These are precarious times for lawyers in the business of filing foreclosure cases for banks. This is particularly true in one of the epicenters of the foreclosure crisis, Florida.
As we’ve noted before, the feds in Jacksonville recently started a criminal investigation of a company that is a top provider of the documentation used by banks in the foreclosure process. And a state-court judge ruled that a bank submitted a “fraudulent” document in support of its foreclosure case. That document was prepared by a local law firm.
For more Law Blog background on the foreclosure mess in our nation’s courts, this post will help.
The news today: the Florida Attorney General’s office said it has launched a civil investigation of Florida Default Law Group, based in Tampa, which is one of the largest so-called foreclosure-mill law firms in the state.
According to the AG’s website, it’s looking at whether the firm is “fabricating and/or presenting false and misleading documents in foreclosure cases.” It added: “These documents have been presented in court before judges as actual assignments of mortgages and have later been shown to be legally inadequate and/or insufficient.”
The issue: judges are increasingly running into situations in which banks are claiming ownership of properties they actually don’t own. Some of them end up chewing out the lawyers representing the banks.
The AG’s office said Florida Default Law Group appears to work closely with Lender Processing Services — the company we referenced earlier that is being investigated by the Justice Department.
LPS processes and sometimes produces documents needed by banks to prove they own the mortgages. LPS often works with local lawyers who litigate the foreclosure cases in court. Sometimes those same law firms produce documents that are required to prove ownership.
We’ve reached out to Florida Default Law Group and LPS and will let you know if we hear back.
The case file cited below relates to a civil — not a criminal — investigation. The existence of an investigation does not constitute proof of any violation of law.
Case Number:
L10-3-1095
Subject of investigation:
Florida Default Law Group, PL
Subject’s address:
9119 Corporate Lake Drive, Suite 300, Tampa, Florida 33634
Subject’s business:
Law Firm, Foreclosures
Allegation or issue being investigated:
Appears to be fabricating and/or presenting false and misleading documents in foreclosure cases. These documents have been presented in court before judges as actual assignments of mortgages and have later been shown to be legally inadequate and/or insufficient. Presenting faulty bank paperwork due to the mortgage crisis and thousands of foreclosures per month. This firm is one of the largest foreclosure firms in the State. This firm appears to be one of Docx, LLC a/k/a Lender Processing Services’ clients, who this office is also investigating.
AG unit handling case:
Economic Crimes Division in Ft. Lauderdale, Florida
As most of you are aware, the Florida Supreme Court issued a new rule, effective February 11, 2010 that requires all homestead foreclosure complaints to be verified. Amazingly, it appears that many of the mills are just ignoring the new rule and continuing to file, business as usual.
In the Answer attached here, I attack the complaint and I also attack another component of most foreclosure complaint….the lost note count. As the research in the motion establishes, there is pretty good case law to support the proposition that most mortgage notes are not negotiable instruments.
If this case law gets correctly applied….more big trouble for the mills…happy hunting~
I’ve said it before and I’ll say it again, the attorneys at Ice Legal may be the most aggressive and hard charging Foreclosure Fraud Fighters in Florida. When this whole system comes crashing down and when judges and the Florida Supreme Court put an end to the systemic abuses of the court process being perpetrated by the foreclosure mills, the attorneys at Ice Legal will rightly take their fair share of the credit.
Attached here is a must read Motion along with a copy of a transcript from a hearing held in a Volusia County Courtroom. The Motion lays out a very disturbing set of allegations…
This is a foreclosure action filed by WELLS FARGO BANK, NA (the “BANK”). The BANK is represented by Florida Default Law Group, P.L. (“FDLG”). On behalf of the BANK in this case, and on behalf of other clients in other cases, FDLG filed affidavits to establish that the attorneys’ fees it was allegedly paid were reasonable. The affidavits purport to have been executed by Lisa Cullaro, the appointed expert on attorneys’ fees. The notary who allegedly administered the expert’s oath and vouched for her signature was Erin Cullaro, a former employee of FDLG and now an Assistant Attorney General in the Economic Crimes Division of the Office of the Attorney General.
Not only was Erin just a former employee, she was one of the lead counsel for Michael Echeverria, the owner of FDLG (Florida Default Law Group)
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