The California attorney general suing a "ring" of lawyers for allegedly defrauding at least 2,500 homeowners out of millions of dollars, a fraud that was intended to provide relief on their troubled mortgages, she said Thursday.
The lawsuit filed by the state's top legal names of 3 law firms, 3 other attorneys & fourteen other defendants. Los Angeles employement lawyers They're accused of sending 2 million misleading pieces of mail in California & at least seventeen other states & using misleading advertising & telemarketing practises to lure desperate homeowners into believing that they could sue mortgage lenders & stop foreclosures, said District Attorney Kamala Harris .
Harris said the defendants sold the homeowner to participate in the mass union lawsuits against lenders, & promised that the colours would reduce their loan balances & interest, receive compensation & also result in a free & clear title to their homes.
Civil lawsuit seeks fines, penalties, damages & compensation in the tens of millions of dollars, Harris said in San Francisco.
"Yesterday, we broke up what we believe is a fraud ring that's national in scope," said Harris. "They were engaged in what's called a mass union scam." "
On Wednesday, authorities took the law firms named in the lawsuit the attorney general, Harris said. On Monday, the law firms cited in the suit placed in receivership, & the defendants' assets were seized & ordered from continuing operations, Harris added in a statement.
The lawyers charged homeowner fees of up to $ 10000 to make them as plaintiffs in a mass of compound trial, said Harris. Such a suit involves a large # of claimants in which each has its own set of facts.
She argues that "mass association scam" involved deceptive mass mailers appear as an official settlement communications or public documents & told homeowners that they were potential plaintiffs in a "national lawsuit settlement" against the lenders. Such settlements existed, Harris said.
Even homeowners were unable to get lawyers to answer simple questions such as whether they had been added to the mass union suit, Harris said. Some lost their homes in the process, even after paying their attorneys fees holder.
Los Angles personal injury lawyers & other defendants also engaged in the illegal practise of "running & capping", where lawyers paid commissions to a "mill" of sales representatives based on how many homeowners were signed up.
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