Daily Archives: November 21, 2012

PARTRIDGE, SNOW & HAHN, LLP ( Post Eaton Fraudulent Affidavit Award Goes To…)

Here’s another beauty from the Partridge Snow & Hahn Foreclosure Mill. Dawn Hills (being duly sworn and under penalty of perjury) signs the “Note Affidavit” in New Haven CT, I guess, and it is notarized in MA? Or is it the other way around? Or something else altogether? In any event, Ann Marie Maccarone, Esq., of Partridge Snow & Hahn signs it too…just for kicks. What happened to Eaton vs. FNMA?

Foreclosure Hamlet website:

174 Lower County Road Dennis Port MA Auction date: November 30, 2012 @ 2 PM.



Partridge, Snow, and Hahn LLP out of Warwick, Rhode Island.

We would like to send our sincerest congratulations to the law firm, for their creation of this one of a kind document.

Only the best could come up with this work of art.  What’s even more scary is that this even got RECORDED!!!

On Page 2 we have:

New Haven County ( that’s Connecticut for you Southerner’s) in State/Commonwealth of Massachusetts, and notary stamp is again, Connecticut.  Let’s break it down.

Partridge, Snow, and Hahn LLP is in Rhode Island… they are using a clearly stated Mass. form, which was notarized in Connecticut, and sworn to by an Atty in Rhode Island.  That’s 3 states.  For a property in Barnstable County,  MA.

How DO they do it??!!   I don’t think the Supreme Court Justices of Massachusetts would find this amusing.  Not in the least.

Again… if you are going to create fraudulent documents to steal people’s houses, could you at least try to make them at least “correctly fraudulent”??  And we thought Harmon Law was bad….

To think this document was signed under the penalty of perjury…AMAZING.

Sanctions? Disbarred?

Bank of America Sued by CIFG Over Mortgage Securities

Bank of America Corp., the second- biggest U.S. bank by assets, was sued by CIFG Assurance North America Inc. for fraud and breach of contract over insurance policies tied to residential mortgage-backed securities.

The suit was filed yesterday in New York State Supreme Court in Manhattan in connection with five financial guaranty insurance policies issued by CIFG. The policies relate to two structured transactions arranged by Bank of America and backed by 22 mortgage-backed securities, according to court filings.

Read on.

American Banks Actually Are Lending Again—to Europe

American banks having a hard time finding credit-worthy customers near home are finding more business in an unlikely spot — Europe.

At a time when credit problems in Greece, Spain and elsewhere on the continent are dominating headlines, U.S. lenders have been able to capitalize on the crisis by taking business away from European banks.

Bank lending may seem sparse in the U.S., but that’s largely a matter of perception. Bank lending is actually on the rise, but only to borrowers with nearly spotless qualifications.

In Europe, meanwhile, lending standards are tightening while credit conditions are worsening, according to the most recent bank lending survey from the European Central Bank. Worsening economic conditions have put pressure on banks there while opening opportunities for well-capitalized institutions in the U.S., where the economy is managing to eke out at least slow growth.

Read on.

JPMorgan Chase employee says in court that she was raped by a vice president whom the bank allowed “to prey on defenseless women”

DALLAS (CN) – A JPMorgan Chase employee says in court that she was raped by a vice president whom the bank allowed “to prey on defenseless women.”
Kimberly Schultz sued the bank and Derrick Gilliam, its vice president and senior project manager, in Dallas County Court on Tuesday
Schultz says the Flower Mound-based Gilliam hired her to a $75,000-per-year job after a brief meeting, and that showed an inappropriate interest in her from the start.
After Schultz tried to resign her loss-mitigation position in June 2011, Gilliam persuaded her to stay and allegedly tried to get her drunk, she says.
“The next day, Defendant Gilliam told Schultz that they need to have an ‘offsite meeting,’ and that Schultz needed to bring her work laptop with her,” the nine-page complaint states. “The meeting took place at a hotel, and Schultz assumed that the meeting would take place in a conference room. This was not what Gilliam had in mind. Instead, Gilliam had Schultz meet him in a hotel room. Referring his coercive acts the night before, he asked her ‘You’re not going to tell HR, are you?’ At that point he stated ‘I’m your boss,’ and attempted to force Schultz into performing fellatio.”
Schultz says she refused, but that Gilliam allegedly pushed her onto the bed and forcibly raped her while she pleaded for him to stop.

Read on.

Twinkees Gone. Hostess Liquidation To Proceed, Bankruptcy Judge Rules

Hostess Brands Inc. must consider a “liquidation scenario” after mediation with its bakers’ union failed to avert a shutdown that may eliminate more than 18,000 jobs, the judge overseeing the Twinkie maker’s bankruptcy said.

Chief Executive Officer Gregory Rayburn told U.S. Bankruptcy Judge Robert Drain that 15,000 Hostess workers will be fired today to allow them to start collecting unemployment benefits. The company is seeking Drain’s permission to close so it can begin asset sales that a financial adviser estimated may yield about $1 billion.

There is “very intense” competition for Hostess’s brands, Joshua Scherer of Perella Weinberg Partners LP told Drain at a hearing in White PlainsNew York. A sale would be a “once in a lifetime opportunity for our competitors to get iconic brands,” he said. The 82-year-old company makes Wonder bread, Hostess CupCakes, Ding Dongs, Ho Hos and Drake’s Devil Dogs.

Read on.

NY AG Schneiderman Promises More MBS Lawsuits

American Banker:

Schneiderman Strikes Again: More details have emerged regarding New York Attorney General Eric Schneiderman’s mortgage-backed securities case against Credit Suisse, now that it has formally been filed, and while there are definite nuances and different key players, the general gist of the allegations may sound a bit familiar. To surmise, prosecutors allege the investment bank misled investors about the quality of the home loans that made up its mortgage securities back in 2006 and 2007. In another bout of déjà vu, there are also apparently incriminating staff emails to back these claims up. (See American Banker‘s candid crisis catchphrases slideshow for a good refresher on earlier examples of internal correspondence gone awry.) Credit Suisse is rejecting the complaint, saying (and this might also ring a bell) that it “recycles baseless claims from private lawsuits” and uses an “inaccurate and exaggerated” number. (Schneiderman is seeking damages related to $11.2 billion in losses.) But perhaps the most important thing to note, post-filing, is that the attorney general reinforced his pledge to pursue legal action against “other institutions” for mortgage-related wrongdoing. And a New York state law with a 10-year statute of limitations provides him with plenty of time to do so. Financial Times,Wall Street JournalWashington PostAmerican Banker

The question is who is the next bank Schneiderman will go after under the Martin Act? Will it be one of these banks in which FHFA is suing in alleged federal securities law violations in the sale of RMBS? Hint: Cross off JP Morgan Chase and Credit Suisse of the list.:

1. Ally Financial Inc. f/k/a GMAC, LLC
2. Bank of America Corporation
3. Barclays Bank PLC
4. Citigroup, Inc.
5. Countrywide Financial Corporation
6. Credit Suisse Holdings (USA), Inc.
7. Deutsche Bank AG
8. First Horizon National Corporation
9. General Electric Company
10. Goldman Sachs & Co.
11. HSBC North America Holdings, Inc.
12. JPMorgan Chase & Co.
13. Merrill Lynch & Co. / First Franklin Financial Corp.
14. Morgan Stanley
15. Nomura Holding America Inc.
16. The Royal Bank of Scotland Group PLC
17. Société Générale

One Million Fraudulent Documents:DOJ Press Release on Former Exec LPS/Lorriane Brown Fraud Scheme

FOR IMMEDIATE RELEASE                                                                                                CRM

TUESDAY, NOVEMBER 20, 2012                                                                        (202) 514-2007

WWW.JUSTICE.GOV                                                                                    TTY (866) 544-5309


 Over 1 Million Documents Prepared and Filed with Forged and False Signatures, Fraudulent Notarizations

WASHINGTON – A former executive of Lender Processing Services, Inc. (LPS) – a publicly traded company based in Jacksonville, Fla. – pleaded guilty today, admitting her participation in a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States.

The guilty plea of Lorraine Brown, 56, of Alpharetta, Ga., was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Middle District of Florida, Robert E. O’Neill; and Michael Steinbach, Special Agent in Charge of the FBI’s Jacksonville Field Office.

The plea, to conspiracy to commit mail and wire fraud, was entered before U.S. Magistrate Judge Monte C. Richardson in Jacksonville federal court.  Brown faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the crime.  The date for sentencing has not yet been set.

“Lorraine Brown participated in a scheme to fabricate mortgage-related documents at the height of the financial crisis,” said AAG Breuer.  “She was responsible for more than a million fraudulent documents entering the system, directing company employees to forge and falsify documents relied on by property recorders, title insurers, and others.  Appropriately, she now faces the prospect of prison time.”

“Homeownership is a huge step for American citizens,” said U.S. Attorney O’Neill.  “The process itself is often intimidating and lengthy.  Consumers rely heavily on the integrity and due diligence of those serving as representatives throughout this process to secure their investments.  When the integrity of this process is compromised, illegally, public confidence is eroded.  We must work to assure the public that their investments are sound, worthy, and protected.”

Special Agent in Charge Steinbach stated, “Our country is increasingly faced with more pervasive and sophisticated fraud schemes that have the potential to disrupt entire markets and the economy as a whole.  The FBI, with our partners, is committed to addressing these schemes.  As these schemes continue to evolve and become more sophisticated, so too will we.”

Brown was the chief executive of DocX LLC, which was involved in the preparation and recordation of mortgage-related documents throughout the country since the 1990s.  DocX was acquired by an LPS predecessor company, and was part of LPS’s business when LPS was formed as a stand-alone company in 2008. At that time, DocX was rebranded as “LPS Document Solutions, a Division of LPS.”  Brown was the president and senior managing director of LPS Document Solutions, which constituted DocX’s operations.

DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes. Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices.  Only specific personnel at DocX were authorized by the clients to sign the documents.

According to plea documents filed today, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices.  Unbeknownst to the clients, Brown directed the authorized signers to allow other DocX employees, who were not authorized signers, to sign the mortgage-related documents and have them notarized as if actually executed by the authorized DocX employee.

Also according to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit.  Specifically, DocX was able to create, execute and file larger volumes of documents using these signing and notarization practices.  To further increase profits, DocX also hired temporary workers to sign as authorized signers.  These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients.  Some of these temporary workers were able to sign thousands of mortgage-related instruments a day.  Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.

After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country.  Many of these documents – particularly mortgage assignments, lost note affidavits, and lost assignment affidavits – were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions.  Brown admitted she understood that property recorders, courts, title insurers and homeowners relied upon the documents as genuine.

Brown also admitted that she and others also took various steps to conceal their actions from clients, LPS corporate headquarters, law enforcement authorities and others.  These actions included testing new employees to ensure they could mimic signatures, lying to LPS internal audit personnel during reviews of the operation in 2009, making false exculpatory statements after being confronted by LPS corporate officials about the acts and lying to the FBI during its investigation.  LPS closed DocX in early 2010.

This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida.  This case is being investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.

Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visitwww.stopfraud.gov.

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Securities fraud case against former Fannie Mae exec dismissed

Plaintiffs representing retirement pension plans in a major securities litigation case against former Fannie Mae executives saw their case against one of those executives thrown out of court this week.

U.S. District Judge Richard Leon with the District of Columbia agreed to dismiss securities fraud claims filed against former Fannie Mae senior vice president and controller Leanne Spencer on the grounds that the plaintiffs did not show in pleadings that Spencer ‘knowingly’ intended to deceive Fannie Mae investors.

Read on.

Hostess Mediation Fails, Liquidation To Proceed; Furious Laid Off Workers Now Turn On Labor Union

From the WSJ:

Hostess Brands Inc. said Tuesday night it would proceed with liquidation plans after mediation fails.

Earlier Tuesday, the head of the bakers union whose strike precipitated Hostess liquidation plans didn’t attend a last-ditch mediation session and wasn’t hopeful about its prospects, he said.

“I’m not too optimistic about this mediation,” Frank Hurt, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, said when reached earlier Tuesday afternoon in Columbus, Ohio. He said he couldn’t get to New York, where the session was taking place; instead, he said, the union’s secretary-treasurer was attending.

The mediation came at a judge’s suggestion after the Twinkie maker said Friday that a week-long strike by the bakers left the company no choice but to seek a bankruptcy judge’s approval for liquidation.

The judge, Robert Drain, urged mediation, citing among other things the hope for saving some 18,500 jobs. The company filed for bankruptcy protection for the second time in January.

The judge indicated Monday that if mediation wasn’t successful, Hostess could return to court Wednesday to pursue its liquidation plan.

Doug Mansky, a Hostess driver in Detroit and a member of the International Brotherhood of Teamsters, was in the process of moving to a cheaper condominium on Tuesday, after his union had agreed to an 8% pay cut that he said would shave $200 a week from his income. After Judge Drain cleared Hostess to impose the same new labor terms on the bakers union, they went on strike.

“I hope things work out. I’m going to be 49 and trying to find a job in a market that’s terrible,” Mr. Mansky said.

Sadly, the reality of learning just how bad the labor market truly is, all smoke and mirrors of a recovery aside, will now have to be experienced by not only Mr. Manksy but 18,499 of his fellow co-workers, who may have been duped into hoping by their union that by holding out a hardline stance, they would gain something.

They have now lost everything. And not too unexpectedly, the workers are now turning on the Union!

[S]ome Hostess workers in another union awaiting the
mediation results criticized Mr. Hurt, the 20-year president of the
bakers union, who defended his decisions and actions during the
company’s bankruptcy process.

Scott Quenneville, a Hostess truck driver represented by the Teamsters, said he feels his colleagues were misled by Mr. Hurt into believing that a buyer would swoop in for the company. Mr. Hurt on Sunday said he thought there was a good chance a buyer would emerge who would give union members their jobs back.

Frank misled a lot of people. He was not going to settle for anything less than closing the company down, because they didn’t want that 8% pay cut,” said Mr. Quenneville. “If you don’t want the job, leave the job. Why ruin 18,000 jobs?”

I didn’t mislead anybody on anything,” Mr. Hurt said. He said he didn’t tell workers preparing to strike that a buyer for Hostess was definitely waiting in the wings.

Mr. Hurt said, “I don’t want anybody to think that anybody is guaranteeing anyone anything, but we did know that there were people taking a look at this company.”

Source: Zerohedge

New Jersey Courts Require Homeowners to Act Promptly in Defense of Foreclosure

The New Jersey Appellate Division found that homeowners’ excessive delay in raising their standing arguments precluded potential defenses and affirmed that a foreclosure judgment received by a party lacking standing is not necessarily void.

On November 14, 2012, the New Jersey Appellate Division affirmed an order denying the defendants/homeowners’ motion to vacate a final judgment of foreclosure entered on March 17, 2009 and their application to further restrain a sheriff’s sale. Nearly three and half years after being served with the foreclosure complaint and over two years after plaintiff obtained a final foreclosure judgment, the defendants/homeowners filed an order to show cause seeking to stay the pending sheriff’s sale and to vacate the 2009 final judgment as void and for other reasons justifying relief from the judgment pursuant to New Jersey Court Rule 4:50-1 (d) and (f). The defendants/homeowners argued that the plaintiff lacked standing to file the foreclosure complaint because it did not take an assignment of mortgage until after the complaint was filed.

Read on.