Saturday, January 15, 2011

Florida attorney general widens inquiry into foreclosure law firms

Florida Attorney General Pam Bondi's office has expanded its investigation of foreclosure law firms beyond false court documents and the so-called "robo-signers" who were producing them in huge volumes.


Spokeswoman Jennifer Davis said, in response to questions from the Sun Sentinel, that the investigation is also focusing on allegations of misconduct by attorneys, in addition to others who worked at the large law firms that formerly handled most of Florida's foreclosure cases.

Among the allegations she said the attorney general's office is examining:

Law firms padding bills in order to get higher final judgments for lenders at foreclosure. The allegation is that bills submitted in court documents contained inflated fees for process serving -- the procedure for delivering legal notices to those involved in court cases -- that were higher than what the firms actually paid for this service.

Attorneys submitting blank bills in court documents that didn't reveal the actual amount of their fees

Lawyers steering business to title companies owned by the principals in their law firms.

Law firms filing foreclosures before the lender or loan servicer shows that it has a legal interest in the mortgage.

Davis did not indicate which firms are facing which allegations. She also said there is no timetable for the investigation to be concluded.

Bondi's predecessor Bill McCollum launched the investigation last year of four large foreclosure law firms – the law offices of David J. Stern, Shapiro & Fishman, Florida Default Law Group and the law offices of Marshall C. Watson.

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