By the conduct set forth above, respondent violated the following R. Regulating Fla. Bar:
A. Rule 3-4.2 [Violation of the Rules of Professional Conduct as adopted by the rules governing The Florida Bar is a cause for discipline.];
B. Rule 4-3.4(c) [A lawyer shall not knowingly disobey an obligation
under the rules of a tribunal except for an open refusal based on an assertion that no valid obligation exists.]; and
C. Rule 4-8.4(a) [A lawyer shall not violate or attempt to violate the Rules of Professional Conduct, knowingly assist or induce another to do so, or do so through the acts of another.].
(Let me interrupt this story briefly to point out that the “local counsel” in this story is the notorious David J. Stern law firm, whose slipshod handling of mortgage documentation in its rich niche of representing big banks in home foreclosure proceedings is now infamous nationwide.)
Fannie Mae — not the courts — should decide what, if anything, is owed to former foreclosure attorney David J. Stern, the government-sponsored enterprise alleges in court filings.
The Law Offices of David J. Stern filed more than 25 lawsuits against servicers in recent months alleging they owe the law firm more than $34 million in unpaid invoices. On Monday, it filed its latest case, a suit against Lender Processing Services (LPS: 28.36 -0.39%), a firm that provides mortgage processing and technology services.
B. Stern and DJSPA as “Employers” under Single Employer Test
Plaintiffs argue that WARN Act liability is imputed to Stern and DJSPA under the single employer test. Stern and DJSPA contend that Plaintiffs fail to sufficiently allege all the elements of the single employer test.
Two or more affiliated businesses which constitute a “single employer” may be held jointly and severally liable for violations of the WARN Act. Pearson v. Component Tech. Corp., 247 F.3d 471, 478 (3d Cir. 2001). The Department of Labor (“DOL”) regulations issued under the WARN Act provide that two or more affiliated businesses may be considered a single business enterprise for WARN Act purposes. 20 C.F.R. § 639.3(a)(2). The regulations provide a five-factor balancing test to assess whether affiliated businesses constitute a “single employer,” which would subject them to joint liability under the WARN Act. See Pearson, 247 F.3d at 478.
The five DOL factors are as follows: (1) common ownership, (2) common directors and/or officers, (3) unity of personnel policies emanating from a common source, (4) dependency of operations, and (5) de facto exercise of control. Id. at 487– 490; 20 C.F.R. § 639.3(a)(2).
Plaintiffs adequately allege the five elements of the single employer test.
Take this home for example. It was originally sold for $289,000.
Prior to Final Judgment, property had two (2) assignments of mortgage for two entities same robo-signer for both via MERS.
At auction it was sold for a MAJOR discount at approx. 75% off. to Indymac via LPS Minnesota address in 2010. We know Indymac has been shut down way before this time.
Why couldn’t they work a deal like this when this person whom I personally know tried over and over to get a modification AT THE TIME?
They had a good job then and still have a good job today.
So why do they not want to work with the borrowers and reduce the principal to reflect today’s REAL and TRUE appraisal of the property?
Make sure you follow the transactions to understand what happened and why it makes no sense where this goes.
Now Here comes more funny business:
Still following?
Property was Quit Claimed/Transferred To Freddie Mac for $100.00 (prepared by David Stern) but consideration shows only $10.00.
Property then sold for $3900.00 more 13 days later $78,000
SAME day flipped for $150,000
Previous records are all gone [compare both images]
T/O: At what point does the Florida Bar need to step in?
From Kim Miller:
Palm Beach County Chief Judge Peter Blanc said in a letter Wednesday to David J. Stern that Stern’s suggestions to deal with thousands of abandoned cases are not permitted by Florida rules of law.
On Monday, Stern wrote a letter to Palm Beach County Chief Judge Peter D. Blanc, pitching new strategies for the courts in dealing with his inevitable exit from the business of foreclosure prosecution. His letter places much of the blame on the lenders who ended their relationship with his firm but have not yet transferred the cases to new lawyers, leaving them in limbo and clogging up the overloaded courts.
According to AP, the court on Monday issued a high profile-case order in the matter of Pino v. Bank of New York Mellon. One of the issues in the case is whether there was a fraud on the trial court.
And we all now the original work behind this was none other than Law Offices of David J. Stern, who has recently shut down as of March 31, 2011.
On February 2, 2011 the Florida 4th DCA said
We conclude that this is a question of great public importance, as many, many mortgage foreclosures appear tainted with suspect documents. The defendant has requested a denial of the equitable right to foreclose the mortgage at all. If this is an available remedy as a sanction after a voluntary dismissal, it may dramatically affect the mortgage foreclosure crisis in this State. Accordingly we certify the following question to the Florida Supreme Court as of great public importance
It’s a tale populated with many of the major players in the national foreclosure drama: The law firm of David Stern, the Mortgage Electronic Registration Systems (better known as MERS) and a mortgage packaged with others and sold into a securitized trust.
According to court records, David J. Stern Law firm has filed a lawsuit against CitiMortgage Inc. in the Florida Southern District of Court on April 7, 2011. The cause of action is contract, case number 1:2011cv21223.
Law Offices of David J. Stern, P.A. v. CitiMortgage, Inc.
Action Date: April 4, 2011 Location: West Palm Beach, FL
On April 3, 2011, CBS’ 60 MINUTES aired a segment showing massive fraud by banks and mortgage-backed trusts in foreclosures. The segment focused on one particular document mill, Docx, LLC, owned by Lender Processing Services, Inc., a company that works for over 51 banks. One former employee confessed to forging 4,000 documents each day.
What mortgage servicing companies used the Docx forged documents in hundreds of thousands of cases? The major mortgage servicer involved was American Home Mortgage Servicing, Inc. in Coppell, TX. Other mortgage servicers that used forged documents from LPS include Saxon Mortgage Services in Fort Worth, TX and Select Portfolio Servicing in Salt Lake city, Utah.
What bank/trustees most often used the Docx forged documents in foreclosures? Deutsche Bank National Trust Company, U.S. Bank, Wells Fargo, Citibank and Bank of America were the top five users of these forged documents, but other banks were also involved.
American Home Mortgage Servicing, Inc. knew about the forgeries, but never disclosed to courts or homeowners their widespread use of forged documents.
In thousands of cases across the country, Deutsche Bank National Trust Company continues to push these documents upon the courts as proof that they own mortgages and have the right to foreclose, despite overwhelming evidence and even admissions of forgeries.
These servicing companies and bank need to begin the process of admissions, disclosures and reparations.
What law firms pushed and continue to push these fraudulent documents upon Courts and homeowners? In Florida, the firms that used these documents and continue to use these documents are: Law Offices of David Stern; Florida Default Law Group; Law Offices of Marshall Watson; Shapiro & Fishman Law Firm and Akerman, Senterfitt & Eidson, P.A. Lawyers who used and continue to use these Docx forgeries in court should, at a minimum, lose the right to practice law.
The government focus must be on protecting the rights of homeowners and shareholders and the court system and holding the banks and securities companies accountable.
Angry and exasperated by faulty foreclosure documents, judges throughout Florida are hitting back by increasingly dismissing cases and boldly accusing lawyers of “fraud upon the court.”
A Palm Beach Post review of cases in state and appellate courts found judges are routinely dismissing cases for questionable paperwork. Although in most cases the bank is allowed to refile the case with the appropriate documents, in a growing number of cases judges are awarding homeowners their homes free and clear after finding fraud upon the court.
Still, critics say judges are not doing enough.
“The judges are the gatekeepers to jurisprudence, to the Florida Constitution, to access to the courts and to due process,” said attorney Chip Parker, a Jacksonville foreclosure defense attorney who was recently investigated by the Florida Bar for his critical comments about so-called “rocket dockets” during an interview with CNN. “It’s discouraging when it appears as if there is an exception being made for foreclosure cases.”
Recent Comments