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Mass Joinder Stein Fights Back and Sues California in Florida

For those unfamiliar with the mass joinder, tort litigation racket marketers have been engaged in, here are the basics. Some law firms have filed suit against lenders for the mortgage mess. And that’s fine. But marketers have been paid to sell consumers into these cases and those marketers have made all sorts of objectionable claims to consumers.

I’ve published a number of the deceptive mailers that consumers have received, marketing compensation documents, and even secret shopper calls. Just follow the link to mass joinder and you will see a plethora of article on the subject.

A couple weeks ago the State of California took action against a couple of the earlier firms that were involved in the promotion of the mass joinder selling. The office of two law firms were raided and the records were seized. Phillip Kramer, Esq. and Mitchell Stein, Esq. and their respective individual firms were taken over by the State of California.

Yesterday Stein fought back by filing a suit against the State of California, in California and Florida.

The nearly identical suits allege that the action by the State of California to protect its citizens was a violation of the civil rights of the plaintiffs of the consumers involved in Steins litigation.

Let’s see if I can summarize the suit for you with quotes from the actual complaint:

  • “On August 17, 2011 California Attorney General Kamala Harris grossly violated plaintiffs’ civil rights by seizing their legal files and denying them the right to the legal counsel of their choice.”
  • “She did so based on an inadequate investigation and cited demonstrably false accusations against attorney Mitchell J. Stein. And she did so at the behest of Bank of America, whose attorneys are deeply alarmed by the substantive progress Mr. Stein has achieved in the plaintiffs’ mass joinder cases against the bank, to the point that these attorneys have – in the utmost example of governmental corruption — funneled money to the Defendants in order to persuade Harris to make this unprecedented move.”
  • “Defendants instructed their agents to seize all of the LLP and plaintiffs’ property although no Court ever sanctioned or allowed them to do so directly, indirectly or otherwise.” (See court temporary restraining order here.)
  • “Based upon Mr. Stein’s work and cooperation with and advisement to federal authorities, Harris’ and Bank of America’s attempt to silence their most feared enemy – Mr. Stein — backfired on Friday when the United States of America sued Bank of America again, alleging the same wrongdoings Mr. Stein alleged back in 2009. Harris’ was so bent on protecting Bank of America that she “didn’t appear” for a scheduled meeting with the Department of Homeland Security just three weeks ago to discuss whether California was complying with DHS, FDIC and Comptroller of the Currency directives against the nation’s banks during this national banking crisis.
  • Also to the benefit of Bank of America, Harris has chosen to support less able competitors to pursue the mass joinder claims. In fact, the primary evidence cited by Harris against Mr. Stein was provided by affidavits from attorneys at a competitor, Brookstone Law Group. Harris gave credibility to Vito Torchia Jr. of Brookstone Law, whose previous employer, United Law Group, was shut down by the state of Georgia last year and disciplined by California authorities as part of a nationwide investigation into mortgage fraud.” (Interesting statement since Stein was working with Torchia and was his attorney at one point. Talk about throwing your client under the bus! Click here.)
  • Stein alleges that California Attorney General Harris “Harris and Defendants approved this mailer in July 2011″ that is used by Brookstone Law.
  • “On August 17, 2011, law enforcement agents under orders from Harris entered the Agoura Hills offices of the LLP without any court order or other subpoena providing them with such rights, and armed with guns and tasers. They ordered staff of the LLP to hand over all of their equipment, including personal computers, hard drives, flash drives and their wallets containing money and personal effects. They confiscated dozens of boxes of documents, including the personal files of the Plaintiffs in this case although such Plaintiffs are litigating against bank misconduct in other States like Florida, New York and/or Arizona. Harris also improperly seized files of the Department of Homeland Security and its representatives, to which Harris and Bank of America knew Mr. Stein has been an advisor on the issue of bank fraud for more than eighteen (18) months.”
  • “Plaintiffs were neither induced nor deceived in any fashion before asking Mr. Stein to represent them. To the contrary, had Harris taken the time to contact Mr. Stein’s clients, she might have learned that many of Mr. Stein’s clients were referred not by advertising but by the offices of California Sen. Dianne Feinstein or the Department of Homeland Security who were already through being “double-talked” and “lied to” by Bank of America and needed a competent lawyer to refer to in order to help Senator Feinstein’s constituents. As he is prone to do, Mr. Stein helped these home owners for free and these home owners are now quite confused to say the least about the workings of their government.”
  • “In her zeal to protect Bank of America, Kamala Harris simply threw Mr. Stein in with more than a dozen lawyers, law firms and loan modification businesses and then tarnished him with the blanket accusation of fraud and conspiracy. This is how Bank of America wanted it. With a little lying and cheating, the bank took a shot at “removing from the playing surface” the super-star who had been beating it to a pulp for two and a half years.”
  • “This show of authority and warrantless aggression by Defendants in general and by Defendant State of California [“State”] and Defendant Kamala D. Harris in particular was a blatant grab for power and glory – without the attention to detail required in a civilized society — that was unjustified and without factual basis.”
  • “Yet Brookstone Law and its sleazy lawyer Kenin Spivak were never invaded and Brookstone never had its files or property seized.” (Read Spivak statement on legal actions here.)

The complaint by Stein against the government comes off, in my opinion, as a rant and missive against government without really addressing many of the issues surrounding Stein’s alleged involvement with Kramer and marketers that created this mass joinder deceptive marketing mess and illegal fee splitting.

Stein may proclaim to be totally removed from the actions of Kramer, but the statements of his former client, Brookstone Law and Vito Torchia, say otherwise.

On November 23, 2010, during a phone conversation with Brookstone, Stein stated that he was done working exclusively with Kramer, but that he would continue on a non-exclusive basis. Stein told Brookstone that he wanted to position Brookstone to be the leader and authority on the banking/mortgage/foreclosure crisis. Stein told us that he wanted to work with Brookstone to file mass joinders in various states.He explained that he “understood” what Brookstone could do and wanted to “expand into two platforms.” He promised that he would bring in substantial money by the end of 2011. Stein said that he had “a field of vision” and that it was time to hire additional lawyers for me to manage. He also said that Stein and Brookstone would jointly file a class action Stein was in the middle of drafting.

Both Kramer and Stein said that I did not understand the law. Kramer said that Kramer only pays “marketing fees.” Stein said that there will never be a problem. Stein asserted that attorney-client privilege would prevent discovery of any problems and that I should just get on board and “everything will be fine.”

On or around January 12, 2011, I forwarded a copy of a FORM 1012-R to Stein, as Brookstone’s counsel and partner in mass joinders to obtain Stein approval of the mailer for use by Brookstone. [This mailer makes the same statements that Stein says the state approved. It appears he allegedly approved them as well.] I specifically asked that he respond if any changes were needed before Brookstone could use the mailer. I asked Stein to reply back to me as soon as possible. Stein never responded, leading me to believe he had no objections. – Source

While Stein skewers Brookstone Law in his lawsuit, you can see emails filed by Brookstone as part of Torchia’s previous filing against Stein. Click here. Clearly they worked together and cooperated closely and so the misdirection about Brookstone makes no logical sense.

What a mess.

You can read the two complaints Stein had filed, here and here.

Stein Recom / Signalife / Heart Tronics

As an aside, Stein himself does not come without baggage. As you can see in this June, 2011 lawsuit against Mitchell J. Stein, it is alleged he was integral in operating a stock manipulation scheme which defrauded investors in Recom / Signalife / Heart Tronics.

From that suit:

The July 2008 investigation revealed that Recom / Signalife has a corporate history populated by individuals tied to numerous fraudulent activities. Previously Stein controlled a limited liability company that was the largest shareholder of eMedsoft, Inc., a publicly traded company that later changed its name to Med Diversified, Inc. (“eMedsoft/Med Diversified”) and also served as a director of eMedsoft/Med Diversified. eMedsoft/Med Diversified declared bankruptcy when its largest lender, National Century Financial Industries, Inc. was revealed to be a fraud. As part of the fiasco, the CEO of eMedsoft/Med Diversified pleaded guilty to criminal activities. According to Sparks, Stein sold millions of shared of eMedsoft/Med Diversified stock based on non-public information while actively recruiting new investors in the Company. Sparks also related his experience with Stein with regard to a technology called “Pixbox” that was substantially similar to the truth about Recom/Signalife – Stein touted a revolutionary new technology to Sparks and asked Sparks to recruit investors, but the product never actually existed and was unsalable. – Source

Stein filed a rival rights case against the unknown Postal Inspector and unknown FBI Agent, along with Charles Cain, Rachel Nonaka, Adam Eisner, Lee Ehrlichman, and John Woodbury.

In that case he mentions Recom but fails to mention his association with that company in his filing as the attorney representing some nonprofit groups. You can see the complaint filed on August 15, 2011, here.

Mass Joinder Stein Fights Back and Sues California in Florida
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • http://GetOutOfDebt.org Steve Rhode

    Mitchell J. Stein was ordered inactive to not eligible to practice law in California on January 1, 2012.

  • Former Californian

    I’m a little late to your discussion but looking for information about Brookstone which in November 2011 gave me the hard sell by phone to fork over $1250 for an audit of my very smelly mortgage with Chase, nee EMC, with an additional $3400 for a retainer. They painted a lovely picture of a $75,000 settlement and the potential to wipe away my mortgage completely. Heady stuff. 

    I was put off by their hard sell from the “closer” after being initially interviewed by an intelligent-sounding woman who was clearly identified as a non-attorney. While it’s not unexpected for an attorney’s firm to ask for a retainer, this is clearly a gamble. 

    I felt like I was attending a time-share presentation.They showed me the complaint on this with hundreds of names attached to it, so I’m wondering why it hasn’t reached class action status? Personal injury attorneys don’t charge up front, so why doesn’t this case get treated the same way? The ‘closer’ also told me that ‘time was running out’ and we had to work fast because the big banks are filing for immunity from these lawsuits, and I should get my name included NOW. If this is true, then there will be rioting in the streets (oh, wait, uh…there already is…) and consumers will flee from the big banks (oh, wait, uh, I guess that’s happening today).It’s absolutely believable that Kamala Harris was manipulated by BofA, and that her department has botched their bust of Stein by screwing up the details, but his track record detailed here gives me pause. And what better way for a bank to attack their opponents than by turning them against each other.It’s difficult to see if there is anyone worth believing.I’m not going to give Brookstone my money; it’s just that simple. Is there any legit law firm out there that is working on this?

  • Krowkiller2000

    Steve, you are obviously being paid by Brookstone. You are so transparent. You didn’t even mention the highly deceptive mailer that was mailed out by Brookstone and attached to the lawsuit as an exhibit. Please stop the charade. I would love for Stein to go after you and subpoena your  bank records to see if any money has come from Brookstone. (you know that it has)

    • http://GetOutOfDebt.org Steve Rhode

      You might want to take a moment and actually search this site for Brookstone. Take a look at my coverage and it’s hard to even fathom the argument that I’m somehow on the take from Brookstone. Your claim is false and ridiculous.

      • Krowkiller2000

        If my claim is false and ridiculous, why didn’t you mention the deceptive Brookstone mailer in your first post and why didn’t you address it in your reply to my comment? Please address the Brookstone mailer that was an exhibit to the civil rights lawsuits filed by Stein.

      • http://GetOutOfDebt.org Steve Rhode

        Because I’ve already posted them on the site.

      • Anonymous

        hey steve i left you and amanda some very good news i hope you get it and get to read it . and can you please tell me what happened to my account i cant do anything on it . i have some very good news i would like to share thanks to you and amanda but i am not able to leave a post so i can share my good news. please respond  thank you

      • Last Man Standing

        You sound like you could be Mitchell Stein himself posing as someone else or his puppet Erikson Davis or maybe another clueless aspiring attorney who actually thinks what these people were doing was legal.

        If you want to bash Brookstone so badly then you must already know how Stein did have a relationship with Brookstone at some point and he must had thought highly of Brookstone at some point to have partnered with them. He thought so highly of Brookstone at some point that he used Brookstone as his process server for the lawsuit he filed against his baby momma as late as March of this year. That case seemed to have been put on hold since Stein got busted by the AG. To ask another question would be why would Stein not want that case to go forward with the trial that was set for October 17 and why is he still fighting about paying child support in Orange County with the same woman? Could it be another tactic for Stein to get out of the motion to compel she filed against Stein that brings up his bankruptcy and evading from the San Diego child support department,  is it the long winded intimidation she rambled about from Stein and his associates, or how she made claims that Stein and Kramer were two low level attorneys pumping up a mass joinder lawsuit on Orange County’s Craig’s List? Spivak, Kramer, and Davis has been listed as his attorneys on that case with only Spivak being removed from record earlier this year. If you read the filings of that for 2011, she makes several claims about Stein’s character as a lawyer and his mass joinder. Almost don’t look like a good idea that Stein filed this civil suit when he was emotionally flawed a few weeks prior with a  paternity lawsuit since this woman has filed page after page claiming he’s a fraud and has basically made him out to be a deadbeat dad who’s running a real estate scam. This woman even included the paternity results in his lawsuit and he seems to have another child by 99.9%.

        How can a man like this be so against a company he partnered with and now accuse them of being the worse of the worse. This is like all those emails posted of him confessing his love to a woman who wasn’t his wife, have a baby out of wedlock, and then claims he doesn’t know the woman when test results saying he fathered her kid. He was in love with Brookstone, had a fallen out, and made outrageous accusations. Is it really everyone else’s fault and is every person and business working with the banks and against Stein? Really? This sounds more like the mind of insanity or a con.

        I’m not buying it. What happened is a man screwed over people who aren’t a whole lot better than him, but one thing they were better at was bringing his balls to justice when they got burned by him. A man who constantly mess over people is bound to have to take the fall. He should had stuck to his stock scams.

  • Dumb and Dumber

    He also failed to mention in his lawsuit against the government that he is associated with Recom/Signalife/Heart Tronics and that the company acknowledged in their latest SEC filing that its being investigated by the Securities and Exchange Commission.

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