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ATTORNEY GENERAL CUOMO EXPANDS PROBE OF NEW YORK FORECLOSURE ACTIONS

ATTORNEY GENERAL CUOMO EXPANDS PROBE OF NEW YORK FORECLOSURE ACTIONS

Demands information from Bank of America, JP Morgan Chase, Wells Fargo and GMAC Mortgage/Ally ~Calls for suspension of foreclosures by mortgage servicers engaged in “robo-signing” in New York until accuracy of court documents and integrity of process are assured

NEW YORK, NY (October 12, 2010) – Attorney General Andrew M. Cuomo today announced that he is seeking information from four major mortgage servicers – Bank of America, JP Morgan Chase, Wells Fargo and GMAC Mortgage/Ally – concerning the filing of affidavits that falsely attest the signer has personal knowledge of the facts presented in home foreclosure proceedings, a practice known as “robo-signing.”

In view of the prevalence of this practice in the industry, Cuomo also called on mortgage servicers engaged in “robo-signing” in New York to immediately suspend all foreclosure actions in the state until they correct their procedures to comply with New York law and can assure the public and the courts that integrity has been restored.

“I will not allow New Yorkers to lose their homes due to mortgage goliaths that buck the system by submitting affidavits signed without knowledge of the facts,” said Attorney General Cuomo. “Such conduct is a fraud upon our courts and a slap in the face of New Yorkers struggling to get by in this economy. My office will continue to root out these practices so homeowners receive the full protections afforded by our judicial system.”

Recent reports indicate that employees of these mortgage servicers routinely signed affidavits submitted in foreclosure proceedings without personal knowledge of the underlying facts or verification of loan file information, and without even reading the documents they signed. This practice, known as “robo-signing,” has tainted the integrity of the foreclosure process by which homeowners in New York lose their homes. Bank of America, JP Morgan Chase and GMAC Mortgage announced that they were temporarily halting pending foreclosures, while Wells Fargo has not suspended foreclosures despite the deficiencies uncovered.

Attorney General Cuomo is calling on these mortgage servicers to submit documents and information to his office concerning how foreclosure documents are prepared, verified, attested to and notarized, and how required notices are provided to New York homeowners. The letters request that the mortgage servicers stop re-filing foreclosures that had been suspended (and in Wells Fargo’s case, cease proceeding with pending foreclosures) until the Attorney General’s Office is assured that reliable and fair procedures are in place and that accurate, trustworthy documentation will be submitted to the New York courts. The letters also request that the mortgage servicers refrain from filing any new foreclosures until they can provide assurances that their procedures comply with New York law and are neither tainted nor inaccurate.

Because of the gravity of these transgressions and the high volume of foreclosures, Attorney General Cuomo is calling on all mortgage servicers engaged in “robo-signing” in New York to immediately suspend all pending foreclosure actions in the state, including evictions and foreclosure sales. Cuomo is also requesting that the mortgage servicers not file any new foreclosures until the companies correct their procedures.

Tens of thousands of New Yorkers have been devastated by the foreclosure crisis. In fact, the foreclosure rates in Nassau and Suffolk Counties rank among the ten highest in the nation. More than 60,000 New York homes are currently in foreclosure, and 130,000 New York homeowners have received pre-foreclosure notices this year after falling behind on their mortgage payments.

In addition to his office’s review of Bank of America, Chase, Wells Fargo and GMAC Mortgage/Ally, Attorney General Cuomo is working with other state attorneys general, banking regulators and other interested parties to assess the veracity of servicers’ foreclosure filings and ensure the fairness and accuracy of their processes.

Attorney General Cuomo advises New York homeowners who are facing foreclosure proceedings to do the following:

  • Contact the court to find out the status of your foreclosure proceeding.
  • Seek representation or advice from a qualified attorney. If necessary, contact your local bar association or legal services office for a referral. If you are unable to retain counsel, carefully review any documents filed thus far with the court to ensure their accuracy.
  • If you have not done so already, immediately contact your lender or servicer to discuss available alternatives to foreclosure such as a loan modification.
  • For a general description of the foreclosure process, refer to www.nyprotectyourhome.com/fc_timeline.html.
  • Consult with a government-approved housing counseling agency. To find counselors approved by the U.S. Department of Housing and Urban Development (HUD) in your local area, call 800-569-4287 or visit www.hud.gov. A list of housing counselors also can be found via the NYS Banking Department at www.banking.state.ny.us.
  • Call HOPE NOW at 1-888-995-HOPE. HOPE NOW is an alliance of housing counselors, mortgage companies, investors and other mortgage market participants that provides free foreclosure prevention assistance.
  • If you live in New York City, call 311 to schedule free foreclosure counseling sessions at the Center for New York City Neighborhoods.

New York homeowners who believe their homes were foreclosed based upon false or inaccurate documents filed in court by their lender or servicer should seek representation from an attorney. They may also file a complaint with the New York Attorney General’s Bureau of Consumer Frauds & Protection by calling 800-771-7755 or visiting www.ag.ny.gov.

The investigation, led by Special Deputy Attorney General for Consumer Frauds & Protection Joy Feigenbaum, is being handled by Special Counsel Mary Alestra, Assistant Attorney General Brian Montgomery and Deputy Bureau Chief Jeffrey Powell of the Bureau of Consumer Frauds & Protection under the direction of Executive Deputy Attorney General for Economic Justice Maria Vullo and Deputy Attorney General for Economic Justice Michael Berlin.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, bank of america, CONTROL FRAUD, corruption, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, GMAC, investigation, jpmorgan chase, MERS, MERSCORP, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., rmbs, robo signers, securitization, servicers, STOP FORECLOSURE FRAUD, Supreme Court, Susan Chana Lask, Violations, washington mutual, wells fargo6 Comments

VIDEO: ELIZABETH WARREN “THIS IS A VERY BIG PROBLEM” On FORECLOSURE FRAUD

VIDEO: ELIZABETH WARREN “THIS IS A VERY BIG PROBLEM” On FORECLOSURE FRAUD

Oct. 12 (Bloomberg) — Elizabeth Warren, the White House adviser in charge of forming the Consumer Financial Protection Bureau, discusses her first month on the job, the need for U.S. lenders to simplify home mortgage paperwork and the outlook for financial industry regulation. Warren, speaking with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in elizabeth warren, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Moratorium, mortgage, servicers4 Comments

WELLS FARGO Screws Mother with Two Autistic Children!

WELLS FARGO Screws Mother with Two Autistic Children!

Wells Fargo asked this mother raising autistic twins to send in $2,300 dollars in return to freeze the foreclosure and reach a settlement…they never did. But took her money anyway.

“I’m going to lose everything,” she said, sitting on the front porch of the two story home. Wells Fargo Bank plans to foreclose on the house Thursday. “The American Dream to me is just a lie. I did what I was supposed to do. And they don’t want to help me.”

In Missouri all a lender needs to do is send a letter to foreclose on your house.

FOX2NEWS

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in foreclosure, foreclosure fraud, foreclosure mills, foreclosures, settlement, wells fargo2 Comments

Law Office Of David J. Stern Confirms Layoffs

Law Office Of David J. Stern Confirms Layoffs

In all seriousness this is never good news for anyone. These are workers who may have families to feed and may not be able to find jobs easily like Tammie Lou Kapusta said in her deposition, “I’ve actually had such a difficult time getting a job because I worked at David Stern’s office“.

Mr. Stern once told investors, “We take it from Cradle to Grave“.

According to South Florida Business Journal:

Jeffrey Tew, Stern’s attorney, confirmed that there were layoffs, and that it was because several key lenders had frozen prosecution of foreclosure cases. Tew, a partner at Tew Cardenas LLP in Miami, said it was only normal that some cutbacks had to occur as work slowed. He said most of the layoffs were temporary positions.

Related:

Mind-blowing Highlights from David J. Stern “DJSP Enterprise” Conference With Audio

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EXPLOSIVE DEPOSTION!!!! BUSTED!! DAVID J. STERN “MILL” KNEW THIS ALL ALONG…THIS FORECLOSURE FRAUD!!!

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in djsp enterprises, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, investigation, Law Offices Of David J. Stern P.A., STOP FORECLOSURE FRAUD2 Comments

Full Deposition of Residential Funding/GMAC JUDY FABER: US BANK v. Cook

Full Deposition of Residential Funding/GMAC JUDY FABER: US BANK v. Cook

Make sure you read this carefully…This is a transcript of an employee of Residential Funding Company who is in charge of record keeping of original documents. Don’t miss the full deposition down below.

Follow the assets, don’t get lost in the trail…

17 Q. Now, when you said you’re the Director of
18 Records Management for the Minnesota office?

19 A. Uh-huh.

20 Q. Are there other offices of Residential
21 Funding that maintain records that you are
22 not responsible for?

23 A. There are records services sites in Iowa and
24 in Pennsylvania. Those deal mostly with the
25 GMAC mortgage assets.

<snip>

11 Q. And what, if anything, is your responsibility
12 with regard to those records?

13 A. To track the physical paper for those
14 assets — or that asset.

15 Q. Are you what you consider to be the keeper of
16 the records for those documents?

17 A. Sure, yep.

5 Q. Okay. And then when somebody wants to view
6 specific records from your system, is that
7 something that you’re responsible for
8 obtaining as part of your day-to-day
9 responsibilities?

10 A. The people that report to me, yes, or the
11 vendor that — that we have retained to do
12 those functions, yes. I don’t do that
13 myself.

14 Q. Who’s the vendor that you retain to do that?

15 A. A company called ACS.

16 Q. ACS?

17 A. Yep.

18 Q. And what does ACS do with regard to the
19 records?

20 A. They fulfill the request. So if somebody
21 needs a credit folder or a legal folder, they
22 research where those documents are, obtain
23 the documents and then provide that requestor
24 with either the paper documents or images.

<snip>

21 Q. There’s a file folder that shows it came from
22 the outside vendor?

23 A. Yes. Their sticker is affixed to the front
24 of the folder, so I know it came from them.

25 Q. Okay. And then is there anything on the
1 documents themselves that show where they
2 came from?

3 A. No.

4 Q. And by the outside vendor, do you mean ACS?

5 A. No. Actually, the vendor that stores the
6 actual folder is Iron Mountain.

7 Q. So there’s a sticker on that file that shows
8 it came from Iron Mountain?

9 A. Correct, yes.

10 Q. Does Iron Mountain maintain your system or do
11 they just maintain hard copies of documents?

12 A. They maintain the hard copies of the
13 documents.

14 Q. Not any records on your computer system,
15 correct?

16 A. No.

17 Q. Is that correct?

18 A. Correct.

<snip>

18 Q. What’s the relationship between Residential
19 Funding Company, LLC and U.S. Bank National
20 Association?

21 A. In — in this instance, U.S. Bank is the
22 trustee on the security that this loan is in.
23 And RFC was the issuer of the security that
24 was created.

25 Q. Who was the issuer of the security?

1 A. RFC was the issuer of the security.

2 Q. Oh, RFC is what you call Residential Funding
3 Company?

4 A. Yes.

5 Q. So RFC issued the security?

6 A. Right.

7 Q. Can you explain to me what that means?

8 A. No, I can’t.

9 Q. Okay. How do you know RFC issued the
10 security?

11 A. It’s the normal course of business as to how
12 our — our business works. RFC is in the
13 business of acquiring assets and putting them
14 together into securities to sell in the — in
15 the market.

16 MR. SHAW: I would like to
17 register a general objection to this line of
18 questioning. There’s not been a foundation
19 laid for Judy Faber being competent to reach
20 some of these conclusions that are being
21 stated on the record.

22 BY MR. HOLLANDER:
23 Q. So in this particular instance, do you have
24 any personal knowledge of the relationship
25 between RFC and U.S. Bank National
1 Association as trustee?

2 A. No.

3 Q. For whom is U.S. Bank National Association
4 acting as the trustee?

5 A. I believe it would be for the investors of
6 the — that have bought the securities.

7 Q. I’m sorry. Something happened with the phone
8 and I didn’t hear your answer. I’m sorry.

9 A. I believe it would be for the different
10 investors who have bought pieces of that
11 security that was issued.

12 Q. Are there different investors that have
13 purchased the Peter Cook note?

14 A. I don’t think I’m qualified to answer that.
15 You know, I can tell you from what my basic
16 understanding is from the process, but I’m
17 not an expert.

18 MR. SHAW: Once again, I’d like to
19 raise a continuing general objection that she
20 being — testifying with respect to what her
21 job is, and I believe you’re getting into
22 areas that is other than what her job is and
23 you’re asking for possibly even legal
24 conclusions here. So I would like to raise
25 that objection again.

[…]

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, bifurcate, conspiracy, deposition, foreclosure, foreclosure fraud, foreclosures, GMAC, mbs, securitization, STOP FORECLOSURE FRAUD, trade secrets, trustee, Trusts, us bank2 Comments

BLOOMBERG: Citigroup Stops Using Foreclosure Law Firm Under Investigation in Florida

BLOOMBERG: Citigroup Stops Using Foreclosure Law Firm Under Investigation in Florida

By Dakin Campbell and Donal Griffin – Oct 12, 2010 12:00 AM ET

Citigroup Inc. said it stopped steering foreclosure work to a Florida law firm whose court filings to support home seizures are under investigation by the state’s attorney general.

The bank, which is proceeding with seizures as some rivals stop to recheck documents, had used the Law Offices of David J. Stern PA. Florida Attorney General Bill McCollum said Aug. 10 it is examining whether Stern and two other firms filed “improper documentation” with the state’s courts to speed proceedings.

“Pending the outcome of the AG’s investigation, Citi is not referring new matters to this firm,” the New York-based bank said in an e-mailed statement. Citigroup services loans for government-sponsored entities, such as Fannie Mae and Freddie Mac. Stern “was approved by the GSEs during the time in which it was retained by Citi,” the bank said.

Lawmakers, attorneys general and consumer groups have pressed mortgage firms to follow Bank of America Corp., the biggest U.S. lender, which last week suspended all foreclosures to check whether faulty documents were used to confiscate homes. JPMorgan Chase & Co. and Ally Financial Inc.’s GMAC Mortgage unit froze seizures or evictions in Florida and 22 other states. Citigroup said last week it doesn’t plan to join them.

McCollum’s office “hasn’t made any charges or allegations of fault,” said Jeffrey Tew, an outside attorney for Plantation, Florida-based Stern, who declined to discuss its work for Citigroup. “I believe they’re a client. I can’t go into any details.”

Continue reading…BLOOMBERG

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, CitiGroup, djsp enterprises, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, investigation, Law Offices Of David J. Stern P.A., notary fraud0 Comments

YOU MUST READ! Federal Bankruptcy Trustee Joins Litigation Against Lender Processing Services (LPS)

YOU MUST READ! Federal Bankruptcy Trustee Joins Litigation Against Lender Processing Services (LPS)

WOW! Lender Processing Services is up against some BIG TIME players!

According to Naked Capitalism:

The standing Chapter 13 Trustee for the Northern District of Mississippi, Locke Barkley, has joined the case on behalf of herself and of all Chapter 13 Trustees in the US.

and also

The filings were amended to add counsel with class action expertise. On the Federal case, in Mississippi, CaseyGerry has joined the case. The head of the firm, David Casey, is a former president of the Association of Trial Lawyers of America. Cases his firm has handled include Exxon Valdez and the California tobacco case. In other words, this is a heavyweight player. On the Kentucky case, McGowan & Hood, a firm which has won major class actions lawsuits, including medical device cases, has signed up.

Lender-Processing-Services-Federal-Bankruptcy-Suit-Second-Amended-Complaint
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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in bankruptcy, CONTROL FRAUD, corruption, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Lender Processing Services Inc., LPS, lps default solutions Inc., trade secrets0 Comments

After Foreclosure, a Focus on Title Insurance

After Foreclosure, a Focus on Title Insurance


By RON LIEBER
Published: October 8, 2010

When home buyers and people refinancing their mortgages first see the itemized estimate for all the closing costs and fees, the largest number is often for title insurance.

This moment is often profoundly irritating, mysterious and rushed — just like so much of the home-buying process. Lenders require buyers to have title insurance, but buyers are often not sure who picked the insurance company. And the buyers are so exhausted by the gauntlet they’ve already run that they’re not interested in spending any time learning more about the policies and shopping around for a better one.

Besides, does anyone actually know people who have had to collect on title insurance? It ultimately feels like a tax — an extortionate one at that — and not a protective measure.

But all of the sudden, the importance of title insurance is becoming crystal-clear. In recent weeks, big lenders like GMAC Mortgage, JPMorgan Chase and Bank of America have halted many or all of their foreclosure proceedings in the wake of allegations of sloppiness, shortcuts or worse. And a potential nightmare situation has emerged that has spooked not only homeowners but lawyers, title insurance companies and their investors.

What would happen if scores of people who had lost their homes to foreclosure somehow persuaded a judge to overturn the proceedings? Could they somehow win back the rights to their homes, free and clear of any mortgage? But they may not be able to simply move back into their home at that point. Banks, after all, have turned around and sold some of those foreclosed homes to nice young families reaching out for a bit of the American dream. Would they simply be put out on the street? And then what?

The answer to that last question may depend on whether those new homeowners have title insurance, because people who buy a home without a mortgage can choose to go without a policy.

Title insurance covers you in case people turn up months or years after you buy your home saying that they, in fact, are the rightful owners of the house or the land, or at least had a stake in the transaction. (The insurance may cover you in other instances as well, relating to easements and other matters, but we’ll leave those aside for now.)

Continue reading…NEW YORK TIMES

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, foreclosure, foreclosure fraud, foreclosures, Old Republic Title, STOP FORECLOSURE FRAUD, title company, Title insurance2 Comments

FL Attorney General Files A Motion for Rehearing to Judge’s Ruling in Shapiro & Fishman Investigation

FL Attorney General Files A Motion for Rehearing to Judge’s Ruling in Shapiro & Fishman Investigation

Attorney General McCollum I applaud you for STANDING UP for Florida!

Assistant AG’s June M. Clarkson and Theresa B. Edwards what an amazing job! Thank you.

Investigate the law suit Shapiro and Stern had against each other…You might just find missing pieces there.

The facts are the facts…crystal clear. This glass is not half full but spilling out the rim of the glass!

Attorney General Bill McCollum today filed a Motion for Rehearing on last week’s ruling by Circuit Judge Jack Cox that the Attorney General could not investigate the Shapiro & Fishman law firm for the firm’s alleged involvement in presenting fabricated documents to the courts in foreclosure actions to obtain final judgments against homeowners. The Attorney General is currently investigating four law firms, The Law Offices of Marshall C. Watson, P.A.; Shapiro & Fishman, LLP, the Law Offices of David J. Stern, P.A., and Florida Default Law Group, PL for allegedly engaging in these practices.


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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in CONTROL FRAUD, corruption, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, investigation, Law Offices Of David J. Stern P.A., law offices of Marshall C. Watson pa, shapiro & fishman pa, STOP FORECLOSURE FRAUD, trade secrets1 Comment

What is Alter Ego Liability?

What is Alter Ego Liability?

THIS IS NOT Intended to Be Construed or Relied upon as COMPETENT LEGAL ADVICE—Readers are urged to obtain competent legal representation to review their facts. I am not an attorney and this is not legal advice. I’m trying to gather a few things in order for research…that’s all.

This is very similar to the notion of piercing the corporate veil (aside from certain technical distinctions that are being ignored for the purpose of this discussion). Owners of corporations (i.e., its shareholders) are generally not personally liable for debts, losses and liabilities of the business itself, because of limited liability. However, if those owners have acted in a way where their business is really just a shell, and not an entirely separate legal entity, a court may decide that the business is simply an alter ego, meaning the owners should be held personally liable because of their wrongful acts.

There are many things that a court will look at in determining whether alter ego liability should be applied. Typical factors include (but are not limited to) whether the company kept its own records, whether there were shares (for a corporation) or units (for an LLC) that were actually issued, whether the owners co-mingled their finances with the business entity, whether there were actually corporate directors or LLC managers running the business, how legal formalities were followed and whether the owners used the business for personal purposes. It is often a case-by-case situation, and the key here is that you should take every precaution to run your business in full compliance with the legally required formalities and use the business in a proper way in order to avoid such alter ego liability.

Uniform Fraudulent Transfer Act

Successor liability claims are often paired with alleged violations under a state law adaptation or adoption of the Uniform Fraudulent Transfer Act (“UFTA”),5such as the Delaware Uniform Fraudulent Transfer Act (“DUFTA”). Some typical factual scenarios that give rise to a successor liability claim mirror those for a claim under UFTA. For instance, a violation of DUFTA by transferring the assets of company A into company B to avoid liability, while the successor company B is a mere continuation of company A, as all of the assets were transferred, and company B retained the same management as company A, could trigger both exceptions three and four noted above as well as a fraudulent conveyance claim. See DEL. CODE ANN. tit. 6, § 1305.

DUFTA finds a fraudulent conveyance if the debtor made the transfer or incurred the obligation with “intent to hinder, delay or defraud any creditor of the debtor;” or “[w]ithout receiving a reasonably equivalent value in exchange for the transfer or obligation.” DEL. CODE ANN. tit. 6 §§ 1304(a)(2) and 1305(a); see also In re Hechinger Inc. Co. of Del., 327 B.R. 537, 551 (D. Del. 2005); China Res. Prods. (U.S.A.) v. Fayda Int’l, Inc., 856 F. Supp. 856, 863 (D. Del. 1994); In re MDIP, Inc., 332 B.R. 129, 132 (Bankr. D. Del. 2005). The debtor must also be engaged or about to engage in a business or a transaction for which the remaining assets of the debtor were “unreasonably small in relation to the business or transaction,” or intended, had a belief, or should have believed, that the debtor would “incur, debts beyond the debtor’s ability to pay as they became due.” In re MDIP, Inc., 332 B.R. at 132. If a creditor prevails on a claim under the DUFTA, the statute empowers the Court to appoint a receiver to take charge of the transferred asset or other property of the transferee. DEL. CODE ANN. tit. 6 § 1307(a).

Notably, intent under DUFTA can be found if the transfer or obligation was to an insider, if the debtor retained possession or control of the property transferred after the transfer, the transfer was of substantially all the debtor’s assets, the debtor removed or concealed assets, the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred, the transfer occurred shortly before or shortly after a substantial debt was incurred, or the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor. DEL. CODE ANN. tit. 6 § 1304(b). All of these facts, if present, would be useful in framing a successor liability claim as well.
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Sources:

http://www.quizlaw.com/business_law/what_is_alter_ego_liability.php

———————————

LIMITATIONS TO BANKRUPTCY ALTERNATIVES: SUCCESSOR LIABILITY, THE UNIFORM FRAUDULENT TRANSFER ACT, PIERCING THE CORPORATE VEIL, AND PERSISTENT LIABILITIES.1

Rafael X. Zahralddin-Aravena2
Elliott Greenleaf, Wilmington, Delaware

ALTER EGO liability

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Related:

ALTER EGO DOCTRINE: ‘Pierce the Corporate Veil’

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in foreclosure, foreclosure fraud, foreclosures, forgery2 Comments

Florida Foreclosure Firm Fudged Forms, Ex-Paralegal Claims

Florida Foreclosure Firm Fudged Forms, Ex-Paralegal Claims

By Phil Milford and Denise Pellegrini – Oct 9, 2010 12:01 AM ET

A former paralegal told Florida investigators that workers at a law firm that processed foreclosures signed paperwork without reading it, misdated records and skirted rules protecting homeowners in the military.

Tammie Lou Kapusta, who said she spent more than a year at the Law Offices of David J. Stern PA, made the accusations in a Sept. 22 interview with lawyers for Florida Attorney General Bill McCollum. In August, McCollum announced a probe of three law firms to see whether improper documents were created and filed with state courts to hasten the foreclosure process.

Jeffery Tew, a lawyer for the Stern firm, denied Kapusta’s claims.

Kapusta, who spoke under oath, said the Stern firm ballooned from 225 employees when she started in March 2008, to more than 1,100 when she was fired in July 2009. She described a disorganized workplace where documents got lost and mortgages were misfiled. The training process was “stupid and ridiculous,” she said.

“There were a lot of young kids working up there who really didn’t pay attention to what they were doing,” she said, according to a transcript. “We had a lot of people that were hired in the firm that were just hired as warm bodies.”

Kapusta’s statements were reported Oct. 7 in the Tampa Tribune. Tew, of Tew Cardenas LLP in Miami, said he wasn’t aware of the interview until it was released to the public.

“We didn’t get a chance to cross-examine her,” he said. “It was a one-sided statement by a disgruntled employee. There was a lot of animus and personal references, and she seeks to besmirch people’s reputation. The law firm denies there’s any accuracy in the charges.”

Jurisdiction Challenged

There’s a court hearing set for Oct. 12 to determine whether McCollum’s office has jurisdiction over the firm’s conduct, Tew said.

“This is a civil investigation, and the attorney general hasn’t made any conclusions,” Tew said.

Continue reading…BLOOMBERG

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Related:

EXPLOSIVE DEPOSTION!!!! BUSTED!! DAVID J. STERN “MILL” KNEW THIS ALL ALONG…THIS FORECLOSURE FRAUD!!!

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Law Offices Of David J. Stern P.A., ProVest, robo signers, sewer service1 Comment

Government had been warned for months about troubles in mortgage servicer industry

Government had been warned for months about troubles in mortgage servicer industry

Washington Post Staff Writer
Saturday, October 9, 2010; 10:11 PM

Consumer advocates and lawyers warned federal officials in recent years that the U.S. foreclosure system was designed to seize people’s homes as fast as possible, often without regard to the rights of homeowners.

In recent days, amid reports that major lenders have used improper procedures and fraudulent paperwork to seize properties, some Obama administration officials have acknowledged they had been aware of flaws in how the mortgage industry pursues foreclosures.

But the officials said they could take only limited action to address the danger. In part, this was because they wanted lenders’ help carrying out federal programs to modify mortgages that had fallen into default or were poised to do so.

New concerns about improper practices – such as those involving faked documents or “robo-signers” who signed tens of thousands of documents without reviewing them – have prompted the mortgage servicing arms of the country’s largest banks to freeze millions of foreclosures. As momentum builds for a national moratorium, the administration has begun assessing the potential impact, examining the threat it could pose for the ailing housing market and the wider financial system.

There is no evidence so far that the specific abuses made public in the past few weeks were known to government officials. Nor is it clear whether they were aware that the process of the selling and reselling of mortgages among financial firms – which became extremely common and highly profitable during the housing boom – was raising legal questions about who actually owned the loans and had the right to foreclose if they want bad.

But government officials were told repeatedly that the mortgage servicing industry was deeply troubled, according to administration officials, consumer advocates, housing lawyers and congressional aides.

Continue reading…WASHINGTON POST

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, concealment, conspiracy, corruption, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, MERS, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC.3 Comments

False Statements| Bank of America, Florida Default Law Group, Law Offices of David Stern, Lender Processing Services, Litton Loan Servicing, Cheryl Samons, Security Connections, Inc.

False Statements| Bank of America, Florida Default Law Group, Law Offices of David Stern, Lender Processing Services, Litton Loan Servicing, Cheryl Samons, Security Connections, Inc.

False Statements

Bank of America
Florida Default Law Group
Law Offices of David Stern
Lender Processing Services
Litton Loan Servicing, LP
Cheryl Samons
Security Connections, Inc.

Action Date: October 10, 2010
Location: Charlotte, NC

On October 8, 2010, Bank of America announced it was extending its suspension of foreclosures to all 50 states. A review of the documents used by Bank of America to foreclose readily shows why this was the only appropriate action for Bank of America. In thousands of cases, Bank of America has used Mortgage Assignments specially prepared just for foreclosure litigation. On these assignments, the identity of the mortgage company officer assigning the mortgage to BOA is wrongly stated. Who has signed most frequently as mortgage officers on mortgage assignments used by BOA to foreclose? Regular signers include the “robo-signers” from Lender Processing Services in both Alpharetta, Georgia and Mendota Heights, Minnesota. LPS employees Liquenda Allotey, Greg Allen, John Cody and others, using dozens of different corporate titles, sign mortgage assignments stating BOA has acquired certain mortgages. When the mortgages involved originated from First Franklin Bank, BOA used Security Connections, Inc. in Idaho Falls, Idaho. Employees Melissa Hively, Vicki Sorg and Krystal Hall also signed for many different corporations for BOA. Litton Loan Servicing in Houston, Texas, a company owned by Goldman Sachs, also produced documents as needed by BOA, usually signed by Denise Bailey, Diane Dixon or Marti Noriega signing as officers of at least a dozen different mortgage companies and banks. BOA also has used mortgage assignments signed by Cheryl Samons, the office administrator for the Law Offices of David Stern, who has admitted to signing thousands of mortgage documents each month with no actual knowledge of the contents. On other cases, employees of the law firm Florida Default Law Group have signed for BOA, using various titles, including claiming to be Vice Presidents of Wells Fargo Bank, all while failing to disclose they actually worked for Florida Default. in most of these cases, BOA is acting as Trustee for residential mortgage-backed securitized trusts. These trusts are claiming to have acquired the mortgages in 2009 and 2010, even though the trusts deadline for acquiring mortgages was often in 2006 and 2007. In hundreds of cases, the mortgage assignments presented by BOA are actually signed months AFTER the foreclosure actions were commenced. At least 50 trusts using BOA as Trustee are involved in using these fraudulent documents. Each trust has between $1.5 billion and $2 billion of mortgages. The BOA documents have been used in thousands of cases, pending and completed, for at least three years. This massive problem cannot be “fixed” in 90 days, but a nationwide suspension of foreclosures is a good, responsible beginning.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, florida default law group, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, fraud digest, Law Offices Of David J. Stern P.A., Lender Processing Services Inc., Litton, LPS, Lynn Szymoniak ESQ2 Comments

VIDEO: OHIO SOS JENNIFER BRUNNER on Foreclosure Fraud, Kaptur, MERS, H.R. 3808, Notaries, Moratorium

VIDEO: OHIO SOS JENNIFER BRUNNER on Foreclosure Fraud, Kaptur, MERS, H.R. 3808, Notaries, Moratorium

Democracy NOW! News – Calls are growing for a nationwide moratorium on home foreclosures following the recent revelations that major lenders may have committed fraud while forcing thousands of people out of their homes. On Thursday the White House announced President Obama will not sign a bill approved by Congress that could have made it easier for banks to foreclose. We discuss the latest in the foreclosure crisis with Ohio Secretary of State Jennifer Brunner. This week Ohio filed a lawsuit accusing the lender Ally Financial and its GMAC Mortgage division of fraud in approving scores of foreclosures. Published with written permission from democracynow.org.

http://www.democracynow.org Provided to you under Democracy NOW! creative commons license. Copyright democracynow.org, an independent non-profit user funded news media, recognized and broadcast world wide.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, chain in title, CONTROL FRAUD, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, MERS, MERSCORP, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., notary fraud1 Comment

“DON’T QUIT”

“DON’T QUIT”

Anonymous

When things go wrong, as they sometimes will,
When the road you’re trudging seems all uphill,
When the funds are low and the debts are high,
And you want to smile, but you have to sigh,
When care is pressing you down a bit Rest if you
must, but don’t you quit.

Life is queer with its twists and its turns, As
everyone of us sometimes learns, And many a
failure turns about When they might have won,
had they stuck it out. Don’t give up though the
pace seems slow, You may succeed with
another blow.

Often the goal is nearer than,
It seems to a faint and faltering man,
Often the struggler has given up
When he might have captured the victor’s cup;
And he learned too late when the night came down,
How close he was to the golden crown.

Success is failure turned inside out The
silver tint of the clouds of doubt And
you never can tell how close you are,
It may be near when it seems so far;
So stick to the fight when you’re
hardest hit, It’s when things
seem worst that you…

MUST NOT QUIT!

Because I haven’t quit on you!


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in foreclosure, foreclosure fraud, foreclosures, STOP FORECLOSURE FRAUD5 Comments

Obama Clarifies Pocket Veto Of Controversial Bill Related To Foreclosures

Obama Clarifies Pocket Veto Of Controversial Bill Related To Foreclosures

Arthur Delaney
arthur@huffingtonpost.com | HuffPost Reporting
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The White House issued a statement Friday clarifying President Obama’s “pocket veto” of legislation that consumer advocates worried would have made it more difficult for homeowners to fight fraudulent foreclosures.

Some have been skeptical that a pocket veto, which allows the president to kill legislation simply by not signing it when Congress is not in session, was available because the Senate has, in fact, been holding pro-forma sessions.

So instead of just not signing the bill, Obama is also sending it back to the House, making it a “protective return” veto.

“To leave no doubt that the bill is being vetoed,” said Obama in a statement, “in addition to withholding my signature, I am returning H.R. 3808 to the Clerk of the House of Representatives, along with this Memorandum of Disapproval.”

Continue reading…HUFFINGTON POST

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Notary, notary fraud, STOP FORECLOSURE FRAUD1 Comment

FORECLOSURE CRISIS by The Daily show with JON STEWART

FORECLOSURE CRISIS by The Daily show with JON STEWART

Foreclosure Crisis

The banks admit to not reading the fine print on the crappy mortgages the American taxpayers now own.

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
Foreclosure Crisis
www.thedailyshow.com

DinSFLA

Daily Show Full Episodes Political Humor Rally to Restore Sanity

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, foreclosure, foreclosure fraud, foreclosures, forgery, robo signers, STOP FORECLOSURE FRAUD0 Comments

BLOOMBERG: Attorneys General in 40 States Said to Join on Foreclosures

BLOOMBERG: Attorneys General in 40 States Said to Join on Foreclosures

By Dakin Campbell and Prashant Gopal – Oct 8, 2010 5:43 PM ET

Attorneys general in about 40 states may announce a joint investigation into foreclosures at the largest banks and mortgage firms, according to a person with direct knowledge of the matter.

State attorneys general led by Iowa’s Tom Miller are in talks that may lead to the announcement of a coordinated probe as soon as Oct. 12, said the person, who declined to be identified because a final agreement hasn’t been reached. The number of states may change because several are still deciding whether to join the investigation, the person said. New Mexico Attorney General Gary King said today in a statement that his state will join a multi-state effort.

Lawyers representing the banks are expecting a more widespread investigation, according to Patrick McManemin, a partner at Patton Boggs LLP, a Washington-based law firm that represents banks, loan servicers and financial institutions. Bank of America Corp., the biggest U.S. lender, today extended a freeze on foreclosures to all 50 states.

“We are aware of or involved in a large number of investigations that lead us to believe there are in the neighborhood of 40 state attorneys general who have initiated investigations or expressed an interest,” McManemin said in a telephone interview.

Continue reading …BLOOMBERG

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Moratorium1 Comment

FULL DEPOSITION OF WELLS FARGO HERMAN JOHN KENNERTY

FULL DEPOSITION OF WELLS FARGO HERMAN JOHN KENNERTY

Hat tip to Brian Davis for this deposition below.

JOHN KENNERTY a/k/a Herman John Kennerty has been employed for many years in the Ft. Mill, SC offices of America’s Servicing Company, a division of Wells Fargo Bank, N.A. He signed many different job titles on mortgage-related documents, often using different titles on the same day. He often signs as an officer of MERS (“Mortgage Electronic Registration Systems, Inc.”) On many Mortgage Assignments signed by Kennerty, Wells Fargo, or the trust serviced by ASC, is shown as acquiring the mortgage weeks or even months AFTER the foreclosure action is filed.

[ipaper docId=38977273 access_key=key-rgquasqbys0hxg420t8 height=600 width=600 /]

RELATED:

MAESTRO PLEASE…AND THE WINNER OF THE “MOST JOB TITLES” CONTEST IS…


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, foreclosure, foreclosure fraud, herman john kennerty, MERS, MERSCORP, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., wells fargo1 Comment

Reid calls on lenders to halt foreclosures in all states

Reid calls on lenders to halt foreclosures in all states

Washington Post Staff Writers
Friday, October 8, 2010; 2:16 PM

Senate Majority Leader Harry Reid (D-Nev.) called on major lenders to halt foreclosures across the country Friday following Bank of America‘s announcement that it will suspend all such proceedings until a review of possible paperwork problems is completed.

Reid, who had sent a letter to major banks asking them to suspend foreclosures in Nevada, extended his concern to include all 50 states.

“I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course,” he said. “I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well.”

Reid is the latest Democratic leader to join a growing chorus of lawmakers and state attorneys general who have called for greater scrutiny of the foreclosure process and a nationwide moratorium. Homeowner advocates say that lenders have used dubious paperwork to expedite the eviction of homeowners who are behind on their payments.

Pressure on the banks continues to grow on Capitol Hill, where Sen. Christopher J. Dodd (D-Conn.) said Friday that the banking committee he chairs will hold hearings Nov. 16 to investigate the foreclosure paperwork morass.

CONTINUE READING…WASHINGTON POST

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in CONTROL FRAUD, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Moratorium3 Comments

BofA halts foreclosure sales in 50 states

BofA halts foreclosure sales in 50 states

By ALAN ZIBEL, Associated Press

Bank of America Corp., the nation’s largest bank, said Friday it would stop sales of foreclosed homes in all 50 states as it reviews potential flaws in foreclosure documents.

A week earlier, the company had said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.

The move comes amid evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them.

“We will stop foreclosure sales until our assessment has been satisfactorily completed,” company spokesman Dan Frahm said in a statement. “Our ongoing assessment shows the basis for our past foreclosure decisions is accurate.”

Concern is growing that mortgage lenders have been evicting homeowners using flawed court papers. State and federal officials have been ramping up pressure on the mortgage industry over worries about potential legal violations.

On Thursday, Senate Majority Leader Harry Reid, D-Nev., urged five large mortgage lenders to suspend foreclosures in Nevada until they have set up systems to make sure homeowners aren’t “improperly directed into foreclosure proceedings.” Nevada is not among the states where banks had suspended foreclosures.

Also Friday, PNC Financial Services Group Inc. said it is halting most foreclosures and evictions in 23 states for a month so it can review whether documents it submitted to courts complied with state laws. An official at the Pittsburgh-based bank confirmed the decision on Friday, which was reported earlier by the New York Times. The official requested anonymity because the decision hasn’t been publicly announced.

Continue reading…ASSOCIATED PRESS

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, bank of america, CONTROL FRAUD, foreclosure, foreclosure fraud, foreclosure mills, foreclosures1 Comment

TAMPA TRIBUNE: TAMMIE LOU KAPUSTA DEPOSITION, AG CONFIRMS AUTHENTICITY

TAMPA TRIBUNE: TAMMIE LOU KAPUSTA DEPOSITION, AG CONFIRMS AUTHENTICITY

Fired worker says home foreclosure firm forged documents

By SHANNON BEHNKEN | The Tampa Tribune

Published: October 7, 2010

TAMPA – First, the Florida Attorney General’s Office launched an investigation into four of the state’s largest foreclosure firms, alleging made-up paperwork and forged signatures.

Then, some of the nation’s largest lenders halted home foreclosures after discovering employees had signed hundreds of thousands of documents without reading them.

Now, in a foreclosure industry bloated by the lingering effects of the housing crisis, a former employee in one of the firms under investigation describes in detail a secret system designed for speed at any cost.

Attorneys and staff members forged signatures and changed dates, casually passed around notary stamps, and notarized stacks of blank documents to be filled in later, said the employee, Tammie Lou Kapusta, in an interview with attorney general’s staff.

At the Law Offices of David J. Stern in Broward County, where Kapusta worked, long “signing tables” were set up across eight floors and employees would process 250 documents per floor each day, she said during the interview.

Continue reading…TAMPA TRIBUNE

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RELATED:

EXPLOSIVE DEPOSTION!!!! BUSTED!! DAVID J. STERN “MILL” KNEW THIS ALL ALONG…THIS FORECLOSURE FRAUD!!!

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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, Cheryl Samons, CONTROL FRAUD, foreclosure fraud, foreclosure mills, forgery, investigation, Law Offices Of David J. Stern P.A., robo signers1 Comment

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