Summaries from the California Bar Journal are based on discipline orders but are not the official records. Not all discipline actions have associated CBJ summaries. Copies of official attorney discipline records are available upon request.
November 2, 2000
DONALD E. GLASS [#147044], 50, of Irvine was suspended for two years, stayed, placed on three years of probation with an actual six-month suspension, and was ordered to make restitution, take the MPRE and comply with rule 955. If the actual suspension exceeds two years, he must prove his rehabilitation. The order took effect Nov. 2, 2000.
Glass stipulated to misconduct in five cases, each stemming from his so-called “Walk Away with Credit” program, under which he told homeowners who owed more on their mortgage payments than their house was worth that they could “legally walk away” from their mortgage without ruining their credit. In fact, his program offered no benefit to clients, whose credit ratings were adversely affected.
He sought to have some clients transfer title of their homes to Property Mortgage Service, a company he and his wife owned.
The company purportedly would deal with all phone calls from the mortgage lender, provide a letter for clients to insert in their credit history explaining the home had been sold, and would refer clients to American Processing Services, a company specializing in restoring good credit.
One matter, typical of the cases for which Glass was disciplined, involved a couple who wished to divorce but neither could afford their mortgage payments on their own. They had excellent credit at the time they contacted Glass.
A letter he sent them guaranteed that as part of his walk away program, negative items such as late mortgage payments would not show up on their credit report.
If they did, they would be removed within 60 days by Property Mortgage Service. Glass also orally guaranteed the couple their credit would not be ruined by their participation in the program.
The couple gave Glass the grant deed to their home, checks totalling $1,935 and various forms and contracts Glass told them to provide. As instructed by Glass, they stopped making mortgage payments.
Several months later, they obtained a copy of their credit report which reflected their default on mortgage payments and the initiation of foreclosure proceedings. Glass informed them that American Processing Services was out of business but offered to repair their credit for an additional $2,000.
Glass stipulated to committing four acts of moral turpitude by making misrepresentations to clients, and five instances of engaging in false, deceptive and misleading communications with clients.
In mitigation, Glass has no record of discipline since his 1990 admission to the bar.