Foreclosure Rescue Operator Admits To Unauthorized Practice Of Law; Agrees To Refund Pocketed Upfront Fees, Dodges Civil Penalties

The Ohio Supreme Court recently approved a consent decree in which upfront fee foreclosure rescue operator American Foreclosure Specialists, L.L.C. admitted "that it engaged in the unauthorized practice of law by drafting and preparing a court pleading and providing it to one of its customers with instructions to file the same with the court," agreed to refund the $995 fee it clipped from a homeowner/couple, and promised to never engage in the unauthorized practice law again in the State of Ohio.(1)

For the court's ruling, see Ohio State Bar Assn. v. Am. Foreclosure Specialists, L.L.C., Slip Opinion No. 2010-Ohio-148 (January 27, 2010).

(1) American Foreclosure Specialists, L.L.C. dodged the imposition of any civil penalties because, according to the court:

• it fully and completely cooperated in the investigation of the complaint and admitted engaging in the unauthorized practice of law,
• only one instance of the unauthorized practice of law was committed,
• it had never previously been charged with the unauthorized practice of law, and
• it agreed to fully refund the fee it pocketed.