TARGET OF FEDERAL CONSUMER PROTECTION LAWSUIT FACES STATE BAR DISCIPLINE

Contact: Laura Ernde 

415-538-2028 

laura.ernde@calbar.ca.gov

San Francisco, Sept. 21, 2012 – Chance Gordon, a Los Angeles lawyer who is being sued by the federal Consumer Financial Protection Bureau for alleged loan modification fraud, now faces disciplinary action by the State Bar of California.

The State Bar today filed a 30-count notice of disciplinary charges against Gordon (state bar #198512).

Gordon, 41, allegedly committed 30 counts of misconduct in 13 cases, most related to promises of foreclosure relief or loan modification. According to the charging document, Gordon:

  • Failed to perform with competence on behalf of six distressed homeowners whose cases were either dismissed or improperly filed. In one case, Gordon submitted a falsified document in a loan modification application.
  • Accepted illegal fees for loan modification services in Illinois, Florida and North Carolina, jurisdictions where he was not authorized to practice law. • Wrote three checks that bounced from his client trust account and misrepresented the facts about the overdrawn funds to the State Bar.
  • Falsely advertised on his now-disabled website that his firm, Resource Law Center, provided nationwide real estate legal services when he was only admitted to practice in California. He also made unsubstantiated claims of successful loan modifications involving 42 lenders.
  • Promised to pay clients $100 for new client referrals, in violation of the Rules of Professional Conduct. Gordon could be disbarred if found culpable of the charges.

“This case is a great example of the State Bar working in cooperation with other law enforcement agencies to protect the public from unethical lawyers,” Chief Trial Counsel Jayne Kim said.

In July, the CFPB filed a civil suit in U.S. District Court accusing Gordon of participating in an “unlawful mortgage relief scheme that preys on financially distressed homeowners nationwide by falsely promising a loan modification in exchange for an advance fee.”

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The State Bar of California is an administrative arm of the California Supreme Court, serving the public and seeking to improve the justice system for more than 80 years. All lawyers practicing law in California must be members of the State Bar. By September 2012, membership reached 238,000.