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California Officials Sue Alleged Mortgage Fraud Ring-Leaders

California Attorney General Kamala Harris announced that the state has broken up a major mortgage fraud ring. The Department of Justice is suing more than a dozen people, including lawyers and law firms that defrauded thousands of homeowners in at least 17 states.

The group contacted people facing foreclosure and promised them relief if they joined a lawsuit against their lender. The homeowners were charged four to ten thousand dollars to participate.

"What we know is that after paying this money, the homeowners then, of course, believed that they had legal representation and would call their lawyer to ask, 'how's my case coming along?' And those calls went unreturned," Harris said.

Harris said the lawyers and others accused of taking part in the fraud have had their offices raided and their assets frozen.

The suit seeks fines, penalties, damages and restitution for the victims - possibly in the tens of millions of dollars.

Comments

Avatar for user 'TBo'

TBo | August 18, 2011 at 10:39 p.m. ― 2 years, 11 months ago

Kramer & Kaslow were set up. They were doing nothing illegal and were, in fact, doing everything they claimed for their clients. I know this because I am personally involved with people working on this case.

They were set up by another entity that was supposed to be acting on behalf of Kramer & Kaslow to collect money from new clients for them; K2 Law.

It appears that Bank of America used K2 as a Trojan Horse to set Kramer & Kaslow up for this big raid by the AG.

Bank of America was about to settle for over $6 billion in the Ronald v BofA case because of ALL the other clients who have been added in the mass joinder by Kramer & Kaslow. But NOW that the AG has has intervened, BofA will end up paying FAR LESS than the $6 billion they were ready to shell out in a couple of months.

This just goes to show how ruthless the "banksters" are and that they, along with their bought and paid for government flunkies, will do whatever it takes to avoid justice.

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Avatar for user 'olivertoth'

olivertoth | August 21, 2011 at 7:07 a.m. ― 2 years, 11 months ago

Alas you are 100% accurate with regards to this unfortunate mess. B of A has always been known as a "gangster" lender, but now that they have settled 2 major law suits in the past month, they are running low on cash reserves for settlement funding.
AIG was the last blow for B of A 2 weeks ago in the amount of USD$10 Billion.At the heart of the matter lies the simple fact that B of A simply can't afford the amount of bad publicity they have been receiving as of late.

It is far more affordable to pay "Barry" a USD $100 Million in ransom money to take the down the attorneys who are indeed attempting to bring these gangster entities to justice.

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Avatar for user 'BadLawyersJailBound'

BadLawyersJailBound | August 22, 2011 at 1:24 p.m. ― 2 years, 11 months ago

You sound like employees or owners of these businesses that were raided. Who sit here and write a manifesto about the banks being bad when the attorneys where no better than the banks. Kramer's email quote about no refunds seem complete heartless when these are homeowners that were already struggling. They turned their loan modification scam into a nationwide rip off of homeowners. From the look of it, they deserved ever F rating they have with the BBB. Oh wait! This wasn't the BBB that got them. It was the Attorney General's Office and State Bar with help of the DOJ and HUD. I guess they were wrong for finally doing something about the homeowners that called in and complained about being abandoned after they forked over thousands of dollars, about how they wrote a check to one person and another cashed the check, and about how there really hadn't been a settlement.

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