February 1, 2012 - Receiver's Update
Following a Status Conference on January 19, 2012, the Court issued a series of Orders as follows:
1. Approved the State Bar’s Permanent Order to Assume Jurisdiction over the Law Practice of Philip Kramer dba Law Office of Kramer and Kaslow;
2. Ordered Philip Kramer to turn over his Mercedes vehicle to the Receiver;
3. Did not rule on the request of the Pate Marier Defendants to unfreeze a portion of their frozen funds because those Defendants withdrew their request for such an unfreezing at the time of the Status Conference;
4. Declined to order the withdrawal of the subpoenas served on the Pate Marier Defendants by the Receiver and stated that the Receiver’s motion to enforce those subpoenas remains on calendar; and
5. Set the next Status Conference for April 19, 2012.
The Receiver has completed the closing of Defendants’ facilities as authorized by the previous Orders of October 3, 2011 and October 25, 2011.
December 1, 2011 – Receiver is Proceeding with Facilities Shut Down and Liquidation
After receiving Orders on October 3, 2011 and October 25, 2011 which authorized the shut down of the Defendants’ facilities and liquidation of the furniture and equipment on site, the Receiver commenced that process and has been working through the issues with each individual landlord and orchestrating the best possible liquidation of the furniture and equipment. Unfortunately, in the current economy, the current market for used office furniture and equipment is saturated and we do not anticipate that the recovery from this liquidation process will be substantial. But, we are proceeding as prudently as possible to maximize the net return. We hope to complete this process by mid-December.
The Receiver is also reviewing all activities of the Non-Attorney Defendants and affiliates that worked with them to determine what additional remedies may be available that would provide a fund that might be available for mass joinder clients.
December 1, 2011 – Notice to Clients of Attorneys in Mass Joinder Cases
The State Bar of California has taken possession of the law practices of Kramer and Kaslow, Mitchell J. Stein, Christopher Van Son, Paul Peterson (Mesa Law Group), and Anthony Kassas (Kassas Law Group).
For information as to the handling of your case going forward, you need to contact the State Bar at one of the numbers below:
Law Offices of Kramer and Kaslow: 213-765-1672
Mitchell J. Stein & Associates: 213-765-1639
Law Offices of Christopher Van Son: 213-765-1658
Paul W. Petersen: 213-765-1641 – The Petersen number provides information on Petersen and the number for Kassas because Kassas was using lines that had been provided to Petersen by the carrier.
Law Offices of Anthony J. Kassas: 213-765-1637
September 30, 2011
Receiver Seeking Court Approval to Dispose of Furniture and Equipment and Return Leased Offices to Landlords
The Receiver has applied to the Court for formal approval to commence the process of shutting down the various office sites of Defendants and returning the premises to the respective landlords. As part of that process, the Receiver will dispose of furniture and equipment on site acquired by Defendants as part of the business enterprise. The Receiver’s application will be heard on Monday, October 3, 2011. Click here to read the Application.
September 9, 2011
ATTENTION! Clients of the following law firms may contact the State Bar at the telephone numbers indicated below for information on your cases.
Law Offices of Kramer and Kaslow: 213-765-1672
Mitchell J. Stein & Associates: 213-765-1639
Law Offices of Christopher Van Son: 213-765-1658
Paul W. Petersen: 213-765-1641
Law Offices of Anthony J. Kassas: 213-765-1637
September 7, 2011
Preliminary Injunction granted and Receiver appointment confirmed in California DOJ case; State Bar secures Interim Possession Order as to the law practice of Anthony Kassas dba Law Offices of Anthony Kassas and Kassas Law Group
Following a hearing on Friday, September 2, 2011 which was continued to Tuesday, September 6, 2011, the Superior Court in Van Nuys granted the California Department of Justice’s application for a Preliminary Injunction and Asset Freeze and confirmation of the appointment of the Receiver. Click here to read a copy of the Order Confirming Appointment of Receiver and here for a copy of the Preliminary Injuction. As a result, the terms of the Temporary Restraining Order initially entered August 15, 2011 are no longer temporary.
On Wednesday, September 7, 2011, the Superior Court in Orange County granted the Ex Parte Application of the State Bar for an “Interim Order Assuming Jurisdiction over the Law Practice of Anthony J. Kassas.” A copy of that Order can be accessed here. Mr. Kassas’ law practice is, therefore, now under the control of the State Bar. The State Bar will establish a dedicated phone number at the State Bar which Kassas clients can call for further information. We will post that number once it is set up.
August 30, 2011
RECEIVER FILES PRELIMINARY REPORT
The Receiver has today filed his Preliminary Report with the Court. Click here to read. This report includes a lengthy Appendix of Exhibits that is too voluminous for posting on this site.
Paragraph 3 of the Order Appointing Receiver, filed August 15, 2011, specifically authorizes and directs the Receiver to “continue and conduct the business[es], or cease operation of the business[es]” of the Non-Attorney Defendants over which the Receiver has been appointed. Any continued operations were dependent upon the Receiver being able to determine that the businesses could be operated lawfully and profitably without violating the Court’s Orders.
At Section V, pages 44-45, of the Preliminary Report, the Receiver responds to this direction with the conclusion that the business of the Non-Attorney Defendants cannot be operated lawfully and profitably at this juncture because these businesses “are so intertwined in illegal fee splitting, deceptive advertising, and illegal loan modifications that they cannot be operated lawfully.”
As a result, the Receiver has suspended all operations at the sites of the Non-Attorney Defendants’ businesses. That suspension will at minimum remain in effect until the Court holds its hearing and rules on the Order to Show Cause re Preliminary Injunction and Confirmation of Receiver. That hearing is scheduled for September 2, 2011 in Los Angeles Superior Court in Van Nuys.
August 25, 2011
NOTICE TO CLIENTS OF KASSAS LAW GROUP
Attorney Kassas has taken possession of all client files which have a sale or court date in the next two weeks. Please contact Attorney Kassas for further assistance.
August 23, 2011
NOTICE TO EMPLOYEES OF KASSAS LAW GROUP
Employees of the Kassas Law Group may come to the office between 12:00 noon and 2:00 p.m. on Wednesday, August 24, 2011 to retrieve your personal belongings.
August 22, 2011
NOTICE TO CLIENTS OF KASSAS LAW GROUP
At a hearing today at 1:30 p.m., the Superior Court denied an application by Mr. Kassas to be lifted from the receivership. This does not mean, however, that the Receiver in any way represents you. Your attorney is still Kassas Law Group and Mr. Kassas. Within the next several days, the situation will be clarified as we await a decision by the State Bar.
August 19, 2011
NOTICE TO CLIENTS OF KASSAS LAW GROUP
The Receiver will not have information about the handling of your cases until late Monday, August 22nd. Please check this website then.
NOTICE - 30 CORPORATE PARK, SUITES 400 AND 455, IRVINE, CA EMPLOYEES
Employees from the 30 Corporate Park, Suites 400 and 455, Irvine, CA location can stop by between 1:00 p.m. and 3:00 p.m., Friday, August 19, 2011 to pick up personal belongings.
August 15, 2011
Los Angeles County Superior Court Issues Temporary Restraining Order and Asset Freeze and Appoints Receiver as to Multiple Defendants Operating Mass Joinder Litigation Business On August 15, 2011, the California Department of Justice filed an action against multiple parties involved in the solicitation and management of so-called "Mass Joinder" litigation against major mortgage lenders in the United States. The Superior Court immediately issued a Temporary Restraining Order and Asset Freeze and appointed Thomas W. McNamara of San Diego as the Receiver over the defendants and/or the defendants' assets.
Defendants named in the complaint are: Attorneys Processing Center, LLC, also doing business as Attorney Processing Center, and Processing Center; Data Management, LLC; Home Retention Division; Law Offices of Kramer and Kaslow, also doing business as K2 Law, Mass Litigation Alliance, and Consolidated Litigation Group; Mesa Law Group Corp.; Mitchell J. Stein & Associates, Inc.; Mitigation Professionals, LLC, also doing business as K2 Law; Lewis Marketing Corp.; Pate, Marier and Associates, Inc.; Clarence Butt; Gary DiGirolamo; Philip Kramer; Ryan Marier; James Pate; Paul Petersen; Thomas Phanco; Glen Reneau; Mitchell Stein also doing business as Mitchell J. Stein & Associates; Bill Stephenson; Michael Tapia also doing business as Customer Solutions Group, and Home Retention Division; and, Christopher Van Son, also doing business as the Law Offices of Christopher J. Van Son, and Consolidated Litigation Group.
The Complaint filed by the California Attorney General's office alleges that the defendants prey on desperate consumer homeowners facing foreclosure and the loss of their homes by selling them participation in so-called mass joinder or multi-plaintiff lawsuits against mortgage lenders. The Complaint alleges that in doing this, defendants engaged in multiple unfair business practices, including false and misleading advertising and the illegal use of non-attorneys to solicit and procure business for a lawyer or law firm.
The Receiver has established this website as a vehicle for information to consumers. We will place regular updates on this website as the matter progresses.
Click here to read the Complaint filed by the California Department of Justice. Click here to read the Temporary Restraining Order and Asset Freeze. Click here to read the Order Appointing Receiver. The court has set September 2, 2011 at 1:30 pm as the time for the hearing on whether a Preliminary Injunction should be issued and whether the appointment of a Receiver should be confirmed.