CA Attorney General Files charges in massive 17 state mortgage fraud scheme.

Real Estate Agent with 1st Action Real Estate

CA State Attorney General Kamala Harris sued Philip Kramer, the Law Offices of Kramer & Kaslow, two other law firms, three other lawyers, and 14 other defendants who are accused of working together to defraud homeowners across the country through the deceptive marketing of "mass joinder" lawsuits. Prominent foreclosure attorneys Phillip Kramer and Mitchell Stein and at least 17 others have been accused of luring desperate homeowners into the scheme using deceptive advertising and telemarketing schemes aimed at millions of people in California and 16 other states. 

The scheme claimed that courts have found that most mortgage lenders engaged in predatory lending practices or approved inappropriate loans (well, that part is certainly true), and that the homeowners bank was one of the guilty. As alleged in the lawsuit, defendants preyed on desperate homeowners facing foreclosure by selling them participation as plaintiffs in mass joinder lawsuits against mortgage lenders. Defendants deceptively led homeowners to believe that by joining these lawsuits, they would stop pending foreclosures, reduce their loan balances or interest rates, obtain money damages, and even receive title to their homes free and clear of their existing mortgage. Defendants charged homeowners retainer fees of up to $10,000 to join as plaintiffs to a mass joinder lawsuit against their lender or loan servicer.

It probably comes as no surprise that theses same 'prominent foreclosure attorneys' had previously been 'prominent loan modification specialists' but it is alleged that Kramer sent an email to another fellow defendant last year stating "Only morons would prefer to 'sell' mods from this day forward". 

Homeowners who have paid to be added to one of the lawsuits should contact the State Bar if they feel they may be victims of this scam. They can also contact a HUD-certified housing counselor for general mortgage related assistance. If you have sent money to any of the following seized entities, you should contact the CA Attorney Generals Office at

The Department of Justice has seized the practices of the following non-attorney defendants:
Attorneys Processing Center, LLC; Data Management, LLC; Gary DiGirolamo; Bill Stephenson; Mitigation Professionals, LLC; Glen Reneau; Pate Marier & Associates, Inc.; James Pate; Ryan Marier; Home Retention Division; Michael Tapia; Lewis Marketing Corp.; Clarence Butt; and Thomas Phanco as well as seizing the practices and accounts of attorney defendants:The Law Offices of Kramer & Kaslow; Philip Kramer, Esq; Mitchell J. Stein & Associates; Mitchell Stein, Esq.; Christopher Van Son, Esq.; Mesa Law Group Corp.; and Paul Petersen, Esq.

Attorney General Harris is challenging the defendants' alleged misconduct in marketing their mass joinder lawsuits; her office takes no position as to the legal merits of any claims asserted in the mass joinder lawsuits filed by defendants.

Victims in the following states are known to have received these mailers, or signed on to join the case. This is a preliminary list that may be updated:

Alaska, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Texas, Washington.

For more information please go to:


Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. Pat & Wayne Harriman 08/19/2011 02:46 PM
  2. Pamela Seley, REALTOR® 08/19/2011 03:28 PM
  3. Gene Riemenschneider 08/19/2011 07:06 PM
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Comments 22 New Comment

Gabe Sanders
Stuart Florida Real Estate
Martin County Residential Homes, Condos and Land Sales

These folks that continue to pray on home owners going through one of the most difficult times in their lives should be put away.  Good work from the Attorney General of California.

August 20, 2011 08:41 AM
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Desperate circumstances bring on desperate solutions. Temptation abounds and only those grounded in doing the right thing can survive it. Sad for all involved when anyone caves in


August 20, 2011 10:07 AM
Lloyd Binen
Silicon Valley R since 1976;408-565-8177
Certified Realty Services


For sure, bust the crooks and opportunists taking advantage of consumers.

I just wonder where consumer protection advocates and law enforcement were when lenders were praying on consumers in 2003 to 2006.  The sub prime loans being made that culminated in this mess weren't being hidden.

August 20, 2011 03:56 PM
Anonymous #21
Christine Carpenter

Stumbled onto your site/post online. I paid K &K nearly 3 grand with hopes for a great modification and was eventually rolled into the Stein Mass joinder before finally disassociating from them all, including Mitigation Proffessionals LLC. I am a struggling, cancer surviving, widowed, single mother of minor children and yep, I was desperate. When everyone you've dealt with (including your lender) is under investigation and an 18 month struggle has proven fruitless, it is very frustrating! I appreciated finding and reading your post/update on this, thank you.   Hope they all get set straight!    

September 01, 2011 04:15 AM
Gene Wunderlich
Realtor & Legislative Liaison
1st Action Real Estate

Christine - sorry for all your troubles. So many innocent people have been victimized and once that happens they become desperate thinking surely in our country help is available and hope still lives. Then somebody like these clowns come along to take one more shot at you. Best of luck to you.

September 03, 2011 04:00 PM

Gene Wunderlich

Realtor & Legislative Liaison
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