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.
Wednesday, October 28, 2015
Disgraced Ex-Lawyer Dodges Hard Time As Judge Suspends 3-Year Prison Sentence, Instead Gives Conditional One Year Term In County Jail, Five Years Probation After Conviction For Fleecing $180K Of Surplus Proceeds From Foreclosed Disabled Client
In Modesto, California, The Modesto Bee reports:
A former Oakdale attorney will spend a year in jail for stealing more than $180,000 from a client to make extravagant purchases including a Jaguar and a European vacation, among other things, the Stanislaus County District Attorney’s Office announced [].
James Arthur Fonda, 70, was convicted of grand theft last month in a case prosecuted by Deputy District Attorney Jeff Mangar.
In 2009, Fonda’s disabled client inherited two San Jose homes and lost them in foreclosure but realized $486,706 in equity proceeds at public auction.
Because the victim was going through a divorce, Fonda agreed to keep the money in his client trust fund account to conceal the inheritance from being included in a divorce settlement.
From September 2009 to February 2012, Fonda withdrew more than $180,000 via 163 checks written to himself for personal reasons without his client’s permission.
The checks to Fonda were marked for “advance fees,” but he ultimately admitted to the State Bar that he did nothing to earn them, the affidavit says.
Fonda used the money to purchase a Jaguar, pay for a European vacation and gamble at casinos, as well as pay for groceries, rent and payroll for his law practice.
“The victim sought out an attorney to help him,” Mangar said in a press release. “Fonda took advantage of his position of trust to then swindle the money.”
Although Fonda has no criminal history and had acknowledged wrongdoing to investigators before his arrest, Judge Linda McFadden sentenced him to the maximum term of three years in prison. However, the prison sentence was suspended pending the successful completion of five years of felony probation and one year in county jail. He was also ordered to pay full restitution.
Fonda was disbarred and can no longer practice law.
“This was more than a one-time lapse of judgment, which violated the public trust and cost Fonda his law practice,” stated prosecutor Mangar.
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)
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ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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