Pacifica Attorney Faces Disbarment Over Mortgage Rescue Scam

A Pacifica man faces disbarment on charges he ran a home foreclosure rescue scam during the mortgage crisis, according to a report on Inside Bay Area.

Ronald Uy, 52, of Pacifica and Stevan Henrioulle, 68, of Oakland, who charged more than $90K in fees, were found culpable on 27 counts of misconduct Oct. 28 in nine cases and should be stripped of their law licenses, State Bar Court Judge Patrice E. McElroy ruled.

The ruling means the men are suspended from practicing law, and if they don't appeal within 30 days, their licenses will be revoked. 

The Judge’s ruling says the men, from July 2008 to October 2011, represented 200 homeowners who wanted to push lenders into setting better terms for their loans. 

The homeowners agreed to pay them $3,995 to $4,500 in fees up front, and from then on they were to pay $500 to $850 monthly as long as their case was going on, according to the Inside Bay Area report. Henrioulle and Uy claimed they would sue the banks, stopping foreclosure and winning the clients title to their homes "free and clear," McElroy's ruling says.

Instead, the clients in some cases were advised to stop paying their mortgage but told to keep making their payments to the lawyers. Of the nine cases cited by the Bar, only the homeowners who personally negotiated with the banks were able to save their homes, the ruling says.

Read the full report on Inside Bay Area here.