Illinois AG files consumer fraud lawsuit against contractor

Chicago, IL: One man and five repair and mortgage companies were named in a consumer fraud lawsuit for allegedly bilking approximately $1.3 million in equity from area homeowners.

The Illinois attorney general's office filed the lawsuit in Cook County Circuit Court on Tuesday, September 15, against Mark Diamond and three home repair companies: United Construction of America, United Residential Services and Real Estate, and Skyway Builders #1. Also named in the suit were two finance companies: OSI Financial Services and Harbor Financial Group.

In all, the attorney general's office claims the group defrauded 36 Chicago homeowners who were reported as being either elderly or African American, and living in the city's west and south sides respectively, the Chicago Tribune reports.

The suit says the group violated the state's consumer fraud act.

According to the lawsuit, Diamond allegedly offered to refinance mortgages at lower interest rates or promised to lower monthly payments. He reportedly encouraged homeowners to take equity out of their homes for repairs, which were done by the companies named in the suit.

Diamond then allegedly pocketed a portion of the funds. The promised repairs were reportedly never done.