First it was a federal judge, and now the State Bar of Nevada is taking action against a local mortgage rescue company. The bar seeks to stop the U.S. Justice Foundation and its president from practicing law without a license.
The Foundation claimed it could stop foreclosures by helping people to sue their mortgage companies themselves. Trouble is, in the vast majority of cases, it didn't work. Now the Foundation, and its president Jack Ferm, have to answer for the hundreds of lawsuits moving through both the state and federal courts. Cases like Karen Jayne's.
Jayne paid the Foundation $1,000 to help her sue her lender. She says Ferm said he could keep her in her home, even though it had already been foreclosed and sold at auction.
The mortgage companies sought to dismiss her suit and Judge Kenneth Corey indicated he would. But first, he ordered Ferm to refund Jayne's money and then granted her request for a little time to move.
"Since the bank that actually owns my house now didn't bother to show, the judge gave me 30 days to move out. So at least I have 30 more days to try to figure out something and find a place to live. So I'm very happy," she said.
Ferm was ordered to appear in court to explain why he should not be held in contempt for practicing law without a license. But given the bar's recent filing, and additional legal action facing him, the judge deferred the hearing.
The bar seeks a court order to stop Ferm and the Foundation from continuing to engage in the unauthorized practice of law. Ferm says that's unnecessary because he has already closed his doors.
He says he plans to give refunds to those customers who deserve one.
The Foundation, and its president Jack Ferm, have to answer for the hundreds of lawsuits moving through both the state and federal courts.
