Las Vegas NowOwner of Mortgage Relief Company in Legal Trouble

Owner of Mortgage Relief Company in Legal Trouble

A local company that claims it can stop foreclosures will not re-open its doors. On Thursday, a federal judge ordered the U.S. Justice Foundation and its president to quit filing lawsuits against mortgage companies and other lenders.

Eyewitness News I-Team reporter Colleen McCarty first exposed allegations of wrong doing at U.S. Justice. 

Judge Roger Hunt found the president of the U.S. Justice Foundation in contempt of court for practicing law without a license. After more than an hour of testimony, Judge Hunt said it was clear, Jack Ferm and by extension his staff, offered legal advice. Hunt said he didn't know whether to call Ferm's customers clients or victims.

Though U.S. Justice Foundation President Jack Ferm makes his living advising homeowners to represent themselves in lawsuits against their mortgage companies, Ferm hired an attorney to represent him in federal court.

At issue, whether Ferm, and by extension the foundation, practiced law without a license. During an exclusive interview with Channel 8 I-Team earlier this week, Ferm insisted he did not.

"There is no willful act of practicing law without a license. I had attorneys there that oversaw everything that we did. The judge is out of line," Ferm said.

Ferm estimates the foundation filed as many as 800 lawsuits citing unfair lending practices. Though Ferm explains, he runs a document preparation company, many of its clients have said in open court, they believe the foundation to be a law firm.

Its website is dotted with legal-ese and clients sign a "retainer agreement" instead of a contract and Ferm proudly advertises his law degree.

"I've made it clear to everyone I was not an attorney."

Ferm acknowledges he's never taken the bar exam though he claims to have graduated from Bernadean University, a correspondence law school in California. Bernadean is regularly cited as a diploma mill.

In the late 1980's, the California Committee of Bar Examiners shut it down. Explaining to students, that Bernadean never had degree granting authority from the California Department of Education.

Ferm's website also claims that he practiced bankruptcy law but fails to mention that the Nevada Bankruptcy Court ordered him to stop in 1998. Noting the "bankruptcy petition preparer," is not licensed to practice law.

Judge Roger Hunt mentioned the judgement just before he issued his own. He found Ferm in contempt for practicing law without a license.

"It was not my intent to violate any law. I tried to protect myself to make sure I didn't, but, if the judge feels I have, I can appeal it, I'm not going to. I'm going to stand by what he said," Ferm said. 

The judge ordered Ferm to refund about $2,500 paid by the client in this case as well as other clients that come before his court.

Ferm and the foundation may not file any more lawsuits against mortgage companies or other lenders.

A similar hearing is scheduled in state court next week.