Generally, investigations of California attorneys under investigation for misconduct are confidential until charges are formally brought against the lawyer.  In an attempt to protect the public from potentially getting scammed or ripped off, the State Bar Interim Chief Trial Counsel Russell Weiner released the names of 16 California Loan modification attorneys under investigation for misconduct.  "It appears these attorneys may have significantly harmed their clients who were already facing great financial pressure and the possible loss of their homes." 

Those attorneys being named by the State Bar have allegedly have taken fees for promised services and then failed to perform those services, communicate with their clients or return the unearned fees.  Many of the offending attorneys are associated with firms that use telemarketers or phone banks to sign up clients without regard to the facts of the individual case or whether or not the client can be helped.  In many cases, the attorneys work with untrained non-attorney staff engaging in the unlawful practice of law by offering legal advice to prospective clients.

According to Weiner, "Consumers should not be comforted by advertisements that claim the attorney is a member of the State Bar of California...such membership does not mean the attorney has any special knowledge, experience or expertise in the area of loan modification. In fact, it appears that many of the attorneys offering these services have little or no prior experience in the area of loan modification."

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, Costa Mesa, Arase Law Firm and National Housing Assistance
• Stephen Burns, Bar No. 113371, Los Angeles, Legal Group Network
• Robert Buscho, Bar No. 122556, Fullerton, United Law Group
• Nicholas Chavarela, Bar No. 251632, Santa Ana, Rodis Law Group and America's Law Group
• Steven Feldman, Bar No. 103676, Mission Viejo, Feldman Law Center
• Eric Johnson, Bar No. 224065, Culver City, Avantgarde Group
• Paul Lucas, Bar No. 163076, Aliso Viejo, Lucas Law Center
• Brandon Moreno, Bar No. 233750, Santa Ana, U.S. Foreclosure Relief Corp.
• Jeffrey Nemerofsky, Bar No. 213014, Laguna Niguel, U.S. Advocacy Law Group and U.S. Financial Products
• Gregory Paiva, Bar No. 207218,Ontario, Law Offices of Gregory Paiva
• Adrian Pomery, Bar No. 249664, Orange, U.S. Foreclosure Relief Corp.
• Ronald Rodis, Bar No. 181873, Newport Beach, Rodis Law Group and America's Law Group
• Mark Shoemaker, Bar No. 134828, Long Beach, Advocates for Fair Lending
• Marc Tow, Bar No. 78429, Newport Beach, Marc Tow and Associates
• Michael Yellin, Bar No. 255050, Los Angeles, A Fresh Start Loan Modification
• Sean Rutledge, Bar No. 255938, Irvine, United Law Group

The State Bar suggests that consumers be wary of attorneys offering loan modification services under any of the following circumstances:

• Advertisements of the office do not expressly identify by name the attorney who is responsible for the business.
• Office staff will not readily identify by name the attorney responsible for oversight of the business.
• The attorney in charge of the office is too busy or not willing to meet personally with prospective clients.
• The firm advises a consumer to stop paying the existing mortgage.
• The business, through its advertisements or claims of its representatives, makes  claims that sound too good to be true, such as claims of a 90 or 100 percent rate of success in obtaining loan modifications, or claims that a reduction in the mortgage principal is likely to be achieved. 
• The business demands payment of a large fee, even before obtaining a prospective client's basic income and expense information, and information about the existing mortgage and present home value.
• The attorney responsible for the business is not licensed to practice law in the state where the consumer resides.

The loan modification industry grew directly out of the sub-prime mortgage culture that drove the real estate economy over the last 10 years.  The same boiler room culture began infecting the legal industry 24 months ago as mortgage professionals searched for a replacement of the income that was lost when at the end of the sub-prime boom.  Soon after, local mortgage professionals recognized loan mod as an opportunity to keep the gravy train rolling by utilizing the same employees, skill sets and infrastructure needed to extract fees from homeowners.

The mortgage "professionals" recognized that they needed a law license or an attorney affiliation to continue to accept advanced fees from consumers.  Without advanced fees, the business model would collapse.  The hunt began for attorneys willing to associate with the broker shops. Last fall, my office was receiving 5-10 inquiries a week from broker shops pitching some type of "affiliation", "partnership", or "attorney-backed" arrangement.  The brokers simply did not understand the ethical restrictions placed on attorneys.  The focus of the culture was profit at all costs.  For some attorneys, the temptation of making a lot of easy money was too great and they succumbed to the big money offers of the broker shops.  Only now has the State Bar, the Attorney General and the public caught up to what has been going on for a solid two years.

As a bankruptcy attorney and real estate broker with 18 years experience, I've learned that the only way to properly serve a homeowner in financial distress is to roll up your sleeves and delve into the facts on a case by case basis.  An individual game plan must be devised to fit the facts and the realistic goals of the client.  All options need to be addressed including direct loan mod, loan audits, litigation, Chapter 7, Chapter 13, Chapter 11, and short sales.  The practice of insolvency law is a slow grind not akin to the sub-prime mortgage industry or its culture.  It is best practiced one client at a time by a hands-on attorney and a well trained and supervised staff.

Source:  http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395