Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Tuesday, May 08, 2012
Two California Attorneys Near Disbarment, Another Faces Disciplinary Trial In Connection With Upfront Fee 'Mass Joinder' Loan Modification Racket
In San Francisco, California, The State Bar of California recently announced:
Two Southern California attorneys are facing disbarment and a third faces a disciplinary trial after a joint investigation by the State Bar’s Office of Chief Trial Counsel and the Attorney General’s Office into a loan modification scam that targeted distressed homeowners, the State Bar of California announced [].
The proposed discipline is the result of a coordinated effort in August 2011, when the State Bar and the Attorney General’s Office shut down law firms and marketing companies suspected of running a so-called “mass joinder” scam.
Philip A. Kramer (bar number 113969), 52 of Calabasas, has agreed to be disbarred. In a stipulation accepted Friday by the State Bar Court, Kramer admitted to numerous counts of misconduct including his collection of illegal fees, failure to return advanced fees, and accepting employment in states where he was not licensed to practice law. Kramer also agreed to pay $122,000 in restitution to 27 former clients as part of the stipulation.
Paul W. Petersen (bar number 170922), 51, of Irvine, is facing disbarment by default after he failed to appear in State Bar Court for a March 27 trial on various counts of misconduct including allegations of improper solicitation, unlawful collection of advance fees, failure to refund fees, and failure to perform services competently. Under the State Bar’s Rules of Procedure, unless the default is set aside, the State Bar Court will recommend Petersen’s disbarment to the California Supreme Court.
Anthony J. Kassas (bar number 227647), 35, of Diamond Bar, faces trial on 285 counts of disciplinary charges. The formal charges, filed April 6 by the Office of Chief Trial Counsel, include allegations that Kassas improperly solicited clients, collected unlawful advance fees, failed to provide proper accounting of funds and aided the unauthorized practice of law by non-lawyers.
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According to papers filed in Los Angeles County and Orange County superior courts, the attorneys involved had contacted homeowners through deceptive mailers that looked like official documents from mortgage lenders.
The mailers contained language such as “Litigation Settlement Notification” that caused homeowners to think they were potential plaintiffs in a “national litigation settlement.” Directing homeowners to a toll-free number for assistance, the mailers contained exaggerated promises.
They stated that by joining a “mass joinder” lawsuit, foreclosures would be stayed, loan balances would be reduced and the homeowners would receive monetary benefits or their homes free and clear of their mortgage. Homeowners often paid retainer fees ranging from $3,500 to $10,000 but were never contacted by an attorney or included in a mass joinder lawsuit.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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