Disbarred Lawyer, Two Others Charged With Grand Theft By False Pretense, Conspiracy For Allegedly Screwing 400+ Struggling Homeowners In Loan Mod Scam

In Orange County, California, The National Law Journal reports:

• An ex-lawyer in Irvine, Calif., has been arrested on charges of defrauding more than 400 victims in a $1.25 million loan modification scam targeting struggling homeowners. According to the Orange County, Calif., district attorney's office, Christopher Lee Diener, 42, along with two business partners, defrauded homeowners by promising loan modification services in exchange for advance payments. The trio allegedly told customers that they would guarantee their loan modifications, negotiate lower rates with lenders, reduce the principal on their mortgages and have lenders forgive second mortgages or late fees.

• The accused, who were neighbors, operated under the names Home Relief Services LLC, U.S. Loan Mod Processing, HRS Communications, The Diener Law Firm and Diener Law Group, according to the district attorney's office. Diener allegedly served as the attorney in the scheme. Also arrested was one of Diener's business partners, Terrence Green Sr. Diener and Green are each being held on $1.5 million bond and are expected to be arraigned on Tuesday in Santa Ana, Calif. Each faces one count of conspiracy to commit grand theft and 97 counts of grand theft by false pretense -- both felonies. They face a state prison sentence of up to 70 years. A $1.5 million warrant has been issued for the arrest of the other business partner, Stefano Joseph Marrero.

• Diener lost his license to practice law in October after the State Bar of California found that his conduct posed "a substantial threat of harm to his clients or the public." California Attorney General Jerry Brown has filed a civil suit against all three defendants.(1)

Source: Former Attorney, Business Partners Charged in Loan Modification Scam.

For the Orange County District Attorney press release, see Lawyer And Business Partnet Arrested On Charges Of Defrauding Over 400 Homeowners In $1.25 Million Loan Modification Scam (A warrant has been issued for a third co-defendant in this case).

(1) According to the Orange County DA's press release on this case, Diener and Green are being held on $1.5 million bail each and, before posting bond, must prove the money is from a legal and legitimate source. This case has been a collaborative effort between the Orange County District Attorney’s Office, the State Bar of California, the Department of Real Estate, and the California Attorney General’s Office.