Mortgage Scam Caused Great Public Harm

A California Hearing Department has ordered an attorney be placed on involuntary inactive enrollment 

 This matter involves a nationwide loan modification scheme that garnered respondent and his nonattorney partner approximately $9.7 million in a little over two years and which, ultimately, resulted in the Consumer Protection Financial Bureau (CFPB) obtaining a temporary restraining order (TRO) freezing respondent’s assets and having a receiver appointed to operate the practice. Despite the TRO, it appears that respondent has relocated and continues to solicit clients at an unknown physical location.

After reviewing and considering this matter, the court finds that respondent’s conduct poses a substantial threat of harm to his clients or the public and respondent is ordered involuntarily enrolled as an inactive member of the State Bar pursuant to section 6007…

Evidence of great harm

 The evidence amply supports the conclusion that respondent’s misconduct has caused substantial harm to his clients and the public. Respondent’s scheme preyed on distressed homeowners, promising relief from unaffordable mortgages and foreclosures. He acted for his personal benefit, reaping thousands of dollars, with little concern for his clients’ welfare or the adverse consequences of his actions. Homeowners lost their homes and their hopes because of respondent’s selfish, predatory tactics.

Respondent’s conduct also harmed the public by wasting scarce court resources, filing inappropriate cases and inadequately handling others.

Finally, respondent’s misconduct has also harmed the legal profession. Respondent’s unwillingness or inability to follow the laws of this state has tarnished the reputation of other attorneys and the legal community as a whole.

Accordingly, the court finds that the State Bar has established, by clear and convincing evidence, that respondent has caused substantial harm to his clients and the public.

(Mike Frisch)