California State Bar Association investigates attorneys for loan modification scams

September 30, 2:21 PMLA Fraud ExaminerMonique Bryher

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Attorneys who fell prey to the siren call of easy money doing loan modifications for homeowners in distress are now finding out that if they didn’t provide the promised services, their law licenses could be at risk.

Not only is the California State Attorney General’s Office investigating attorneys for loan modification fraud, but the California State Bar is now taking unprecedented action to rein in “lawyers preying on vulnerable homeowners”, says a press release on the Bar’s website. What is even more astounding is that Interim Chief Trial Counsel Russell Weiner is waiving the normal confidentiality that occurs during investigations in favor of protecting consumers by naming names.

This is a "Wanted" list that nobody would want to be on. Please note the disclosure in italics from the California State Bar's press release dated September 29, 2009:

"The following attorneys have received a significant number of complaints related to the loan modification services they were hired to perform. They are entitled to a full and fair hearing on any charges that may be filed in the future. No discipline may be imposed unless and until the State Bar proves allegations of misconduct by clear and convincing evidence."

         -  David Arase, Bar No. 233705, Arase Law Firm and National Housing Assistance

         -  Stephen Burns, Bar No. 113371, Legal Group Network

         -  Robert Buscho, Bar No. 122556, United Law Group

         -  Nicholas Chavarela, Bar No. 251632, Rodis Law Group and America’s Law Group

         -  Steven Feldman, Bar No. 103676, Feldman Law Center

         -  Eric Johnson, Bar No. 224065, Avantgarde Group

         -  Paul Lucas, Bar No. 163076, Lucas Law Center

         -  Brandon Moreno, Bar No. 233750, U. S. Foreclosure

         -  Jeffrey Nemerofsky, Bar No. 213014, U.S. Advocacy Law Group and U.S. Financial Products

         -  Gregory Paiva, Bar No. 207218, Law Offices of Gregory Paiva

         -  Adrian Pomery, Bar No. 249664, U.S. Foreclosure

         -  Ronald Rodis, Bar No. 181873, Rodis Law Group and America’s Law Group

         -  Mark Shoemaker, Bar No. 134828, Advocates for Fair Lending

         -  Marc Tow, Bar No. 78429, Marc Tow and Associates

         -  Michael Yellin, Bar No. 255050, A Fresh Start Loan Modification

         -  Sean Rutledge, Bar No. 255938, United Law Group

According to Weiner, about 200 of the 800 cases currently under investigation in the Office of Chief Trial Counsel (OTC) have to do with foreclosure-related complaints. In summary, the investigations usually have to do with one or more of the following complaints:

1. The attorney "rented" out his/her license to real estate agents or non-licensed foreclosure consultants, receiving a fee in return for the "rental". There was either minimal or no oversight by the attorney of these parties to see that they were performing what they had promised.

2. The attorney promised to deliver mortgage reductions or loan modifications, and either failed to contact the lenders or did not have the requisite knowledge to negotiate on behalf of the consumer.