The office of the Florida Attorney General has opened an investigation into Ben-Ezra & Katz, a Hollywood law firm that processes thousands of foreclosures for lenders, on allegations of presenting false and misleading documents in court.
Ben-Ezra is the eighth high-volume foreclosure practice targeted by state investigators within the past year regarding similar claims involving paperwork submitted to judges. The firm last week laid-off 236 of its 568 employee's days after the government-owned mortgage giant Fannie Mae terminated its relationship, citing "document execution" issues.
Ben-Ezra spokesman Ray Casas declined to comment on the investigation. He did release a statement announcing the law office had retained former federal prosecutor Dan Gelber to "provide support with quality control and to help evaluate policies and procedures."
In its investigation filing, the Attorney General's Office said fabricated or misleading documents had been "presented in court before judges as actual assignments of mortgages and property prepared affidavits that have later been shown to be inadequate and/or insufficient."
Miami-Dade Circuit Judge Maxine Cohen Lando this month castigated attorney Marc Ben-Ezra, the firm's founding partner, for "wasting the court's time" by filing "sham foreclosure documents" involving the repossession of a Homestead property. Lando cited Ben-Ezra for contempt.
The Attorney General has argued in all eight of its foreclosure investigations that the firms' business procedures violate the states unfair and deceptive trade practices act.
The seven other law offices being investigated, of which four are based in South Florida, include: David J. Stern, Marshall C. Watson, Shapiro & Fishman, Florida Default Law Group, Kahane & Associates, Daniel C. Consuegra and Albertelli Legal.