JPMorgan Chase & Co : JPMorgan liable to billionaire Blavatnik over mortgage losses
A New York state judge found JPMorgan Chase & Co liable to Russian-American billionaire Leonard Blavatnik for breach of contract for stuffing an investment account he held with risky subprime mortgage securities, and ordered the bank to pay more than $50 million of damages including interest.
In a decision made public on Monday, New York State Supreme Court Justice Melvin Schweitzer ordered the largest U.S. bank to pay $42.5 million on the breach of contract claim, plus 5 percent annual interest starting in May 2008.
The Manhattan judge also found JPMorgan was not liable for negligence. His decision was dated August 21, and came about seven months after a three-week, non-jury trial.
Blavatnik had sued JPMorgan in 2009 to recover more than $100 million that he said the New York-based bank lost on a roughly $1 billion investment by CMMF LLC, a fund created by his firm, Access Industries Group.
The decision comes as JPMorgan faces a swirl of other litigation and investigations, including into its handling of mortgage-related businesses during the financial crisis.
BofA sued by Washington and Vermont investment boards over MBS
No court document on this one..
MANHATTAN – Vermont and Washington investment boards sued Bank of America in a federal lawsuit over Washington Mutual-backed mortgage securities.
By Evan M. Rosen
The Law Offices of Evan M. Rosen obtains another win for a client in a foreclosure case. This dismissal comes on the eve of trial resulting from a deposition taken of Angela Edwards, a Complaint Verifier for Homeward Residential and a Motion to Strike Verification as a Sham that followed.
It all started months before the trial was set and it was one of our first cases we decided to go after the verifier of the complaint. So we served the witness with a subpoena and set down the deposition. Little did we know that a few weeks later we would have the weapon needed to defeat this foreclosure.
It was plainly obvious from our deposition that Ms. Edwards had very little knowledge of even the basics of her employer’s business. Although she claimed she received training to verify complaints, she could not explain basic facts that were alleged in the Complaint and did not even know what to look for in order to verify those facts. Most poignantly, she admittedly did not verify certain key aspects of the Complaint but instead relied on the Complaint itself as her proof that the allegations stated therein were true and correct.If this were a philosophy paper, a somewhat circular statement such as “I think therefore I am” is perfectly acceptable. However, in a court of law, when a document requires that it be verified as true and correct, under penalty of perjury, one cannot sign off that what is stated in the Complaint is true because it is stated in the Complaint. This is preposterous.
The entire reasoning behind the Florida Supreme court taking unprecedented, historic action to amend rule 1.100(b) was because of the financial industry’s well documented illegal behavior. It was primarily in response to the “robo signing” scandal, which ultimately led to settlements with 49 states, OCC consent orders, and numerous class action and shareholder lawsuits. We now know that “robo-signing” is used to describe the rampant process of having a person sign a document without authority to do so and/or knowledge as to that which they are signing, despite swearing otherwise.
And just like past “robo-signers” this new breed was no different.
Copy of The Voluntary Dismissal and Deposition of Angela Edwards Below…
Key lawyer jumps ship at JPMorgan Chase for smaller bank
JPMorgan Chase (JPM) is one man down in their ongoing legal battle, with one of the firm’s main litigation and government investigation lawyers leaving the bank. The mega bank is facing a slew of legal disputes from the London whale trades, bad hiring allegations and various accusations of regulator errors. Reuters has more:
Michael Coyne, who has been associate general counsel and co-head of litigation at JPMorgan, is becoming general counsel of Union Bank and its holding company, UnionBanCal Corp, according to a statement that Union Bank issued on Monday.
Coyne had been at JPMorgan for 21 years and in 2010 became responsible for litigation and government investigation matters worldwide, according to the statement.