Florida AG Suit Targeting Loan Modification Group Includes Allegations Of Unauthorized Practice Of Law, "Running & Capping"

In a recent lawsuit (among others) brought by the Office of the Florida Attorney General against a South Florida group peddling loan modification services, allegations of unauthorized practice of law and "running and capping," (ie. the practice of non-attorneys hustling up business for an attorney) have been made in the complaint against the operators.

In State of Florida v. FHA All Day.com Inc., et al.,(1) the Florida Attorney General makes the following charges, which are alleged to be in violation of the Florida Deceptive and Unfair Trade Practices Act:

• Defendants engaged or otherwise involved and/or compensated Florida licensed attorneys, to provide legal services to the homeowner clients of the Defendants,

• Defendants' business in offering legal services to the public directly, or indirectly through Florida licensed attorneys which Defendants engage or otherwise involve and/or
  compensate, constitutes the unauthorized practice of law in accordance with the principles of the Florida Supreme Court pursuant to The Florida Bar v. Consolidated Business and Legal Forms, Inc., 386 So.2d 797 (1980),

• Florida Statutes, § 877.02(1) makes it unlawful for any person to make it a business to solicit or procure legal business for attorneys,

• Defendants solicited, advertised or otherwise offered legal services to Florida homeowners for mortgage foreclosure defense and/or foreclosure-related rescue services,

• Defendants' business includes, but is not limited to, procuring agreements and payments from homeowners for attorneys to render legal services to homeowners for mortgage foreclosure defense and/or foreclosure-related rescue services,

• Defendants' actions as heretofore set forth constitute violations of the provisions of Florida Statutes, § 877.02(1),

• Defendants represent to homeowners that attorneys will handle their cases although Florida licensed attorneys cannot accept referrals from the Defendants since the Defendants' lawyer referral service does not comply with the requirements of The Rules Regulating The Florida Bar, Rule 4-7.10 (p.128 of the Rules); In re: Amendments to the Rules Regulating the Florida Bar-Advertising, 971 So. 2d 763, 793 (2007).

See Florida AG Lawsuit, paragraphs 37 through 44.

(1) Other defendants: Jason Vitulano, Safety Financial Services, Inc., Housing Assistance Law Center, and Housing Assistance Now. UnauthPractOfLawTheta