California Professional License Defense Blog

Attorney General Jerry Brown has shut down mortgage companies in Los Angeles and San Bernardino Counties for alleged predatory lending scams. Virtual Escrow, Olympic Escrow, National Mortgage, Lifetime Financial, Greenleaf Lending and Direct Credit Solutions are the companies named for participating in scams that could top more than $20 million.
In a time where the housing market is down, mortgage companies are attempting to gain business by using unconventional and illegal measures. Specifically, this investigation has uncovered information that many of the named companies were engaging in illegal tactics to initiate loans including psychological pressure, lies and even forged documents.
With California leading the nation in subprime lending, it is likely that additional companies particularly in Orange County might be named or investigated for mortgage fraud. As of 20007, authorities have initiated criminal investigations of many lenders including, New Century Financial Corp. an Irvine subprime lender who is now bankrupt.

Mortgage fraud has topped $1 billion in the past decade and California places 4th on a national list of mortgage fraud offenders for 2007. Beating out California is Florida at number 1, Nevada at number 2 followed by Michigan. FBI statistics show 46,700 mortgage fraud reports in 2007 alone, up 30% from last year. Common types of mortgage fraud include misrepresenting employment history, falsified tax returns, inflating income and providing false financial documents.

Orange County, California houses many of the top mortgage companies in the country. Therefore, many of these complaints and allegations are likely to find their way to the Orange County District Attorney’s Office, the California Department of Corporations, the California Department of Real Estate, the US Attorney or the California Attorney General’s Office.
If you are being charged with mortgage fraud in Orange County, Los Angeles County, Riverside County or San Bernardino County either as an applicant or as a licensed mortgage broker, you need to find a knowledgeable criminal defense lawyer who can guide you through the process and protect your rights. If you are not adequately represented you may increase your criminal exposure and possibly lose your brokers license.

The loss of your professional license can be devastating not only to you but to your family as well. Allegations of fraud in the mortgage industry alone may trigger reporting requirements. I cannot emphasize enough the need to contact a top criminal defense lawyer who can help you understand licensing laws and self-reporting statutes so you don’t lose your license.

California Attorney General Edmund Brown Jr. announced the arrest of several individuals in a massive medi-cal fraud scam in Los Angeles County. The defendants were arrested at the Downtown M Medical Clinic on Wilshire Boulevard and include: the clinic’s owner Dr. Peter Shrier, the office manager Ella Rozenberg, Ella’s husband Arkady Rozenberg, Dr. Anna Gravich, a physician who helped falsify medical records, and Anna’s husband, Gersha Gravich, who helped run the clinic. The others arrested were sidewalk solicitors who recruited the patients.

The defendants allegedly hired recruiters or “cappers” to solicit pregnant women to visit the Los Angeles clinic. The women were asked not to use their real names in exchange for $30 of free baby merchandise or the promise of medical services. In exchange, the recruiters were given $100 for every woman that visited the clinic.

The clinic targeted pregnant women so it could enroll them in special Medi-Cal programs for low income women. When enrolled in the program, doctors began to bill the State of California at a higher rate for temporary prenatal health benefits. The cost of these services ranged from $400-$500 per patient. Once these services were rendered, the women were told that if they wanted more money or benefits, they could re-enroll in the program using another alias.

The AG has estimated the loss relating to this medical insurance fraud case to be in excess of $2 million. Dr. Shrier, the Rozenbergs and the Graviches have all been charged with:
Penal Code Section 487(a)- Grand Theft
Penal Code Section 12022.6(a)(3)- Theft of more than $1.3 million
Welfare & Institutions Code Section 14107-Presenting false Medi-Cal claims.

As a result of being charged with several felony counts, Dr. Rozenberg and Dr. Shrier will also have to self-report to the California Medical Board. In California, anytime a physician is charged with a felony criminal charge, they must report this accusation to the medical board even if they plead not guilty at arraignment. Thus, both doctors will be fighting to maintain their professional license while these criminal charges are pending.

If you or someone you know has been arrested or questioned for a criminal charge, whether a misdemeanor or felony they should seek legal counsel immediately. The California Medical Board has clear rules on self-reporting criminal charges and ignorance is no defense.