Fla. Lawyer Suspended on Emergency Basis; Bar Claims 'Great Public Harm' Caused by Loan Mod Biz
Florida’s high court has granted a request by the state bar to suspend a Boca Raton lawyer on an emergency basis to halt business activities the bar considered to be causing “great public harm.”
The lawyer, William O’Toole who operates Summit Legal Group, is to be barred from accepting new clients and withdrawing money from company accounts, according to the court’s July 25 order (PDF).
Summit Legal Group represents some 3,000 clients nationwide on matters involving loan modification and foreclosure defense, according to the Palm Beach Post.
The Post reports that a Florida Bar petition asking for O’Toole’s suspension says he is the subject of 20 bar disciplinary matters filed by disgruntled customers, who were charged up-front fees. Under Florida law, loan modification firms can’t charge up-front fees from clients, unless the fee is to be paid to a lawyer representing clients seeking loan modifications, the paper notes. The Florida Bar has warned lawyers to be careful about joining forces with non-lawyers attempting to skirt the fee law.
O’Toole has reportedly acknowledged in a deposition that he cedes nearly exclusive control to the non-lawyers in his business, who handle all contact with clients and offer initial advice about case outcomes.
