Attorney Under Investigation for Foreclosure Rescue Scam
The Florida Bar Association is investigating the activities of an attorney of Coral Springs for involvement in foreclosure rescue scam. There are suspicions that many such lawyers have tied up with modification firms as partnership to skirt upfront legal fees. Trade regulators are continuing to file suits against lawyers involved in such types of operations.
The bar officials said they are carrying out investigations against Karen Grun and her links with Housing Assistance Law Center of Deerfield Beach. Legal action has been filed against the firm and three of its affiliates last July stating that they took illegal payments as advance. In many cases they gave a guarantee that the mortgage would be modified within thirty to sixty days.
The bar has stepped up its enquiries regarding understanding between foreclosure rescue firms and lawyers. Their activities ignore state laws regarding upfront fees for loan modification. The Florida Bar Association that supervises the doings of lawyers and disciplines them, started 195 cases in 2009 focusing on the nefarious rescue operations. Real estate Susan Spurgeon said, “They’ve really put a lot of heat on attorneys who were doing this.” She has been lecturing on modification of mortgages.
Grun refused to reply to messages sent over the phone by Sun Sentinel both to her residence and office.
Daniel Henry Fox, a real estate attorney of Aventura was barred after the results of an investigation came out against him. It was charged that he deserted some of his clients who were relying on him for loan modification. The telephone connection of his office has been disconnected. He did not reply to e-mails sent by Sun Sentinel.
On the documents of Housing Assistance Law Center was given the name of Grun and the statement that it was ‘a private law firm.’ She is listed as the director cum president of the firm from April to June. Since then the firm has been dissolved and its phone disconnected.
Recently the regulators of the state filed a case in Miami-Dade Circuit Court against three modification operations involving three lawyers – David Botton of New Jersey, Ryan Matthew Grant of Dallas and Brian Michael Rokaw of Miami Lakes. None responded to e-mails or telephone calls. It is alleged that firms took about $1,299 as advance payments in transgression of state laws forbidding the same. The clients had to send extra dollars as fees to escrow accounts while being falsely assured that they were being legally represented. The state is pleading to the courts to halt the firms from continuing with their businesses.
