Lawyer Disbarred for Loan Modification Fraud

Allison Tussey —  August 26, 2013 — 2 Comments

Stephen Lyster Siringoringo, 32, Garden Grove, California, bar # 264161, has been disbarred for defrauding homeowners in a loan modification scam.

Finding that he posed a “substantial threat” to his clients and the public, and continued to engage in unlawful activities, the State Bar Court has ordered that Siringoringo be prohibited from practicing law.

Siringoringo was placed on inactive status July 29, 2013, pending the outcome of a disciplinary case against him. Siringoringo was in the midst of a trial for 25 counts of misconduct tied to loan modification matters and faces additional charges in connection with 14 other cases outlined in the court’s decision and order of inactive enrollment.

In that order filed July 26, 2013, State Bar Court Judge Richard A. Honn wrote that Siringoringo’s business model violated Civil Code section 2944.7, which prohibits loan modification professionals – both attorneys and non-attorneys – from charging fees before they have performed all the services that they were contracted for.

According to Honn, the Siringoringo Law Firm set up retainer agreements with its clients whereby the loan modification work would be split into stages. In stage one and two – which involved pre-qualification and completing a loan modification application – clients would be charged between $2,000 and $3,500. In stage 3, during which the firm was to submit the loan modification application and purportedly negotiate with the lender, clients were charged $495 every 30 days while awaiting the lender’s decision.

Siringoringo’s conduct demonstrates a pattern of behavior, he has failed to acknowledge his billing methods are wrong, and there is no indication he will change his practices.

“Respondent has demonstrated a lack of understanding or appreciation of his ethical and fiduciary duties,” Honn wrote. “In addition, respondent continues to harm some of his clients by failing to refund their unearned fees and communicate with them. Absent the court’s intervention, it is likely that respondent’s misconduct will continue to harm his present and future clients.”

Siringoringo is the third attorney this year that the State Bar Court has placed on involuntary inactive status for alleged misconduct. In May 2013, the court placed Los Angeles attorney Gene Wook Choe, 50, [bar # 187704] on involuntary inactive status for alleged misconduct in loan modification matters similar to the allegations against Siringoringo.

In June 2013, the court granted the State Bar’s application to involuntarily enroll Hal Erwin Wright [bar # 157814] as an inactive member. Wright, 58, Davis, California, has been charged with multiple acts of misconduct involving moral turpitude and dishonesty, including misappropriation of funds.

The Office of the Chief Trial Counsel seeks orders of involuntary inactive enrollment in cases where immediate action is necessary due to the threat of ongoing harm to the public.

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2 responses to Lawyer Disbarred for Loan Modification Fraud

  1. I have watched this case with great interest. Not because I have been directly harmed by Mr. Siringoringo but because my son was offered and accepted a job working for the people that Mr. Siringoringo worked for and took the fall for, that being “Clausen and Cobb Management Inc.”, from here on known as “CCMI”.

    What I do not understand is why CCMI is still in business with new lawyers under a new name but still working out of the same office buildings? All the California State Bar has done is cut the tail of the serpent! The head of the serpent is still intact and just as dangerous.

    Why do I not read that CCMI is being investigated for the same crimes against the people that Mr. Siringoringo has been reported to have hurt? It is clear from all my readings that Mr. Siringoringo had partnered with the management of the CCMI group and they are just as guilty if not the true guilty party. CCMI is known for using lawyers to collect and share fees illegally for the purpose of modifying home loans. Mr. Siringoringo is the third lawyer to have been disbarred while working for the owners and managers of CCMI.

    My son and I do not currently see eye to eye and I cannot talk to him about my concerns because we are at such odds with each other. I am glad that my son has a job but it seems to me he is working for a Mafia like organization and that someday he may take a fall for this CCMI group and there is nothing I can do but pray the management of this organization is brought to justice before he is hurt.

  2. Sylvia webberley November 3, 2013 at 10:53 pm

    Hi there, yes this place is very wrong and I hope some day your son will see that. The company is probably giving him money that he can’t. Turn down please feel free to contact me. Thank you. We want to be part of a class action suit because siringoringo took us for 6000. Thank you for your time,best if luck.

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