Wednesday, February 08, 2017

State Bar Sidelines Attorney For At Least Six Months For Role In Loan Modification Racket; Order Requires Payment Of $61K In Restitution (Plus Interest) To Ripped-Off Clients To End Suspension

In Los Angeles, California, the Northern California Record reports:
  • The State Bar Court of California recently ruled to suspend attorney Barry Steven Jorgensen of Diamond Bar from practicing law for a period of six months, according to court documents.

    The ruling was made Nov. 11, according to the State Bar's website.

    Steven was found culpable of misconduct for illegally collecting advanced fees for loan-modification services. He will be required to make restitutions in the amount of $61,635 plus interest to end his suspension.

    Jorgensen entered into an agreement with a company targeting clients who either were currently in foreclosure or close to it. The company, Legally Yours, would offer loan-modification legal services to clients and match them with an attorney. Jorgensen was hired to assist with around 300 cases for the company.

    During Jorgensen’s first year with Legally Yours, fees were paid directly to the company who would in turn pay him a monthly salary. In October 2012, clients were instructed to pay Jorgensen directly for his services.

    Jorgensen allegedly violated Civil Code section 2944.7, which prevents attorneys from collecting fees for loan-modification services prior to their completion. The State Bar Court reviewed the five separate counts and found Jorgensen culpable in one. The remaining four were dismissed because Jorgensen provided litigation services in addition to the loan modifications, and therefore the fees collected were not in violation. ...

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