At this point, any homeowner in financial distress has heard of,  or retained the Parsa Law Group.  The firm has spent hundreds of thousands of dollars advertising loan modification services on the internet, TV and radio.  The firm has over a hundred employs and occupies two floors in the DITEC building in Costa Mesa.  Most recently, the firm has been attempting to expand its services to include bankruptcy, although case records indicate that Mr. Parsa is not an experienced bankruptcy attorney.  

Last week, clients of Parsa found that the offices were closed.  Most employees have been laid off.  Hundreds of clients have been left without representation and are out thousands of dollars each.  Local police had to be called to the law office to calm upset clients.  To date, we have been contacted by a handful of Parsa clients and we remain available to those clients if they need a law firm to help clean up the mess.

The passing of SB 94 restricting advance fee loan modification combined with the recent suspension of Mr. Parsa from the practice of law are contributing factors to the fall of this organization.  Parsa was convicted of having sex with a minor resulting in the suspension from the practice of law.  According to California State Bar records:

In the Matter of JAMES MAZI PARSA
a Member of the State Bar of California
Since respondent James Mazi Parsa, State Bar Number 153389, has been convicted of violating Penal Code section 261.5, a misdemeanor involving moral turpitude, under the authority of rule 9.10(a), California Rules of Court, it is ordered pursuant to Business and Professions Code section 6102 that respondent be suspended from the practice of law effective October 16, 2009, pending final disposition of this proceeding. It is also ordered that respondent comply with rule 9.20, California Rules of Court, and perform the acts specified in subdivisions (a) and (c) of that rule within 30 and 40 days, respectively, after the effective date of this suspension.

As the judgment of conviction is final and it appearing that the statutory criteria for summary disbarment are not met, this case is referred to the hearing department for a hearing and decision recommending the discipline to be imposed.
Source:  http://members.calbar.ca.gov/courtDocs/09-C-12545-1.pdf

Unfortunately for homeowners in financial distress, the timing could not be worse.  Hundreds of pre-paid clients in need of immediate legal service have been left without representation.  For those consumers the loss of legal fees is the least of the concerns.  Many have loan modifications in the works or need immediate bankruptcy relief to protect homes and assets. 

I encourage the former clients of the Parsa Law Group, or any other loan modification shop, to contact my office if they need help.