Attorney Accused of Loan Modification Scheme

Allison Tussey —  November 13, 2012 — 6 Comments

Stephen Lyster Siringoringo, Garden Grove, California, state bar number 264161, is the subject of disciplinary charges for allegedly taking illegal advanced fees from distressed homeowners and partnering with non-lawyers in a large-scale loan modification scheme.

Siringoringo has been charged with 25 counts of misconduct including collecting advance fees for loan modification services, forming a partnership with a non-lawyer, sharing fees with a non-lawyer, moral turpitude and aiding in the unauthorized practice of law.

Siringoringo heavily advertised his services in southern California, even though the state Legislature has prohibited the acceptance of advance fees for loan modification work.

According to the notice of disciplinary charges against him, Siringoringo, 31, first met his non-lawyer partners Alfred Clausen and Josh Cobb, the owners and operators of Clausen & Cobb Management, Inc. (CCMI), in December 2009. Soon after, Siringoringo agreed to allow them to open an office his name in Upland, in exchange for a share of the legal fees it brought in. The office, staffed by CCMI employees who operated independently, performed legal services and with met clients without Siringoringo‘s supervision. The operation generated enough money to open two other locations in Siringoringo‘s name – in Glendale and Rancho Cucamonga, California.

Filed October 10, 2012, the disciplinary notice lists at least 23 victims of the loan modification scam, some of them couples. It also accuses Siringoringo of “habitually” disregarding his loan modification practice and misleading his clients into believing he was actually in charge of their cases “when in truth and fact CCMI was in charge and operated the loan modification law practice known as Siringoringo Law Office or the Law Offices of Stephen L. Siringoringo.” The State Bar has placed a consumer alert on his online attorney profile page.

Siringoringo‘s case represents the latest in the State Bar’s ongoing efforts to combat loan modification fraud. Since February 2009, the State Bar’s Office of Chief Trial Counsel has received thousands of complaints against attorneys regarding loan modification fraud. More than 100 attorneys have been disciplined so far, including 22 who have been disbarred.

“Mr. Siringoringo’s acceptance of advanced fees in disregard of California law is a stark reminder that almost three years after the passage of SB 94, loan modification abuses and fraud are alive and well and that some of the most financially distressed and vulnerable members of the public are still being victimized and exploited for financial gain,” said Ashod Mooradian, deputy trial counsel at the State Bar.

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6 responses to Attorney Accused of Loan Modification Scheme

  1. I’m not surprised to hear this… this guy advertised heavily on local radio.

  2. this happened to us, how do we get to be part of thisss lawsuit?

  3. This also happened to us, we gave 5000 down payment, and 500 a month for one year. Our house was foreclosed in September 2012 and the representatives told us everything was okay and continued to collect the 500 monthly charge, we went to court without representation and lost our house to auction and were evicted withing three days on Christmas Eve! Siringoringo reps told us that “it happens” and refused to refund us any money, we lost our home and 10000 for nothing. A few months later we get a letter from the Sirongoringo saying “thank you for your business”. We are like most Americans, we work hard to make a living and even harder to own that home, we were scammed into a bad loan and then scammed again by this predator! We also want justice, so if anyone has info on how to be part of this lawsuit please reply?

  4. Vellarin Dumlao August 13, 2013 at 7:33 pm

    We went thru this location in Glendale. How do we get to be part of this lawsuit?

  5. Vellarin Dumlao August 13, 2013 at 7:34 pm

    We went thru the Glendale locatioin. How can we get to be part of this lawsuit?

  6. I was also a victim of this con artist, his firm stole over $6000 from me and didn’t modified my loan, does anyone know where I can go to join the lawsuit against them?

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