of Child Support and District Attorney Offices in the Program, visit http://www.oregonchildsupport.gov/.

• Governor's Proclamation

Judgment Addresses 11 Years of Illegal Water Use

On Wednesday July 11, 2012, a Jackson County Circuit Court Jury convicted Eagle Point resident Gary A. Harrington on nine counts, each related to the unauthorized use of water. Under Oregon law, all water is publicly owned, and those who wish to use it for their own purposes must obtain a water right permit issued by the Oregon Water Resources Department (OWRD). State law grants various exceptions to this requirement, including an exception for collecting precipitation water that gathers on an artificial impervious surface, such as a rooftop or parking lot; in rain barrels, for example.

Harrington stored and used water illegally by placing dams across channels on his property and preventing the flow of water out of these artificial reservoirs without obtaining a water right permit. The height of each dam varies; two dams stand about ten feet tall and the third stands about 20 feet tall. The total amount of water collected behind these dams totals about 40 acre feet; enough to fill almost 20 Olympic-sized swimming pools. These man-made reservoirs feature boat docks, boats, and were stocked by Harrington with trout and Bluegill for recreational fishing.

The state first identified Harrington's illegal water use more than ten years ago and initiated enforcement action to discontinue his illegal use of water. After numerous attempts by OWRD and the Watermaster to achieve voluntary compliance, the Department enlisted the assistance of the Oregon State Police in 2002. Citations were issued, and Harrington pleaded guilty to several violations. He was assessed a nominal fine and ordered to drain the three reservoirs, which he did. However, Harrington again closed the headgates in 2004 and refilled the reservoirs. As a result, OWRD and the Oregon State Police submitted reports to the Jackson County District Attorney's Office alleging additional violations of Oregon water law. That office filed misdemeanor charges against Harrington, and in 2008 he pled guilty to one count. He was issued another fine, placed on one year probation, and was again ordered to drain the reservoirs.

According to testimony in the most recent trial, the day after Harrington's probation expired, he again closed the outlet valves and refilled the reservoirs. The District Attorney's Office enlisted the help of the Oregon Department of Justice, charges were once again filed in Jackson County Circuit Court, and on July 11, 2012, a jury found Harrington guilty of all nine counts.

On Wednesday the Court sentenced Mr. Harrington to 30 days in jail and three years' probation, and imposed a $1,500 fine. Judge Timothy Gerking also ordered that the headgates holding back the water be opened and kept open with locks and chains. He also ordered the dams to be breached after the water is drained.

"Mr. Harrington has operated these three reservoirs in flagrant violation of Oregon law for more than a decade," noted OWRD Deputy Director Tom Paul. "We rely on the judicial system to maintain the rule of law and the Court's conviction and sentencing in this case has done just that."

Officials with the Department, in conjunction with the State Police, plan to visit the site during the next several days in order to confirm Harrington's compliance with court orders.

Attorney General Ellen Rosenblum Announces Adoption of Rules for Home Mortgage Loan Servicers Rules provide guidance for consumers and industry

Attorney General Ellen Rosenblum announced today that the Oregon Department of Justice has adopted rules that regulate the conduct of home mortgage loan servicers. The rules adopted today are intended to clearly identify conduct that violates the Oregon Unlawful Trade Practices Act, a consumer protection law that has been in effect since the 1970s.

In announcing today's adoption of the rules, Attorney General Rosenblum said, "We appreciate the input we received in the rulemaking process and we are committed to continuing discussions so we have rules that protect Oregon homeowners, while providing clear guidance to loan servicers."

The Department of Justice adopted temporary rules in February 2012 and then proposed more detailed servicer rules that were modeled after servicer standards included in a nationwide settlement agreement with the nation's five largest loan servicers. The Department initiated a public hearing and comment process which concluded on July 17, 2012. Copies of the written comments may be found on the Department's web site: http://www.doj.state.or.us/consumer/foreclosure_fraud.aspx. As a result of that process, Attorney General Rosenblum, who took office on June 29, 2012, decided to adopt as permanent the temporary rules that had been in effect since February. In addition, the Department will reinitiate the rulemaking process to explore whether any changes are needed to the rules adopted today, as well as any need for more detailed servicer rules.

Oregon Department of Consumer and Business Services Director Patrick Allen said, "I look forward to working with the Attorney General to ensure consumers are protected and we maintain a healthy mortgage market."

The rules adopted today place no new obligations on local banks and credit unions but make it unlawful for a mortgage loan servicer to:

1. Assess a late fee or delinquency charge for a full payment made on or before the payment's due date or within the grace period applicable for the payment;
2. Assess or collect any default-related fee or charge that the servicer is not legally authorized to assess or collect under the terms of the residential mortgage loan, deed of trust, or mortgage;
3. Misrepresent to a borrower any material information regarding a loan modification;
4. Misrepresent any information set forth in an affidavit, declaration, or other sworn statement detailing a borrower's default and the servicer's right to foreclose;
5. Fail to comply with the notice provisions of a federal law known as the Real Estate Settlement Procedures Act; or,
6. Fail to deal with a borrower in good faith.