The state is warning Hawaii homeowners to beware of illegal foreclosure "rescue" services after suing but not stopping a local company accused of fraudulent practices.

A Maui Circuit Court judge issued a written order Tuesday finding the owner of Francha Services LLC, Edna A. Franco, in contempt of court for failing to comply with a preliminary injunction ordering her to cease offering her services last year.

The injunction was issued in July 2012, but Franco admitted to having continued contact with about 480 Hawaii consumers in connection with home foreclosure actions, the order said.

Judge Rhonda Loo imposed a civil fine against Franco of $1,000 per day until Franco proves to the court that she is complying with the injunction. The fine began accruing on July 25, 2012, and would be about $430,000 to date.

Officials with the Office of Consumer Protection, a division of the state Department of Commerce and Consumer Affairs that sued Franco, believe Franco has not stopped operating. Loo’s order said there is no evidence indicating Franco ever intends to comply with the order.

"There is clear and convincing evidence that (Franco) has been and is likely continuing to engage in the prohibited conduct," the order said.

In one instance last October, Franco, whose business is based on Hawaii island, visited a distressed homeowner in Kalihi offering to conduct a $3,500 "forensic audit" that would save the person’s home, according to the order. The order said Franco required payment first, which violates the state’s Mortgage Rescue Fraud Prevention Act established in 2008.

The Office of Consumer Protection said Franco targeted homeowners on Maui, Oahu and Hawaii island who were asked to pay a "substantial advance fee" that was followed by little if any work to complete promised services.

"Judge Loo’s order finding Franco in contempt reflects the severity of Franco’s irresponsible conduct and recognizes that charging at-risk homeowners illegal advance fees to save their house from foreclosure can inflict severe economic and emotional harm upon these vulnerable families," Bruce Kim, the office’s executive director, said in a statement.

Advertising by Franco’s company said the firm used certified forensic loan auditors or analysts who can discover possible violations in loan documents that can be challenged in court.

The state advises that anyone seeking foreclosure prevention help should avoid any business that:

» Collects a fee in advance.

» Instructs you not to contact your lender, lawyer or a credit or housing counselor approved by the federal Department of Housing and Urban Development.

» Recommends that you stop making mortgage payments or instead send the payments to the rescue service provider.

» Promises it can stop the foreclosure process.

» Pressures you to sign papers, especially if you don’t understand them or haven’t read them thoroughly.

The Mortgage Rescue Fraud Prevention Act requires a written contract spelling out services and fees to be charged for such services.

Kim’s office suggests that people who believe they have been victimized by a mortgage rescue scam should call 587-4272 if they have not filed a complaint. On Maui the number is 243-4648. Hawaii island residents may call 933-0910.

The state operates the Hawaii Foreclosure Information Center, which can be reached at 587-3222 or toll-free at 800-394-1902. The center is also online at www.HFIC.hawaii.gov and provides free services.