Summit Realty

SRG Clears it’s Name from the Mark Greget and “The Greget Group”

Summit Realty Group has won the case against Mark Greget and “The Greget Group”. Mark Greget has been found guilty of Codes 10139 (acting or advertising as a broker without a license) 10176 (a) (Substantial misrepresentation) 10177 (j) (fraud or dishonest dealings) 10177 (d) (violation of the real estate law) and/or 10177 (g) (negligence). The California Department of Real Estate is currently pursuing disciplinary action against Mark Greget which will most likely result in the revocation of Mark Greget’s California Real Estate License.

Mark Greget has previously posted false and defamatory comments on various websites stating Summit Realty Group is unethical and that the broker, John Manno, is “psychotic”. The truth to the matter is that Mark Greget was in a desperate state of mind and was saying and/or doing anything possible to scare or even strong arm Summit Realty Group into dropping charges being brought up against him. His comments posted on various internet sites are reinforcement to the fact that Mark Greget is an unethical businessman and a prime example of how every licensed real estate person who calls themselves a Realtor® should not conduct their business.

This case is also a prime example of how Summit Realty Group does not condone unethical behavior of their agents and that through the use of technology, Summit Realty Group has the ability to efficiently monitor agents and their transactions much more closely than other brokerages. View a copy of the case filed by the California Department of Real Estate.  Summit Realty Group wins Case

Tags: avoid housing fraud, avoid housing scams, housing fraud, housing scams, how to avoid housing fraud, how to avoid housing scams

Mortgage Fraud CONSUMER ALERT

Beware the latest fraud: Lawyers advertising that homeowners can join a so-called “Mass Joinder” lawsuit for loan modification and mortgage rescue. Vulnerable homeowners are tempted in these scams to pay lawyers to add them to mass lawsuits against lenders. Homeowners beware—this is a scam.

•Do not pay up-front fees to anyone promising to modify your loan. That’s illegal—and unlikely to work.

•No one can guarantee you a reduction in principal or a settlement with a bank. Watch out for people making extravagant claims and alluring offers about mortgage relief, or asking to pay a retainer without talking to an ABA-licensed lawyer and checking their reputation with the Better Business Bureau.

•You can research any lawyer by searching their record at the State Bar’s website: http://calbar.ca.gov

If you have questions about how to proceed with your current mortgage situation, please consult a non-profit counselor certified by the US Department of Housing and Urban Development. A list of certified counselors can be found at http://hud.gov .

IF YOU FEEL YOU ARE A VICTIM OF THIS SCAM:
The CA State Bar has created dedicated, confidential hotlines for potential victims. Clients of Philip A. Kramer, call: 213-765-1672; of Mitchell J. Stein, call: 213- 765-1639; of Paul W. Petersen, call: 213-765-1641; of Christopher J. Van Son, call: 213-765-1658

For Additional Assistance, Call: 1-888-995-HOPE (4673)

Tags: Better Business Bureau, housing fraud, How to avoid fraud, how to avoid housing fraud, loan modification CA, loan modification fraud, loan modification scams, loan modification tips, mortgage fraud

Attorney General Kamala D. Harris Sues Law Firms Engaged in National “Mass Joinder” Mortgage Fraud

SAN FRANCISCO — Attorney General Kamala D. Harris today announced that the California Department of Justice, in conjunction with the State Bar of California, has sued multiple entities accused of fraudulently taking millions of dollars from thousands of homeowners who were led to believe they would receive relief on their mortgages.

Attorney General 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. “Mass joinder” lawsuits are lawsuits with hundreds, or more, individually named plaintiffs. This is the first consumer action by the Attorney General’s Mortgage Fraud Strike Force.

Kramer’s firm and other defendants were placed into receivership on Monday, Aug. 15. The legal actions were designed to shut down a scheme operated by attorneys and their marketing partners, in which defendants used false and misleading representations to induce thousands of homeowners into joining the mass joinder lawsuits against their mortgage lenders. Defendants also had their assets seized and were enjoined from continuing their operations. Nineteen DOJ special agents participated as the firms were taken over Wednesday, Aug. 17, along with 42 agents and other personnel from HUD’s Office of Inspector General, the California State Bar, and the Office of Receiver Thomas McNamara at 14 locations in Los Angeles and Orange Counties. Sixteen bank accounts were seized.

“The defendants in this case fraudulently promised to win prompt mortgage relief for millions of vulnerable homeowners across the country,” said Attorney General Harris. “Innocent people, already battered by the housing crisis, were targeted for fraud in their moment of distress.”

“The number of lawyers who have tried to take advantage of distressed homeowners in these tough economic times is nothing short of shocking,” said State Bar President William Hebert. “By taking over the practices of four attorneys accused of fraudulent marketing practices, the State Bar can put a stop to their deplorable conduct as part of our ongoing effort to protect the public.”

It is believed that at least two million pieces of mail were sent out by defendants to victims in at least 17 states. Defendants’ revenue from this scam is estimated to be in the millions of dollars.

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.

Consumers who paid to join the mass joinder lawsuits were frequently unable to receive answers to simple questions, such as whether they had been added to the lawsuit, or even to establish contact with defendants. Some consumers lost their homes shortly after paying the retainer fees demanded by defendants.

This mass joinder scam began with deceptive mass mailers, the lawsuit alleges. Some mailers, designed to appear as official settlement notices or government documents, informed homeowners that they were potential plaintiffs in a “national litigation settlement” against their lender. No settlements existed and in many cases no lawsuit had even been filed. Defendants also advertised through their web sites.

When consumers contacted the defendants, they were given legal advice by sales agents, not attorneys, who made additional deceptive statements and provided (often inaccurate) legal advice about the supposedly “likely” results of joining the lawsuits. Defendants unlawfully paid commissions to their sales representatives on a per client sign-up basis, a practice known as “running and capping.”

Defendants’ alleged misconduct violates the following laws:
-False advertising, in violation of section 17500 of the Business and Professions Code
-Unfair, fraudulent and unlawful business practices, in violation of section 17200 of the Business and Professions Code
-Unlawful running and capping, in violation of section 6152, subdivision (a) of the Business and Professions Code (i.e., a lawyer unlawfully paying a non-lawyer to solicit or procure business)
-Improper fee splitting (defendants unlawfully splitting legal fees with non-attorneys)
-Failing to register with the Department of Justice as a telephonic seller.

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.

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.

The State Bar has seized the practices and attorney accounts of the 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

The complaint, temporary restraining order, examples of marketing documents and photos of the enforcement action are available with the electronic version of this release at http://oag.ca.gov/news.

Information provided by State of California Dept of Justice

Tags: California Department of Justice, Fraud, How to avoid fraud, how to avoid housing fraud, loan modification fraud, mortgage fraud, Mortgage Fraud Strike Force

Tips for Avoiding Prime Bank Note Fraud

International fraud artists have invented an investment scheme that supposedly offers extremely high yields in a relatively short period of time. In this scheme, they claim to have access to “bank guarantees” that they can buy at a discount and sell at a premium. By reselling the “bank guarantees” several times, they claim to be able to produce exceptional returns on investment. For example, if $10 million worth of “bank guarantees” can be sold at a two percent profit on 10 separate occasions—or “traunches”—the seller would receive a 20 percent profit. Such a scheme is often referred to as a “roll program.”

To make their schemes more enticing, con artists often refer to the “guarantees” as being issued by the world’s “prime banks,” hence the term “prime bank guarantees.” Other official sounding terms are also used, such as “prime bank notes” and “prime bank debentures.” Legal documents associated with such schemes often require the victim to enter into non-disclosure and non-circumvention agreements, offer returns on investment in “a year and a day”, and claim to use forms required by the International Chamber of Commerce (ICC). In fact, the ICC has issued a warning to all potential investors that no such investments exist.

The purpose of these frauds is generally to encourage the victim to send money to a foreign bank, where it is eventually transferred to an off-shore account in the control of the con artist. From there, the victim’s money is used for the perpetrator’s personal expenses or is laundered in an effort to make it disappear.

While foreign banks use instruments called “bank guarantees” in the same manner that U.S. banks use letters of credit to insure payment for goods in international trade, such bank guarantees are never traded or sold on any kind of market.

Tips for Avoiding Prime Bank Note Fraud:

• Think before you invest in anything. Be wary of an investment in any scheme, referred to as a “roll program,” that offers unusually high yields by buying and selling anything issued by “prime banks.”
• As with any investment, perform due diligence. Independently verify the identity of the people involved, the veracity of the deal, and the existence of the security in which you plan to invest.
• Be wary of business deals that require non-disclosure or non-circumvention agreements that are designed to prevent you from independently verifying information about the investment.

Summit Realty Group believes that a large portion of fraud and scams can pe prevented simply by creating an public awareness of how fraud can be commited.

Tags: bank notes, housing fraud, How to avoid fraud, how to avoid housing fraud, mortgage repair fraud

State attorney general shuts down law firms accused of conning homeowners

The state Attorney General’s Office has shut down four Southern California law firms that allegedly conned about 2,500 California homeowners facing foreclosure into paying thousands of dollars to join a lawsuit against lenders that went nowhere.

The law firms made false promises to the plaintiffs to entice them to sue the lenders, telling them that foreclosure proceedings would be stopped and their monthly payments reduced, Attorney General Kamala Harris said Thursday at a news conference.

The attorney general is suing the law firms of Philip Kramer, Christopher Van Son, Paul W. Petersen and Mitchell Stein, which also has an office in Walnut Creek.

“It will bring justice to a number of homeowners of California who were targeted by predators,” Harris said. The suit, which seeks civil penalties, alleges false advertising and violations of the business and professions code.

The State Bar Association has taken over the practices of the law firms. Since 2009, 20 attorneys in California have either been disbarred or given up their license after they got in trouble from loan-modification rescue scams.

Harris alleges that the Southern California attorneys banded together to file “mass joinder” lawsuits, which effectively folded cases with separate but similar circumstances into one legal filing.

The law firms sent out mailers to homeowners in California and 16 other states who had trouble paying their mortgage.

The mailers gave the impression that a legal settlement was within reach and that the homeowners would benefit by becoming a named plaintiff.

Telemarketers gave homeowners misleading advice and information about the benefit of joining the case, according to Harris’ suit. Call center companies were also named in the suit.

Unlike conventional civil cases, which typically work on a contingency fee basis, the homeowners were required to pay from $4,000 to $10,000 to be added as a plaintiff. To date, about 2,500 homeowners, all from California, have been identified as victims, said Harris.

“They are really homeowners who have been victimized a second time,” she said.

Representatives of the Van Son, Kramer, and Petersen law firms could not be reached for comment. A man named Toby, who declined to give his last name and identified himself as a senior paralegal for Mitchell Stein, said the law firm had an active case in Los Angeles Superior Court.

“It’s not as simple as Kamala Harris filing suit,” he said.

No disciplinary charges have been filed against the attorneys by the Bar Association.

The attorney general’s lawsuit does not indicate whether the cases filed by the four law firms have any legal merit. To that end, the Bar Association will look at the circumstances of each case to see whether they should be referred to other lawyers. Clients can call the Bar Association at 213-765-1672 for more information.

A state law makes it illegal to ask for an upfront payment for loan-modification services. The law applies to real estate licensees and attorneys.

“Be wary of any person or company that asks for a fee in advance,” said Ophelia Basgal, regional counsel for the U.S. Department of Housing and Urban Development,

She reminded consumers that HUD-approved counseling agencies provide free help to homeowners facing foreclosure. Call 888-995-HOPE (4673) for more information.

By Eve Mitchell
Contra Costa Times

Tags: foreclosure help, housing fraud, how to avoid housing fraud, loan modification fraud, mortgage fraud

Tips for Avoiding Letter of Credit Fraud

Legitimate letters of credit are never sold or offered as investments. They are issued by banks to ensure payment for goods shipped in connection with international trade. Payment on a letter of credit generally requires that the paying bank receive documentation certifying that the goods ordered have been shipped and are en route to their intended destination. Letters of credit frauds are often attempted against banks by providing false documentation to show that goods were shipped when, in fact, no goods or inferior goods were shipped.

Other letter of credit frauds occur when con artists offer a “letter of credit” or “bank guarantee” as an investment wherein the investor is promised huge interest rates on the order of 100 to 300 percent annually. Such investment “opportunities” simply do not exist. (See Prime Bank Notes for additional information.)

Tips for Avoiding Letter of Credit Fraud:

• If an “opportunity” appears too good to be true, it probably is.
• Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and faulty logic to “explain” fraudulent investment schemes.
• Do not invest or attempt to “purchase” a “letter of credit.” Such investments simply do not exist.
• Be wary of any investment that offers the promise of extremely high yields.
• Independently verify the terms of any investment that you intend to make, including the parties involved and the nature of the investment.

Summit Realty Group believes that a large portion of fraud and scams can be prevented simply by creating an public awareness of how fraud can be commited.

Information provided by fbi.gov

Tags: credit repair, credit report, Credit Score, housing fraud, How to avoid fraud, how to avoid housing fraud

Tips for Avoiding Advanced Fee Schemes

An advance fee scheme occurs when the victim pays money to someone in anticipation of receiving something of greater value—such as a loan, contract, investment, or gift—and then receives little or nothing in return.

The variety of advance fee schemes is limited only by the imagination of the con artists who offer them. They may involve the sale of products or services, the offering of investments, lottery winnings, “found money,” or many other “opportunities.” Clever con artists will offer to find financing arrangements for their clients who pay a “finder’s fee” in advance. They require their clients to sign contracts in which they agree to pay the fee when they are introduced to the financing source. Victims often learn that they are ineligible for financing only after they have paid the “finder” according to the contract. Such agreements may be legal unless it can be shown that the “finder” never had the intention or the ability to provide financing for the victims.

Tips for Avoiding Advanced Fee Schemes:

If the offer of an “opportunity” appears too good to be true, it probably is. Follow common business practice. For example, legitimate business is rarely conducted in cash on a street corner.

• Know who you are dealing with. If you have not heard of a person or company that you intend to do business with, learn more about them. Depending on the amount of money that you plan on spending, you may want to visit the business location, check with the Better Business Bureau, or consult with your bank, an attorney, or the police.
• Make sure you fully understand any business agreement that you enter into. If the terms are complex, have them reviewed by a competent attorney.
• Be wary of businesses that operate out of post office boxes or mail drops and do not have a street address. Also be suspicious when dealing with persons who do not have a direct telephone line and who are never in when you call, but always return your call later.
• Be wary of business deals that require you to sign nondisclosure or non-circumvention agreements that are designed to prevent you from independently verifying the bona fides of the people with whom you intend to do business. Con artists often use non-circumvention agreements to threaten their victims with civil suit if they report their losses to law enforcement.

Summit Realty Group believes that a large portion of fraud and scams can pe prevented simply by creating an public awareness of how fraud can be commited.

Information provided by fbi.gov

Tags: advance fees, How to avoid fraud, how to avoid housing fraud, how to avoid housing scams