Posted on 07/26/2011 10:51:51 AM PDT by JerseyHighlander
Two former Florida prosecutors are accusing the state Attorney General of firing them for going after mortgage lenders too aggressively.
The Sun Sentinel reported that Theresa Edwards and June Clarkson were abruptly fired by Florida Attorney General Pam Bondi at the end of May and say the attention they were focusing on combating mortgage fraud was the reason.
"Obviously we did our job too well," Edwards told the Sentinel. "We were making too much noise."
Bondi's chief of staff Carlos Muniz released a long statement to the newspaper which said that Edwards and Clarkson were let go because of problems related to "proper identification and analysis of legal issues ... judgment in discussing matters related to pending investigations with third parties ... and ... professionalism to opposing counsel."
But both women had consistently received strong evaluations, according to the Sentinel. So what gives?
Edwards told the newspaper in an email that she and Clarkson "were pleased that the Attorney General's Office was dedicating more attorneys to foreclosure fraud, but said she also found it curious that they would do so without letting the two lawyers provide any transition notes on their cases," the newspaper reported.
"I will be interested to see the results of all the hours and energy that is now being used on these investigations," Edwards wrote. Reported the Sentinel:
Edwards and Clarkson attracted widespread media attention for the exposure of foreclosure mills, turning up fraudulent signatures and fake names on documents being used to oust people from their homes. Documents didn't have the correct dates. Large financial institutions couldn't always produce the proper paperwork.
But as the women were racking up cases, Bondi also came under fire for being soft on mortgage lenders.
Here’s another clue - when the pinko website TPMCafe highlights an issue, you can bet that it’s in favor of some leftist cause or other.
Bankster v. Deadbeat Debate… animation here:
Untangling the Foreclosure Mystery— Part 6 - FORCLOSURE FRAUD
Untangling the Foreclosure Mystery - Part 5 text
--HOW THE DOG ATE MY MORTGAGE ASSIGNMENT—
Last week in Key West the Newspaper we began to review case 09-CA-471-K, a foreclosure case here in the 16th Judicial Circuit. We highlighted some clearly questionable documents produced by the Law Firm Marshall C. Watson, on behalf of their Plaintiff Countrywide. I also acknowledged that the case I began to describe in detail was my own. However, it is also similar to countless other cases filed here in the Keys and throughout the State of Florida.
Let’s now take a look at how those in a position to address such egregious docs are handling the oversight of such cases. First, Attorney General Pam Bondi. She did recently fire Assistant Attorney General Erin Collins Cullaro for having “moonlighted” at a foreclosure mill law firm. (Who then went on to work for Shapiro and Fishman, another foreclosure mill under investigation.) But what comes from these investigations? In the instance of Bondi’s review of Marshall Watson it resulted in a two million dollar fine, and no admission of wrong doing. That may sound like a lot, but remember this is one of the largest foreclosure mills out there, two million dollars is a drop in the bucket compared to their annual revenue. It’s the cost of doing business.
Folks, these documents in many cases are potential felonies...countless in number, used to take possession of peoples homes, and that ultimately destroy YOUR property values by creating questionable title histories throughout our community. No admission of wrong doing, and right back at it!!?? Why not jail time? Bondi may as well be applying sun lotion to Marshall Watson’s back.
How about the Florida Bar? According to the Sun-Sentinel, with hundreds of complaints pouring in, of the forty six cases closed thus far, NONE have resulted in sanctions of attorneys. Seriously, not one?
Then there is the case of Chief Judge Victor Tobin of Broward, who after having presided over countless cases of Marshall Watson’s, decides to resign mid-term and go to work for them. I guess it’s more lucrative than being a Circuit Judge, and perhaps a more direct way to get paid. This is the guy who according to the Washington Post was spending “only a few seconds per file,” while processing foreclosures.
Now let’s get back to case 09-CA-471-K. Are local Judges providing favoritism to these very same law firms? Again, you be the Judge.
Here are just a few of the calls from the favoritism playbook. Let’s start with the old, “No need to Notice a Hearing.” That’s right, in the midst of the case, while I had a Motion to Dismiss pending, I get a Court Order signed by Judge Audlin granting a Motion for Summary Judgement in favor of the Plaintiff. This Order had an auction date set in about 30 days. That’s odd because I did not receive notice of this hearing, nor was one filed with the Clerk. In a review that baffled even the file Clerk, apparently this little hearing just “popped up” on Audlin’s docket and I had no chance to show up, so Audlin applied his rubber stamp. That leads to a comforting night’s sleep.
Upon complaining to Judge Audlin’s judicial assistant, they were gracious enough to vacate the ruling. Audlin then went on to consider my Motion to Dismiss, looked right at the Note with the “missing initials” filed as the “Original” (See last weeks column) and denied my motion to dismiss. Apparently he felt this was an issue of fact that should be considered later on in the process. I suggest it goes towards standing in the case. Imagine if I had made up a mortgage assignment and note and filed for foreclosure on Judge Audlin. How fast do you think that case would be tossed out? Can you imagine the Courts forcing Judge Audlin to work his way through the system to get to a trial to illustrate that my documents were liquefied rat feces? Do you think I might end up in jail?
Then there is the ol’ “Cancel the hearing set for today, tomorrow.” In this little gem, Marshall Watson unilaterally schedules another Motion for Summary Judgement. Oddly now, they schedule this hearing listing the plaintiff as Bank of America. Recall they already replaced the plaintiff as Fannie Mae, but let’s not concern ourselves with which thief would actually steal the house if the Motion were granted. That’s too trivial.
So I take time off from work to attend the hearing set for September 15, 2010. Judge Taylor is working her way through her docket and is getting towards the end. As it becomes apparent that I must not be sitting in her courtroom for my health and her docket is complete, the staff arranging for telephonic appearances states they have Marshall Watson on the line in a case with Gardi. I stand up and begin to approach the Judge. Upon hearing over the phone that I am in the courtroom, the representative from Marshall Watson states that they called in to “make sure the Judge knew of the cancellation.” Huh?
I’m ready to roll, let’s have the hearing, Marshall Watson is present. Nope. Judge Taylor tells me there is nothing she can do, it’s not on her docket. If only I had used my time machine I would have known. You see Marshall Watson actually physically filed a Notice of Cancellation the next day, September 16, 2010. We pro se defendants are so stupid and just don’t understand complex legal procedures. My mistake, note to self: Contact Marty Mcfly and tune up the flux capacitor.
Since then I have been diligently trying to schedule my new Motion to Dismiss for Fraud. Even though Marshall Watson won’t return phone calls, and I have an email from them stating that they won’t communicate with me via email, I have tried my best to coordinate hearing dates. I had one hearing scheduled for January 7, 2011. I had provided noticed to them and the Clerk in November. In late December, David Newman, the fifth attorney representing Marshall Watson schedules an emergency hearing for January 6 to cancel my hearing for January 7. Appearing by telephone Judge Taylor grants Marshall Watson’s motion because I had unilaterally scheduled the hearing. (Uhhh, it’s kind of hard to coordinate with someone who won’t talk to you...and forget about the fact Marshall Watson has ALWAYS scheduled their hearings unilaterally.) But dag nabbity we are all going to schedule a “date certain” that works for everyone. The Judge confirms that we will all appear February 18.
Wouldn’t you know it, poor Mr. Newman falls ill and needs to file a Motion to Continue because on February 11 he seems to know he is going to be sick on February 18. (There’s that time travel thingy again, he must be good friends with Marty Mcfly.) To confirm this future tragic illness he provides the court with an undated doctor’s note that says only, “Pneumonia - No Work.” Of course Judge Taylor grants the motion regardless of the fact that Marshall Watson has countless other attorneys that could work this case. It would appear they only want to show up in court if they can manage a way for me not to be there.
The Courts allow for them to evade my interrogatories, and consume time objecting to my intent to video tape hearings. You see, I’d like to make a record of this fiasco, and they object because it might cause them to be distracted from their intense professional legal work. Kiss my deflating asset!
These jackwagons from Marshall Watson are making a farce of our judicial procedures, and due process. This is all done under the watch of Attorney General Pam Bondi, the Florida Bar, AND our locally elected Judges. (Don’t forget, the Judges are all drunk on Bankster Brew, with 62.4% of their salary coming directly from foreclosing plaintiffs.)
Defense attorneys who understand this are wary to bring up the issue because it could affect their livelihood, and those that do across the state are then subject to adverse ramifications both professionally and before the Court. Those Judges that allow this charade to continue should resign because they allow for the destruction of the very process that they are there to preserve. (Oh, wait, as in Judge Tobin’s case, some already have.)
It’s a travesty that dramatically affects each and every one of us as illustrated in the previous weeks columns. If not for property rights and rule of law we are nothing more than a banana republic. Thank goodness there exists a few decent publications such as Key West the Newspaper that allow for the light of day to shine on this.
Next week, we’ll wrap this series up with some potential solutions.
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Untangling the Foreclosure Mystery 1
OR HOW THE DOG ATE MY MORTGAGE ASSIGNMENT
Commentary: Untangling the Foreclosure Mystery 2
HOW THE DOG ATE MY MORTGAGE ASSIGNMENT— PART 2
Untangling the Foreclosure Mystery
HOW THE DOG ATE MY MORTGAGE ASSIGNMENT— PART 3
On FREE REPUBLIC:
Untangling the Foreclosure Mystery— Part 4
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Someone best light a fire under the butts of the Hon. Judges before they set in motion a storm of clouds over every title in every County Where are the County Clerk's in all of this fraud? Lets hope the bankers don't cut a deal with the politicians to sweep all of this fraud under the rug.
National mortgage fraud scandal spreads to the judiciary -06-13-2011
While the U. S. Department of Justice is actively prosecuting mortgage and foreclosure fraud, a national organization that helps homeowners avoid foreclosure has evidence that certain state judges appear to be protecting lawbreakers. Billions of dollars have been received by corporations in the foreclosure industry since the Great Recession began. Are these vast sums of money finding their way to elected state judges and politicians?
............presented evidence yesterday that could shake the judicial system to its foundation. While helping families facing foreclosure, her non-profit organization has recently stumbled upon very questionable judicial actions in several states. The evidence is overwhelming that the powerful foreclosure industry not only has inappropriate influence over state court systems, but is using threats and economic pressure to stymie investigative efforts and legislative regulation........
....... In case after case, official court documents identified certain judges in state courts, who were consistently blocking cases involving forgery of deeds, legal documents and foreclosure actions from being brought to trial. In some cases, district attorneys refused to present evidence of illegality to the courts. In other cases, district attorneys or civil attorneys tried to present evidence of illegality, but were quickly censured by certain judges. ........
FALSE STATEMENTS: Veal v. American Home Mortgage Servicing, BAP No. AZ-10-1055-MkKiJu -06-13-2011
False Statements American Home Mortgage Servicing DocX, LLC Lender Processing Services Sand Canyon Corporation Wells Fargo Bank, N.A. Action Date: June 12, 2011 Location: Phoenix, AZ On June 10, 2011, the U.S. Bankruptcy Appellate Panel of the Ninth Circuit issued an important and lengthy analysis of standing and real-party-in-interest issues in a foreclosure case in Veal v. American [...]
THE END | Two States Ask if Paperwork in Mortgage Bundling Was Complete -06-13-2011
William Black | ‘If you don’t look; you don’t find, Wherever you look; you will find’ NYTimes Gretchen Morgenson- Opening a new line of inquiry into the problems that have beset the mortgage loan process, two state attorneys general are investigating Wall Street’s bundling of these loans into securities to determine whether they were properly documented and valid. [...]
Massachusetts Register of Deeds John O’Brien is first in the nation to say no to recording robo-signed documents; North Carolina Register of Deeds, Jeff Thigpen agrees. -06-07-2011
Register O’Brien said, “Knowing what I now know, it would be a dereliction of my duties as the keeper of the records to record these documents and any other documents that contain questionable signatures. To do so, would make me a willing participant in a continuing scheme which has corrupted the chain of title of [...]
READ | Essex County, MA John O’Brien Rejection Letter & Affidavit re: M.G.L. c. 266 § 35A -06-08-2011
Highlight of these incredible documents: MGL Chapter 266, Section 35A (b) (4) provides that: “Whoever intentionally: files or causes to be filed with a registrar of deeds any document that contains a material statement that is false or a material omission, knowing such document to contain a material statement that is false or a material omission, shall be punished by imprisonment in the state prison for not more thean 5 years or by inprisonment in the house of corrections for not more than2 and one-half years or by a fine of not more than $10,000 in the case of a natural person or not more than $100,000 in the case of a natural person, or by both such fine and inprisonment [...]
MI Trial Court Finds “MERS Transferred Nothing, Purported Transfers, Endorsements or Assignments Are Void Ab Initio” | HENDRICKS v. U.S. BANK - -06-08-2011
H/T Michelle STATE OF MICHIGAN WASHTENAW COUNTY TRIAL COURT JAMES HENDRICK, et al v. US BANK NATIONAL ASSOCIATION AS SUCCESSOR TRUSTEE TO BANK OF AMERICA EXCERPT: The Court finds that the “Assignment”, recored on Decmeber 30, 2009 in the Washtenaw County Register of Deeds, serves to transfer nothing. The alleged conveyance failed to comply with the terms and conditions of the PSA and the [...]
THE DEVIL IS IN THE DETAILS: WHEN DID THE TRUST ACQUIRE THE NOTES AND MORTGAGES – A STUDY OF 4,580 FLORIDA ASSIGNMENTS BY Lynn E. Szymoniak -06-08-2011
In 2010, mortgage bankers involved with mortgage-backed securities adopted a mantra: “The mortgage follows the note.” Tom Deutsch, Executive Director of the American Securitization Forum (“ASF”), appeared before the U.S. [...]
You’re either pregnant or you ain’t. Can’t be both! About Those Notes...Evidence of Securitization Fail
But why would anyone bother backdating mortgage assignments? The immediate reason is to show that the foreclosing entity was the mortgagee at the time the foreclosure action was brought. And lurking behind this is the mother of securitization fail issues (see also here and here)--the potential failure to transfer the mortgage notes into the securitization trusts.
Florida 5DCA Reversed “Confession of Error” GILLEN v. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FANNIE) -06-03-2011
Another FL 5DCA “Confession of Error” Reversal | BLUMENFELD v. FIFTH THIRD MORTGAGE COMPANY -06-03-2011
At Bank of America, more incomplete mortgage docs raise more questions -06-03-2011
MERS | Obeying the Letter and Violating the Spirit -06-06-2011 By Jeffrey Martin, Charlotte School of Law Abstract Tens of millions of home mortgage loans, with a face value running into the trillions of dollars, may not be collectable. Furthermore, the owners of those homes may not be able to get clear title in the event that they pay off the mortgage. The Mortgage [...]
Tennessee BK Trustee Says In 60 Cases This Year, Lenders Couldn’t Produce Original Note -06-01-2011
Bankruptcy court aims to untangle foreclosures
“Show me the note.”
It has become a familiar mantra among debtors and foreclosure judges across the country trying to save homes in the aftermath of a mortgage meltdown. The tactic is simple: force the lender to offer up physical documentation that they actually own the mortgage.
Untangling the Foreclosure Mystery— Part 4
Freddie Mac takes foreclosure files from Fort Lauderdale-based Marshall C. Watson law firm | 03/11/2011 |
Federal mortgage backer Freddie Mac is taking its foreclosure cases from the Fort Lauderdale-based Marshall C. Watson law firm, one of eight Florida firms facing state scrutiny for its handling of home repossessions.
Brad German, a spokesman for Freddie Mac, confirmed the removal of the cases this morning, but did not say why Watson will no longer be used.
“Going forward our servicers will be directing business to other counsel,” German said.
In a statement, the Marshall C. Watson law firm said the parting was a mutual decision made by both sides.
“Freddie Mac and our firm mutually decided to part ways,” that statement said. “The Freddie Mac portfolio was only a small portion of the firm’s business, representing less than ten percent. Our firm will continue to work with Freddie Mac to ensure the transition of files is expedited and smooth. We are operating as normal with respect to all other clients and as always remain focused on providing superior service.”
Freddie Mac’s designated counsel list, which shows which attorneys the group uses in each state, was updated for Florida yesterday to remove Waston’s name.
Marshall C. Watson is just the latest firm to lose its federal foreclosure business. The Law Offices of David J. Stern in Plantation was fired in the fall by both Freddie Mac and Fannie Mae. Stern said last week the office would stop doing all foreclosure work as of March 31, leaving as many as 100,000 cases stranded statewide.
The Fort Lauderdale firm of Ben-Ezra & Katz was fired in February by Fannie Mae and is in the process of transferring about 15,000 cases to new attorneys.
Ultimately, the banks lent the deadbeat home buyers large sums of money. The "fraud" in question relates to the banks having some difficulty documenting the fact that they hold title to the homes. Why has this issue come up? Because the deadbeat home buyers have not made their mortgage payments. The banks are trying to foreclose, and they have loan documents showing that they did in fact lend money to the home buyers. What they don't have, in some cases, is documents showing that they have title to the property, which is slowing down process of foreclosure. The deadbeat home buyers are trying to parlay these paperwork snafus into free homes or rent-free accommodations. It's clear why these deadbeats would want to contest these bank foreclosures, but it is not equally clear why prosecutors should assist them in doing so.
Since I don’t live in Florida I am not really in a position to know whether there is any validity to his complaint. By reputation though, most of the legal proceedings in Florida seem to be....ummm.....ethically questionable, regardless of the party in power.
Ultimately, the banks lent the deadbeat home buyers large sums of money. The "fraud" in question relates to the banks having some difficulty documenting the fact that they hold title to the homes. Why has this issue come up? Because the deadbeat home buyers have not made their mortgage payments. The banks are trying to foreclose, and they have loan documents showing that they did in fact lend money to the home buyers. What they don't have, in some cases, is documents showing that they have title to the property, which is slowing down process of foreclosure. The deadbeat home buyers are trying to parlay these paperwork snafus into free homes or rent-free accommodations. It's clear why these deadbeats would want to contest these bank foreclosures, but it is not equally clear why prosecutors should assist them in doing so.
Many people seeking motrgages were intentionally involved in fraud. Many others were mislead by fraudulent bank apparisals. Many other motrgages were made by lenders involved in fraud. All fraud should be punished including the filing of foreclosure by entities that never filed the correct paperwork to legally own specific motrgages.
Every single thing you've listed hurts the banks. And now you want to give people who don't make their mortgage payments free homes or rent-free accommodations? The ambulance chasers who are helping the deadbeats have truly won the propaganda war.
Agreed. The lenders need to take their hits, and government lawyers shouldn't be awarding free houses to deadbeat borrowers either.
Have you spent any time in Florida dealing with real estate?
You are obviously not too interested in understanding the larger problems involved for the banks now that they can no longer ram foreclosures through the rocket docket courts in Florida.
For every dollar of remaining value in a property that is the underlying collateral for a mortgage in Florida, most of the mortgages themselves were assigned to Securities and sold to third parties.
I work for the third parties, and those who would like to purchase these mortgages from third parties.
These fraudclosure mills are destroying the CRE and RRE market in FLorida for decades here, (and this does not include anything to do with the prior deadbeat mortgage owner you want to villify)... it has to do with clear chain of title and proper conveyance of title to the mortgage backed securities going forward.
The banks can no longer protect themselves by using fraud in the courts, YOU and I, as taxpayers, are now holding something like 250-450 Billion in RMBS, CMBS and other instruments on F***ed mortgage notes in Florida alone.
The Fed, the US taxpayers, and the third parties holding these securities will NEVER get paid back if there isn’t a proper accounting of chain of title, and the FLorida AG is now committing outright political land theft unseen since the carpetbaggers stole Georgia during Reconstruction, and you’re on FR complaining about penny ante BS regarding schmucks in Florida who bought too much house during the bubble.
Take some time to expand your view of the crisis and try to look at it from an angle besides street corner common sense,
I am just as pissed about the people gaming the system in the rocket docket courts over paperwork issues, I’m sitting on a huge loss on my first home purchase in FL, feeling like a sucker.
That anger needs to be directed all the way up the food chain to the big dogs and the whore politicians doing their bidding, in this case Gov Scott and AG Bondi.
What you call “fraudclosure mills” are merely law firms that have cut corners in terms of producing documentation that the banks do own the properties in question. And why has this issue even come up? Because the banks cut corners in terms of processing the loan applications in the first place.
We’re either a nation of laws or we’re a pay to play kind of nation that deserves to fall. In these fraudulant foreclosure cases, real fraud is involved and must be punished. The class warfare must end and all must be equal under the law.
Yeah, you're angry; we can tell, because you're blindly lashing out.
I will hit it.... er, ahh, I mean I support AG Pam Bondi
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What they don’t have, in some cases, is documents showing that they have title to the property, which is slowing down process of foreclosure.
As I haven’t received any morgage payments from you, I’ll be foreclosing on your house. No I can’t prove that I have legal right to do so. But hey, what difference does that make?
AGs cannot stop individual cases that are brought to the courts. The attys that are doing thousands of these cases across the US will not be deterred no matter which boot-licking politician shows up...
You're missing the point. The banks can document the existence of a loan to the deadbeat home buyer who hasn't been making the mortgage payments. What they can't do, without a lot of additional work, is prove that they have clear title to the home. The so-called "fraud" is merely an attempt to speed up the process of foreclosure.
Every single thing you’ve listed hurts the banks.
Not at all. Many people lied about their income or knew that the banks appraisal was inflated. Some even were involved in various scams to intentionally defraud the lenders. We have to take into account cases like a recent one in which a bank foreclosed on a property that was purchased for cash and that the bank never issued a mortgage on. The rules and laws were put in place for a reason and speeding up the process isn’t a legitimate excuse for ignoring them let alone winking at intentional fraud by the lenders in seeking to do an endrun around them. Then lenders shouldn’t pay fines in the few cases that are tried. The individuals that sign stating known falsehoods should do real time.
You’re missing the point. The banks can document the existence of a loan to the deadbeat home buyer who hasn’t been making the mortgage payments. What they can’t do, without a lot of additional work, is prove that they have clear title to the home.
I’m not missing the point. Without the proper and legal papers and filings, the bank can’t prove that they still hold the mortgage. Many of these have been bundled and resold several times. Only one of these lenders has the right to foreclose and it is the government’s responsibility to make sure that only the correct one does. Once the tangled web is sorted out, the nonpaying home buyer should be liable for the time they stayed in the home without paying as long as that provision was put into the original mortgage papers. After all, the lenders wrote the terms of the mortgage and assumed the risk. If it’s not working out for them, it’s their fault.
Deadbeat Americans?
What about the tens of millions of homeowners that lost their jobs, careers, investments, businesses, etc, then were forced by the banksters political co-conspirators, to bail out wall street and the banks to the tune of multiple trillions?
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