Monday, July 19, 2010

California attorneys disbarred for misconduct associated with loan modification services

By Kate Cavallaro
     Law Offices of Robert E. Brown, P.C.

The California State Bar Association is cracking down on lawyers whose misconduct is associated with loan modification services. The State Bar of California launched a task force on loan modification and since its launch about a year ago; the Bar “has obtained the resignation of 13 attorneys.” Most recently, two attorneys were disbarred for lending their names as attorneys to several non-attorney organizations. One individual attorney was cited because he “lacked control and failed to supervise and of the organizations” and “this lack of control and failure to supervise consequently led to, among other things, the unauthorized practice of law, misrepresentations and client harm.” Another attorney who was recently disbarred owned and operated a loan modification business by the name of Advocate for Fair Lending. The article notes that there were 18 examples in which the attorney’s clients were not helped and also asked for refunds. It further noted that the attorney is accused of using “Advocate [the loan modification business] and his status as an attorney to convince cash strapped homeowners to pay him thousands of dollars in hopes of saving their homes from foreclosure.” It is even alleged that some clients were in an even worse position after retaining the services!

No comments:

Post a Comment