Case Number(s): 10-O-07372
10-O-09733
11-O-10172
11-O-13228
In the Matter of: Andrea Scurry Loveless, Bar # 231735, A Member of the State Bar of California, (Respondent).
Counsel For The State Bar: Monique T. Miller, Deputy Trial Counsel
1149 South Hill Street
Los Angeles, CA 90015
(213) 765- 1486
Bar 212469
Counsel for Respondent: Paul J. Virgo, 9909 Topanga Blvd #282
Chatsworth, CA 91311
(310) 666-9701
Bar 67900
Submitted to: Assigned Judge at State Bar Court of Clerk’s Office Los Angeles
Filed: January 12, 2012
<<not>> checked. PREVIOUS STIPULATION REJECTED
Note: All information required by this form and any additional information which cannot be provided in the space provided, must be set forth in an attachment to this stipulation under specific headings, e.g., "Facts," "Dismissals," "Conclusions of Law," "Supporting Authority," etc.
1. Respondent is a member of the State Bar of California, admitted June 28, 2004.
2. The parties agree to be bound by the factual stipulations contained herein even if conclusions of law or disposition are rejected or changed by the Supreme Court.
3. All investigations or proceedings listed by case number in the caption of this stipulation are entirely resolved by this stipulation and are deemed consolidated. Dismissed charge(s)/count(s) are listed under "Dismissals." The stipulation consists of 11 pages, not including the order.
4. A statement of acts or omissions acknowledged by Respondent as cause or causes for discipline is included under "Facts."
5. Conclusions of law, drawn from and specifically referring to the facts are also included under "Conclusions of Law".
6. The parties must include supporting authority for the recommended level of discipline under the heading "Supporting Authority."
7. No more than 30 days prior to the filing of this stipulation, Respondent has been advised in writing of any pending investigation/proceeding not resolved by this stipulation, except for criminal investigations.
8. Payment of Disciplinary Costs-Respondent acknowledges the provisions of Bus. & Prof. Code §§6086.10 & 6140.7. (Check one option only):
<<not>> checked. Costs are added to membership fee for calendar year following effective date of discipline.
checked. Costs are to be paid in equal amounts prior to February 1 for the following membership years: 2012 & 2013. (Hardship, special circumstances or other good cause per rule 5.132, Rules of Procedure.) If Respondent fails to pay any installment as described above, or as may be modified by the State Bar Court, the remaining balance is due and payable immediately.
<<not>> checked. Costs are waived in part as set forth in a separate attachment entitled "Partial Waiver of Costs".
<<not>> checked. Costs are entirely waived.
See Attachment
Case Number(s): 10-O-07372
In the Matter of: Andrea Scurry Loveless
a. Restitution
checked. Respondent must pay restitution (including the principal amount, plus interest of 10% per annum) to the payee(s) listed below. If the Client Security Fund (“CSF”) has reimbursed one or more of the payee(s) for all or any portion of the principal amount(s) listed below, Respondent must also pay restitution to CSF in the amount(s) paid, plus applicable interest and costs.
1. Payee: Lucinda Clark
Principal Amount: $2,750.00
Interest Accrues From: 3/30/10
2. Payee: Charles Arakawa
Principal Amount: $2,000.00
Interest Accrues From: 1/30/10
3. Payee: Lloyd Hughes
Principal Amount: $2,700.00
Interest Accrues From: 2/30/10
4. Payee:
Principal Amount:
Interest Accrues From:
checked. Respondent must pay above-referenced restitution and provide satisfactory proof of payment to the Office of Probation not later than one (1) year from the effective date of discipline.
<<not>> checked. Respondent must pay the above-referenced restitution on the payment schedule set forth below. Respondent must provide satisfactory proof of payment to the Office of Probation with each quarterly probation report, or as otherwise directed by the Office of Probation. No later than 30 days prior to the expiration of the period of probation (or period of reproval), Respondent must make any necessary final payment(s) in order to complete the payment of restitution, including interest, in full.
1. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
2. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
3. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
4. Payee/CSF (as applicable)
Minimum Payment Amount
Payment Frequency
<<not>> checked. If Respondent fails to pay any installment as described above, or as may be modified by the State Bar Court, the remaining balance is due and payable immediately.
<<not>> checked.
1. If Respondent possesses client funds at any time during the period covered by a required quarterly report, Respondent must file with each required report a certificate from Respondent and/or a certified public accountant or other financial professional approved by the Office of Probation, certifying that:
a. Respondent has maintained a bank account in a bank authorized to do business in the State of California, at a branch located within the State of California, and that such account is designated as a “Trust Account” or “Clients’ Funds Account”;
b. Respondent has kept and maintained the following:
i. A written ledger for each client on whose behalf funds are held that sets forth:
1. the name of such client;
2. the date, amount and source of all funds received on behalf of such client;
3. the date, amount, payee and purpose of each disbursement made on behalf of such client; and,
4. the current balance for such client.
ii. a written journal for each client trust fund account that sets forth:
1. the name of such account;
2. the date, amount and client affected by each debit and credit; and,
3. the current balance in such account.
iii. all bank statements and cancelled checks for each client trust account; and,
iv. each monthly reconciliation (balancing) of (i), (ii), and (iii), above, and if there are any differences between the monthly total balances reflected in (i), (ii), and (iii), above, the reasons for the differences.
c. Respondent has maintained a written journal of securities or other properties held for clients that specifies:
i. each item of security and property held;
ii. the person on whose behalf the security or property is held;
iii. the date of receipt of the security or property;
iv. the date of distribution of the security or property; and,
v. the person to whom the security or property was distributed.
2. If Respondent does not possess any client funds, property or securities during the entire period covered by a report, Respondent must so state under penalty of perjury in the report filed with the Office of Probation for that reporting period. In this circumstance, Respondent need not file the accountant’s certificate described above.
3. The requirements of this condition are in addition to those set forth in rule 4-100, Rules of Professional Conduct.
<<not>> checked. Within one (1) year of the effective date of the discipline herein, Respondent must supply to the Office of Probation satisfactory proof of attendance at a session of the Ethics School Client Trust Accounting School, within the same period of time, and passage of the test given at the end of that session.
IN THE MATTER OF: Andrea Scurry Loveless, State Bar No. 231735
STATE BAR COURT CASE NUMBER: 231735
CASE NUMBER(S):
10-O-07372, 10-O-09733,
11-O-10172, 11-O-13228
FACTS AND CONCLUSIONS OF LAW.
Respondent admits that the following facts are true and that she is culpable of violations of the specified statutes and/or Rules of Professional Conduct.
Case Nos. 10-O-07372, 10-O-09733, 11-O-10172, 11-O-13228
FACTS:
1. On October 11, 2009, Senate Bill 94, prohibiting the collection of advanced fees for mortgage loan modification services, became operative.
2. In each of the matters identified in this paragraph, Respondent collected advanced fees for mortgage loan modification services for the following clients after October 11, 2009:
Case No. 10-O-07372 Client Dunia Handy Date of Hire 01/21/10
Client Dunia Handy Fees $2,950
Case No. 10-O-9733 Client Lucinda Clark Date of Hire 02/06/10
Client Lucinda Clark Fees $3,000
Case No. 11-O-10172 Client Charles Arakawa Date of Hire 12/10/09
Client Charles Arakawa Fees $2,500
Case No. 11-O- 13228 Client Lloyd Hughes Date of Hire 01/13/10
Client Lloyd Hughes Fees $2,950
3. Since the collection of the advanced fees, Respondent has refunded Lucinda Clark $250, Charles Arakawa $500, and Lloyd Hughes $250.
4. As a result of Respondent’s efforts, Dunia Handy received a permanent loan modification.
CONCLUSIONS OF LAW:
5. By collecting advanced fees for loan modification services after October 11, 2009, Respondent willfully violated Business and Professions Code section 6106.3, in violation of Section 2944.7(a) of the California Civil Code.
PENDING PROCEEDINGS.
The disclosure date referred to, on page 2, paragraph A(7), was December 13,2011.
AUTHORITIES SUPPORTING DISCIPLINE.
The stipulated discipline falls within the range of discipline set forth in the Standards for Attorney Sanctions for Professional Misconduct.
Standard 1.3 provides that the primary purposes of attorney discipline are "the protection of the public, the courts and the legal profession; the maintenance of high professional standards by attorneys and the preservation of public confidence in the legal profession."
There is no standard specifically applicable to a violation of Business and Professions Code section 6106.3. Accordingly the applicable standard is Standard 2.10 which requires reproval or suspension for a willful violation of any Rule of Provisional Conduct not specified by the Standards, according to the gravity of the offense or the harm, if any, to the victim, with due regard for the purposes of imposing discipline set forth in Standard 1.3.
MITIGATING CIRCUMSTANCES
Respondent has fully cooperated with the State Bar in investigating and resolving this matter at an early stage.
Respondent is remorseful for her misconduct and no longer offers loan modification services.
Admitted to the practice of law in Texas in 2003 and in California in 2004, Respondent has no prior record of discipline.
COSTS OF DISCIPLINARY PROCEEDINGS.
Respondent acknowledges that the Office of the Chief Trial Counsel has informed Respondent that as of December 13, 2011, the prosecution costs in this matter are $5,542.93. Respondent further acknowledges that should this stipulation be rejected or should relief from the stipulation be granted, the costs in this matter may increase due to the cost of further proceedings.
Case Number(s): 10-O-07372
In the Matter of: Andrea Scurry Loveless
By their signatures below, the parties and their counsel, as applicable, signify their agreement with each of the recitation and each of the terms and conditions of this Stipulation Re Facts, Conclusions of Law and Disposition.
Signed by:
Respondent: Andrea S. Loveless
Date: 12/19/11
Respondent’s Counsel: Paul J. Virgo
Date: 12/21/2011
Deputy Trial Counsel: Monique T. Miller
Date: 12/22/11
Case Number(s): 10-O-07372
In the Matter of: Andrea Scurry Loveless
Finding the stipulation to be fair to the parties and that it adequately protects the public, IT IS ORDERED that the requested dismissal of counts/charges, if any, is GRANTED without prejudice, and:
<<not>> checked. The stipulated facts and disposition are APPROVED and the DISCIPLINE RECOMMENDED to the Supreme Court.
checked. The stipulated facts and disposition are APPROVED AS MODIFIED as set forth below, and the DISCIPLINE IS RECOMMENDED to the Supreme Court.
<<not>> checked. All Hearing dates are vacated.
Page 2, paragraph A. (8): [Costs] – Please change the years “2012 & 2012 & 2013” to “2013 and 2014.”
Page 6: The box for paragraph E. (6) should be checked to make it a condition of probation.
The parties are bound by the stipulation as approved unless: 1) a motion to withdraw or modify the stipulation, filed within 15 days after service of this order, is granted; or 2) this court modifies or further modifies the approved stipulation. (See rule 5.58 (E) & (F), Rules of Procedure.) The effective date of this disposition is the effective date of the Supreme Court order herein, normally 30 days after the file date. (See rule 9.18(a), California Rules of Court.)
Signed by:
Judge of the State Bar Court: Donald F. Miles
Date: 1/12/12
[Rules Proc. of State Bar; Rule 5.27(B); Code Civ. Proc., § 1013a(4)]
I am a Case Administrator of the State Bar Court of California. I am over the age of eighteen and not a party to the within proceeding. Pursuant to standard court practice, in the City and County of Los Angeles, on January 24, 2012, I deposited a true copy of the following document(s):
STIPULATION RE FACTS, CONCLUSIONS OF LAW AND DISPOSITION AND
ORDER APPROVING
in a sealed envelope for collection and mailing on that date as follows:
checked. by first-class mail, with postage thereon fully prepaid, through the United States Postal Service at Los Angeles, California, addressed as follows:
PAUL JEAN VIRGO
9909 TOPANGA BLVD #282
CHATSWORTH, CA 91311
checked. by interoffice mail through a facility regularly maintained by the State Bar of California addressed as follows:
MONIQUE T. MILLER, Enforcement, Los Angeles
I hereby certify that the foregoing is true and correct. Executed in Los Angeles, California, on January 12, 2012.
Signed by:
Tammy Cleaver
Case Administrator
State Bar Court