California Attorney General Kamala Harris says the Department of Justice and the State Bar of California have sued more than a dozen people - including lawyers and law firms. She says the group reached out to people facing foreclosure and led them to believe they could save their homes by joining lawsuits against their lenders:
Harris: "They suggested that by joining this lawsuit the banks would have to pay but the only people who paid were those homeowners who were victimized for the second time."
Harris says the lawyers charged the homeowners up to ten
thousand dollars to participate - but then stopped returning their
clients' calls. Harris says those accused of taking
part in the fraud have had their assets frozen. The suit
seeks fines, penalties and restitution for the victims.