10 News Investigates: Pacific Law Center San Diego

2009-04-03T16:52:00Z

                                                         KERRY STEIGERWALT'S
                                            PACIFIC LAW CENTER IS A FRAUD

                         San-Diego-Police.com
                                                                   ENTER HERE

Attorney Calls Pacific Law Center A Front
For Unauthorized Practice Of Law

courthousenews.com

SAN DIEGO (CN) - A former attorney for the Pacific Law Center, a champion for conservative issues, says the center "routinely commits malpractice," charges unearned fees and "takes legal action detrimental to clients."

The center "is an unlawful 'front' organization created by defendants Larry Majors, Austin Majors, and Jeffrey Phillips to permit them to engage in and profit from the unauthorized practice of law," one of their former attorneys says in Superior Court.

Carl Hancock says the La Jolla-based defendants "routinely commit malpractice in the handling of legal matters," churn legal fees, "take legal actions which are detrimental to the clients," charge excessive and unearned fees, and that Larry Majors is a felon whose conviction bars him from practicing law in California, and who fled from Texas "when faced with prosecution for the unauthorized practice of law." Hancock says he worked for the defendants from March 11, 2007 until Jan. 19, 2008, and that he was fired for repeatedly protesting their unethical and illegal behavior.

He describes the PLC as a fraudulent conspiracy that defrauds clients to unjustly enrich themselves, that the Majorses and Phillips, oversee the work of defendant "front" attorneys Alan E. Spears, Thomas Slattery and Kerry Steigerwalt, and that they fraudulently conveyed assets of the PLC to Steigerwalt, to duck liability.

Neither Larry Majors, Austin Majors or Jeffrey Phillips is an attorney, Hancock says. Austin Majors is Larry Majors' son, and Phillips is Larry Majors' son in law, he says.

The complaint continues: "Larry Majors suffered a felony conviction in the State of Arizona and which precludes him from becoming eligible to practice of law in the State of California. Plaintiff is informed and believes that Larry Majors, while residing in the State of Texas, engaged in schemes similar to those described herein and fled the jurisdiction when faced with prosecution for the unlawful practice of law."

Hancock describes Spears as "one of the 'front' attorneys who permit the other non-attorney Defendants to control the firm. Spears has actual knowledge of the firm's true ownership and control yet, in violation of the legal and ethical duties imposed on him by his membership in the Bar, continues to permit the non-attorney to make client decisions and profit from the unauthorized practice of law."

Hancock describes Slattery in similar or identical terms, and adds, "Defendant Slattery boasts privately of having 18 State Bar complaints filed against him, however, the firm has never disciplined Slattery for any complaint."

He claims defendant Christopher Castle is not an attorney authorized to practice in California, and that "Castle's role in the conspiracy is to manage and supervise the 'Intake Coordinators,' the firm's legal salesmen, who are instructed to extract as high an amount of attorney fees as the client will agree to bear. Castle's actions are controlled, directly and indirectly, by Defendants Larry Majors, Austin Majors, and Jeffery Phillips. The attorney 'front-men,' Spears and Slattery, operate under specific instruction from Defendant Phillips to exert no control or authority over Castle or the salesmen."

Hancock says defendant Michael Wilkes is not an attorney authorized to practice in California, and that "Wilkes' role in the conspiracy is to act as one of the firm's salesmen. Clients have repeatedly complained that Wilkes holds himself out to be an attorney and gives legal advice, yet the firm has never disciplined him for such activities."

And he says Stiegerwalt is an attorney who "knew or reasonably should have known of the unlawful and ethical activities undertaken by each of Defendant (sic). Steigerwalt's role in the conspiracy consisted of entering into a sham sales transaction for the purpose of protecting the assets of each other Defendant in the event of liability under this complaint."

He claims that the Pacific Law Center "is controlled by Defendants, and each of them, for the purpose of avoiding California state laws prohibiting fraud, theft, and the unauthorized practice of law." He claims they "routinely engages in fraud in the solicitation and retention of prospective clients." He claims the "non-attorney 'Intake Coordinators' ... routinely provide unauthorized legal advice and use 'high-pressure' and 'scare' tactics to induce clients to retain the firm."

He claims, "The actions and tactics of the non-attorney 'Intake Coordinators' are controlled, directly and indirectly, by Defendants Larry Majors, Austin Majors, and Jeffrey Phillips, who employ unskilled attorneys to act as 'front-men' for the firm. These 'front' attorney have no authority to act on their own." He claims they "extract excessive and unconscionable fees and that clients are not informed about the work to be undertaken until after their retention." He claims that "Although the firm publishes an in-house 'fee schedule' for the benefit of State Bar investigators, the firms' salesmen quote excessively inflates fees dictated only by the client's assent. ... In many case, the salesmen obtain and hold the prospective client's driver's license or identification card to prevent the client from leaving the premises."

He claims "that Defendants and their agents routinely make misrepresentations to the State bar and other public and non-public entities for the purpose of hiding or 'covering-up' Defendants' illegal activities."

He claims that he witnessed this while he worked for the Pacific Law Center, and that his bosses there "directed Plaintiff to perform frivolous and unnecessary legal work for the purpose of obtaining unearned legal fees in violation of the public policies prohibiting fraud and theft," and that "as a result of Defendants' repeated demands to engage in activities in violation of public policy, Plaintiff was constructively terminated from his employment."

Hancock, who filed the complaint pro se, demands an injunction and punitive damages for conspiracy to engage in unauthorized practice of law, constructive discharge, fraud in the inducement, unjust enrichment, and asks the court to set aside fraudulent conveyance.

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http://www.supreme.state.az.us/dc/Attorneys_Disciplined_Lists/2002/Attorneys_Disciplined_List_2002.pdf

Mr. JEFFREY L. PHILLIPS

CEO and owner of two law firms listed below;

Kerry Steigerwalt's Pacific Law Center
4225 Executive Square
Suite #1500, 15th Floor
La Jolla CA 92037

Phillips and Associates Law Firm
3030 North 3rd Street
Suite 1100, Eleventh floor
Phoenix, ARIZONA 85012-3049

Mr. Kerry Steigerwalt is not the CEO or the owner of Pacific Law Center.

The name "Kerry Steigerwalt's Pacific Law Center" is to mislead the public and government investigators.

Arizona Bar No. 013362;

File Nos. 98-2204, 99-0389, 99-0455, 99-0571, 99-0610, 99-0983, 99-1208, 99-2151, 99-2084, 99-2233, 99-2291, 00-0005, 00-0024, 00-0041, 00-0045, 00-0098, 00-0110, 00-0348, 00-2560 and 01-0574.

By the Arizona Supreme Court Judgment and Order dated Sept. 13, 2002, owner of Phillips and Associates Law Firm, Mr. Jeffrey L. Phillips, 3030 N. 3rd Street, Suite 1100, Phoenix, AZ85012, was found guilty and was censured and placed on two years of intensive probation, including Law Office Management Assistance Program (LOMAP), by consent, for violation of his duties and obligations as a lawyer. IT IS SO ORDERED.

Mr. Phillips was also ordered to pay costs and expenses incurred by the StateBar in the amount of $12,710.38, together with interest at the legal rate.

Mr. Phillips failed to adequately supervise subordinate attorneys and non-lawyer specialists.

Specifically, intake personnel failed to affirmatively identify themselves as non-attorneys and failed to affirmatively offer or provide adequate information concerning limitationson the applicability of Mr. Phillips’ firm’sadvertised “little or no money down” payment plans.

The Disciplinary Commission found two aggravating factors pursuant to the ABA Standards for Imposing Lawyer Sanctions, Section 9.22: (c) pattern of misconduct and (d) multiple offenses.

The Disciplinary Commission found five mitigating factors pursuant to Section 9.32 of the ABA Standards: (a) absence of prior disciplinary history, (b) absence of selfish or dishonest motive, (d) timely good faith effort to make restitution orto rectify consequences of misconduct, (e) fulland free disclosure to disciplinary board orcooperative attitude towards proceedings and (l) remorse.

Mr. Phillips’ conduct violated Rule 42,ARIZ.R.S.CT., specifically ERs 5.1, 5.3 and7.1.

LAW FIRM'S DUI ADS FALSE CLIENT SAYS HE LIED ON TV TESTIMONIAL

The small print on their 10 second TV commercials that you can never read:

Bankruptcy & Debt Relief - Littleor $0 Down*

*$0 Down available if requested to begin preparation of a bankruptcy case. Filing & legal fees must be paid before filing.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

NOTE THE HUSTLE: "Filing & legal fees must be paid before filing" - Besides the filing fees, The legal fees are higher than the filing fees.

Notice it says "We are a debt relief agency." - It does not say We are a Law Firm.
Notice it says "We help people file...." - Their saying your an idiot.

All Accidents & Injury - No Fees Unless We Win Your Case*

* No attorney fees unless we win your case. Fees are a percentage of recovery before expenses are deducted. Client liable for expenses regardless of outcome.

NOTE THE HUSTLE: "Fees are a percentage of recovery before expenses are deducted. Client liable for expenses regardless of outcome." - You are in debt with them as soon as you sign their contract.

Criminal & DUI - Little or $0 Down* - Affordable Payment Plans - Proven Results**

*Little or $0 down available if requested for misdemeanor cases in San Diego County not set for trial on approved credit. **Case results vary. No prediction of outcome is possible.

NOTE THE HUSTLE: "Little or $0 down available if requested for misdemeanor cases in San Diego County not set for trial on approved credit" - Misdemeanor Only, so if your misdemeanor case changes to a felony case which is what Pacific Law Center aims for if you or your loved ones are wealthy they can charge you more or drop you, and if your case starts as a felony case and changes to a misdemeanor case, there is no refunds. Little $ Down is to trap you and your loved ones with credit card numbers.
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AZ PROBES LAW OFFICE PHILLIPS RECORDS ORDERED

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"LAWYERS Lawyer referral service targeted State eyes allegations one law. "

San Antonio Express-News. San Antonio, Tex.: Aug 3, 1992

LAWYERS Lawyer referral service targeted State eyes allegations one law firm gets most of business By Kym Fox Express-News Staff Writer

A lawyer referral service operating in San Antonio has come under scrutiny by state authorities amid allegations that one law firm is getting most of the business.

The law firm has disavowed any relationship with the referral service other than that of a subscriber.

The executive director of the three-lawyer firm, however, has been identified as the person who placed ads for the referral service.

South Texas Lawyers Referral Service has been running ads on television and in newspapers in San Antonio since the spring.

The ads offer "free help to locate and hire the appropriate attorney." It promotes a 24-hour telephone number for those looking for a lawyer to handle everything from divorce or personal injury to IRS problems and bail bonds.

"The lawyer you choose will make a difference" the newspaper ad reads.

But callers to the referral service are given little choice.

During the past week, San Antonio Express-News reporters called the referral service 14 times asking to be referred to lawyers who could handle everything from parrot smuggling charges in federal court to divorce and copyright laws. Of the 14 calls, 12 resulted in referrals to the law firm of Davis and Associates.

On two occasions when the name of a second lawyer was requested, the referral service operators said: "We only refer to Davis and Associates."

The referral service gave out another lawyer's name for immigration cases, and suggested noted personal injury lawyer Pat Maloney when asked about workers compensation cases.

Maloney said he has never heard of the referral service, and did not give permission for the use of his name.

"That would be a rather scurrilous misrepresentation," Maloney said, condemning the referral service.

Maloney also said his firm no longer does workers compensation cases because of changes in the law, nor do most other firms.

Authorities at the State Bar of Texas, the state agency that licenses and polices lawyers, are looking into the San Antonio referral service, but said there is no formal investigation of it.

"As far as an investigation, we're looking into it, but I can't comment on it any further," said Jim McCormack, general counsel for the state bar.

"We're aware of that service," McCormack said. "If there is any referral service not in compliance with the law, we're going to look at it."

McCormack said that, for now, his agency is concentrating on shutting down a similar operation in the Fort Worth area called Texas Lawyers Referral Service. In San Antonio

In San Antonio, lawyer Marvin Davis is the owner of Davis and Associates. Working with Davis at the firm are lawyers Frank Taylor and Robert A. Forester. Davis employs Larry Majors, who is not a lawyer, as executive director of the firm.

Davis said his firm subscribes to the referral service but is not otherwise connected. Davis said he does not know who owns or runs the referral service.

"We're not affiliated, we're a member," he said.

Majors also denied knowing who owns or runs the referral service. An advertising representative said, however, that Majors was the one who placed ads for the service earlier this year and that the ad orders were picked up at the offices of Davis and Associates.

Davis said he was unaware that his was the only firm offered for referral in most instances.

Davis suggested the referral service surely would not send clients seeking help with traffic tickets or copyright law to his firm because he does not handle such cases.

When contacted about such cases, however, the referral service again suggested Davis and Associates.

Davis said he was perplexed.

"Somebody ought to straighten them out, and I will take what steps I can," he said.

The law firm may drop the use of the referral operation soon anyway because it is generating too much business, Majors said.

"We are probably going to pull out after this month," Majors said. "It's too time consuming to talk to all the clients."

Majors went on to speculate that the loss of the Davis and Associates business could force the referral service out of business.

"It's probably going to drive them out of San Antonio," he said.

Records at the Secretary of State's office in Austin show the referral service was incorporated April 6 by Vern Brand, with Edith Brand of Arlington as a registered agent.

Repeated requests to speak with a manager or owner of the referral service were not answered. Referrals detailed

At the San Antonio Bar Association, Executive Director Jimmy Allison said his office has received complaints about South Texas Lawyers Referral Service.

Allison said he could not discuss the specifics of the complaints, but said the bar association also has placed calls to the referral service and been referred almost exclusively to Davis and Associates.

"In the calls, everyone has been referred to them," Allison said. "There were 10 or 12, we called for family law, for criminal, securities law, environmental law we covered the gamut, probate law."

The Vernon Civil Statutes contain the law governing lawyer referral services. They must be non-profit and meet a number of criteria. A provision of the law limits to $20 the fee that a lawyer can charge for the first 30-minute consultation for a client referred through such a service.

The San Antonio Bar Association runs its own referral service, one that is sanctioned by the State Bar of Texas. It carries hundreds of lawyers, who pay $100 each to be listed in their area of expertise, Allison said.

"If you run a referral service, it's got to be a public service," Allison said. "We lose money off ours."

FRAUD ALERT | AVOID Pacific Law Center | WARNING

10 News Investigates: Pacific Law Center San Diego