Lawyer Pleads Guilty In Mortgage Assistance Fraud Case, Faces 20 Years In Prison

Steven Barry Ruza (Booking Photo)

PONTIAC (WWJ/AP) - A lawyer accused of stealing hundreds of thousands of dollars from Michigan residents who were facing mortgage foreclosures is facing prison time and hefty restitution after pleaded guilty in the case.

Michigan Attorney General Bill Schuette says 52-year-old Steven Barry Ruza and his company, Home Legal Group, issued a guilty plea earlier this month to a felony charge of conducting a criminal enterprise. Ruza had been facing 30 felony charges.

As part of the plea deal, Ruza is expected to serve between 24 months and 20 years in prison on the racketeering charge. He must also pay $250,000 in restitution to his victims by September 22, with the possibility of additional restitution at the judge's determination. Sentencing is scheduled for Oct. 15.

Schuette's office says Ruza, of Orchard Lake, and his company promised people that they could obtain mortgage modifications and save their homes from foreclosure but then did nothing, or very little, to obtain the mortgage modifications. Officials say at least 114 victims were involved. Most lost their homes due to foreclosure.

"Scams that take advantage of Michigan residents trying to save their homes are unacceptable," Schuette said in a statement. "These are hardworking men and women who needed a little bit of extra help. Instead of help, they got cheated out of money they could not afford to lose."

Ruza's guilty plea ensures that he cannot operate as an attorney or run this kind of business again in the future, Schuette added.

Citizens who believe they may have been victims of Ruza or Home Legal Group are encouraged to file complaints with the Attorney General's Office at www.michigan.gov/ag.

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