Fund helps
victims rebuild lives after an attorney’s theft
By Laura
Ernde
Staff
Writer
Like numerous
homeowners when the housing crisis hit, David and Janet Love were underwater on
their mortgage. But their financial situation worsened when their bank turned
them down for a loan modification.
So when a law
group promised that California attorney Bruce Weiner could negotiate a deal to keep them
in their home, the Chandler, Ariz., couple agreed to pay $3,495 in up-front
fees.
“I trusted
them, and I trusted him to do what he said,” David Love said.
Unfortunately,
the Loves never heard anything more from Weiner or the company after handing
over their money. They ended up losing the home they had built.
“Our
situation was dire, and to be taken advantage of at our lowest point was a hard
blow to us in every way,” he said.
Last year,
however, a bright spot came when the couple received a check for $3,495 from
the Client Security Fund. The State Bar fund protects
consumers of legal services by reimbursing for thefts committed by California
lawyers.
In 2013,
the fund paid out a record $11 million to more than 2,000 applicants.
The
increase was largely the result of attorneys who were involved in mortgage loan
modification fraud, said Lori Meloch, director of the fund. Hundreds of
homeowners applied to the fund after they gave money to dishonest lawyers up
front and never received services.
In the case
of Weiner, who was disbarred for his conduct, the fund has paid $222,209 to 73 different
applicants. His case was a typical example of how the conduct of even one bad
lawyer prompted dozens or even hundreds of applications to the fund. Although
the individual amounts were fairly small, the totals added up.
Last year
the fund brought on temporary staff to help with the legal review and
processing of the increased number of applications and ensure that victims of
attorney fraud received reimbursements in a timely manner, Meloch said.
The way the
process works is, once an attorney’s discipline case becomes final, any applications
to the fund associated with that attorney are reviewed by the Client Security
Fund Commission. The volunteer commission determines eligibility through a
process that’s separate from the attorney discipline process. The commission is
comprised of four lawyers and three members of the public appointed by the
State Bar Board of Trustees.
Under the rules, the disciplined attorney is
required to repay the fund plus interest.
William
Letendre of Bradenton, Fla., also received a reimbursement from the fund of $3,995
he had given Weiner’s firm, which “did absolutely zero for me” toward a loan
modification.
“I found
out I wasn’t the only person being taken for a ride by these people,” said
Letendre, who was able to work out his own deal with his bank that allowed him
and his wife to keep their home.
Letendre
said he reported Weiner to the bar to prevent others from being defrauded and
was delighted to find out he could get his money back in the process.
“It is good
to know that the State Bar of California has an organization to protect
unsuspecting people from these kinds of situations,” he wrote in a letter to
the fund. “And thanks to all the honest attorneys who work so hard to protect
their client’s rights.”
For David Love,
the check from the fund is helping to pay off debts and get him and his wife back
on their feet again.
“We never
honestly expected to receive any money back and when we opened the envelope and
saw the check you can imagine our surprise and joy,” he said.