California Bar targets attorneys Paul Lucas and Sean Rutledge

loan modification scamLast 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 

From the FTC

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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7 Comments

7 Responses to “California Bar targets attorneys Paul Lucas and Sean Rutledge”

  1. 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.

  2. william e davis says:

    We would like to join the class action lawsuit against United Law Group & Sean Rutledge. How do we do so.

  3. Vicki Humpert says:

    I submitted a fraud complaint in February, 2010, to the California Bar Association regarding Sean Rutledge and United Law Group, which is currently pending. I want a refund of the $1,750 paid last June, 2009, for a mortgage restructure for which no services were provided. The fraud reports in the blogs I’ve been reading are identical to the horrible experience I’m having with Sean Rutledge and ULG.

  4. Randall says:

    William and Vicki… the obvious answer would be to contact Jeffery at:

    Lakeshore Law Center
    Jeffrey Wilens, Esq.
    18340 Yorba Linda Blvd.
    No. 107-610
    Yorba Linda, CA 92886
    714-854-7205
    714-854-7206 (fax)

  5. ela says:

    According to Sean Rutledge’s Bar Ethics Attorney, The Judge hearing his case and many others involving so called “Loan Mod Fraud,” Judge Honn., was approached by The State Bar Prosecutors and offered a bribe. Judge Honn, who has his application for superior court judge pending with the Cal Bar, was told he would be appointed to that position if he would find against Rutledge and all other attorneys involved in providing Loan Modifications.

  6. Tom Tarsia says:

    I was approached by united law group to do a loan mod for me , they took $7000 from me and never did a thing. I lost my home because of them and now I have to claim bankrupcy. I have filed complaints with 3 bar assoc. and have asked for my money back. If I ever get my money back I would be very surprised. I would get great satisfaction to see rutledge go to jail, and anyone else assoc. with ulg.

  7. Alexx says:

    The Lucas Law Center did well for me. Sorry to hear all the sad news. I guess I’m one on the few that got the legit service of the center. I was paying a 8.7 percent interest on my home and within 45 days they brought it down to 6.1. in June 2009. I remember phone calls were not being returned but emails were the best contact for day to day activity. Again, Sorry ot hear the bad news of it all.

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