Case Number(s): 11-O-10115, 11-O-13524, 11-O-11629, 10-O-7578
In the Matter of: Debra Torre-Reyes, Bar #146724, A Member of the State Bar of California, (Respondent).
Counsel For The State Bar: Melanie J. Lawrence, 1149 South Hill Street
Los Angeles, CA 90015
213-765-1066
Bar #230102
Counsel for Respondent: In Pro Per Respondent
Debra Torres-Reyes
4016 Lorraine Ann Drive
La Mesa, CA 91941
Bar# 146724
Submitted to: Settlement Judge, State Bar Court Clerk’s Office Los Angeles
Filed: December 27, 2011.
<<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 11, 1990.
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 ** 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: three billing cycles following the effective date of the Supreme Court order. (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.
Case Number(s): 11-O-10115 et al.
In the Matter of: Debra Torres-Reyes
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: Jose & Isela Licea
Principal Amount: $8,987.67
Interest Accrues From: 12/12/2009
2. Payee: Franklin & Deborah Huddy
Principal Amount: $2,650
Interest Accrues From: 2/23/2010
3. Payee: Brian & Cynthia Thompson
Principal Amount: $4,872.55
Interest Accrues From: 2/18/10
4. Payee: Jeanne Mosley
Principal Amount: $3,289
Interest Accrues From: 5/20/10
<<not>> checked. Respondent must pay above-referenced restitution and provide satisfactory proof of payment to the Office of Probation not later than
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) Jose & Isela Licea
Minimum Payment Amount $500
Payment Frequency quarterly
2. Payee/CSF (as applicable) Franklin & Deborah Huddy
Minimum Payment Amount $500
Payment Frequency quarterly
3. Payee/CSF (as applicable) Brian & Cynthia Thompson
Minimum Payment Amount $500
Payment Frequency quarterly
4. Payee/CSF (as applicable) Jeanne Mosley
Minimum Payment Amount $500
Payment Frequency quarterly
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
IN THE MATTER OF: Debra Torres-Reyes
COURT CASE NUMBER(S): 11-O-10115, 11-O-13524, 11-O-11629, 10-O-7578
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.
FACTS:
1. On October 11, 2009, B&PC § 6106.3 became operative, prohibiting the collection of advanced fees for mortgage loan modification services.
2. Respondent collected advanced fees for mortgage loan modifications services for the following clients after October 11, 2009:
DATE December 16, 2009
CLIENT Jose & Isela Licea
AMOUNT COLLECTED $8,987.67
DATE February 23, 2010
CLIENT Franklin & Deborah Huddy
AMOUNT COLLECTED $2,650
DATE February 18, 2010
CLIENT Brian & Cynthia Thompson
AMOUNT COLLECTED $4,872.55
DATE May 14, 2010
CLIENT Jeanne Mosley
AMOUNT COLLECTED $3,289
CONCLUSIONS OF LAW:
By collecting advanced fees for mortgage loan modification services after October 11, 2009, Respondent willfully violated Business and Professions Code section 6106.3.
AUTHORITIES SUPPORTING DISCIPLINE.
The stipulated discipline falls within the range of discipline set forth the 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 legal professional standards by attorneys and the preservation of public confidence in the legal profession."
Standard 2.10 applies. It requires reproval or suspension for a violation of any provision of the Business and Professions Code 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 been in practice in California since 1990 and has never been disciplined.
Respondent has fully cooperated with the State Bar in resolving this matter at an early stage.
Prior to December 2009, Respondent had not offered mortgage loan modification services. In the year prior to and leading up to the misconduct, Respondent’s sister died and she was experiencing family problems which caused her to feel depressed and suicidal. Because of those circumstances she was not attentive to the addition of B&PC § 6106.3. Respondent learned of B&PC § 6106.3 in the spring of 2010 after which she stopped collecting advanced fees for mortgage loan modification services.
Respondent is a military veteran having served in active duty from 1975 to 1977 and as a reserve from 1977 to 1986. She is a past member of the Lawyer’s Club of San Diego and of the Board of Directors of the San Diego County Bar Association.
AGGRAVATING CIRCUMSTANCES.
Respondent collected advanced fees for loan modification services from four clients evidencing multiple acts of wrongdoing.
COSTS OF DISCIPLINARY PROCEEDINGS.
Respondent acknowledges that the Office of the Chief Trial Counsel has informed respondent that as of December 7, 2011, the prosecution costs in this matter are $6,263. 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.
FINANCIAL CONDITIONS.
The quarterly payments set forth in the financial conditions on pages 7 and 8 shall begin three months after the effective date of the Supreme Court order.
PENDING PROCEEDINGS.
The disclosure date referred to, on page 2, paragraph A(7), was December 7, 2011.
Case Number(s): 11-O-10115 et al.
In the Matter of: Debra Torres-Reyes
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: Debra Torres- Reyes, Melanie J. Lawrence
Respondent: Debra Torres- Reyes
Date: December 11, 2011
Respondent’s Counsel:
Date:
Deputy Trial Counsel: Melanie J. Lawrence
Date: December 14, 2011
Case Number(s): 11-O-10115
In the Matter of: Debra Torres-Reyes
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:
checked. The stipulated facts and disposition are APPROVED and the DISCIPLINE RECOMMENDED to the Supreme Court.
<<not>> 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.
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: Richard Honn
Judge of the State Bar Court:
Date: December 22, 2011
[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, December 27, 2011, 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:
DEBRA R. TORRES-REYES
4016 LORRAINE ANN DR
LA MESA CA 91941
checked. by interoffice mail through a facility regularly maintained by the State Bar of California addressed as follows:
Melanie J. Lawrence, Enforcement, Los Angeles
I hereby certify that the foregoing is true and correct. Executed in Los Angeles, California, on December 27, 2011.
Signed by: Cristina Potter
Case Administrator
State Bar Court