California State Bar Shuts Down Two Outfits Allegedly Running Bogus Loan Modification Schemes

In Southern California, The Orange County Register reports:

• The California State Bar said [Tuesday] it shut down the loan modification businesses of two men for allegedly lying to consumers about being supervised by attorneys. The bar, which acted with the Orange County Superior Court in this case,(1) has worked with other state and local officials to crack down on companies promising homeowner aid but not delivering it.

• The bar alleges Curtis Melone of Huntington Beach and Christopher Fox of Redondo Beach promised to help homeowners facing foreclosure keep their properties but did nothing. [...] Their operations were halted on Dec. 21.

• The duo operated under the names Guardian Credit Services, Green Credit Solutions, Green Credit Services, Erickson Law Group, Green Credit Law and PacWest Funding. A Web search indicates the companies were based primarily in Foothill Ranch and Irvine.

For the story, see State bar closes mortgage-aid firms.

For a follow-up story, see Judge permits closure of mortgage-aid firms:

• The seizure of a handful of mortgage-aid companies operated by two men was made permanent [Wednesday] by Orange County Superior Court Judge Frederick Horn. The Judge granted a petition by the California State Bar, which closed on Dec. 21 the operations of Curtis Melone of Huntington Beach and Christoper Fox of Redondo Beach.

(1) According to the story, Section 6126.3 of the California Business and Professions Code gives authority to a superior court, on its own motion or upon application of the State Bar, to assume jurisdiction of the business of a person who is not a lawyer. Assumption of a law practice by a Superior Court is based upon the court finding that a person has engaged in the practice of law without being an active member of the State Bar or otherwise authorized to practice in California and that the interest of a client or interested person or entity will be prejudiced if the court does not assume jurisdiction, the story states.