Wednesday, June 02, 2010

Mess Caused By Sloppy Lenders, Foreclosure Mills Deepens In Florida As Ambiguity In Recent State High Court Ruling Adds Confusion To Legal Process

In Central Florida, the Sarasota Herald Tribune reports:
  • An attempt to fix the sloppy legal work plaguing thousands of foreclosure cases in Florida has been ineffective, and has now caused a legal mess of its own. The Florida Supreme Court got tough on attorneys for banks and lenders in February, responding to stories of homeowners losing their property based on shoddy or incomplete paperwork. The incomplete filings also wasted judicial resources and clogged up the courts.

  • To combat that, a new rule enacted by the high court requires the attorney or bank filing a foreclosure to verify -- under penalty of perjury -- that the allegations and paperwork are accurate when a residential property is at stake. But attorneys have not followed the rule. Some contend they do not have to, arguing that the Supreme Court said the rule was not in effect yet.

***

  • A court-sanctioned review of hundreds of residential foreclosure filings in Sarasota and Manatee counties -- unofficially dubbed "Stop the Slop" -- found that nearly all the lawsuits lacked basic documentation. Of the 52 cases in the first round of review in Sarasota, all lacked the new verification requirement or other proof the bank is entitled to take the property, an attorney who reviewed the cases says. Backed by local Chief Judge Lee Haworth, who served on the state task force that recommended the new rule, judges in Manatee and Sarasota counties used the new rule to throw out dozens of foreclosure complaints in the past month.

  • But Miami attorney [Gerald] Richman, who represents banks and lenders, contacted Haworth last week and told him he and the other judges were jumping the gun. The confusion results from the wording of the Supreme Court's ruling. [...] The confusion sent Haworth backpedaling last week, after Richman said his client would appeal the tossing of the cases. Haworth temporarily suspended that part of the "Stop the Slop" program Friday, saying he was not alone in having questions.

***

  • Foreclosure defense attorneys had already pointed to Haworth's "Stop the Slop" program as an example that should be followed across the state. Haworth said he will continue policing foreclosure documents aside from the Supreme Court verification requirements.

For the story, see Legal mess over foreclosures deepening.

Use Of "Homemade Mortgage Modifications" Reduces Some Borrowers' House Payments To $0; "Free Rent" Approach To Loan Obligations May Be On Upswing

In St. Petersburg, Florida, The New York Times reports:
  • A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by.

  • This type of modification does not beg for a lender’s permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads.

***

  • While there are no firm figures on how many households are following the [] path of passive resistance, real estate agents and other experts say the number of overextended borrowers taking the “free rent” approach is on the rise. There is no question, though, that for some borrowers in default, foreclosure is only a theoretical threat for a long time.

  • More than 650,000 households had not paid in 18 months, LPS [Applied Analytics] calculated earlier this year. With 19 percent of those homes, the lender had not even begun to take action to repossess the property — double the rate of a year earlier.

  • In some states, including California and Texas, lenders can pursue foreclosures outside of the courts. With the lender in control, the pace can be brisk. But in Florida, New York and 19 other states, judicial foreclosure is the rule, which slows the process substantially.

***

  • [F]or borrowers like Jim Tsiogas, the benefits of not paying now outweigh any worries about the future. “I stopped paying in August 2008,” said Mr. Tsiogas, who is in foreclosure on his house and two rental properties. “I told the lady at the bank, ‘I can’t afford $2,500. I can only afford $1,300.’”

  • Mr. Tsiogas, who lives on the coast south of St. Petersburg, blames his lenders for being unwilling to help when the crash began and his properties needed shoring up. Their attitude seems to have changed since he went into foreclosure. Now their letters say things like “we’re willing to work with you.” But Mr. Tsiogas feels little urge to respond. “I need another year,” he said, “and I’m going to be pretty comfortable.”

For more, see Owners Stop Paying Mortgages, and Stop Fretting.

Improper Mortgage Assignment By Now-Defunct Originating Lender Could Lead To Free Home For Delinquent Borrower, Says Foreclosure Defense Attorney

In Fayetteville, Arkansas, The City Wire reports:
  • The Legal Aid [of Arkansas] folks held [a] seminar in April in hopes of training attorneys interested in joining the effort to defend against foreclosures. First and foremost, seminar attendees learned that the worst mistake someone facing foreclosure can make is to take no action.

***

  • April Carrie Charney, senior staff attorney at Jacksonville, Fla., Area Legal Aid and a Legal Aid of Arkansas alum, said people going through the foreclosure process do have defenses. She signed on as a seminar presenter for the purpose of passing on some techniques that have been successful in Florida to Arkansas attorneys. “I'm going to fill up their quivers with more arrows than they'll ever need to stop or prevent foreclosures,” she promised prior to the seminar.

***

  • [C]harney said[] a good number of mortgages simply aren’t transferred correctly. Let’s say, for example, Joe Borrower takes out a mortgage through Fred’s Bank and Trust. Mortgages, quite often, are bundled up and put into trusts to provide a basis for investment in the mortgage-backed securities market. Fred’s Bank and Trust goes out of business and Joe Borrower’s loan goes into default -—if the mortgage was not transferred correctly into the aforementioned trust, who has standing to bring a foreclosure action?

  • With Fred’s Bank out of business, can anyone legitimately bring a foreclosure action? In some cases, might the borrower wind up with a house free and clear of any mortgage obligation?

***

  • Whether we’ll see lawyers in Arkansas jump up and start aggressively defending against foreclosures is anyone’s guess. It also remains to be seen how the courts will react to some of the tactics suggested by Charney. Still, we do know there are a lot of foreclosures out there and it appears Arkansas attorneys are starting to take a hard look at how to fight them in court — and make a few bucks in the process.

For the story, see Foreclosure rights.

Tuesday, June 01, 2010

Michigan Man Faces Larceny Charges In Alleged Ripoff Disguised As Loan Modification Help

In Washtenaw County, Michigan, AnnArbor.com reports:
  • He offered to help struggling homeowners save their Saline homes from foreclosure, but authorities say all Bryan Crevier delivered were empty promises and widespread fraud. Crevier, 48, is charged with multiple counts of larceny for allegedly swindling nearly $10,000 from three Saline women within a few months in 2008.

***

  • Saline police began investigating Crevier in the spring of 2008 when three city residents reported he took money from each of them up front for loan refinancing services like closing costs, appraisals and fees. The women, ages 47, 58, and 60, were all friends dealing with financial hardship and were in danger of losing their homes.

  • Though he presented himself as a mortgage modification consultant and had each resident fill out official applications, Crevier never filed the women’s paperwork with lending institutions, police reports said. By the time they suspected him of fraud, Crevier had stopped returning their phone calls and e-mails. When officers visited his Troy home that fall, it was vacant and appeared abandoned, police said. [...] Crevier is also charged with one count of larceny by false pretenses of more than $20,000 in Macomb County.

For more, see Grosse Pointe man accused of swindling Saline residents out of money for foreclosure help.

Treasure Coast Duo Face Add'l Charges In Alleged Home Hijacking Racket; Took Control Of Vacant Homes In Foreclosure, Rented Them To Unwitting Tenants

In Port St. Lucie, Florida, TC Palm reports:
  • Two men arrested earlier this year after investigators linked them to a scheme in which a home was rented to a family without the homeowners’ knowledge now each face more than a dozen additional charges, according to recently released records and a detective.

  • Robbie Jay Hughes, 36, and Issiac Rivers, 46, were arrested in early February after police accused them of renting a home in foreclosure to a family in September 2009. Following media coverage of the arrests, police received complaints of similar incidents involving the men, a warrant application states. “They would drive throughout the city, find foreclosures, or, since Robbie Hughes was a Realtor he had access to the computer and locating foreclosures due to his license,” Port St. Lucie Police Detective Kim Bailey said.

  • In general, Bailey said if the homes needed maintenance, such as pool cleaning or lawn care, arrangements were made for that to be done. The men would break into the homes and change the locks, affidavits stated, and they mainly accepted cash or money orders.

For the story, see Port St. Lucie police add additional charges to suspects in home foreclosure fraud case.

Philly Court Provides Online Forms For Victimized Homeowners Seeking To Undo Effect Of Forged Documents In Home Title Ripoffs

In Philadelphia, Pennsylvania, the use of forged documents to rip off people's houses is apparently serious enough that the local court system has made available online a "fraudulent conveyance, quiet title" packet, a 22-page set of forms and instructions enabling area homeowners to initiate quiet title lawsuits without an attorney to properly restore the title to their homes in their names. If the homeowner is broke and can't afford the filing fees and other costs associated with filing a lawsuit, there's a form included in the packet that can be used to ask a judge to allow the matter to go forward without paying these fees and costs.

Go here for the fraudulent conveyance, quiet title packet.

Monday, May 31, 2010

Ocwen Throws In The Towel; Gives Back Title To Home To Owner After Foreclosing Despite Debt Being Fully Paid Off

In Greenfield, Indiana, WRTV-TV Channel 3 reports:
  • A woman who said she had no idea that her house had been put up for foreclosure even though the mortgage was paid off is relieved that a loan servicing company has backed off after years of struggle.

***

  • The Army veteran said she didn't know that Florida-based Ocwen Financial Corporation had sought foreclosure. The company was given the deed to the home and asked a court to remove Elliott and her family in June 2007. In November 2006, a court had sided with Ocwen, and the home was sold in a sheriff's sale in February 2007.

***

  • Elliott filed a complaint with the Indiana Attorney General's Office and the Comptroller of the Currency, which regulates national banks. "She stayed in the home and defended it," said Tom Williams, Elliott's lawyer.

  • Elliott's case advanced to the Indiana Court of Appeals, where the court gave a stinging response to the companies for their actions and questioned their motivation. “The Kafkaesque character of this litigation is difficult to deny,” the judges said in their opinion. The foreclosure remained on hold, and the case was sent back for a trial.(1) [...] Ocwen Financial Corporation dropped its lawsuit a couple of weeks ago.

For the story, see Woman Celebrates End Of Foreclosure Fiasco (Loan Servicer Sought Foreclosure Despite Proof Mortgage Was Paid).

(1) For the ruling of the Indiana Court of Appeals, see Elliott v. JPMorgan Chase Bank, 920 N.E.2d 793; 2010 Ind. App. LEXIS 99 (Ind. Ct of App., February 3, 2010).

BofA Continues Out-Of-Control Seizing Of "Mortgage-Less" Homes; Refuses To Correct Screw-Up Until Media Intervenes

In Tuolumne, California, KCRA-TV Channel 3 reports:
  • Nancy Willmes paid cash for her Tuolumne home in 2001. So she was quite surprised when Bank of America send her a notice of default on the property in February. "I honestly felt like Bank of America was trying to steal my property," Willmes said. She contacted Bank of America to try to find out why the bank believed it could foreclose on property she had purchased outright.

  • Willmes has chain-of-ownership records, which show Bank of America had sold the property to Fannie Mae years earlier. Fannie Mae foreclosed on the previous owner, and Willmes purchased the property with cash from Fannie Mae. But Willmes said Bank of America did not care about the documentation. The bank proceeded with the foreclosure, placing ads in the local paper and nailing a foreclosure notice to her door.

  • "I called the title company, the title company called B of A, and they refused to rescind it," Willmes said. Fearful she would lose her home to the bank, Willmes called KCRA Call 3, and a Call 3 volunteer contacted Bank of America. Willmes said that's when Bank of America began returning her phone calls. The bank rescinded the notice of trustee sale, stopping the foreclosure. In a statement to KCRA 3, Bank of America said the problem was a system error. It said it updated its records and canceled the sale.(1)

For more, see Bank Tries To Foreclose On Owned Home (Tuolumne Woman Owns Home Outright).

(1) For other posts on Bank of America's seemingly relentless pursuit of homes that they have no legal claim to, see:

Lenders To Find Themselves In Crosshairs Over Premature, Illegal Evictions Of Foreclosed Homeowners

In Chicago, Illinois, Chicago Public Radio reports:
  • [Sam] Frazier's house had been sold at a foreclosure auction just the day before he was locked out of it. But in Illinois, that sale doesn't automatically transfer ownership of a house. A judge still has to issue an order that confirms the sale was done properly, and also to say how much longer the homeowner may continue to live there -- usually 30 days.

***

  • Kelli Dudley has been practicing consumer and foreclosure law for nearly a decade. She and two other attorneys have taken on Frazier's case, and they say they're seeing a number of similar stories. They're trying to identify common threads in these cases to mount a class-action lawsuit. Right now, their big target is U.S. Bank, based in Minneapolis. Dudley says it probably wasn't anyone from US Bank who boarded up Frazier's home, but she asserts the bank is ultimately responsible when any of its agents, or agents of its agents, do something illegal.

***

  • Dudley says there's another thing about these cases they're seeing. "Even if there is an order of possession, we've still got the hurdle to get over that only the sheriff or the authorized person can do the eviction." Frazier says the man who locked him out of his home wouldn't give any ID, but Frazier says he certainly wasn't from the Cook County Sheriff's department.

For more, see Homeowners Struggle to Challenge Premature Evictions.

Sunday, May 30, 2010

Active Duty Texan Returns Home To Find $300,000, Free & Clear Residence Sold Out From Under Him By HOA Over $800 Unpaid Fee

In Frisco, Texas, Mother Jones reports:
  • Michael Clauer is a captain in the Army Reserve who commanded over 100 soldiers in Iraq. But while he was fighting for his country, a different kind of battle was brewing on the home front. Last September, Michael returned to Frisco, Texas, to find that his homeowners' association had foreclosed on his $300,000 house—and sold it for $3,500. This story illustrates the type of legal quagmire that can get out of hand while soldiers are serving abroad and their families are dealing with the stress of their deployment. And fixing the mess isn't easy.

***

  • In Texas, homeowners' associations can foreclose on homes without a court order, no matter the size of the debt. In May 2008, the HOA sold the Clauers' home for a pittance—$3,500—although its appraisal value was $300,000, according to court documents. The buyer then resold the house to a third person. [...] In August 2009, the new owner sent the couple an eviction notice, according to court records filed in the case.

***

  • There are a bevy of laws that are supposed to protect servicemembers from losing their homes or jobs while they're on active duty, including the Servicemembers Civil Relief Act (SCRA). The homeowners' association's lawyer filed an affidavit wrongly claiming that neither of the Clauers was on active duty, says Barbara Hale, the couple's lawyer. Hale is seeking to have the court reverse the foreclosure and declare it "null and void," she says.(1)

  • In the meantime, the Clauers have obtained an agreement allowing the family to stay in the home, Hale says. She's "confident that the courts will sort this out and do the right thing," but notes that the drawn-out legal process must be stressful for the Clauers. [...] "It's ridiculous how much this is costing us," he says. "I'll be taking out a mortgage on my house that was free and clear just to try to get my house back."

For more, see Soldier in Iraq Loses Home Over $800 Debt (Capt. Michael Clauer's homeowners' association foreclosed on his family's $300,000 house and sold it for $3,500).

See also, WFAA-TV: Back from Iraq, Frisco soldier finds home sold by HOA.

(1) One legal issue that this case could turn on is whether the false affidavit reportedly filed by the foreclosure attorney claiming that neither of the Clauers was on active duty is absolutely void (ie. void ab initio), or whether it is merely voidable.

If found to be absolutely void, an argument can be made that the foreclosure sale, which was based on the void afidavit, is also absolutely void, meaning that the foreclosure sale and the subsequent sale of the property to a third party could conceivably be wiped out.

If the false affidavit is found to be merely voidable, however, the foreclosure sale and subsequent sale to the 3rd party purchaser will also be considered voidable (as opposed to absolutely void). In that event, successfully wiping out these interests could turn on whether the foreclosure purchaser and subsequent purchaser are entitled to the protection of the recording statutes as bona fide purchasers. Since it appears that neither Captain Clauer nor his wife relinquished possession of the home throughout the process, and Mrs. Clauer remained in continuous physical possession thereof, this possession could arguably create, under Texas law, a legal duty on the purchasers to ascertain the rights of the third-party possessor. If a court finds that such an inquiry would have lead to the discovery of the fact that Captain Clauer was on active military duty during the relevant period, the purchasers could be found to be on constructive notice that the foreclosure sale may have been conducted in violation of the Servicemembers Civil Relief Act, which generally prohibits a foreclosure sale of a servicemember's home while on active duty. See Madison v. Gordon, 39 S.W.3d 604; 2001 Tex. LEXIS 5; 44 Tex. Sup. J. 410, (Tex. 2001):

  • One purchasing land may be charged with constructive notice of an occupant's claims. This implied-notice doctrine applies if a court determines that the purchaser has a duty to ascertain the rights of a third-party possessor. See Collum v. Sanger Bros., 98 Tex. 162, 82 S.W. 459, 460 (Tex. 1904); American Surety Co., 82 S.W.2d at 183. When this duty arises, the purchaser is charged with notice of all the occupant's claims the purchaser might have reasonably discovered on proper inquiry. Dixon v. Cargill, 104 S.W.2d 101, 102 (Tex. Civ. App.--Eastland 1937, writ ref'd); see also Flack, 226 S.W.2d at 632. The duty arises, however, only if the possession is visible, open, exclusive, and unequivocal. See Strong v. Strong, 128 Tex. 470, 98 S.W.2d 346, 350 (Tex. 1936).

See footnote 2 in this post for more on the effect of possession by one other than the seller on imputing constructive notice on a purchaser of real estate under Texas law. For other states, see Bona Fide Purchaser Doctrine, Possession Of Property By Occupants Other Than The Vendor & The Duty To Inquire.

Among other legal issues that could impact on the Clauers' ability to get back their home are:

  1. Was there a violation of the Federal Servicemembers Civil Relief Act in carrying out the foreclosure sale and, if so, does said violation make the foreclosure sale and any subsequent conveyances absolutely void, or merely voidable?
  2. Was the foreclosure sale price so low (home with equity of $300K sold for $3,500) so as to "shock the conscience," and, if so, does this fact make the foreclosure sale and any subsequent conveyances absolutely void, or merely voidable? (In this regard, there is a general rule in the foreclosure law of some states that says that where the price realized at a foreclosure sale is so inadequate as to shock the conscience, it may itself raise a presumption of fraud, trickery, unfairness, exploitation, overreaching, or culpable mismanagement, and therefore be sufficient ground for setting the sale aside. See, for example, Berry v. Deutsche Bank National Trust Company, No. 2080840 (Ala. Civ. App., May 14, 2010)).
  3. In this story, there is only a brief mention that a certified letter was mailed. No mention on whether the homeowners actually received it and, if not, what other steps the HOA took to notify them. The issue here would be whether the notice of the foreclosure action given to the homeowners was "notice reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections." Jones v. Flowers, 547 U.S. 220, 126 S. Ct. 1708 (2006) (quoting Mullane v. Central Hanover Bank & Trust Co., 339 U. S. 306, 314 (1950) "An elementary and fundamental requirement of due process in any proceeding which is to be accorded finality is notice reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections. [citations omitted].")

    If the notice of sale is found by a court to be absolutely void, the foreclosure sale likewise would be found void. (Go here for the links to the transcript of the oral argument, and the various briefs filed in Jones v. Flowers, referenced above, filed by the Public Citizen Litigation Group attorneys who successfully represented, in the U.S. Supreme Court, a homeowner in connection with the lousy method used to give notice of a pending action that led to the loss of his home in a tax sale.)

Retired Lawyer Summoned To Undo Bad Deed That Victimized Elderly Homeowner; Unwinds Home Title Ripoff, Forces Bank To Restore Cash From Drained Acct.

Buried at the end of a recent New York Law Journal story on the push to advance attorney pro bono efforts to represent the poor in civil cases is this excerpt on one retired lawyer who became involved in the program:
  • Roger Hawke, 74, began volunteering for Legal Aid in Brooklyn the day after he retired as a partner for Sidley Austin, for which he handled litigation worth billions of dollars. "I just couldn't see myself getting up every day and saying, 'what am I going to do today?'" he said.

  • Two and sometimes three days a week, he advocates for the elderly in cases where $10,000 can determine a major change in the quality of a person's life. In one case, someone forged an elderly client's power of attorney, transferred ownership of his house and cleaned out his bank account. Hawke brought successful actions to quiet title and force the bank to restore the funds.

Source: N.Y. Chief Judge Boosts Efforts to Tap Retired Lawyers for Pro Bono (Judge Jonathan Lippman said that the graying of the bar presents a 'window of opportunity' for encouraging pro bono).

NYS Chief Judge Continues Push For "Attorney Emeritus" Program To Bring Free Legal Help To Poor New Yorkers In Civil Cases

In New York City, the New York Law Journal reports:
  • The New York court system has enlisted more than 120 retired lawyers since January to offer free legal advice and representation to poor New Yorkers in foreclosure, debt collection, housing, family and other civil cases -- the first of what could be "thousands" of attorney volunteers, Chief Judge Jonathan Lippman said last week.

  • Lippman announced the appointment of an advisory council of 30 attorneys to develop a blueprint for his "attorney emeritus" program, which aims to achieve a "quantum jump" in pro bono activities by tapping a growing number of baby-boomer attorneys. The attorney emeritus program is intended as "a permanent piece of the puzzle" of providing adequate legal representation for the poor. It is designed to complement efforts to develop more reliable financial support from Albany for legal assistance organizations.

  • Participants -- retired lawyers in good standing who are at least 55 years old and have practiced law for at least 10 years -- pledge a minimum of 30 hours of unpaid assistance to low- and moderate-income clients each year. They are not subject to the state's $350 attorney registration fee or mandatory CLE requirements. They also receive free training and malpractice insurance coverage from the agencies or under the state Public Officers Law. Most important, Lippman said, they will get "a gold star on their chests" for taking on a role that has "status and meaning."

***

  • So far, 126 retired attorneys have signed up and are being connected to 53 participating legal services and pro bono activities around the state. But Lippman said that "it would not be overly optimistic" to project a corps of volunteers "in the thousands." [...] Lippman said that the graying of the bar presents a "window of opportunity" for encouraging pro bono, something he said that the courts previously have attempted only "on the margins." Many retirees "want to do something meaningful," he said, "but they don't know how to do it."

For the story, see N.Y. Chief Judge Boosts Efforts to Tap Retired Lawyers for Pro Bono (Judge Jonathan Lippman said that the graying of the bar presents a 'window of opportunity' for encouraging pro bono).

Real Estate Conveyances From Clients To Their Attorneys Are "Presumptively Fraudulent" Unless Lawyer Can Prove Otherwise

An old court ruling of the Missouri Supreme Court may come in handy for those who have been ripped off of their real estate by their attorneys and are seeking to undo the bad acts.

In this case, the client, Joseph, had suffered a stroke. Seven days before his death, Joseph executed a deed, presented by the attorney, conveying 275 acres of farmland, plus a 7/12ths interest in a 11.52 acre tract to the attorney and his wife, a niece of the soon-to-expire Joseph. The attorney had informed Joseph's sister, who was later appointed administratrix of her brother's estate, that he was doing this to avoid estate taxes. The notary who acknowledged the deed testified that there was no discussion concerning the contents of the papers at the time Joseph signed them.

The court held that the conveyance of the real estate from Joseph to the attorney was presumptively fraudulent, that the burden was on the attorney to prove the conveyance was fair and equitable, and that the attorney had not met this standard. The court rejected the attorney's argument that Joseph had not, individually, been a client and that he had only represented him in Joseph's capacity as co-guardian of a brother.(1)(2)

For the ruling, see Flanagan v. De Lapp, No. 59053, 533 S.W.2d 592, 1976 Mo. LEXIS 243 (Mo. 1976).

For an example of the kind of story in which the logic of this court ruling could come in handy, see Elderly Man Says Attorney Took His Lake House, in which an elderly Springfield, Tennessee man said a Nashville attorney had him unwittingly sign the title to his lake house away while he was recovering from a stroke.

(1) The foregoing summary of this court ruling is an adaptation of the LexisNexis(R) overview of the case.

(2) In arriving at this conclusion, the Missouri Supreme Court made the following statements regarding the applicable state law (bold text is my emphasis, not in the original text):

  • It is an almost universal rule that any client's transfer of his property to his attorney is subject to being set aside as resulting from undue influence unless the attorney is able to meet the burden of proving that the transaction was fair and equitable. In 7 Am.Jur.2d, Attorneys at Law, § 95 (1963), it is stated that "It is presumed that undue influence or fraud attaches to any assignment or conveyance that an attorney takes from his client while the relation of attorney and client exists." Similarly, 7 C.J.S., Attorney and Client, § 128 (1937) states:


    "* * * The general rule that all transactions and dealings between attorney and client are subject to close scrutiny and presumptively fraudulent or the result of undue influence applies with full force, however, to any purchase or acquisition by an attorney of his client's property. Hence, a transfer, conveyance, or assignment of property by a client to an attorney is subject to avoidance and being set aside as constructively fraudulent or the result of undue influence, except to the extent that it operates as a payment of reasonable and proper fees, if the attorney fails to discharge his burden by showing that the transaction was fair, equitable, and honest, for an adequate consideration, and that the client had the benefit of impartial advice or was fully informed of the nature and effect of his act so that he was in the same position as if he had dealt with a stranger. * * *"

  • See also 7 C.J.S., Attorney and Client, § 129 (1937); 7 Am.Jur.2d, Attorneys at Law, § 96 (1963). In Missouri the rule is in accord. It is stated in Laspy v. Anderson, 361 S.W.2d 680, 682 (Mo. 1962), as follows:


    "The law is well established in this state and elsewhere that public policy dictates the necessity to protect the confidential and fiduciary attorney-client relationship. Consequently, when a conveyance from a client to an attorney is attacked it is considered presumptively fraudulent and the burden is on the attorney to prove by convincing evidence that the transaction evidenced by the conveyance, as well as the conveyance itself, was fair and equitable in every respect. (Citing cases)."

  • Another Missouri case announcing such a rule is Bybee v. S'Renco, 316 Mo. 517, 291 S.W. 459 (1926). See also Cuthbert v. Heidsieck, 364 S.W.2d 583 (Mo. 1963).

***************

The attorney in this case attempted to defend himself by claiming he never represented Joseph in any individual matters, but only represented him in his capacity as a co-guardian for the estate of Joseph's brother. This defense fell on deaf ears, based on these Missouri Supreme Court's statements of law:

  • The conclusion we reach is in accord with the rule stated in 7 C.J.S., Attorney and Client, § 127b(3) (1937):


    "The rule that dealings between attorney and client are presumptively fraudulent is not restricted to contracts or dealings with respect to the rights or property involved in the particular transaction or proceeding in which the attorney is acting for the client, but it may extend to other transactions and contracts, where the relationship may be presumed to give the attorney some advantage over the client."

  • Similarly, in the case of Swaim v. Martin, 158 Ark. 469, 251 S.W. 26, 27 (1923), the court stated:


    "The rule that an attorney who contracts with his client has the burden of proving that no advantage has been taken of the situation of the latter is not restricted to contracts or dealings with respect to the rights or property in controversy in the particular proceeding in which the attorney is acting for the client, but it may extend to other transactions and contracts, where the relationship may be presumed to give the attorney some advantage over the client. * * *"

Pennsylvania AG Indicts Attorney In Alleged $550K+ Ripoff Of 90-Year Old Woman; Victim Gave Lawyer POA, Then Named Him Her Estate Executor

In Harrisburg, Pennsylvania, The Delaware County Daily Times reports:
  • Agents from the attorney general's office [] arrested a Montgomery County attorney for stealing nearly $555,000 from an elderly woman and, after her death, from her estate. He allegedly used the money to refinance his North Carolina beach house and to pay his credit card debt, authorities said. Attorney General Tom Corbett identified the defendant as Frank H. Morgan, Jr., 63, [...] a partner in the Norristown law firm of McTighe, Weiss, O’Rourke, Troncelliti and Morgan. Evidence and testimony regarding Morgan’s alleged illegal activity was presented to a statewide investigating grand jury, which recommended the criminal charges being filed.

  • The grand jury found that in February 2006, Rita Trish, a 90-year women living in a Gladwyne assisted living facility, gave Morgan power of attorney, which authorized him to act on her behalf in legal and business matters. Trish gave Morgan her power of attorney three weeks after her husband died. In April of 2006, Trish signed a will naming Morgan the executor of her estate, which gave him the authority upon her death to administer her will and to ensure that her final wishes were respected.

For more, see Montco attorney busted in $550G scam on senior citizen.

See also, Attorney accused of embezzling once again:

  • A Montgomery County attorney arrested [] for allegedly stealing nearly $555,000 from an elderly woman and her estate was once accused of similar crimes in Delaware County. In a 1992 civil suit, Frank H. Morgan Jr. was accused of funneling $152,000 from the estate of a New York man to Villanova University to cover his son’s tuition.

Saturday, May 29, 2010

Texas Woman Unwittingly Buys Home Slated For Tear-Down; Sues Firm For Subsequent Demolition After Deal Reached w/ City To Halt Action Pending Repairs

In Jefferson County, Texas, The Southeast Texas Record reports:
  • A Beaumont woman claims a demolition company razed a home she purchased despite an addendum ordering the company to refrain from such an action. Sandra Ledesma filed a lawsuit May 5 in Jefferson County District Court against Albert Dill doing business as Jay Dill Trucking.

  • Ledesma claims she purchased a home [...] in Beaumont on June 24 from Carl Adams for $15,000. Although she knew the home needed significant repairs, Ledesma did not realize the city of Beaumont had scheduled it for demolition until she attempted to obtain a permit for electrical work from the city on Sept. 21, according to the complaint.

  • "After talking with Quentin D. Price, the assistant city attorney for the City of Beaumont, Plaintiff entered into an agreement with the City of Beaumont wherein the City agreed that it would not demolish the structure located at 4070 Harding if a Certificate of Occupancy was obtained by November 22, 2009," the suit states. "This agreement was extended until December 22, 2009. On September 24, 2009, Plaintiff began repairs on the home."

  • Meanwhile, the city placed a notice for bids of the demolition of the home, which Dill accepted on Sept. 15, the complaint says. The city notified Dill on Sept. 22 that it could not demolish the structure pursuant to an injunction, Ledesma claims. Despite the notification, Dill demolished the home on Oct. 1, 2009, according to the complaint.

For the story, see House demolished despite injunction, lawsuit claims.

Hawaii Condo Associations Feel Pinch From Non-Maintenance-Fee-Paying Owners; Some Use Utility Shut-Offs To Persuade Delinquents Into Coughing Up Cash

In Maui, Hawaii, The Maui News reports:
  • Psst! Hey, buddy. Wanna buy a foreclosed condo in Wailea? One dollar! Believe it or not, it happens - but it can be a bad bargain. As more and more financially strapped apartment owners fall behind on their common area maintenance fees, condo associations find themselves feeling the pinch. The quitclaim foreclosure auction is just one of several unpleasant choices facing association boards when members quit paying their fees, which at upscale projects can easily run $1,000 a month.

***

  • Another tactic is to try to pressure the delinquent by shutting off the water, cable television or even electricity. Robert Miskae, past chairman of the Condominium Council of Maui, said that his group has been advised by one of Maui's leading condo law attorneys to avoid shutoffs, because of potential health and safety issues.

For more, see Isle condo boards get creative to obtain fees (As more financially strapped owners becoming delinquent, associations feel the pinch).

City Threatens "Drowning" Residents In 76-Unit South Florida Condo Complex With Water Shut-Off Followed By Eviction Over Unpaid Bill

In Margate, Florida, the South Florida Sun Sentinel reports:
  • Dozens of residents at the Atlantic Palms condominium complex could be evicted from their homes within two weeks if they're unable to pay a city utility bill of more than $7,000. Margate officials say more than 60 of the 76 units at Atlantic Palms, [...] are in different stages of foreclosure, and their homeowners association can't afford to pay the water bill.

  • Now, the city has posted notices on residents' doors saying they have until 6 p.m. June 3 to pay their water and sewer fees. If residents don't pay, their water service will be shut off June 7, and they will be forced to leave because of health concerns.

For more, see Margate condo residents face eviction over unpaid water bill.

Hundreds Of Mobile Home Residents May Face The Boot As County Pulls Plug On Waste Water Treatment Services; Park Owner Silent On Plans

In Scott County, Illinois, WHBF-TV Channel 4 reports:
  • Hundreds of Quad Citians may be forced to move as the future of one mobile home park is up in the air. For decades, Scott County has been treating the waste water at Lake Canyada Mobile Home Park. However in August that contract is up and the Scott County Conservation Department says it can't afford to cover the costs anymore.

  • Karen Constantino has lived at Lake Canyada for two and a half years. When she got the letter from Scott County last week telling her the waste water would no longer be treated, she panicked. "I think it's horrible," says Constantino, "especially if we can't get any straight answers on whether we need to find a place to live or if we're able to stay here."

***

  • The Scott County Conservation Department says it can't afford to treat the waste water. The only thing residents can do is build their own plant. "Our plant just can't handle the amount of waste going there and we can't handle the project cost to upgrade it," explains Scott County Conservation Director Roger Kean. Ohio based I & R properties, which owns Lake Canyada, hasn't told residents how it plans to fix the problem. Their silence doesn't surprise Constantino. "Anytime somebody tries to contact them, they never get back."

For the story, see Money Issues Could Force Community Out.

Managing Agent Faces Seven Felony Charges In Alleged $30K Rental Ripoff From Two Landlord/Clients

In Shasta County, California, The Redding Searchlight reports:
  • A former real estate agent accused of felony grand theft and conducting real estate business without a license pleaded not guilty last week during her arraignment in Shasta County Superior Court. Tina Marie Horan, 43, of Redding, who was arraigned on Friday, is scheduled to have her preliminary hearing on May 20.

  • Horan, who is free of custody without bail, is charged with seven felony counts of grand theft, grand theft of an elder and writing checks without sufficient funds. She’s also accused of conducting business as a property manager without a real estate license, a misdemeanor.

  • It’s alleged that Horan took more than $30,000 from two clients for whom she was managing residential properties, including an elderly Vallejo woman, said Bob Angulo, a real estate fraud investigator with the Shasta County district attorney’s office.

Source: Ex-real estate agent accused of grand theft.

Use Of GPS Tracking Devices Announced In Battle Against Air Conditioner Snatchers Targeting Vacant, Foreclosed Homes

In Central Florida, Hernando Today reports:
  • The Hernando County Sheriff's Office has reported an increase in the number of air-conditioning unit thefts in Royal Highlands. There have been three reports during the past three weeks, deputies said. Units of all sizes are being stolen and some parts also have been removed, according to a media release.

  • The sheriff's office announced it would begin using GPS tracking devices inside the units and unit parts, which could help authorities track down the culprits. Earlier this year, detectives placed warning stickers on houses that were under foreclosure or vacant. They were designed to alert would-be thieves that some of the appliances inside the homes had tracking devices, deputies said. Two people were arrested earlier this year as a result of the tracking devices.

Source: Air-conditioning units stolen in Royal Highlands, deputies say.

See also, WTSP-TV Channel 10: Rise in AC thefts in Hernando County, deputies blame snowbird off-season.

Air Conditioner Snatchers Target Vacant Foreclosed Homes For Quick Payday

In Avondale, Arizona, KNXV-TV Channel 15 reports:

  • Thieves are causing thousands of dollars in damage to homes in foreclosure for a quick payday. "It's a Valley-wide problem," said Detective Reuben Gonzales with the Avondale Police Department.

  • It's the theft of air conditioning units, and the latest incident happened in Avondale. Gonzalez said two units were stolen for scrap metal. "It's maybe $6,000 - $10,000 in damages they may cause in replacement costs for these things for just a few hundred dollars, in some cases less than $100 that they get for them in scrap metal," he said.

***

  • Agents like Bill Winston, who manages the foreclosed home in Avondale. He sees A/C thefts way too often. "I've probably been to at least 50 or 60 homes where this has taken place," said Winston.

For more, see Thieves target A/C units at vacant Valley homes for cash.

Friday, May 28, 2010

Property Seller Accused Of Allowing Would-Be Buyer To Take Possession Of "Ike-Damaged" Home & Make Repairs, Then Refusing To Transfer Title

In Jefferson County, Texas, The Southeast Texas Record reports:
  • A Port Arthur man claims he cannot rent out property he rightfully owns because its former owner refuses to transfer the deed. Raymond McClain filed a lawsuit [...] against Linda Garrison. McClain claims he bought property located [...] in Port Arthur from Linda Garrison for $4,000. The property formerly belonged to Linda Garrison's father, Oneal Garrison, but became hers after he died in August 2006, according to the complaint.

  • After purchasing the property, which had been damaged in Hurricane Ike, McClain claims he made significant improvements to it, believing that Linda Garrison would transfer the deed to him. However, Linda Garrison has failed to perform acts required of her, such as filing an inventory, appraisement and list of claims, and the court removed her as executor of her father's estate in March, the suit states. Still, McClain has attempted to get the deed transferred into his name, the complaint says.

  • "McClain has contacted the Defendant by phone and in writing several times, and even provided her with a deed to sign, but to date the Defendant has not signed the deed to the Property," the suit states. "As a result, record title to the Property still shows to be held by the estate of Oneal Garrison, and McClain is unable to rent the Property as section VIII housing." In his three-count complaint, McClain alleges breach of contract and specific performance and trespass to try title against Linda Garrison.

Source: PA man claims property owner failing to provide deed.

"We Are Not Bound By State Borders!" Proclaims Indiana AG In Launching Attack On Alleged Ohio-Based Loan Modification Racket

In Fort Wayne, Indiana, The Indianapolis Star reports:
  • The Indiana attorney general's office claims a Cincinnati-based loan modification firm signed fraudulent agreements to help nearly 600 Hoosier homeowners avoid foreclosure. Foreclosure Assistance USA told the homeowners they would help prevent foreclosure in claims made on websites and radio and in direct-mail advertisements and phone solicitations, the attorney general's office said in a statement.(1)

***

  • "The suit also claims FA USA violated Indiana law by failing to have a $25,000 surety bond while accepting money up front from customers for services that had not yet been performed," the statement said. "The company is also accused of deceptive acts including misrepresenting to consumers that the consultants were experts in the area of foreclosure prevention or possessed in-depth knowledge of the industry."

***

  • "Out-of-state companies often don't believe the Indiana attorney general's office has jurisdiction over their practices," Attorney General Greg Zoeller said in the statement. "That's simply not true. The vast majority of foreclosure consultant scams originate outside Indiana and this enforcement action reflects that we are not bound by state borders."

For the story, see Suit: Ohio foreclosure firm scams 600 Indiana homeowners.

For the Indiana AG press release, see Out of state but not out of reach, Attorney General goes after Ohio-based foreclosure consultant company.

(1) The Ohio attorney general filed a similar lawsuit against Foreclosure Assistance USA in 2009 in a Hamilton County, Ohio, court, the story states.

Wisconsin AG Files Civil Suit Against California Outfit For Alleged Misrepresentations Made In Offering Loan Modification Services

From the Office of the Wisconsin Attorney General:
  • The Wisconsin Department of Justice filed suit [] against a company doing business as "USA Loan Auditors" for engaging in deceptive practices in the course of selling purported "loan modification" services to Wisconsin homeowners.

  • The complaint alleges the California-based company, Relief Law Center (d/b/a "USA Loan Auditors") has engaged in deceptive practices by sending homeowners mailings that suggest the homeowner's mortgage lender is under investigation for predatory lending abuses. The mailings falsely claim that as a remedy for the supposed-abuses, the homeowner may be entitled to a loan modification. The Idaho Attorney General issued a Cease and Desist Order against the company earlier this year.

For the entire press release, see Van Hollen sues loan modification company.

Kern County Deputy DA On Loan Modification Rackets: "They Are People Very Worthy Of Criminal Prosecution!"

In Bakersfield, California, KBAK-TV reports:
  • When the economy and real estate market went south, many families went to home loan modification companies to save their homes. But, more than a dozen Kern County families contacted Eyewitness News after one modification company took their money and didn't do anything it promised. Each family paid Los Angeles-based Loan Modification Group ["LMG"] $3,000 to get a home loan modification, and each family had their own reason for wanting a modification.(1)

***

  • Eyewitness News went to Kern County Deputy District Attorney Gordon Isen, who specializes in real estate fraud, to ask about home loan modification scams. Isen said, "When there's a downturn in the real estate market this type of crime has arisen in the past, but it's now reached proportions I've never seen before and I don't think anyone's seen before." He added that not only is it a serious crime, but an intentional one. "It's not a crime of passion, it's not a crime of the moment. People doing this type of criminal conduct think about their crimes, they prepare for their crimes, they consult with others and conspire. I think they are people very worthy of criminal prosecution."

For the story, see Home loan modifiers scam families out of $3,000 each.

(1) According to the report:

  • Eyewitness News decided to ask LMG what happened to our homeowners' money, but that was easier said than done. When Eyewitness News went to the address where our homeowners mailed their payments and paperwork, it didn't exist. The search took us all over Los Angeles and we finally found the company in Chatsworth. When Eyewitness News asked an office employee if the company's name was Loan Modification group, she said it was Balboa company. Turns out, Loan Modification Group is also known as MBM and Balboa Law Group. [...] Since the encounter, Eyewitness News learned that the company is no longer offering home loan modifications.

Recently Enacted New Mexico Anti-Loan Modification Scam Law Calls For Prison, $10K Fine For Violators

In Santa Fe, New Mexico, The Associated Press reports:
  • A New Mexico law that went into effect [last week] is aimed at companies that charge homeowners and make fraudulent promises to help them get their loans modified to protect their homes against foreclosure. Attorney General Gary King says there's been an alarming increase in mortgage rescue scams as a result of the U.S. housing crisis.

  • He says many of the companies targeted by the Mortgage Foreclosure Consultant Fraud Prevention Act operate from outside the state. The law applies to people offering services to stop or postpone foreclosure. It requires companies to provide a written contract disclosing their services and charges and prohibits firms from charging fees until the services have been provided. The law calls for up to a year in prison and-or a $10,000 fine for a violation.

Source: New Mexico law targeting foreclosure scams.

Thursday, May 27, 2010

Brooklyn Judge Journeys Through "The Twilight Zone" In Recent Ruling Slamming Standing Lacking Lender, Notorious Foreclosure Mill Law Firm

In Brooklyn, New York, The Wirenius Report Blog reports on Kings County Supreme Court Justice's Arthur M. Schack (a judge which, it points out, has "earned fame just by making banks follow the rules applied to ordinary litigants") and his most recent journey through the "The MERS Mortgage Twilight Zone," and which features notorious Western New York assembly line, foreclosure mill law firm operator, Steven J. Baum, P.C.

One excerpt from his recent court ruling, in which Justice Schack denies, with prejudice, a standing-lacking lender's request to move forward with a foreclosure action, follows (bold text is my emphasis, not in the original text):

  • Plaintiff made its renewed motion for an order of reference 204 days late, in violation of the Court's May 2, 2008 decision and order. Moreover, even if the instant motion was timely, the explanations offered by plaintiff's counsel, in his affirmation in support of the instant motion and various documents attached to exhibit F of the instant motion, attempting to cure the four defects explained by the Court in the prior May 2, 2008 decision and order, are so incredible, outrageous, ludicrous and disingenuous that they should have been authored by the late Rod Serling, creator of the famous science-fiction televison series, The Twilight Zone.(1)

  • Plaintiff's counsel, Steven J. Baum, P.C., appears to be operating in a parallel mortgage universe, unrelated to the real universe. Rod Serling's opening narration, to episodes in the 1961 - 1962 season of The Twilight Zone (found at www.imdb.com/title/tt0052520/quotes), could have been an introduction to the arguments presented in support of the instant motion by plaintiff's counsel, Steven J. Baum, P.C. - "You are traveling through another dimension, a dimension not only of sight and sound but of mind. A journey into a wondrous land of imagination. Next stop, the Twilight Zone."

For more, see "The MERS Mortgage Twilight Zone."

For the court ruling, see HSBC Bank USA, N.A. v Yeasmin (aka "Yeasmin II"), 2010 NY Slip Op 50927 (NYS Sup. Ct. Kings County, May 24, 2010).

For "Yeasmin I", see HSBC Bank USA, N.A. v Yeasmin, 19 Misc 3d 1127, 2008 NY Slip Op 50924 (NYS Sup. Ct. Kings County 2008).

(1) The Twilight Zone was a TV series that ran between 1959 and 1964, and is described by The Internet Movie Database ("IMDb") as (bold text alterations added, not in the original description):

  • Rod Serling's seminal anthology series focused on ordinary folks [ie. In the MERS Mortgage Twilight Zone, that would be Justice Schack, other judges presiding over foreclosure actions, homeowners facing foreclosure and their foreclosure defense attorneys] who suddenly found themselves in extraordinary, usually supernatural, situations. The stories would typically end with an ironic twist that would see the guilty punished [ie. standing-lacking lenders, assembly-line foreclosure mill rackets, and the multiple corporate hat-wearing vice presidents that carry out their employers' illicit handiwork].

The "extraordinary, usually supernatural, situations" would be a reference to the creation of the "fictional chains of assignment upon assignment, by entities in which the same people appear as lawyers and principals, agents and employees."

Pair Charged In Ripoff Of Elderly Woman; Abused POA To Take Title To Home, Drain Bank Account, Say Investigators; Stiffed Nursing Home Triggers Probe

In Washoe County, Nevada, The Reno Gazette Journal reports:
  • Two Reno women in their 60s, including a real estate broker, are facing an August trial for alleged financially exploitation of an elderly woman. Peggy Viola Six, 63, an artist, and Robin Lee Benjamin, 64, a real estate broker who operates Market and Match home buying and selling system, pleaded not guilty Thursday morning to an indictment charging them with exploitation of an older or vulnerable person.

***

  • A Washoe County grand jury in March indicted the women on a charge of exploiting an 87-year-old woman. Six had the woman’s power of attorney due to her failing mental capacities, according to cout documents. Six and Benjamin are accused of draining the woman’s bank account and defrauding the woman of her home. Benjamin allegedly transferred ownership of the woman’s home to her name, and then tried to sell it for a $100,000 profit. [...] Officials estimate the woman was defrauded of hundreds of thousands of dollars.

  • Authorities say the woman was placed in a local elder care facility until Six stopped paying for her care.(1) Ultimately, the woman became a ward of the state and currently resides at a group home in Carson City.

For more, see Two Reno women arrested on suspicion of bilking elderly woman.

(1) Reportedly, Washoe Deputy District Attorney Dania Reid, a civil prosecutor who represents the county’s public guardian office, said the case was referred to her office once Six stopped paying for the woman’s care facility. During an investigation, it was discovered Six had allegedly used the woman’s money to buy a motor home and a car, and fraudulently transferred the woman’s home to Benjamin, the story states. Reid reportedly said her office is working to sell the woman’s home so that she can receive the proceeds.

Cops: Man's $315K Swindle Of Elderly, Dementia-Stricken Mom Leads To Eviction From Nursing Home & "Basically Put Her In The Poor House"

In Eden Prairie, Minnesota, the Eden Prarie News reports:
  • An Eden Prairie man was recently charged with stealing more than $315,000 from his elderly mother’s retirement accounts over the course of five years. The incident “is not a unique case,” noted Sgt. Bill Wyffels, who advised that older residents should never, never put only one person in charge of their assets. “This is an example of a mother putting faith into one of four children,” he noted. “That one child basically put her in the poor house.”

  • According to a criminal complaint, Terry Lee Carr, 66, has been charged three counts of theft by swindle over $35,000. In 1999 Carr was given power-of-attorney over his mother’s assets. By 2002, his mother was losing her memory and moved to Emerald Crest, a long-term care facility in Shakopee. Prudent investments and funds from long-term health insurance meant that his mother’s care should have been covered for the rest of her life.

  • However, in 2008 the victim’s three other children began to suspect that Carr was taking heir mother’s money. The woman was evicted from her care facility and one of her other children eventually looked to find her a less expensive care facility. In the process of that, Carr’s theft was uncovered. Over the years, the vast majority of the withdrawals were made at Mystic Lake Casino.

For the story, see Fraud involving elderly parent, ‘not a unique case’.

Texas Woman Accuses Sister Of Pocketing Rent From, Conspiring With Nieces To Use Forged Deed In Swiping Title To, Rental Property

In Jefferson County, Texas, The Southeast Texas Record reports:
  • A Jefferson County woman claims her sister stole money and property from her while serving as her property manager. Lieu Pham filed a lawsuit May 10 in Jefferson County District Court against her sister, Dieu Pham; her nieces, Lan Nguyen and Bong Nguyen; and Johnathan V. Tat. Lieu Pham claims she owns Gulfway Washateria [...] and entrusted management of the business to her sister, Dieu Pham.

  • As part of her responsibilities, Dieu Pham was supposed to collect rent from tenants who leased Lieu Pham's building, according to the complaint. However, Lieu Pham has not received any revenue or rent from her tenants, the suit states. When she pressed her sister for an accounting of business transactions, Dieu Pham refused to provide the requested data, the complaint says.

***

  • Not only did Dieu Pham hide records from her sister, but she also conspired with her daughters to steal her sister's land and building by forging Lieu Pham's signature on warranty deed purporting to transfer the property to the Nguyens from Lieu Pham, she claims. [...] Lieu Pham alleges breach of fiduciary duty against her sister, theft of property against her sister and nieces, conversion against her sister and nieces and negligence per se against [notary Johnathan V.] Tat for allegedly "fail[ing] to act as a reasonably and prudent notary would" in connection with notarizing the allegedly forged deed.

For the story, see PA woman in dispute with sister over property management.

Georgia Attorney Gets Five Years In Theft Of $600K+; Client Home Sale Proceeds Included In Pilfered Loot

In Fayetteville, Georgia, The Citizen reports:
  • A Fayetteville attorney who bilked his clients of more than $647,000 was sentenced [] to five years in prison and an additional 25 years probation. Howard Geoffrey “Geoff” Slade Sr., 62, pled guilty to all 12 counts he was charged with, all but two being theft by taking while acting in a fiduciary capacity. The remaining two were theft by taking charges.

***

  • In the wake of the money Slade admitted to pilfering was at least one broken marriage; another wife who felt guilt for not trusting her husband’s request to get her money from Slade because she trusted him; and more. [...] One of the victims was an invalid woman who was supposed to receive half of the proceeds from a house sold as part of an estate. The victim never got that money.

***

  • One of the victims, who was owed more than $289,000 from proceeds of a real estate transaction, said she tried for months on end to get Slade to repay her. One time he gave her a check with insufficient funds. Then came a laundry list of excuses, including that he would pay $25,000 at one time, $50,000 at another. He offered to give the victim his share of a beachside condominium. Lastly, he offered to make the victim a beneficiary of his life insurance policy.

For more, see Attorney gets 5 years for bilking clients (Geoff Slade Sr. admits to taking $647,000 from client funds).