CLEVELAND, Ohio — The charges filed Thursday against Cuyahoga County Auditor Frank Russo offer the most detailed description yet of the suspected corrupt activities of two Common Pleas Judges — one of whom is seeking re-election.
Excerpts:
In exchange for his help, Russo wanted control over the outcome of certain [of Terry’s ] civil cases, according to the charges. The docket Terry inherited included numerous civil foreclosure cases involving Russo’s close friend O’Malley, who was representing one of the litigants. American Home Bank was seeking $190,000 in damages from O’Malley’s client.
O’Malley called upon Russo to wield his influence over Terry and convince the judge to deny motions for summary judgment in the case to force it to a settlement.
According to the charges, Russo called Terry in July 2008 and asked, “Did (a county employee) give you the case numbers? … I talked to you about this once before … it’s about denying the motions for summary judgment.”
Yep, I still have the note you gave me,” Terry replied.
“Okay, good, so deny the motions for summary judgment, okay, good. …I just wanted to touch base with you on that,” Russo said.
The following day, Terry reported to Russo that he had followed through on his promise.
“I called just to tell you that I took care of those two issues with those two cases that we talked about. … Denied everything.”
“What you’re telling me is you pay lip service to me but yet I have not seen one single actual corrected policy procedure, you’re telling me your volume practice is going to remain because you can’t afford it,” Dunnigan said.
Judge fines major legal firm for foreclosure conduct
Lawyers to pay $49,000 for not showing up at scheduled hearings
Published: Tuesday, August 31, 2010 at 1:00 a.m.
Last Modified: Monday, August 30, 2010 at 10:46 p.m.
MANATEE COUNTY – A circuit judge singled out a Fort Lauderdale foreclosure firm on Monday, finding its business model violates legal ethics and leveling a $49,000 fine for scheduling hearings and then not showing up in court.
Circuit Judge Janette Dunnigan scolded five lawyers from the Smith, Hiatt and Diaz firm in connection with a Manatee County foreclosure case filed in 2007. The firm is one of several “foreclosure mills” filing thousands of foreclosure cases monthly.
The firm’s attorneys filed what amounted to “sham” paperwork setting seven hearings over two years, and then failed to appear in court or tell the judge or other parties when they were canceled. The case is still unresolved.
The behavior is willful, deliberate and flagrant and violates oaths of professional practice for lawyers, Dunnigan said. The firm also routinely does not comply with local court rules about how foreclosure cases should be handled, Dunnigan ruled.
“It is disrespectful and inconsiderate of the court’s time and impedes judicial administration,” Dunnigan said.
Sarasota attorney Michael Belle, who is trying to clean up the foreclosure process, said it was the first major penalty from a state judge about how the so-called “foreclosure mills” do business.
The firms handle the majority of foreclosure cases for lenders, bidding against each other to handle large numbers of cases.
In a judicial district that has taken a hard line on fraudulent or messy foreclosure filings, the judge’s ruling is the first time a court officer has openly attacked the methods of one of the firms responsible for thousands of foreclosures statewide.
Circuit Judge Janette Dunnigan scolded five lawyers from the Smith, Hiatt and Diaz firm in connection with a Manatee County foreclosure case filed in 2007. The firm is one of several “foreclosure mills” filing thousands of foreclosure cases monthly.
The firm’s attorneys filed what amounted to “sham” paperwork setting seven hearings over two years, and then failed to appear in court or tell the judge or other parties when they were canceled. The case is still unresolved.
The behavior is willful, deliberate and flagrant and violates oaths of professional practice for lawyers, Dunnigan said. The firm also routinely does not comply with local court rules about how foreclosure cases should be handled, Dunnigan ruled.
“It is disrespectful and inconsiderate of the court’s time and impedes judicial administration,” Dunnigan said.
I will write much more on this later, for now based on what happened today, I’m busy going through my files to make sure they’re all in order and reviewing my office and court procedures from top to bottom. Attached here is the Motion for Contempt that started all of this:
Leila Atassi, The Plain Dealer 
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