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Tag Archive | "florida attorney general"

PB POST | Fla. investigating 3 law firms after consumer complaints about defaulted mortgages

PB POST | Fla. investigating 3 law firms after consumer complaints about defaulted mortgages

By Kimberly Miller Palm Beach Post Staff Writer

Updated: 7:11 a.m. Wednesday, Feb. 9, 2011
Posted: 7:09 a.m. Wednesday, Feb. 9, 2011

The Florida attorney general’s office has confirmed the names of three law firms added to its foreclosure investigation, including Kahane & Associates, which handles hundreds of home repossessions in Palm Beach County.

The Plantation-based company, as well as the Tampa firms of Daniel C. Consuegra, and Albertelli Legal received letters of inquiry in December from the Economic Crimes Division of the attorney general’s office.

All of the firms are part of mortgage giant Fannie Mae’s retained attorney network in Florida. Consuegra was just added to the list in November following Fannie Mae’s decision to stop using the Law Offices of David J. Stern, which is also under investigation.

The Dec. 2 letter to the three firms says the attorney general has opened a preliminary investigation regarding complaints the state has received of “unfair, deceptive and unconscionable practices” in how defaulted mortgages have been handled.

Investigators give the firms 45 days to hand over all consumer complaints received in a two-year period beginning in April 2008, employee directions as to the handling of foreclosures, and correspondence regarding remedies taken to assure proper methods are being followed in filing foreclosures.

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Economic Crimes Division


By: June M. Clarkson, Theresa B. Edwards
and Rene D. Harrod

Continue below to the excellent presentation…

46278738 Florida Attorney General Fraudclosure Report Unfair Deceptive and Unconscionable Acts in Foreclosu… by DinSFLA on Scribd

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Files Going, Going…

Files Going, Going…

So lets recap a few important events that happened in the past and just recently:

9/4 FL AG confident there is a great deal of fraud

Thousands of final judgments of foreclosure against Florida homeowners may have been the result of the allegedly improper actions of these law firms,” said Mr. McCollum in an interview. “We’ve had so many complaints that I am confident there is a great deal of fraud here.

10/18 Moving Files via 18 Wheeler (Deposition of Kelly Scott)

18 A. The only concern was that they were moving files out
19 of the office into a different office and that Eighteen Inch
20 Freight, I think, was picking them up. Something like that.
21 Trailer freight, something like that.

22 Q. Do you know where –
23 MS. CLARKSON: Eighteen wheeler?
24 THE WITNESS: Yeah, eighteen wheeler.

25 BY MS. EDWARDS: 1 Q. Do you know where they were moving them?
2 A. Supposedly they were being moved to Orlando’s office.
3 Q. And do you know why they would do that?
4 A. No.
5 Q. Do you know how long ago this was going on?
6 A. I think a month and a half ago.
7 Q. What kind of office is Orlando?
8 A. David Stern has another law office in Orlando,
9 Florida.

11/2 Fannie and Freddie “remove” files from a Foreclosure Firm

Fannie and Freddie said they will move those files to other law firms in the state but that they hadn’t yet identified where they would be redistributed. The firms said they had notified Florida’s attorney general about the decision to remove the files and that the Stern firm had cooperated with the action.

Freddie’s spokeswoman said an internal review raised “concerns about some of the practices at the Stern firm.”

11/4 Law Firm announces cut backs

The terminations come two days after mortgage giants Fannie Mae and Freddie Mac severed ties with the firm. “There’s been a substantial reduction in staff, it started happening over the past few weeks and many employees received notice today,” said Jeffrey Tew, a lawyer representing the Stern firm

11/4 Document and Shredding Service

Same day an employee for a document management and shredding company was unloading hundreds of empty boxes from a truck and carting them into the office complex where this Law Firm is located

So exactly who is keeping track of documents going, going and gone?

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

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Lynn E. Szymoniak, Esq., Editor, Fraud Digest, November 11, 2010

When men and women leave the military, the business community often does not reward them for their years of service with good-paying jobs. It is not surprising that veterans are among the Americans who are struggling to stave off foreclosure. Like many others, they are hoping that the bank will re-work the terms of their loans and help them through tough economic times – in the same way that the government helped the banks. They are hopeful that the banks will honor the mandate of Fannie and Freddie and offer meaningful re-working of the terms of their loans. Perhaps their 9% adjustable rates will be reduced to a 5% fixed rate. Perhaps the loan balance will be reduced to reflect the loss in value caused by the mortgage meltdown. Perhaps they can stay in their homes, because it would make economic sense for the bank to re-work their loans instead of forcing them out only to sell the house at less than 60% of the loan balance.

In this foreclosure struggle, these veterans are given no respect by the foreclosure mills. The Florida Attorney General has found that in thousands of cases involving members of the military, proof of service of process has been falsified. In thousands of other cases, former military families cannot get legal representation because they cannot afford to retain lawyers, but have just enough income to disqualify them for free representation through legal services programs. Without legal representation, they are left on their own to identify bank fraud. They must prove that the documents being presented by the mortgage-backed trusts are fraudulent and that the banks are fabricating evidence to force them out of their homes. Their years of military training and service did not prepare them for this particular battle.

Instead of a rocket-docket that forces military families out of their homes with no more than a 90-second hearing and a rubber stamp of the bank practices, there could be special measures taken in cases involving military families. The banks could be required to engage in mandated (but most often ignored) meaningful mediation. The banks could be required to present to the Courts a one-page straightforward “before and after” comparison that plainly shows the revised loan terms that were offered to these families.

Where no substantial effort was made by the banks, courts could appoint Special Masters to carefully examine the bank documents to make sure that banks were not relying on documents that had been fabricated just to speed the foreclosure. Where such documents were used to beat military families in foreclosure, courts could sanction the banks by requiring substantial concessions to meaningfully penalize the wrong-doing. Some restaurants and area businesses offer a free sandwich to veterans on Veterans Day.

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Letter from The Florida Bar President Downs to Chief Judge McGrady

Letter from The Florida Bar President Downs to Chief Judge McGrady

Perhaps if the Florida Bar followed each complaint homeowners filed, this would’ve never been been so “intense”.

Fast forward a few months and here we are:

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Beware of Attorneys General Bearing Gifts, Foreclosure Crisis Edition I (Florida)

Beware of Attorneys General Bearing Gifts, Foreclosure Crisis Edition I (Florida)


As much as state attorneys general could be an effective force in acting for consumers and investors against banks, the fact that an attorney general has saddled up does not necessarily mean the effort is serious. At a minimum, it might just be a gambit to garner some good PR without seriously inconveniencing the perps; at worse, the action might be a pure Trojan horse.

Consider the curious conduct of one Bill McCollum, the lame duck attorney general of Florida. It appears that McCollum has been going after the foot soldiers in the foreclosure chicanery business (although some of them, like David Stern, head of the biggest foreclosure mill in the state, have earned a tidy fortune). His recent actions have targeted firms offering dubious foreclosure advice, and more recently, the foreclosure mills as well as a firm that may be best known for its real estate related document fabrication activities, Lender Processing Services, through its DocX subsidiary.

Now starting with these actors isn’t a bad thing at all; in fact, prosecutors often target low level criminals with the hope of getting them to turn evidence on the kingpins. And there is good reason to think McCollum has no interest in asking tough questions that will inconvenience bigger fry.

McCollum Is falling in with the banking industry party line. He appears to regard not disrupting the foreclosure process, a top priority of the financiers, as a worthy goal. Gee, isn’t preserving the rule of law and making sure no one is abused or defrauded the sort of thing his office is tasked to defend, not the functioning of markets or the bottom lines of banks? From the Wall Street Journal (hat tip reader f247):

“They’re training a lot of new people, and apparently now they are comfortable with the legality of their foreclosure process,” Mr. McCollum said in an interview. “The primary purpose of these meetings is talking about not having this stuff held back. It’s very important for us to not have a backlog of foreclosures. We already have a backlog. We don’t want it to get worse.”…

Mr. McCollum, Florida’s attorney general, said most errors in the foreclosure process have been “procedural,” adding that his top priority is to resolve the mess in a way that allows foreclosures to resume quickly….

The talks also centered on how to quickly get the foreclosure process moving again, according to the Florida attorney general’s office. Mr. McCollum described the meeting as more cooperative than combative.

Let’s look at the timeline:

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MUST WATCH | Foreclosure Mess: More Shoes to Drop? MONEY TALKS NEWS

MUST WATCH | Foreclosure Mess: More Shoes to Drop? MONEY TALKS NEWS

Posted by permission: This article comes from consumer/personal finance site moneytalksnews.com

By Stacy Johnson |

Foreclosure Mess: More Shoes to Drop?

This article comes from consumer/personal finance site moneytalksnews.com

You might also be interested in the following:

Tired Robo-Signers Let Other People Sign Their Names

Feel sorry for the poor robo-signer who had to sign 1,000 foreclosure files a day? Then here’s some good news: allegations are now surfacing that at least one robo-signer got help from co-workers.

The Mother of All Foreclosure Mistakes

Imagine standing in your front yard and watching as a car pulls up. A stranger gets out, walks up to you, verifies your identity, then serves you with foreclosure papers. Now imagine that you’ve never missed a mortgage payment in your life.

The Foreclosure Freeze – What It Means and Why It Matters

You’ve seen the headlines about banks stopping foreclosures – but if you haven’t yet realized the implications for every American, this is a story you don’t want to miss.

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Full Deposition Transcript of Mary Cordova: Law Offices of David J. Stern/ GZ Gissen & Zawyer Process Service Inc.

Full Deposition Transcript of Mary Cordova: Law Offices of David J. Stern/ GZ Gissen & Zawyer Process Service Inc.

5 I do know we have to bill the clients in advance. It
6 wouldn’t be after the fact. From what I recall it would
7 be at least four people that were being served. That’s
8 the person being served, their unknown spouse, Mary Jane
9 and John Doe. So it’s forty-five dollars times four.
10 That’s the amount that we would do before they got
11 served or not, regardless if John Doe was served or the
12 unknown spouse was served.
13 Q It would still be a hundred and eighty
14 dollars?
15 A Right. That’s what I remember.
16 Q What did you think about that?
17 A I thought that was a little unfair. I felt
18 like I wanted to question why. I kind of got the
19 impression from my trainers that we don’t ask questions,
20 we just do what we are told. There was really no
21 handbook during my training as to which clients are
22 billed. I would sit with each training and — I’m
23 trying to remember. It’s been a year.
24 Q That’s okay.
25 A We didn’t have a manual so I was trying to

1 understand why they bill clients differently. I never
2 really got an explanation. I just typed really fast and
3 that’s why I was hired.
4 Q Were you ever aware that Stern had an
5 ownership interest in G&Z?

6 A No.
7 Q Besides process serving did G&Z offer any
8 other services? Were there skip tracers in there?
9 A There were skip tracers, yes.
10 Q Were there investigators?
11 A Private investigators.
12 Q Did David Stern utilize them as well to the
13 best of your knowledge?
14 A Yes. They had an office right next to the
15 input department of about three or four individuals that
16 were skip tracers. I think they had one private
17 investigator. He was an older man. I don’t recall his
18 name.

19 Q How did you become aware that Stern was using
20 them as well?
21 A Because when I was introduced during my
22 interview and after I got hired they said this is our
23 skip trace department and these are private
24 investigator/skip tracers. That’s how I was introduced,
25 by title.


9 Q So how come you were there only for two
10 months?
11 A I was there only two months because I had to
12 sign a paper that said — I wish I had that paper. They
13 gave out a paper to all employees saying if you don’t
14 sign this paper you’re pretty much considered fired.
15 Don’t even bother coming back to work if you don’t sign
16 it.
17 Q Was it a confidentiality agreement?
18 A Something like that, yeah.
19 Q What was in it that made you not want to sign
20 it?
21 A I wish I had a copy of it.
22 Q I wish you did too.
23 A It’s in my email somewhere. I didn’t have
24 internet at work the past couple of days.
25 Q You have a copy of it?

1 A I have a copy somewhere in my email, yeah.
2 Q Would you send it to me?
3 A Yes, I can send it.

13 Q Okay. That makes sense. So you basically
14 only worked with the night people and didn’t have that
15 much contact with the day people?
16 A I didn’t have that much contact other than
17 when I was training and in that thirty minute gap when
18 everyone is pretty much wrapping it up.
19 Q Did you ever hear anything or did you ever
20 notice anything that was to you made you feel
21 uncomfortable about doing work over there, specifically
22 with Stern’s office besides the four names on every
23 complaint?
24 A Well, not with Stern but the way G&Z was
25 handling. For instance, before I got hired I looked at

1 G&Z’s website and the part where they said they use
2 private investigators and skip tracers, it said that we
3 have fully licensed private investigators. There was
4 one guy Michael Gold and I mentioned him in that letter,
5 that was a skip tracer but he wasn’t licensed. He was
6 still going to school. The only licensed private
7 investigator that I recall was Ira and Michelle.
8 He was talking to a lady that I think only
9 spoke Spanish. There was a language barrier. He was
10 kind of bullying her. His tone of voice was well we
11 need to serve these papers. He was acting as if he was
12 a private investigator. He’s even announced himself as
13 a private investigator. He’s right next to me in the
14 other office and I just felt a little uncomfortable that
15 he’s claiming to be that and he’s not. He was asking
16 for her address and saying we have to do this and saying
17 we’ll serve it at your place of work if we need to. He
18 was really —
19 Q Bullying her?
20 A Bullying her into getting information. I just
21 kind of felt bad for the lady that he was talking to.
22 Q Nothing else about Stern?
23 A No. It was more about G&Z.
24 MS. CLARKSON: This is a two-page memo. It
25 looks like it was sent to Duane. Enter that as

1 Exhibit B. There was a letter dated September 9,
2 2009 that we’ll enter as exhibit C.
4 Q Mary, are those copies that we can keep?
5 A You can keep those. Actually, I have copies
6 on my little hard drive.
7 Q Mary, you indicated you were there
8 approximately two months at G&Z. Can you tell us why
9 you left, under what circumstances did you leave?
10 A Because I did not agree to sign that paper
11 that everyone had to sign.
12 Q That’s the only reason?
13 A That was it.
14 Q Did somebody come to you and say you must sign
15 it or else you have to leave?
16 A It was a group meeting. It was said that
17 everyone has to sign it. Don’t even bother working here
18 if you don’t. They told everyone that they had to sign.
19 Q Did others leave?
20 A No.
21 Q At that point in time?
22 A No.
23 Q You were the only one?
24 A I was the only one to my knowledge. I think
25 the environment from the impression I got at G&Z was

[ipaper docId=39605403 access_key=key-28tnns3a1fjg1hyp76jg height=600 width=600 /]


Lender Processing Services LPS and ProVest: Resemblance is uncanny

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Today the Florida Attorney General issued Subpoenas Duces Tecum’s to both Lender Processing Services Inc. and to a subsidiary DOCX. This involves employees past or present, the four foreclosure firms currently being investigated.

Both Assistant AG’s “McCollum’s Angels” June Clarkson and Theresa Edwards are doing an outstanding job!



[click image for ]





“You,” “Your” or “DOC X” as used herein means DOCX, L.L.c. and any ofthe respondents, their agents and employees or any “affiliate” of the aforementioned entities, as that term is herein defined. Your agents include but are not limited to your officers, directors, attorneys, accountants, CPA’s, advertising consultants, or advertising account representatives. Any document in the possession ofyou, your affiliates, your agents or your employees is deemed to be within your possession or control. You have the affirmative duty to contact your agents, affiliates and employees and to obtain documentation from them, if such documentation is responsive to this subpoena.

B. Unless otherwise indicated, documents to be produced pursuant to this subpoena should include all original documents prepared, sent, dated, received, in effect, or which otherwise came into existence at any time. If your “original” is a photocopy, then the photocopy would be and should be produced as the original.

C. This subpoena duces tecum calls for the production of all responsive documents in your possession, custody or control without regard to the physical location ofsaid documents.

D. “And” and “or” are used as terms of inclusion, not exclusion.

E. The documents to be produced pursuant to each request should be segregated and specifically identified to indicate clearly the particular numbered request to which they are responsIve.

F. In the event that you seek to withhold any document on the basis that is properly entitled to some privilege or limitation, please provide the following information:

1. A list identifying each document for which you believe a limitation exists;

2. The name of each author, writer, sender or initiator of such document or thing, if any;

3. The name of each recipient, addressee or party for whom such document or thing was intended, ifany;

4. The date of such document, if any, or an estimate thereof so indicated if no date appears on the document;

5. The general subject matter as described in such document, or, if no such description appears, then such other description sufficient to identify said document; and

6. The claimed grounds for withholding the document, including, but not limited to, the nature of any claimed privilege and grounds in support thereof.

G. For each request, or part thereof, which is not fully responded to pursuant to a privilege, the nature of the privilege and grounds in support thereof should be fully stated.

H. If you possess, control or have custody of no documents responsive to any of the numbered requests set forth below, state this fact in your response to said request.

1. For purposes of responding to this subpoena, the term “document” shall mean all writings or stored data or information ofany kind, in any form, including the originals and all nonidentical copies, whether different from the originals by reason of any notation(s) made on such copies or otherwise, including, without limitation: correspondence, notes, letters, telegrams, minutes, certificates, diplomas, contracts, franchise agreements and other agreements, brochures, pamphlets, forms, scripts, reports, studies, statistics, inter-office and intra-office communications, training materials, analyses, memoranda, statements, summaries, graphs, charts, tests, plans, arrangements, tabulations, bulletins, newsletters, advertisements, computer printouts, teletype, telefax, microfilm, e-mail, electronically stored data, price books and lists, invoices, receipts, inventories, regularly kept summaries or compilations of business records, notations of any type of conversations, meetings, telephone or other communications, audio and videotapes; electronic, mechanical or electrical records or representations of any kind (including without limitation tapes, cassettes, discs, magnetic tapes, hard drives and recordings to include each document translated, if necessary, through detection devices into reasonably usable form).

1. For purposes of responding to this subpoena, the term “affiliate” shall mean: a corporation, partnership, business trust, joint venture or other artificial entity which effectively controls, or is effectively controlled by you, or which is related to you as a parent or subsidiary or sibling entity. “Affiliate” shall also mean any entity in which there is a mutual identity of any officer or director. “Effectively controls” shall mean having the status of owner, investor (if 5% or more of voting stock), partner, member, officer, director, shareholder, manager, settlor, trustee, beneficiary or ultimate equitable owner as defined in Section 607.0505(11)(e), Florida Statutes.

K. The term “Florida affiliates” shall mean those of your affiliates which do business in Florida or which are licensed to do business in Florida.

L. If production of documents or other items required by this subpoena would be, in whole or in part, unduly burdensome, or if the response to an individual request for production may be aided by clarification of the request, contact the Assistant Attorney General who issued this subpoena to discuss possible amendments or modifications of the subpoena, within five (5) days of receipt ofsame.

M. Documents maintained in electronic form must be produced in their native electronic form with all metadata intact. Data must be produced in the data format in which it is typically used and maintained. Moreover, to the extent that a responsive Document has been electronically scanned (for any purpose), that Document must be produced in an Optical Character Recognition (OCR) format and an opportunity provided to review the original Document. In addition, documents that have been electronically scanned must be in black and white and should be produced in a Group IV TIFF Format (TIF image format), with a Summation format load file (dii extension). DII Coded data should be received in a (Comma-Separated Values) CSV format with a pipe (I) used for multivalue fields. Images should be single page TIFFs, meaning one TIFF file for each page of the Document, not one .tifffor each Document. Ifthere is no text for a text file, the following should be inserted in that text file: “Page Intentionally Left Blank.”

Moreover, this Subpoena requires all objective coding for the production, to the extent it exists. For electronic mail systems using Microsoft Outlook or LotusNotes, provide all responsive emails and, if applicable, email attachments and any related Documents, in their native file format (i.e., .pst for Outlook personal folder, .nsf for LotusNotes). For all other email systems, provide all responsive emails and, if applicable, email attachments and any related Documents in OCR and TIFF formats as described above.

P. The relevant time period for the present request shall be from January 1, 2006 to present unless otherwise specifically stated. YOU ARE HEREBY COMMANDED to produce at said time and place all documents, as defined above, relating to the following subjects:

1. Copies ofall “Network Agreements” between DOCX and any law firm with offices located in the State of Florida.

2. Copies of any and all underlying documentation that allows for your employee or ex-employee, Linda Green to sign documents in the following capacities:

a. Vice President of Loan Documentation, Wells Fargo Bank, N.A. successor by merger to Wells Fargo Home Mortgage, Inc.; ;

b. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for American Home Mortgage Acceptance, Inc.;

c. Vice President, American Home Mortgage Servicing as successor-in-interest to Option One Mortgage Corporation;

d. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for American Brokers Conduit;

e. Vice President & Asst. Secretary, American Home Mortgage Servicing, Inc., as servicer for Ameriquest Mortgage Corporation;

f. Vice President, Option One Mortgage Corporation;

g. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for HLB Mortgage;

h. Vice President, American Home Mortgage Servicing, Inc.;

1. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for Family Lending Services, Inc.;

J. Vice President, American Home Mortgage Servicing, Inc. as Successor -ininterest to Option One Mortgage Corporation;

k. Vice President, Argent Mortgage Company, LLC by Citi Residential Lending, Inc., attorney-in-fact;

1. . Vice President, Sand Canyon Corporation f/kJal Option One Mortgage Corporation;

m. Vice President, Amtrust Funsing (sic) Services, Inc., by American Home Mortgage Servicing, Inc., as Attorney-in -fact;

n. Vice President, Seattle Mortgage Company.

3. Copies of every document signed in any capacity by Linda Green.

4. Copies of any and all underlying documentation that allows for your employee or ex-employee, Korell Harp to sign documents in any capacity for any lender and/or servicing company.

5. Copies of any and all underlying documentation that allows for your employee or ex-employee, Jessica Ohde to sign documents in any capacity for any lender and/or servicing company.

6. Copies of any and all underlying documentation that allows for your employee or ex-employee, Pat Kingston to sign documents in any capacity for any lender and/or servicing company.

7. Copies of any and all underlying documentation that allows for your employee or ex-employee, Christina Huang to sign documents in any capacity for any lender and/or servicing company.

8. Copies of any and all underlying documentation that allows for your employee or ex-employee, Tywanna Thomas to sign documents in any capacity for any lender and/or servicing company.

9. All policy and procedure manuals and/or training materials regarding the methods and timing that DOCX uses, including without limitation relating to the drafting and/or execution of foreclosure and mortgage related documents, including but not limited to Assignments of Mortgage, Satisfactions ofMortgage and Affidavits ofany and all kind.

10. A list ofall employees, dates ofhire and termination, and their duties, including whether or not they provide any notary services for DOCX.

11. All documents in your possession regarding any contracts with Florida Default Law Group, P.L., The Law Offices of David J. Stem, P.A., Shapiro & Fishman, L.L.P. and The Law Offices of Marshall C. Watson, P.A., including contracts regarding payments to or from any of those entities.

12. Documents relating to the relationship between DOCX and NewTrac and/or NewInvoice, including but not limited to, documents relating to the types ofdocuments that are or can be generated or are requested to be generated.

13. Any price lists published in any manner to prospective customers, whether by printed or electronic means.

14. All communications between DOCX and Florida Default Law Group, P.L., The Law Offices of David J. Stem, P.A., Shapiro & Fishman, L.L.P. or The Law Offices ofMarshall C. Watson, P.A. relating to procedures, policies, instructions or performance ofthe creation, backdating, modification, amendment, or other alteration ofany real property-related transactional document or records, including assignments, satisfactions ofmortgage, affidavits, notes, allonges, or other documents filed in any court.

15. Ledgers ofall financial transactions between DOCX and Florida Default Law Group, P.L., The Law Offices of David J. Stem, P.A., Shapiro & Fishman, L.L.P. or The Law Offices of Marshall C. Watson, P .A.

16. Ledgers ofall financial transactions between DOCX and any title company, recording service, process server, or any other entity that provides payments to DOCX in connection with any services rendered in connection with any residential foreclosure.

17. Ledgers ofall financial transactions between DOCX and any title company, recording service, process server, or any other entity to whom DOCX provides payment(s) in connection with any services rendered in connection with any residential foreclosure.

WITNESS the FLORIDA OFFICE OF THE ATTORNEY GENERAL in Fort Lauderdale, Florida, this 13th day of October, 2010.

June M. Clarkson
Assistant Attorney General
Florida Bar Number: 785709
OFFICE OF THE ATTORNEY GENERAL 110 S.E. 6th Street, 10th Floor
Fort Lauderdale, Florida 33301
Telephone: 954-712-4600
Facsimile: 954-712-4658

Theresa B. Edwards
Assistant Attorney General
Florida Bar Number: 252794

NOTE: In accordance with the Americans with Disabilities Act of 1990, persons needing a special accommodation to participate in this proceeding should contact George Rudd, Assistant Attorney General at (954) 712-4600 no later than seven days prior to the proceedings. Ifhearing impaired, contact the Florida Relay Service 1-800-955-8771 (TDD); or 1-800-955-8770 (Voice), for assistance.


Florida Statute 501.206

501.206 Investigative powers of enforcing authority.(

1) If, by his own inquiry or as a result ofcomplaints, the enforcing authority has reason to believe that a person has engaged in, or is engaging in, an act or practice that violates this part, he may administer oaths and affinnations, subpoena witnesses or matter, and collect evidence. Within 5 days excluding weekends and legal holidays, after the service ofa subpoena or at any time before the return date specified therein, whichever is longer, the party served may file in the circuit court in the county in which he resides or in which he transacts business and serve upon the enforcing authority a petition for an order modifying or setting aside the subpoena. The petitioner may raise any objection or privilege which would be available under this chapter or upon service of such subpoena in a civil action. The subpoena shall infonn the party served of his rights under this subsection.

(2) If matter that the enforcing authority seeks to obtain by subpoena is located outside the state, the person subpoenaed may make it available to the enforcing authority or his representative to examine the matter at the place where it is located. The enforcing authority may designate representatives, including officials ofthe state in which the matter is located, to inspect the matter on his behalf, and he may respond to similar requests from officials ofother states.

(3) Upon failure ofa person without lawful excuse to obey a subpoena and upon reasonable notice to all persons affected, the enforcing authority may apply to the circuit court for an order compelling compliance.

(4) The enforcing authority may request that the individual who refuses to comply with a subpoena on the ground that testimony or matter may incriminate him be ordered by the court to provide the testimony or matter. Except in a prosecution for perjury, an individual who complies with a court order to provide testimony or matter after asserting a privilege against selfincrimination to which he is entitled by law shall not have the testimony or matter so provided, or evidence derived there from, received against him in any criminal investigation proceeding.

(5) Any person upon whom a subpoena is served pursuant to this section shall comply with the tenns thereof unless otherwise provided by order of the court. Any person who fails to appear with the intent to avoid, evade, or prevent compliance in whole or in part with any investigation under this part or who removes, destroys, or by any other means falsifies any documentary material in the possession, custody, or control of any person subject to any such subpoena, or knowingly conceals any relevant infonnation with the intent to avoid, evade, or prevent compliance shall be liable for a civil penalty of not more than $5,000, reasonable attorney’s fees, and costs.

Affidavit of Service Attached


LPS 101

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Posted in assignment of mortgage, concealment, conspiracy, CONTROL FRAUD, deed of trust, DOCX, FDLG, florida default law group, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, investigation, jeff carbiener, Lender Processing Services Inc., LPS, MERS, MERSCORP, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., Notary, notary fraud, STOP FORECLOSURE FRAUD, stopforeclosurefraud.comComments (1)

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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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 fraudComments (0)

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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Posted in assignment of mortgage, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Law Offices Of David J. Stern P.A., ProVest, robo signers, sewer serviceComments (1)





Via: 4ClosureFraud








“I personally did not do it because I refused to do it.”

“I wasn’t going to falsify a military document.”

“I was told that that’s fine, somebody else on your team will do it.”


This just in and it is unbelievable!

We are neck deep in issues today so I do not have time to go through and highlight everything, and there is a lot, but here are some snips…




1                             STATE OF FLORIDA
2                             DEPARTMENT OF LEGAL AFFAIRS

3                             AG # L10-3-1145


5   IN RE:


8   ____________________________/








16                    12:11 p.m. – 1:58 p.m.
September 22, 2010
17                Office of the Attorney General
110 Southeast 6th Street, 10th Floor
18                Fort Lauderdale, Florida 33301

1 P R O C E E D I N G S
2 – – –
3 Deposition taken before Kalandra Smith, Court
4 Reporter and Notary Public in and for the State of
5 Florida at Large, in the above cause.
6 – – –
9 having been first duly sworn or affirmed, was examined
10 and testified as follows:

1 Q Let’s go to the assignments of mortgage. They
2 were prepared in-house?
3 A Yeah.
4 Q You’re smiling. You want to tell me about
5 them?
6 A Assignments were done sometimes after the
7 final judgement was entered.
8 Q Do you know why that is?
9 A Because that’s what we were directed to do

19 Q Can you tell me the execution of the
20 assignments, how it worked?
21 A Assignments were prepared again from the
22 casesum. All of our stuff comes from the casesum. They
23 would be stamped and signed by a notary or not. Per
24 floor we had a designated spot to place them and Cheryl
25 would come once a day and sign them.
1 Q Sign them as what?
2 A As –
3 Q For the bank?
4 A Correct.
5 Q Or for MERS or whoever it was for?
6 A Correct.
7 Q Would these notaries be there watching her as
8 she signed?
9 A No.
10 Q She would just sit there and sign stacks of
11 them?
12 A Correct. As far as notaries go in the firm I
13 don’t think any notary actually used their own notary
14 stamp. The team used them.
15 Q There were just stamps around?
16 A Yes.
17 Q And you actually saw that?
18 A I was part of that.
19 Q You did it? Are you a notary?
20 A No, I’m not.
21 Q Did you sign as a witness?
22 A I did not. I signed as a witness on one
23 document and after that I decided that I didn’t want to
24 put my name as a witness anymore.
25 Q Tell me about the stamps. You stamped them?
1 A Yeah, I had stamps. Each team had a notary on
2 them or notaries that I was aware of. Whether they were
3 or weren’t wasn’t –
4 Q You had stamps?
5 A Correct. We would stamp them and they would
6 get signed.
7 Q Stamp them in blanks?
8 A Yes.
9 Q Who would sign them?
10 A Other people on the team that could sign the
11 signature of the person or just a check on there or
12 whatever.
13 Q Was that common practice?
14 A Yes.
15 Q Was that standard practice?
16 A Pretty much.
17 Q What about the witnesses?
18 A Those would be signed by juniors who were –
19 Q Standing there?
20 A Here, sign this. It has to go to Cheryl, sign
21 it. Then it would go and sit at the desk where Cheryl
22 would sign everything.
23 Q Out of view of the notary and out of view of
24 the witnesses?
25 A Correct.
1 Q Do you know who implemented this procedure?
2 A Cheryl.
3 Q Cheryl did?
4 A Um-hum.
5 Q Did anybody else sign with the firm for the
6 banks?
7 A Yes.
8 Q Who was that?
9 A There were people that were responsible for
10 signing Cheryl’s name. Cheryl, Tammie Sweat, and Beth
11 Cerni. Those were the only three people that could sign
12 Cheryl’s name. If you ever look at assignments you’ll
13 see that they are not all the same.
14 MS. EDWARDS: What are the names again?
15 Cheryl, Tammie?
16 THE WITNESS: Tammie Sweat and Beth Cerni.
17 MS. EDWARDS: Could you spell that.
20 Q Did they practice Cheryl’s signature?
21 A I would assume so.
22 Q Did you ever see them?
23 A Not practicing but I’ve seen them sign it.
24 Q Did you see somebody sign Cheryl’s name?
25 A Yes.
1 Q That wasn’t Cheryl?
2 A Yes. All the time.
3 Q Did Cheryl know about this?
4 A Yes.
5 Q Was it at her direction?
6 A Yes.

16 Q Did anyone quit as far as you know due to the
17 practices?
18 A I’m sure but they wouldn’t come right out and
19 say I quit because of the practices. I know that people
20 had left because they were uncomfortable with the things
21 that they were being asked to do, as most of us were.
22 When it got really sticky there were a lot of us that
23 weren’t here.
24 Q What does really sticky mean?
25 A They wanted us to start changing the documents
1 and stuff and doing stuff that we weren’t supposed to be
2 doing as far as service.
3 Q What documents did they want you to change?
4 A Manpower documents. A lot of judges started
5 requiring, because of the Jane and John Doe issues,
6 required that you have a military search for all the
7 defendants. If you named a Jane and John Doe as an NKA
8 you had to pull a military search on them. Unless you
9 have somebody’s social security number technically you
10 can’t pull a military search supposedly.
11 The program that we used for the program that
12 we used, you could put in the main defendant’s social
13 security and John or Jane Doe’s name and it would give
14 us a military search saying that they were in the
15 military.
16 Q You would get their social security number
17 because the bank documents contained it?
18 A Correct. The lenders, the referrals had the
19 socials.
20 Q Did you put the social in on everybody to find
21 out their address for service?
22 A Not everybody. I personally did not do it
23 because I refused to do it. I wasn’t going to falsify a
24 military document. I was told that that’s fine,
25 somebody else on your team will do it.
1 Q What do you mean falsify a military document?
2 A Well, I’m using the main defendant’s social
3 security number on somebody else’s name, not his name.
4 John Doe and the main defendant was James, I was taking
5 James’ social security number and putting John Doe’s
6 name in there. I wasn’t but that’s what the practice
7 was. The judges started saying we’re not going to
8 consider service completed until –
9 Q There’s a miliary search?
10 A Correct.
11 Q So why wouldn’t they use the right social
12 security number for the right person?
13 A Because you don’t have a social for an NKA or
14 unknown tenant. They wouldn’t enter a final judgement
15 unless the military doc was there.
16 Q So you just used anybody’s?
17 A Correct.

9 A So what we had to do from that point, again
10 the affidavits were still split in two pages, at that
11 point we were supposed to be sending them back to the
12 banks to be signed now. The problem being that a lot of
13 times we wouldn’t get them back or executed in time for
14 the hearings. So we had what they called signature
15 pages that Tammie Sweat or someone else would have in
16 their possession. If we couldn’t get it back from the
17 bank executed in time we would just take a signature
18 page and put it on the affidavit.
19 Q What was on the signature page?
20 A The signature and notary from the bank.
21 Q Were these documents photocopied or were they
22 original documents?
23 A Some were photocopied.
24 Q How would you get that many from a bank
25 original? The bank supplied them to you.
1 A Well, what would happen would be like if I had
2 file A and that one didn’t go to hearing because there
3 was something wrong with it and file B was going to
4 hearing but it was the same bank, I would take the
5 signature page from A and give it to B.
6 Q Oh give it to another file?
7 A And just re-execute this file.
8 Q Okay. That was common practice?
9 A Yes, after Cheryl couldn’t sign.
10 Q Did Cheryl know?
11 A Yes.
12 Q Cheryl knew about all the practices because
13 she is the one who ran the office?
14 A She was the one who implemented them.
15 Q Were there any other activities or practices
16 over at David Stern’s firm that made you feel
17 uncomfortable or that you were unwilling to do?
18 A I don’t know how to answer that question.
19 It’s a loaded one.
20 Q Take your time.
21 A Yeah. Some of the things that were done there
22 just were not on the up and up.
23 Q Explain to me in as much detail as you can
24 what those things were.
25 A I don’t even know where to start with it.

Now that’s some BULLSHIT!





[ipaper docId=38901226 access_key=key-1qyc5k5u2jgdkg86i66p height=600 width=600 /]

Image credit: PI Bill Warner

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

Posted in assignment of mortgage, aurora loan servicing, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, Law Offices Of David J. Stern P.A., MERS, MERSCORP, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., STOP FORECLOSURE FRAUD, Tammie Lou KapustaComments (6)

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

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

Thank you to our friends at American United For Justice for providing this mind blowing audio on a conference Mr. Stern held for DJSP investors. These are some of the highlights of this conference in no particular order. Read it carefully and don’t miss the audio below.

“We take em’ from cradle to grave.”

David Stern, President and CEO of DJSP Enterprises, Inc.

His baseball pitch-

One of my favorite questions from one of my believers, one of my investors on the first call-in, “What inning are we in? If this was a baseball game, what inning are we in?” And my response is, we’re only in the 2nd inning. We still have 3 innings of foreclosures left, and after the foreclosures, we have 3 innings of REO liquidation and as the REO liquidations pan out, we get into the re-fi and we get into the origination.
[ . . . ]
So yeah, we’re in the 2nd inning, but guess what – when we get to the 9th inning, it’s going to be a doubleheader and we got a second game coming. So when people say, “Oh my God, the economy is bad!” I’m like, “Oh my God, it’s great.” I mean, I hate to hear people are losing their homes and credit isn’t available and credit is such that they can’t re-fi, but if you are in our niche, it’s what we do and it’s what we want to see.

Crystal ball admission here-

No matter what Obama rolls out, there is no stopping this inflow of continued defaults that we anticipate to go for another two or three years late behind that is the math of REO’s that need to be liquidated and at the end of the day, the cycle will start again. Well, foreclosure volumes through 2012 are expected to increase dramatically and remain at high levels going on till 2017?

“Increase in Modification Services… This is what Obama rolled out. . Home Affordable Modification Program. Unfortunately, it’s what…folks if you do what I do…unfortunately it is failing. We have the opportunity to handle the modification or where we do have a modification, we get to charge for title search, we get to charge for title exam, we get to charge for doc prep we get a 600.00 dollar incentive fee?

And at the end of the day when it’s all said, 66,000 have been done to date… of the 66,000 more than 20% have failed. So we can get the file in, we start with the foreclosure, we bill for the foreclosure, we get the mod in, we make the incentive, we doc prep, we get the title, the mod is done and guess what? It falls out. It all comes back to foreclosure land and we get to start the foreclosure all over again! So no matter what the Obama Administration brings our way. We have found a way to create a profit center on it and that I think is part of that success!”




Related Link:

DJSP, Enterprises

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Posted in assignment of mortgage, Cheryl Samons, conflict of interest, conspiracy, CONTROL FRAUD, djsp enterprises, fannie mae, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, investigation, Law Offices Of David J. Stern P.A., notary fraud, robo signers, shannon smith, STOP FORECLOSURE FRAUD, Supreme CourtComments (3)





Mortgage Electronic Registration Systems, Inc (MERS) has a very long history. The beginning stages have remained a mystery until now.

In 1989, Brian Hershkowitz developed the “Whole Loan Book Entry” concept while serving as a director for the Mortgage Bankers Association (MBA). In 1990, he first introduced this concept to seven different industry groups; Document Custodian, Originators, Servicers, Title Insurers, County Recorders, Government Sponsored Enterprises (GSE’s) and Warehouse/Interim Lenders. The reception was very positive and it was viewed as a very useful recording system to be used for how equity and debt securities could be identified and managed.

In 1991, Mr. Hershkowtiz published Farming It Out in Mortgage Banking Magazine. His main discussion in this article is primarily about getting the opinion of the experts in the technology outsourcing service industry. In 1992, Mr. Hershkowitz published another article called Cutting Edge Solutions in Mortgage Banking Magazine. In this particular article he mentions the actual meeting that took place at the Mortgage Bankers Association of America (MBA) headquarters with many key players that are known today as some of MERSCORP’s shareholders, such as, Fannie Mae and Freddie Mac. In this meeting they discussed a “System” that will bring changes in mortgage records.

Mr. Hershkowitz went on to become President and COO of LandSafe Credit, a leading settlement service provider that was a subsidiary of Countrywide. Mr. Hershkowitz also spent several years serving Countrywide in the areas of strategic planning and executive management.

In 2001, Mr. Hershkowitz became Executive Vice President at Fidelity National Information Services (FNIS) and President of its mortgage and information services division. His responsibilities included management of the Company’s data offerings, including public records information, credit reporting information, flood hazard compliance data, real estate tax information and collateral valuation services. He left FNIS in November of 2006 to become Chief Executive Officer of Maximum Value Group, a consulting firm focused on providing advice to private equity and other market participants in the area of banking and mortgages.


MERS has evolved into a totally different purpose today.

Mortgage Electronic Registration Systems, Inc. is a wholly owned subsidiary of MERSCORP Inc., located at 1595 Spring Hill Rd Ste 310 Vienna, VA 22182.

MERS was founded by the mortgage industry. MERS tracks “changes” in the ownership of the beneficial and servicing interests of mortgage loans as they are bought and sold among MERS members or others. Simultaneously, MERS acts as the “mortgagee” of record in a “nominee” capacity (a form of agency) for the beneficial owners of these loans.

To ensure widespread acceptance within the industry, MERS sought to have security instruments modified to contain MERS as the original mortgagee (MOM) language. MERS began to change decades of business practices after the two biggest mortgage funders in the U.S. the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Ferderal National Mortgage Association (Fannie Mae) modified their Uniform Security Instruments to include MOM language. Their approval opened the doors to incorporate MERS into loans at origination.

Soon after, U.S. government agencies like the Veterans Administration, Federal Housing administration and Government National Mortgage Association (Ginne Mae), and several state housing agencies followed both Fannie/Freddie to approve MERS.

More than 60 percent of all newly-originated mortgages are registered in MERS. Its mission is to register every mortgage loan in the United States on the MERS System. Since 1997, more than 65 million home mortgages have been assigned a Mortgage Identification Number (MIN) and have been registered on the MERS System.

The mortgage-backed security (MBS) sector tested the viability of MERS because a substantial number of mortgages are securitized in the secondary market. In February 1999, Lehman Brothers was the first company to include MERS registered loans in a MBS.

Moody’s Investor Service issued an independent Structured Finance special report  on MERS and it’s impact of MBS transactions and found that where the securitzer used MERS, new assignments of mortgages to the trustee of MBS transactions were not necessary.

Since MERS is a privately owned data system and not public, all mortgages and assignments must be recorded in order to perfect a lien. Since they failed to record assignments when these loans often traded ownership several times before any assignment was created, the legal issue is apparent. MERS may have destroyed the public land records by breaking the chain of title to millions of homes.


In or around the summer of 1997, MERSCORP President and CEO R.K. Arnold wrote, “Yes, There is life on MERS” Mr. Arnold stated, “Some county recorders have expressed concerns that MERS will eliminate their offices nationwide or destroy the public land records by breaking the chain of title. As implemented, MERS will not create a break in the chain of title, and, because MERS is premised on an assignment recorded in the public land records, MERS cannot work without county recorders.”

In this same article Mr. Arnold also states “The sheer volume of transfers between servicing companies and the resulting need to record assignments caused a heavy drag on the secondary market. Loan servicing can trade several times before even the first assignment in a chain is recorded, leaving the public land records clogged with unnecessary assignments. Sometimes these assignments are recorded in the wrong sequence, clouding title to the property”. Mr. Arnold never mentions the fact that the mortgage notes have been securitized, thereby becoming “negotiable securities” under the Uniform Commercial Code.

In an interview for The New York Times, Mr. Arnold said, “that his company had benefited not only banks, but also millions of borrowers who could not have obtained loans without the money-saving efficiencies MERS brought to the mortgage trade.”

Mr. Arnold went on to say that, ” far from posing a hurdle for homeowners, MERS had helped reduce mortgage fraud and imposed order on a sprawling industry where, in the past, lenders might have gone out of business and left no contact information for borrowers seeking assistance.”

“We’re not this big bad animal,” Mr. Arnold said. “This crisis that we’ve had in the mortgage business would have been a lot worse without MERS.”

Unfortunately, even a simple search in the Florida Land Records proves the opposite to be the case. Researchers have  easily found affidavits of lost assignments actually stating, “the said mortgage was assigned to Mortgage Electronic Registration Systems, Inc., from “XXXXXXX”, the original of the said assignment to Mortgage Electronic Registration Systems, Inc., was lost, misplaced or destroyed before same could be placed of record with the Florida Land Records County Clerk’s office; That, “XXXXXXX”, it’s successors and/or assignee is no longer in business/or do not respond to our request for a duplicate assignment, and therefore, a duplicate original of said assignment cannot be obtained.”

According to affidavits such as these, not only have the borrowers lost contact with the lenders, but the same is true that MERS did as well.

On September 25, 2009, Mr. R.K. Arnold was deposed in Alabama. Mr. Arnold admitted MERS does not have a beneficial interest in any loan, does not loan money and does not suffer a default if monies are not paid. On November 11, 2009, William C. Hultman was deposed in Alabama and made the same admissions.

Yet again, researchers have easily located affidavits recorded in the Florida Land Records stating “That said Deed of Trust has not been assigned to any other party and that MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, Inc. is the current holder and owner of the Note and Deed of Trust in question.”


Aside from not recording assignments, Mr. Arnold failed to mention that the certifying officers given authority to execute sensitive loan documents would not be paid employees of MERS. This raises the critical legal question as to how one can act as a certified officer and execute any equitable interest on behalf of any security instruments without being an employee of MERS.

On April 7, 2010, in the Superior Court of New Jersey, MERS Treasurer and Secretary William C. Hultman gave an oral sworn video/telephone deposition in the case of Bank Of New York v. Ukpe.:

Q Do the assistant secretaries — first off, are
you a salaried employee of MERS?
A No.

Q Are you a salaried employee of MERS Corp,
A Yes.

Q Are any of the employees of MERS, Inc.
salaried employees?
A I don’t understand your question.

Q Does anyone get a paycheck, if they are an
employee of MERS, Inc., do they get a paycheck from
Mercer, Inc.?
A There is no MERS, Inc.

Q I thought, sir, there’s a company that was
formed January 1, 1999, Mortgage Electronic Registration
Systems, Inc. Does it have paid employees?
A No, it does not.

Q Does it have employees?
A No.

Q Does MERS have any employees?
A Did they ever have any? I couldn’t hear you.

Q Does MERS have any employees currently?
A No.

Q In the last five years has MERS had any
A No.


Q How many assistant secretaries have you
appointed pursuant to the April 9, 1998 resolution; how
many assistant secretaries of MERS have you appointed?
A I don’t know that number.

Q Approximately?
A I wouldn’t even begin to be able to tell you
right now.

Q Is it in the thousands?
A Yes.

Q Have you been doing this all around the
country in every state in the country?
A Yes.

Q And all these officers I understand are unpaid
officers of MERS?
A Yes.

Q And there’s no live person who is an employee
of MERS that they report to, is that correct, who is an employee?
A There are no employees of MERS.

If so, how does anyone have any authority to sign security instruments encumbered by any loan documents, if these certifying officers are not paid employees and never attend corporate meetings in the capacity as Vice President, Assistant Secretary, etc. with Mortgage Electronic Registration System, Inc..


Federal and state judges across America are realizing that the mortgage industry’s nominee is backfiring.

In Mr. Arnold’s own words, “For these servicing companies to perform their duties satisfactorily, the note and mortgage were bifurcated. The investor or its designee held the note and named the servicing company as mortgagee, a structure that became standard.” What has become a satisfactory standard structure for the mortgage industry has not been found by many courts to be legally sufficient to foreclose upon the property.

Again, MERS only acts as nominee for the mortgagee of record for any mortgage loan registered on the computer system MERS maintains, called the MERS System. MERS cannot negotiate a security instrument. Therefore, MERS certifying officers cannot have legal standing to assign what MERS does not own or hold.

The Supreme Court of New York Nassau County:
Bank of New York Mellon V. Juan Mojica Index No: 26203/09

Justice Thomas A. Adams stated, “Not only has plaintiff failed to establish MERS’ right as a nominee for purposes of recording to assign the mortgage, more importantly, no effort has been made to establish the authority of MERS, a non-party to the note, to transfer its ownership.”

The Supreme Court of Maine:
Mortgage Electronic Registration Systems, Inc. v. Saunders, No. 09-640, 2010 WL 3168374,
(Me. August 12, 2010) The Court explains that the only rights conveyed to MERS in either the Saunders’ mortgage or the corresponding promissory note are bare legal title to the property for the sole purpose of recording the mortgage and the corresponding right to record the mortgage with the Registry of Deeds. This comports with the limited role of a nominee. A nominee is a “person designated to act in place of another, usu[ally] in a very limited way,” or a “party who holds bare legal title for the benefit of others or who receives and distributes funds for the benefit of others.” Black’s Law Dictionary 1149 (9th ed. 2009).

In Hawkins, No. BK-S-07-13593-LBR, 2009 WL 901766
The Court found that the deed of trust “attempts to name MERS as both beneficiary and a nominee” but held that MERS was not the beneficiary, as it had “no rights whatsoever to any payments, to any servicing rights, or to any of the properties secured by the loans.”

In Re: Walker, Case No. 10-21656-E-11 Eastern District of CA Bankruptcy court rules MERS has NO actionable interest in title. “Any attempt to transfer the beneficial interest of a trust deed without ownership of the underlying note is void under California law.” “MERS could not, as a matter of law, have transferred the note to Citibank from the original lender, Bayrock Mortgage Corp.” The Court’s ruled that MERS and Citibank are not the real parties in interest.

In re Vargas, 396 B.R. at 517-19. Judge Bufford found that the witness called to testify as to debt and default was incompetent. All the witness could testify was that he had looked at the MERS computerized records. The witness was unable to satisfy the requirements of the Federal Rules of Evidence, particularly Rule 803, as applied to computerized records in the Ninth Circuit. See id. at 517-20. “The low level employee could really only testify that the MERS screen shot he reviewed reflected a default. That really is not much in the way of evidence, and not nearly enough to get around the hearsay rule.”


In US Bank v. Harpster the Law Offices Of David J. Stern committed fraud on the court by the evidence based on the Assignment of Mortgage that was created and notarized on December 5, 2007. However, that purported creation/notarization date was facially impossible: the stamp on the notary was dated May 19, 2012. Since Notary commissions only last four years in Florida (see F .S. Section 117.01 (l)), the notary stamp used on this instrument did not even exist until approximately five months after the purported date on the Assignment.

The Court specifically finds that the purported Assignment did not exist at the time of filing of this action; that the purported Assignment was subsequently created and the execution date and notarial date were fraudulently backdated, in a purposeful, intentional effort to mislead the Defendant and this Court. The Court rejects the Assignment and finds that is not entitled to introduction in evidence for any purpose. The Court finds that the Plaintiff does not have standing to bring its action.

The Court dismissed this case with prejudice.

In Duval County, Florida another foreclosure case was dismissed with prejudice for fraud on the court. In JPMorgan V. Pocopanni, the Court found that Fishman & Shapiro representing JPMorgan had actual knowledge at all times that the Complaint, the Assignment, and the Motion for Substitution were all false. The Court found that by clear and convincing evidence WAMU, Chase and Shapiro & Fishman committed fraud on this court.

Both these cases involved Mortgage Electronic Registration Systems Inc. assignments.


Two RICO Class Action lawsuits have commenced against Foreclosure Law Firms and MERSCORP for fabricating and forging documents that are entered into courts as evidence in order to have standing to foreclose. Unknown to judges and the borrowers, they accept these documents because they are executed under perjury of the law. These “tromp l’oeil” actions have finally surfaced and the courts has taking notice.

The lack of supervision and managing of MERS “Robo-Signers” has led to a national frenzy of fabrication, forgery and certifying officers wearing multiple corporate hats. Anyone who compares signatures of these certifying officers will see a major problem with forgery in hundreds of thousands affidavits and assignments which creates an enormous dark cloud of title defects to millions of homes across the US.

On August 10, 2010 Florida attorney general Bill McCollum announced that he is investigating three foreclosure law firms for allegedly providing fraudulent assignments and affidavits relating in foreclosure cases.

In a deposition taken in December 2009, GMAC employee Jeffrey Stephan said he signed 10,000 affidavits or similar documents a month without personally verifying who the mortgage holder was. That means many foreclosures could have taken place based on false documentation and many homes may have been unlawfully foreclosed on.

On September 20, 2010, GMAC halted foreclosures in 23 different states. Two of the three firms being investigated by the Florida attorney general, the Law Office of Marshall C. Watson and the Law Offices of David J. Stern PA, have represented GMAC in foreclosure proceedings.

This is not limited to only GMAC Mortgage. There are many hundreds of thousands of these same documents that are being created by many foreclosure law firms across the nation.

University of Utah law professor Christopher L. Peterson has raised the issue that MERS should be regarded as a debt collector. He argues that some of MERS’ methods are just the sort of deceptive practices that ought to be regulated under The Fair Debt Collection Practices Act (FDCPA), 15 U. S. C. §1692(a),(j).


Finally in May, 2009, Mr. Arnold said in Mortgage Technology Magazine, “Every system in the mortgage industry can switch MERS registry on or off at will,” referencing that both the Obama administration and Congressional leaders are aware of this.

President Obama and Congressional leaders it is time to permanently switch MERS lifeless device off!

Not until MERS became the primary focus for challenges to legal standing in foreclosure courts as reported by the alternative media, have the main stream media and the mortgage industry have begun to realize that property records cross the United States have become totally unreliable.

It has taken more than a decade for the courts to recognize that MERS has become a mortgage backfire system leaving clouded titles in over 65 million loans since 1997.

Courts across the nation must comply with the law.  Any documents submitted to the courts regarding property ownership should be assumed to be nothing but smoke in a mirror.

No, Mr. Arnold, there’s no life at MERS.

DinSFLA, “nominee” of stopforeclosurefraud.com, a blog on Foreclosure Fraud.

© 2010 FORECLOSURE FRAUD | by DinSFLA. All rights reserved. www.StopForeclosureFraud.com

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

Posted in featured, STOP FORECLOSURE FRAUDComments (33)



Lynn E. Szymoniak, Esq.
The Metropolitan, PH 2-5
403 S. Sapodilla Avenue
West Palm Beach, Florida 33401

Mr. Ed Albrigo
Senior Vice President
8200 Jones Branch Drive MS 200
McLean, Virginia 22102

Mr. R.K. Arnold, President and CEO
Merscorp, Inc.
1595 Spring Hill Road, Suite 310
Vienna, Virginia 22182

Marianne Sullivan
Senior Vice President
3900 Wisconsin Avenue
Washington, D.C. 20016

September 6, 2010

Re: Abuses and Forgeries By MERS Officers in Mortgage Foreclosures

Dear Mr. Albrigo, Mr. Arnold and Ms. Sullivan:

I am writing to you in your capacity as members of the Board of Directors of MERS.

This letter concerns certain widespread abuses by individuals using MERS titles. After extensive research regarding Mortgage Assignments prepared in Alpharetta, Georgia, purportedly signed by MERS certifying officers, it is apparent that:

1. there were widespread forgeries by individuals who signed over a million Mortgage Assignments as MERS officers with many different individuals signing the same four names;

2. the individuals signing these names also used many different MERS titles,with Linda Green, Korell Harp and Tywanna Thomas claiming to be authorized by many different lenders to convey mortgages as MERS

3. the information on the Mortgage Assignments is false particularly regarding the dates on which mortgages were conveyed. In several hundred thousand cases, Assignments to Residential Mortgage-Backed Securitized
Trusts state that the Trusts acquired the mortgages AFTER foreclosure litigation was filed by the Trusts. This has resulted in a tremendous backlog of cases as the wrong parties often file the foreclosure actions.
These Mortgage Assignments are being used extensively in foreclosure actions in Florida and other states. Because of the apparent authority of MERS, these assignments are most often assumed to be correct by judges. Because so many foreclosure litigants are unrepresented by counsel, these Mortgage Assignments
are going unchallenged even though they are obvious forgeries.

Please carefully examine the attached mortgage assignments signed by Linda Green, Korell Harp, Tywanna Thomas and Jessica Ohde as MERS officers as these examples plainly show many variations of the Green, Harp, Ohde, and Thomas signatures.

Many of the MERS job titles that have been attributed to Linda Green are listed in Schedule A attached hereto. Many of the MERS job titles that have been attributed to Korell Harp are listed in Schedule B. Many of the MERS job titles that have been attributed to Tywanna Thomas are listed in Schedule C.

TIME IS OF THE ESSENCE. There were nearly 11,000 mortgage foreclosures granted in Palm Beach County, Florida in the last six weeks. Many of these foreclosures were granted based on these Mortgage Assignments signed by individuals using MERS titles. It is apparent that these signatures and MERS titles are misleading judges and homeowners. The Palm Beach County experience is occurring throughout the country.

The Florida Attorney General is investigating fraudulent documents used to “facilitate” foreclosures.

Most often, in Florida, these fraudulent Assignments are used by the same law firms that are hired by Lender Processing Services, in its role as a foreclosure management company. In Florida, the firms that most often use these documents to foreclose are the Law Offices of David J. Stern, Florida Default Law Group, Shapiro & Fishman, and the Law Offices of Marshall Watson.

All four of these law firms have also been named by the Florida Attorney General as being under investigation for using fraudulent documents in foreclosures.

I am prepared to brief you or your designees fully on my research.

Thank you for your attention to this most serious matter.

Yours truly,

Lynn E. Szymoniak

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

Posted in CONTROL FRAUD, corruption, djsp enterprises, fannie mae, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, fraud digest, Freddie Mac, Law Offices Of David J. Stern P.A., law offices of Marshall C. Watson pa, Lynn Szymoniak ESQ, MERS, MERSCORP, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., Mortgage Foreclosure Fraud, Notary, notary fraud, R.K. Arnold, robo signers, shapiro & fishman pa, stopforeclosurefraud.comComments (1)

DJSP reports smaller profit as AG probe looms

DJSP reports smaller profit as AG probe looms

South Florida Business Journal

Tuesday, September 7, 2010, 6:05pm EDT

As an investigation by the Florida Attorney General’s Office looms over its chairman and CEO, Plantation-based DJSP Enterprises reported a decline in both profits and income during the second quarter.

The foreclosure and title processing company (NASDAQ: DJSP) reported net income of $3.8 million, or 32 cents a share, on revenue of $56.1 million. That’s down from net income of $14.1 million, or 73 cents a share, on revenue of $61.7 million in the second quarter of 2009.

DJSP handles foreclosure legal work for major lenders, and its largest client is the Law Offices of David J. Stern, P.A. The lawyer is chairman and CEO of DJSP.

On Aug. 10, Attorney General Bill McCollum announced he had started an investigation of David J. Stern, P.A., along with three other Florida law firms, over whether they engaged in unfair and deceptive actions in the handling of foreclosure cases. There have been allegations that the law firms fabricated mortgage assignments to speed up foreclosures.

David J. Stern, P.A. responded to the news by stating that it would cooperate with the investigation and it has done nothing wrong.

In addition, a pending class action lawsuit accuses Stern and his firm of violating the RICO Act.

Continue reading… South Florida Business Journal

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

Posted in chain in title, class action, CONTROL FRAUD, corruption, djsp enterprises, fannie mae, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, investigation, Law Offices Of David J. Stern P.A., Mortgage Foreclosure Fraud, notary fraud, racketeering, RICO, robo signers, stock, STOP FORECLOSURE FRAUD, stopforeclosurefraud.com, title companyComments (3)

Florida AG investigating LPS subsidiary: Jacksonville Business Journal

Florida AG investigating LPS subsidiary: Jacksonville Business Journal

Monday, May 17, 2010, 1:50pm EDT  |  Modified: Monday, May 17, 2010, 1:51pm

Jacksonville Business Journal – by Christian Conte Staff Writer

The Florida Attorney General’s Office has launched a civil investigation similar to one launched by a Florida U.S. Attorney’s Office against Fidelity National Financial Inc. and Lender Processing Services Inc., along with an LPS subsidiary, relating to possible forged documents in foreclosure cases.

According to the Attorney General’s website, DOCX LLC, based in Alpharetta, Ga., “seems to be creating and manufacturing ‘bogus assignments’ of mortgage in order that foreclosures may go through more quickly and efficiently. These documents appear to be forged, incorrectly and illegally executed, false and misleading. These documents are used in court cases as ‘real’ documents of assignment and presented to the court as so, when it actually appears that they are fabricated in order to meet the documentation to foreclosure according to law.”

The Attorney General’s Economic Crimes Division in Fort Lauderdale is handling the case.

Fidelity National Financial (NYSE: FNF), based in Jacksonville, provides title insurance, specialty insurance, claims management services and information services. Lender Processing Services (NYSE: LPS), also based in Jacksonville, provides mortgage processing services, settlement services, mortgage performance analytics and default solutions.

Fidelity National acquired DOCX, which processes and files lien releases and mortgage assignments for lenders, in 2005.

The U.S. Attorney’s office launched its investigation of DOCX in February.

LPS stated in its 2009 annual report that there was a “business process that caused an error in the notarization” of mortgage documents, some in the foreclosure proceedings in “various jurisdictions around the country,” according to a filing with the U.S. Securities and Exchange Commission.

While the company said it fixed the problem, the annual report stated it spurred an inquiry by the Clerk of Superior Court in Fulton County, Ga., and most recently, LPS was notified by the U.S. Attorney’s Office for the Middle District of Florida, based in Tampa, that it is also investigating the “business processes” of DOCX.

cconte@bizjournals.com | 265-2227
Read more: Florida AG investigating LPS subsidiary – Jacksonville Business Journal:


Posted in concealment, conspiracy, corruption, foreclosure fraud, forensic loan audit, Former Fidelity National Information Services, fraud digest, investigation, Law Offices Of David J. Stern P.A., law offices of Marshall C. Watson pa, Lender Processing Services Inc., LPS, Lynn Szymoniak ESQ, mortgage electronic registration system, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., Mortgage Foreclosure Fraud, scam, stop foreclosure fraudComments (0)

Foreclosure FRAUD?: Tell it to the Attorney General Bill McCollum 5/8 MIAMI

Foreclosure FRAUD?: Tell it to the Attorney General Bill McCollum 5/8 MIAMI


Posted by Harriet Brackey on April 30, 2010 10:46 AM SunSentinel

If you want to speak to Florida’s Attorney General about foreclosure or loan modifications or mortgage fraud, here’s your chance.4823741.thl.jpg

Saturday, May 8, in Miami, Attorney General Bill McCollum will be on hand for a Mortgage Fraud Community Forum. He’s hosting the event with Florida’s Interagency Mortgage Task Force.

The session is on “The Housing Crisis, Who to Trust and Where to Turn.”

It’s open to the public and free, but reservations are required. Call 877-385-1621.
It will be held from 10 a.m. to 4 p.m. at Miami Dade College, Wolfson Campus, Chapman Conference Center, 300 N.E. Second Ave.

The AG’s office says you can get help on how to face foreclosure, housing scams, mortgage fraud, loan modifications and finding legal assistance.

Certified housing counselors, volunteer lawyers, as well as representatives of Bank of America, JP Morgan Chase, Wells Fargo/Wachovia and SunTrust will be on hand.

Also attending will be representatives of:
Florida Department of Law Enforcement, Office of Financial Regulation, Department of Business and Professional Regulation, Florida Bar, Dade County Bar Legal Aid Society, Cuban American Bar and the Collins Center Foreclosure Mediation Program.

For more information, go to www.myfloridalegal.com/mortgagefraud.

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