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02 August 2012 at 10:04 BST

US Consumer protection watchdog targets law firm in first case

A Los Angeles law firm has fallen into the crosshairs of a US consumer watchdog as the agency gears up for its first civil enforcement action in federal court.

Los Angeles: Gordon Law Firm targeted

The complaint before the Consumer Protection Bureau states that lawyer Chance Gordon and his firm – The Gordon Law Firm PC – offered homeowners help with loan modifications, took up front fees, and then did ‘little or nothing’ to fulfil their promises, reports the Wall Street Journal.

Lavish lifestyles

The complaint also names Mr Gordon’s business partner, Abraham Pessar, as well as two of Mr Pessar’s companies. The Bureau – created in 2010 as part of the Dodd-Frank Act – alleges that the two ‘used consumers’ last dollars to fund a lavish lifestyle, including expensive cars, dinners and nightclubs’.
The bureau’s assistant director for enforcement, Kent Markus, said that, based on an initial investigation, the two had been ‘unlawfully preying on vulnerable homeowners in multiple states’.
Mr Gordan’s lawyer, fellow Los Angeles practitioner Gary Kurtz, said the firm’s schemes are ‘designed to be consistent with the current state of legislation,’ adding that they will ‘vigorously defend against any suggestion to the contrary. Mr Pessar is yet to comment.

 
   
 
 
 

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