Lawyer Faces Disbarment for Stealing Interest from Collateralized Mortgage Obligations

Allison Tussey —  June 4, 2013 — 4 Comments

Jon A. Divens, 57, California State Bar # 145549, is facing disbarment for his role in misappropriating about $400,000 in interest from two investment vehicles that he agreed to hold in escrow pending their sale.

In each case, Divens agreed to hold in escrow a collateralized mortgage obligation (CMO), a type of investment vehicle that owns an underlying pool of mortgages. When the proposed sales of the CMOs fell through, Divens hid the CMOs from their rightful owners for months and transferred the monthly interest payments to his personal investment accounts.

State Bar Court Judge Richard A. Platel rejected Divens’ argument that he was entitled to the interest under article 8 of the California Uniform Commercial Code and found him culpable of three counts of moral turpitude.

“It is clear from the evidence that, from day one, respondent never intended on returning the Cobalt CMO or the FNMA CMO or the interest income they generated to the rightful owners,” Judge Platel wrote in the April 17, 2013, decision. “Respondent displays a complete lack of insight and recognition of the wrongfulness of his misconduct. What is more, the record establishes that, after 23 years as a member of the State Bar of California, respondent fails to understand and appreciate the basic duties of a fiduciary. Finally, respondent’s misconduct displays a shocking lack of basic honesty.”

Platel placed Divens’ law license on inactive status until the California Supreme Court acts on the disbarment recommendation. The case was handled by Senior Trial Counsel Eli D. Morgenstern.

Allison Tussey

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4 responses to Lawyer Faces Disbarment for Stealing Interest from Collateralized Mortgage Obligations

  1. pepe covarrubias October 26, 2013 at 4:56 am

    What a shame to play a racial victim as this inept lawyer used to get clients/péople to get burned….You get what u deserved charlatan. Be ready to líve on the proyects or in a cell. Disbarment éffective tomorrow.

  2. pepe covarrubias August 29, 2013 at 12:49 am

    CAN YOU BELIEVE THIS?!!!!!! Jon Divens, the disgraced wanna be attórney was ORDERED INACTIVE on April 20, 2013, but if you call (310) 601-3168, you will get in contact with his “Law Office”!! Further, in July 17, 2013 the State Bar Court Department of Review uphold the State Bar Court recommendation of DISBARMENT!!
    Whats wrong with the authorities?

  3. Undeniably believe that which you said. Your favorite justification appeared to be on the net the
    easiest thing to be aware of. I say to you, I definitely get annoyed while people think about worries that they plainly don’t know about. You managed to hit the nail upon the top and defined out the whole thing without having side effect , people could take a signal. Will likely be back to get more. Thanks

  4. pepe covarrubias June 18, 2013 at 5:36 am

    WHAT GOES AROUND COMES AROUND. The best thing that could ever happen was the suspencion and disbarment of the charlatan of jon divens sb145549. My cousin was unlawfully sentenced to 30 years to life because dívens used my cousin’s inability to speak english to forge his signature and entered such plea without my cousin knowledge and consent cause dívens and the court lied to him. My cousin has been in prison for 13 long years. He didnt have any prior criminal record and commited no murder. My cousin is currently incarcerated at C.T.F. at Soledad, CA. Jorge Covarrubias T-23089.

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