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Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Action Taken Against Crooked Lawyers for Various Scams
The State Bar of California has taken action against 5 more lawyers under investigation for loan modification misconduct, bringing to 14 the number of attorneys who have resigned or been placed on involuntary inactive enrollment since creation of the bar's Loan Modification Task Force in April 2009.
Timothy Thurman [Bar #216048], 37, Altadena, California, resigned on November 2, 2009, with charges pending following his arrest by FBI agents in October 2009. Thurman's practice, Trinity Law Group in Los Angeles, which he started earlier this year, was doing lender litigation and loan modification. He was charged with creating and using a court order containing what he knew to be a forged signature of a federal judge. Thurman allegedly gave the document to his clients, who had sought Thurman's help to avoid eviction, telling them to give it to the sheriff, who became suspicious and contacted the judge. State Bar investigators worked with the FBI in the investigation.
Gary Davidson [Bar #32110], 75, Costa Mesa, California, and Eric Douglas Johnson [Bar #224065], 55, Culver City, California, resigned on November 4, 2009, after the Loan Modification Task Force filed charges.
Paul Lucas [Bar #163076], 48, Aliso Viego, California, of the Lucas Law Center, was ordered on November 4, 2009, involuntarily inactive for posing "a substantial threat of harm to (his) clients or the public" under Business and Professions Code 6007. State Bar Court Judge Lucy Armendariz said Lucas had inaccurately described his firm's refund policy and its business relationship with Future Financial Services. She also said that Lucas had formed a partnership with a nonlawyer in violation of State Bar rules and aided in the unauthorized practice of law.
Armendariz noted that the Lucas Law Center, Future Financial and others had generated 45 State Bar complaints and 89 Better Business Bureau complaints. The Federal Trade Commission also issued a preliminary injunction against Lucas Law Center and Future Financial Services. Armendariz said Lucas, through his staff, agents and advertisements, misrepresented the scope of his service to clients, collected advance fees under false pretenses, recklessly advised clients to stop making mortgage payments, failed to perform services, failed to promptly refund earned fees and repeatedly failed to respond to client inquiries.
Sean Rutledge [Bar #255938], 34, Irvine, California, who started United Law Group in August 2008, was enrolled as of November 6, 2009, as an inactive member of the State Bar pending further order under Business & Professions Code 6007. Rutledge"promised to help troubled homeowners - many of whom were in arrears or on the brink of foreclosure - modify their home loans and maintain financial stability," State Bar Court Judge Richard Honn wrote in his order of inactive enrollment. "Instead, he took their money and time and offered little or nothing in return. In fact, due to their loss of money and time, many of respondent's clients ended up in a worse position than they were in when they originally turned to respondent for help... respondent has engaged in a pattern of client neglect involving failing to perform, failing to communicate, and/or failing to refund unearned fees in 14 separate client matters."
The Loan Modification Task Force has received more than 1,250 complaints and is investigating almost 250 lawyers. Each task force investigator oversees about 135 cases, and almost 20,000 attorney files have been removed from the offices of attorneys whose loan modification practices have been shut down or abandoned. State Bar investigations are up 69 percent over 2008.
The State Bar has been working with local law enforcement as well as the state Attorney General's Office and the FBI to address the problem of businesses and law firms preying on people about to lose their homes through foreclosure. Orange County Deputy District Attorney George McFetridge Jr. said coordination between the State Bar and his office in combating "these criminal enterprises that prey on desperate homeowners" has been invaluable. "I'm also thrilled that the State Bar has taken such an aggressive stance against attorneys who employ cappers, split fees with non-attorneys, engage in false advertising and commit fraud on the public," he wrote in a letter to State Bar President Howard Miller.
Last month, a new law, SB94 by Sen. Ron Calderon, D-Montebello, took effect that prohibits attorneys and any others involved in mortgage relief from taking upfront fees for loan modification work. Weiner said the new law should reduce the number of lawyers committing loan modification misconduct.
"I am very pleased with the results being obtained by members of our Loan Modification Task Force," said Interim Chief Trial Counsel Russell Weiner. "They have exceeded my expectations. Our office has been aggressively investigating and prosecuting attorneys alleged to have committed loan modification misconduct. Any attorney thinking that he or she can commit loan modification misconduct and get away with it for a significant period of time should think again."
There is a group of us here at work that have also been defrauded by Sean Rutledge (Bar #255938) of United Law Group. We are seeking a class action law suit. Can anyone recommend a good attorney that would pick up this case. So far, there are 6 of us that have been defrauded, are in the process of losing our homes & are seeking reparations.
Thank you!
Posted by on 11/18 at 10:43 AM
Now the bar can start looking at Omar Zambrano of Los Angeles, Gary Lane of Santa Ana and I’m sure many, many, many loan modification “attorneys”.
Posted by on 11/28 at 08:08 AM
Anyone heard about Gary Lane (Consumer Protection Law Service)?
Posted by on 12/21 at 09:30 AM
yes Gary Lane from Consumer Protction Law Service in Santa Ana,CA
is stealing my money i went there for a loan modification then they wee talking about how they had to go to court and i had to pay thousands of dollars for Gary Lane to go and they never ever ever ever went to court for anything him along with everyone at that place and Maritza Abad and Pepi Abad charge money and steal it and they don’t get anything done and they never go to court like they said they are going to i found out when i went to the court to find out the court date because they never wanted to tell me anything and the court told me that there was no court date for anything..there never was..the bank even told me to stop letting them steal my money because that is all they were doing at that place in Santa Ana.
They want to short sale your property so they steal your money and dont get anything done so you can lose your house and then they want to short sale it for you
Posted by on 12/30 at 09:54 AM
Thank you so much yesmorefraud. Now I have my mind set.
Posted by on 12/30 at 10:06 AM
Marina, have you started working with them yet?
Posted by on 12/30 at 12:49 PM
Yesmorefraud, not I have not started… They called me another day and I told them I need to do some researches.
Posted by on 12/30 at 07:25 PM
Marina, is Antonio or Fabricio the one that keeps calling you? They do that, they call and call and call to try to get you to go to Santa Ana to “help” you. Pepi and Maritza Adad are the ones that charge the thousands of dollars then, they bring up how they have to go to court and you have to pay more money in order for the attorney to attend the day of court. Only thing is, Maritza charges that money for the attorney to go to court when there is NO court date or anything at all. They want you to lose your home so that they can short sale it for you and then they put a lean on your home so that way they make a lot of money off you and do not do anyting to help you. They make the thousands of dollars they steal from you in the beginning when you paid for them to do a modification, then they make more money when they short sale it for you, then they make more money when they put a lean on the property.
Posted by on 12/31 at 10:03 AM
I respectfully disagree with the posting regarding Consumer Protection and Gary Lane. Never have we taken funds to go to court and failed to file a law suit and proceed. Only when a client refuses to pay to continue a law suit past the initial steps, will a case not be further pursued, and only with the client’s full knowledge. We are in court virtually everyday and some days 8 times a day. I suspect the posting was placed by either a poor competitor, or a client who failed to supply the bank with the information we requested, so we could save their home. Either way, the point is, we want to help people save their homes, and anyone who doubts that need merely come and meet with me.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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