Last month the California Bar announced a formal investigation of 16 licensed attorneys that are suspected of possible fraud. Yesterday, the State Bar of California filed petitions against two of those attorneys to officially put them out of business during the investigations.
The targets of the Barr are Paul Lucas of the Lucas Law Center and Sean Rutledge of the United Law Group. Rutledge’s hearing will be held Oct. 15, 2009 and Lucas’ hearing is scheduled for Oct. 21 at the State Bar Court in Los Angeles, California.
This isn’t the only legal hot water these two attorneys are in. Back in July the FTC announced legal action againts that Lucas Law Center and the United Law Group.
They dubbed the undercover operation Operation Loan Lies.
Operation Loan Lies by the FTC PDF
Federal Trade Commission, Plaintiff, v. LucasLawCenter “Incorporated”, a corporation, also d/b/a Lucas Law Center, Future Financial Services, LLC, a limited liability company, also d/b/a Lucas Law Center, Paul Jeffrey Lucas, an individual, Christopher Francis Betts, an individual, and Frank Sullivan, an individual, Defendants
(United States District Court for the Central District of California, Southern Division)Civil Action No. 09-CV-770
FTC File No. 092 3127
Lucas Law Center allegedly used an attorney to circumvent state prohibitions against receiving a fee before providing any services; the defendants charged up to $3,995 in advance. In addition to falsely representing that they would obtain mortgage loan modifications, the defendants told some homeowners to stop paying their mortgage in order to pay the defendants’ fee.
Consumers obtained promised refunds only after repeated complaints to the Better Business Bureau, the California Attorney General, the State Bar of California, or local criminal authorities. The court immediately barred the practices and froze the corporate defendants’ assets, pending a hearing.
Here is last months statement from the California BAR and Paul Lucas and Sean Rutledge were both named in the press release as being under investigation:
“The number of attorneys using their law licenses to essentially take money from unwary but trusting consumers is astounding,” Weiner added. “There are literally thousands of victims who have lost money they could not afford to lose. Under the circumstances, the need for public information and protection is paramount.”
Those attorneys being named by the State Bar have allegedly taken fees for promised services and then failed to perform those services, communicate with their clients or return the unearned fees, Weiner said. Some attorneys misrepresented the services they could provide. “It appears these attorneys may have significantly harmed their clients who were already facing great financial pressure and the possible loss of their homes.”
Consumers can also find qualified attorneys through a State Bar-certified lawyer referral service that can be found on the State Bar’s Web site (www.calbar.ca.gov), or by calling the State Bar’s Lawyer Referral Services Directory at 1-866-442-2529 (toll free in California) or 415-538-2250 (from outside California).
Consumers having a problem with the attorney handling their loan modification may contact the State Bar at 1-800-843-9053 or visit the State Bar’s Web site at www.calbar.ca.gov to find a complaint form.
Founded in 1927 by the state legislature, the State Bar of California is an administrative arm of the California Supreme Court, serving the public and seeking to improve the justice system for more than 80 years. All lawyers practicing law in California must be members of the State Bar. In September 2009, membership reached 223,000.
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A class action lawsuit against United Law Group and Sean Rutledge is pending in the Orange County (California) Superior Court. Further information can be obtained from http://www.lakeshorelaw.org.
We would like to join the class action lawsuit against United Law Group & Sean Rutledge. How do we do so.