Foreclosure Negotiation Firm, Employees Cited for Unauthorized Practice of Law, Fined $20,000
(Dec. 23, 2010) The Supreme Court of Ohio ruled today that Cincinnati-based Foreclosure Alternatives Inc. (FAI) and employees Kert Alexakis and Lance Trester engaged in the unauthorized practice of law by managing the defense of foreclosure actions while negotiating with lenders for two homeowners.
The decision states: “FAI entered into contracts with foreclosure defendants, engaged attorneys for the limited purpose of filing pleadings, and ostensibly acted to resolve the mortgage disputes. In both instances, the homeowners lost their homes, which were sold in foreclosure (sheriff) sales.”
“The complaint charged, and the board concluded, that the respondents had engaged in the unauthorized practice of law by counseling clients on the course of legal action in connection with foreclosure and by undertaking to negotiate on their behalf in the context of foreclosure actions.”
The Court further said: “(t)he record in this case indicates the possibility of far better outcomes for the former homeowners had they received the full attention of qualified, competent attorneys who abided by their ethical obligations. Instead, the former homeowners paid hundreds of dollars for which they received little return.”
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