DFI Enters Charges Against Five Businesses - Seeks To Prohibit Use Of False, Deceptive, And Misleading Mortgage Advertising

Four mortgage lenders, one mortgage broker, and six control persons charged; Department seeks future advertising compliance, $700,000 in fines, and recovery of investigative costs and fees

Olympia – The Consumer Services Division of Washington’s Department of Financial Institutions took action to remind its licensees that false, deceptive, and misleading mortgage advertising is still illegal in Washington, that violators will be prosecuted, and that significant sanctions will be imposed. Charges were entered against:

  • Intercontinental Capital Group, Inc. of Jericho, New York, and its owner, Dustin DiMisa
  • Prime Choice Funding, Inc. of Tustin, California, and its owner, Keith McKay
  • Low VA Rates, LLC of Lindon, Utah, its owner, Eric Kandell, and its VP of Compliance, KC Smalley
  • Winnpointe Corporation of Orange, California, and its owner, Evette DeLong
  • Global Equity Finance, Inc. of San Diego, California, and its owner, Cornell Hough

“Washington’s consumers are being inundated with deceptive mortgage advertising,” DFI Consumer Services Director Charles E. Clark said. “While marketing is an essential part of business, deceptive marketing harms both consumers and compliant businesses.”

The Department has provided notice that it intends to seek affirmative relief in the form of improved compliance policies, procedures, and testing systems designed to detect, and prevent, future advertising violations.

“It’s easy for companies to send thousands of advertising mailers to Washington citizens,” added DFI’s Director Scott Jarvis. “In mass mailings of deceptive materials, the potential for consumer and competitor harm is high, and we will not tolerate companies ignoring restrictions on advertising that protect Washington consumers from deceptive tactics.”

In addition to requiring the companies to improve their advertising compliance, the Department intends to impose $700,000 in fines.

“In imposing these fines,” Clark continued, “we are seeking to deter future violations of state and federal advertising laws.”

The Department seeks to impose the following fines:

Company Principals Location Fine
Intercontinental Capital Group, Inc. Dustin DiMisa Jericho, NY $100,000
Prime Choice Funding, Inc. Keith McKay Tustin, CA $200,000
Low VA Rates, LLC Eric Kandell and KC Smalley Lindon, UT $100,000
Winnpointe Corporation Evette DeLong Orange, CA $100,000
Global Equity Finance, Inc. Cornell Hough San Diego, CA $200,000

Statement of Charges

Note: The charges are not a finding or order that any respondent has actually violated the law; rather, each of the named respondents has the right to request an administrative hearing on the allegations.

Samples of Deceptive Solicitations