THE KUHN LAW FIRM, PLLC



MEMORANDUM

To: Gary Loflin, Chair

North Carolina Bar Association Real Property Section Consumer Protection Committee (“Committee”)

CC: Robert Allen, Chair, Real Property Section

RPS Section Council Officers

RPS Consumer Protection Committee Members

From: Benjamin R. Kuhn, Consumer Protection Counsel

Re: Summary of Recent Items of Interest and Update

Date: November 3, 2008

I. Update on Actions Taken by the State Bar AP Committee at its October 22, 2008 Meeting

The NC State Bar Authorized Practice Committee (“AP Committee”) met at the State Bar Quarterly Meeting on October 22, 2008 (a copy of the full AP Committee Agenda is attached hereto as Exhibit A). Below is a brief summary of the action taken by the AP Committee regarding several of the matters on its recent agenda which involved UPL in connection with real estate transactions.

06AP0064 – Professional Title & Settlement Services, Inc.: Title insurance agent holds herself out as able to conduct closings, order a title search for lenders, and arrange for the preparation of legal documents for the parties. Respondent appeared and was represented by counsel, Neale Johnson, who advised that the company has apparently changed some of their business activities. There was still concern as to how the company arranges for update and recording prior to disbursements. After further consideration, the AP Committee voted to issue a Letter of Caution to the respondent.

07AP0092 – Jenna Eckstein dba Settlement Solutions: Title insurance broker arranges for an attorney to prepare the legal documents required for a closing and offers to provide legal services. Respondent was also represented by counsel, Neale Johnson. The UPL issue presented in this case was the same as the questions raised in connection with Professional Title and Settlement matter. The AP Committee voted it issue a Letter of Caution.

05AP0072 – ServiceLink: Business entity holds itself out to lenders as able to provide closing services and arranges for attorneys to provide the legal services. The company manager gave a brief presentation that he understands need to comply with operations in all 50 states and stated that they do endeavor to do so.  He noted that their customers are only national lenders and that a consumer can neither access the website, nor request service from them (a "b2b" operation only).  The AP committee voted to issue a letter of caution.

08AP0008 – Alice Slater: Self-described “paralegal advocate” advertises that she can assist others in representation before state administrative agencies and small claims court and implies that she may generally provide legal services. After determining that, based on the actions of the respondent that a Letter of Caution would not be sufficient, the AP Committee elected to issue a Cease and Desist Letter.

08AP0025 – Jennifer Torres dba The Torres Corporation: Paralegal offers to provide title search services to sellers and others in connection with real estate closings. Respondent gave a long presentation, starting from the premise that most attorneys don't know what they're doing and she has professional experienced staff, and varying back and forth with her assurance that they were under the attorney's supervision.  Several questions were asked by AP Committee Members.  After full consideration, the AP Committee decided to issue a Cease and Desist Letter instead of a Letter of Caution.

08AP0005 – Matt Reyes dba Rialty Real Estate: Real estate agent offers to negotiate with lenders on behalf of homeowners after foreclosure proceedings have begun. AP Committee, after learning that Respondent had changed his website, issued a Letter of Caution.

08AP0006 – Alexander Domb dba Gallery of Homes of America: Florida business prepares a deed on North Carolina property.  AP Committee voted to issue a Letter of Caution.

06AP0024 – Resource Real Estate Services: Title insurance company holds itself out as able to provide title abstracts and closing services.  AP Committee voted to issue a Letter of Caution.

06AP0078 – Affinity Title Corporation: Closing company arranged for attorney to provide the title exam and document preparation.  AP Committee voted to issue a Letter of Caution. I am advised that Affinity Title is closed.

06AP0044 – Fiserv Lending Solutions: Business that offers to provide "title search" services to lenders for home equity and other mortgage loans. AP Committee voted to issue a Letter of Caution.

06AP0099 – Ellen Leiby dba South Mountain Title: Out of state title insurance broker has prepared and offers to prepare deeds and other documents for a North Carolina residential real estate closing.  AP Committee voted to issue a Letter of Caution.

05AP0132 – Equity Real Estate Solutions: Out of state title insurance company is submitting title abstracts prepared under its direction to an attorney for "approval" and holding itself out as able to provide information on the legal status of property. AP Committee voted to issue a Letter of Caution.

08AP0079 – Christopher Hartsell dba TRES, Inc.: Respondent prepared and recorded a deed from a couple to place their home in a “land trust” run by respondent as part of a “We Buy Houses” scheme. Respondent is due to serve time in federal prison on other charges, and thus, the AP Committee voted to take no action.

One open matters from the April 2008 AP Committee meeting was David Requa dba Landquest Title Corporation (06AP0026 & 07AP0047). This matter involved a company advertising that it can provide real estate closing services, including title examination, the services of an attorney, and document preparation. After the State Bar subpoenaed documents, the company basically went under and one of the title companies that underwrote policies issued by Landquest took possession of all of their files and is contact and cooperating with the State Bar’s investigation.

II. New CPC Investigation Files Opened Since Last Quarterly Report in August 2008

1. Search2Close: Alleged UPL in real estate transactions. State Bar AP Committee investigation/action is pending.

2. Parasec: Alleged UPL in real estate transactions. State Bar AP Committee investigation/action is pending.

3. Freedom Rings: Alleged UPL in real estate transactions.

4. Quality Abstracting: Alleged UPL in real estate transactions. State Bar AP Committee investigation/action is pending.

5. Archer Land Title: Alleged UPL in real estate transactions. Matter is under investigation by Consumer Protection Counsel.

6. Synergy Title: Alleged UPL in real estate transactions. Matter is under investigation by Consumer Protection Counsel.

7. Thomas Title Company: Alleged UPL in real estate transactions. Matter is under investigation by Consumer Protection Counsel.

8. Ballantyne Title Company/Ballantyne Settlements: Alleged UPL in real estate transactions. Matter is under investigation by Consumer Protection Counsel.

9. Cobalt Settlement Services: Alleged UPL in real estate transactions. Matter is under investigation by Consumer Protection Counsel.

END OF CONSUMER PROTECTION COUNSEL REPORT; EXHIBIT A FOLLOWS.

EXHIBIT A

MEETING AGENDA

AUTHORIZED PRACTICE COMMITTEE MEETING

Anthony S. di Santi., Chair

Sheraton Capital Center Hotel

October 22, 2008

I. Full Committee Discussion Agenda

A. Prepaid Legal Plans

1. 02PP06 – Amendment to Pre-Paid Legal Services, Inc.

B. Investigation Complete – For Decision

2. 08AP0009 – Carven (aka Elton) Johnson: Individual with a criminal history poses as an attorney and a private investigator.

3. 06AP0043 – Gerald Collette: A paralegal operates a business designed to provide debtors with debt relief by employing legal challenges to credit card billing practices and employed an out of state attorney to provide “consulting” on the legal services provided to the debtors.

4. 06AP0064 – Professional Title & Settlement Services, Inc.: Title insurance agent holds herself out as able to conduct closings, order a title search for lenders, and arrange for the preparation of legal documents for the parties.

5. 08AP0034 – Morgan Drexen: California based company is soliciting business in North Carolina for “debt settlement” on behalf of debtors by representing that it will provide the debtor with legal representation by a California law firm.

6. 08AP0035 – Vincent Howard: California attorney who permits a business entity that offers “debt relief” services to consumers to hold him out as the attorney for the debtor if they subscribe to the services of the business.

7. 08AP0036 – Damian Nassiri: California attorney who permits a business entity that offers “debt relief” services to consumers to hold him out as the attorney for the debtor if they subscribe to the services of the business.

8. 07AP0058 – Robert Palmer: Texas attorney is attempting to provide debt adjusting services in North Carolina.

9. 07AP0092 – Jenna Eckstein dba Settlement Solutions: Title insurance broker arranges for an attorney to prepare the legal documents required for a closing and offers to provide legal services.

II. Consent Agenda

A. Letters of Caution

10. 07AP0072 – C. L. Parker: Individual sent demand letters on behalf of others under a business name of "Non-legal Eagle, Inc.”

11. 08AP0059 – Joseph Sanzone: Virginia attorney appears in North Carolina district court on motion pro hac vice without associating local counsel or filing a registration statement with the State Bar as required by statue.

12. 08AP0060 – Paul A.Lentz: Retirement home manager is alleged to have prepared wills for residents.

13. 08AP0052 – Melanie Michelle Knight: Individual presented a forged letter purporting to be from an attorney to a credit union to support the ability to open an account.

14. 08AP0068 – Benston Clark and Copple: Firm that specialized in brokering the sale of dental practices offered to provide the legal services associated with the sale to the parties through legal counsel retained by respondent for that purpose.

15. 08AP0020 – Leonard Washington dba “It’s the LAW Tax Litigation Services”: Individual holds himself out as able to provide "tax litigation" services.

16. 08AP0021 – Shakera McKinnon: Pro se defendant in a civil action signs a motion for an extension of time in the name of an attorney who was not representing her.

17. 08AP0018 – James B. Yent, Jr.: Investment advisor offers to provide review of estate planning documents and recommend alternative forms of estate disposition.

18. 05AP0072 – ServiceLink: Business entity holds itself out to lenders as able to provide closing services and arranges for attorneys to provide the legal services.

19. 08AP0008 – Alice Slater: Self-described “paralegal advocate” advertises that she can assist others in representation before state administrative agencies and small claims court and implies that she may generally provide legal services.

20. 08AP0075 – James R. Palmer: Florida attorney is attempting to collect North Carolina statutory penalties from alleged shoplifters in North Carolina for a North Carolina store.

21. 08AP0025 – Jennifer Torres dba The Torres Corporation: Paralegal offers to provide title search services to sellers and others in connection with real estate closings.

22. 08AP0061 – Alexander Shepard: Individual is preparing documents for others in defense of debt collection actions that purport that the debt is payable only in Federal Reserve Notes or gold or silver among other dubious defenses.

23. 08AP0082 – Tracey Duckett: Attorney licensed in Virginia and Maryland residing in North Carolina, but not practicing law in any jurisdiction, sends a demand letter on behalf of a friend concerning allegedly wrongful termination of employment.

24. 08AP0073 – Pedro Elguera: Notary is offering to help immigrants complete their immigration applications and petitions.

25. 06AP0055 – Sandra Dopf: Family counselor who works in a collaborative family law group holds herself out as able to counsel on legal issues and is alleged to have prepared a form divorce complaint for others.

26. 08AP0005 – Matt Reyes dba Rialty Real Estate: Real estate agent offers to negotiate with lenders on behalf of homeowners after foreclosure proceedings have begun.

27. 08AP0006 – Alexander Domb dba Gallery of Homes of America: Florida business prepares a deed on North Carolina property.

28. 06AP0024 – Resource Real Estate Services: Title insurance company holds itself out as able to provide title abstracts and closing services.

29. 06AP0078 – Affinity Title Corporation: Closing company arranged for attorney to provide the title exam and document preparation.

30. 06AP0044 – Fiserv Lending Solutions: Business that offers to provide "title search" services to lenders for home equity and other mortgage loans.

31. 06AP0099 – Ellen Leiby dba South Mountain Title: Out of state title insurance broker has prepared and offers to prepare deeds and other documents for a North Carolina residential real estate closing.

32. 05AP0132 – Equity Real Estate Solutions: Out of state title insurance company is submitting title abstracts prepared under its direction to an attorney for "approval" and holding itself out as able to provide information on the legal status of property.

B. Dismissal

33. 08AP0056 – R. Frank Lewis: CPA allegedly prepared articles of organization for a limited liability company.

C. No Action

34. 08AP0079 – Christopher Hartsell dba TRES, Inc.: Respondent prepared and recorded a deed from a couple to place their home in a “land trust” run by respondent as part of a “We Buy Houses” scheme. Respondent is due to serve time in federal prison on other charges.

35. 07AP0055 – Naomi Odoom: Individual prepared demand letters to a couple's landlord and held herself out as the legal advisor for their business.

36. 07AP0021 – Amur Mashug El: Individual prepares petitions for name changes to Moorish names for others and charges a fee.

D. Litigation Updates

37. Mid-Atlantic

38. Robert Jolly

39. Sandy Clark

40. Chandra Law

41. Report of Counsel on status of Advisory Opinion 2002-1

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Benjamin R. Kuhn, Esq.

bkuhn@

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