Bar crackdown continues against California loan modification attorneys

The State Bar of California, expanding its continuing crackdown on loan modification misconduct, identified 16 Southern California attorneys who are under investigation.

In an unusual move, the State Bar, which usually keeps investigations confidential, named the attorneys in a Sept. 18 press release. Interim Chief Trial Counsel Russell Weiner said in the release that the seriousness of the loan modification misconduct — which has affected thousands of victims in California — necessitated divulging the investigations to the public.

“In my 21 years in attorney discipline, I have not seen a crisis of this magnitude. It is truly unprecedented,” Weiner said. “The number of attorneys using their law licenses to essentially take money from unwary but trusting consumers is astounding.”

About one quarter of the active investigations in the bar’s Office of Chief Trial Counsel, or about 800 cases, are related to foreclosure complaints — a 58% increase compared to last year, according to the bar. Many of those complaints are against attorneys offering loan modification services.

The attorneys often are associated with telemarketers and phone banks and, in some cases, have been sued by the U.S. Federal Trade Commission in recent months. The bar has suggested that consumers steer clear of loan modification services that don’t identify their attorneys by name or do not make the attorney available.

The attorneys under investigation allegedly took fees for services and then failed to perform those services, communicate to their clients or return the fees, according to the bar.

The attorneys identified by the bar are:

• David Arase of the Arase Law Firm and National Housing Assistance in Costa Mesa, Calif.

• Stephen Burns of Legal Group Network in Los Angeles.

• Robert Buscho an attorney in Fullerton, Calif., of United Law Group in Irvine, Calif.

• Nicholas Chavarela of Santa Ana, Calif., with the Rodis Law Group and America’s Law Group.

• Ronald Rodis, also of Rodis Law Group and America’s Law Group, in Newport Beach, Calif.

• Steven Feldman of Feldman Law Center in Mission Viejo, Calif.

• Eric Johnson of Avantgarde Group in Culver City, Calif.

• Paul Lucas of Lucas Law Center in Aliso Viejo, Calif.

• Brandon Moreno of U.S. Foreclosure in Santa Ana.

• Jeffrey Nemerofsky of U.S. Advocacy Law Group and U.S. Financial Products in Laguna Niguel, Calif.

• Gregory Paiva of the Law Offices of Gregory Paiva in Ontario, Calif.

• Mark Shoemaker of Advocates for Fair Lending in Long Beach, Calif.

• Marc Tow of Marc Tow and Associates in Newport Beach.

• Michael Yellin of A Fresh Start Loan Modification in Los Angeles.

Robert Semain, a spokesman for the Law Offices of Gregory Paiva, said of the 700 loan modifications his firm has completed, five had complaints.