Attorney General Matthew J. Platkin and the New Jersey Division of Consumer Affairs have announced a $2.8 million settlement with MV Realty, resolving allegations that the Florida-based company violated state consumer protection laws. The state’s lawsuit claimed MV Realty deceived more than 1,200 New Jersey homeowners into signing “Homeowner Benefit Agreements” (HBAs) that placed liens on their properties and imposed strict terms in exchange for small one-time cash payments. Of those affected, 140 residents paid early termination fees ranging from $575 to $42,000 to exit these agreements.
Under a consent judgment filed in Essex County Superior Court, MV Realty PBC, LLC and its New Jersey affiliate, along with principals Amanda J. Zachman (formerly Zuckerman), David Manchester, David Reiner, and Antony Mitchell (also known as Tony Mitchell), agreed to stop entering into HBAs with New Jersey consumers. They also agreed to cease enforcing existing HBAs in the state—including efforts to recover early termination fees or other payments—and must file terminations of any liens placed on homeowners’ properties. The settlement includes a $1.5 million civil penalty and requires payment of $1,344,122 in restitution to fully reimburse homeowners who paid early termination fees.
“During the COVID-19 pandemic, MV Realty targeted financially struggling homeowners in a deceptive scheme that locked up equity in their most valuable asset – their homes,” said Attorney General Platkin. “This settlement frees New Jerseyans from the unlawful liens MV Realty placed on their homes, provides monetary relief to those who suffered financially in this scheme, and holds MV Realty accountable for its deceptive practices.”
Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs, stated: “This settlement underscores New Jersey’s commitment to halting unscrupulous business practices in our state and providing justice to consumers affected by the unlawful conduct. Any company doing business in New Jersey must abide by our consumer protection laws or face significant consequences.”
The lawsuit filed by the state alleged that during the COVID-19 pandemic, MV Realty made unsolicited telemarketing calls—despite not being registered as telemarketers—to offer quick cash through its so-called “Homeowner Benefit Program.” Homeowners were offered between $300 and $5,000 upfront if they agreed to let MV Realty serve as their future real estate agents.
Although marketed as “more than stimulus,” the program was not presented as a loan; homeowners were told there was no obligation to repay or sell their home. However, according to the complaint, critical details were not disclosed: the agreements operated like high-interest mortgage loans; a lien would be placed against homes; contracts lasted 40 years; obligations extended to heirs; and an early termination fee—at least 3% of property value—could be triggered under several conditions such as selling with another agent or transferring ownership.
The complaint further alleged violations of New Jersey’s Consumer Fraud Act and regulations related to advertising and telemarketing.
Deputy Attorneys General Christopher Meyer, Claire Corea, Scott Jacobson, and Conor Vance represented the Division of Consumer Affairs in this matter under supervision from Assistant Section Chief Chanel Van Dyke and Section Chief Jesse J. Sierant. Investigators Renee Salikram and Walter Kaminski conducted the investigation for the Office of Consumer Protection within the Division.
