Daily Archives: March 24, 2014

A reminder: National Mortgage Settlement agreement was announced prior to republished Wells Fargo manual


Remember this?

MONDAY, MARCH 12, 2012 (202) 514-2008
WWW.JUSTICE.GOV TTY (866) 544-5309


WASHINGTON – The Justice Department, the Department of Housing and Urban
Development (HUD) and 49 state attorneys general announced today the filing of their landmark
$25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan
servicing and foreclosure abuses.


And this:



Wells Fargo manual for fabricating foreclosure documents was distributed to Wells lawyers  after settlement with DOJ.



Bank Of America Says It Shouldn’t Have To Pay For School Employee Who Stole $840K

Bank Of America Says It Shouldn’t Have To Pay For School Employee Who Stole $840K

For more than four years, an employee of a Catholic school in Connecticut got away with siphoning hundreds of thousands of dollars from the school’s account at Bank of America. In 2012, a court ordered BofA to pay $840,000 to the diocese for its failure to catch on to the swindle. Today, the bank was scheduled to appear in court to make its case for why it shouldn’t have to pay that tab.


Back in 2002, the St. Bernard School of Montville, CT, was already banking at Fleet Bank, but an accounts payable employee for the school took it upon himself to open up a second account for “Saint Bernard’s High School Norwich Diocese Camp Sunshine” at a second Fleet branch. Even though the employee had no authority to access the school’s account, he was able to shift funds from the legitimate account to the bogus one. Additionally, he told some people who wrote checks to the school to make them out to the Sunshine Camp so the funds would be deposited straight into the scam account. He also wrote checks from the school’s account to the fraudulent account to pay invoices that didn’t exist.

While all this was going on, Fleet Bank merged with Bank of America in 2004.

It wasn’t until after the man lost his job when his position was cut that the school caught on to the sizable swindle. He was arrested in 2007 and convicted of first-degree larceny in 2008.

That same year, the Roman Catholic Diocese of Norwich, CT, which runs the school, sued BofA for negligence, saying it failed in its obligation to protect its customers’ money.

The bank argued that the school’s deposit agreement includes a time limit for making claim disputes and that it had waited too long before filing its claims.


Demarco to Leave FHFA After Leading Fannie Mae Conservatorship

Demarco to Leave FHFA After Leading Fannie Mae Conservatorship

Edward J. DeMarco, who led the U.S. Federal Housing Finance Agency as acting director in the wake of the 2008 credit crisis, will leave the agency at the end of April.

DeMarco, who remained at FHFA as a deputy director after Melvin L. Watt took the helm in January, submitted a resignation letter today, the agency said in a statement.

“With the transition now well along, I believe the time has come for me to seek other opportunities,” DeMarco said in the letter. He didn’t specify his future plans.


Banker Deaths Leave Industry Concerned as Coroners Probe

Banker Deaths Leave Industry Concerned as Coroners Probe

Coroners in London are preparing to investigate two apparent suicides as unexpected deaths by finance workers around the world have raised concerns about mental health and stress levels in the industry.

The inquest into the death of William Broeksmit, 58, a retired Deutsche Bank AG (DBK) risk executive found dead in his London home in January, will start tomorrow. The inquest for Gabriel Magee, a 39-year-old vice president in technology operations at JPMorgan Chase (JPM)& Co., who died after falling from the firm’s 33-story London headquarters, is scheduled for late May.

The suicides were followed by others around the world, including at JPMorgan in Hong Kong, as well as Mike Dueker, the chief economist at Seattle-based Russell Investment Management Co. The financial world’s aggressive, hard-working culture may be hurting itself, professionals advising on mental health in the industry say.

At greatest risk are “those who have not cultivated friendships, networks, outside of their company,” said Stewart Black, professor of global leadership and strategy at IMD, a business school in Lausanne, Switzerland.

“A lot of executives keep their nose down, work hard, do great work and don’t really cultivate extra networks,” he said. “Those broader networks act as safety valves.”


Former Madoff aides convicted of assisting fraud

Former Madoff aides convicted of assisting fraud

Five former aides to investment manager Bernard Madoff were convicted on Monday on charges that they helped their boss conceal his massive Ponzi scheme for years.

A federal jury in New York found back-office director Daniel Bonventre, portfolio managers Annette Bongiorno and Joann Crupi and computer programmers Jerome O’Hara and George Perez guilty of securities fraud in connection with clients of the former Bernard L. Madoff Investment Securities LLC. They were also convicted of conspiring to defraud those clients.


Dolan Co. Files Bankruptcy to Cut Foreclosure Unit Debt

Dolan Co. Files Bankruptcy to Cut Foreclosure Unit Debt

Another foreclosure mill company that bites the dust…

Dolan Co. (DOLN), a provider of legal-support services and publishing, filed for bankruptcy after agreeing to be taken over by lenders to cut debt linked to its former mortgage foreclosure-processing business.

The Minneapolis-based company listed debt of $185.9 million and assets of $236.2 million as of Sept. 30 in a Chapter 11 petition filed today in Wilmington, Delaware.

“This reorganization step is necessary to unlock these current businesses from the weight of debt principally associated with its previous mortgage foreclosure processing businesses,” Kevin Nystrom, Dolan’s chief restructuring officer, said in a March 20 statement.

Dolan said it didn’t expect its DiscoverReady LLC document-review unit to join it in bankruptcy. All company services, including those provided by DiscoverReady, will continue without interruption, according to the statement.


Federal judge blasted Wells Fargo for submitting a “fraudulent” foreclosure document to court under penalty of perjury, according to a hearing transcript

Federal judge blasted Wells Fargo for submitting a “fraudulent” foreclosure document to court under penalty of perjury, according to a hearing transcript

A federal judge in New York blasted mega-bank Wells Fargo for submitting a “fraudulent” foreclosure document to the court under penalty of perjury, according to a hearing transcript.

Robert Drain, a US Bankruptcy Judge in White Plains, slammed the bank at a March 1, 2012, hearing that was part of the Chapter 13 bankruptcy case of Westchester resident Cynthia Carssow Franklin.

Earlier this month, Carssow Franklin’s attorney, Linda Tirelli, put forward an emergency request to reopen the discovery phase of the trial in light of the existence of two watershed documents: a Wells Fargo Foreclosure Attorney Procedures Manual, and a foreclosure-paperwork order form on Wells Fargo letterhead.