Daily Archives: March 6, 2016

Attorneys General in 11 states and the DOJ received numerous complaints against Trump University, and at least two Attorneys General launched investigations

From Cohen vs. Trump complaint:

Governmental Investigations into Trump University

50. Attorneys General in 11 states and the U.S. Department of Justice received numerous complaints against Defendant and Trump University, and at least two Attorneys General launched investigations. In January 2010, Texas Attorney General Greg Abbott’s office launched a probe of Defendant and Trump University’s advertising and business practices after getting two dozen complaints. Abbott said he was probing “possibly deceptive trade practices” dating back to 2008. Abbott’s investigation resulted in Defendant’s ultimate suspension of all Live Events in Texas in May 2010.

51. In May 2011, the New York State Attorney General’s Office also launched an investigation into whether Donald Trump and Trump University “engaged in illegal business practices.” The investigation was described by the New York Times as “the latest problem” in “a string of consumer complaints, reprimands from state regulators and a lawsuit from dissatisfied former students,” and was prompted by about a dozen complaints concerning Trump University that Attorney General Eric T. Schneiderman found to be “credible” and “serious. ” 8

8 See Michael Barbaro, New York Attorney General Is Investigating Trump’s For-Profit School, New York Times, May 19, 2011. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 883445_1 (I – 22 – Case 3:13-cv-02519-DMS-RBB Document 1 Filed 10/18/13 Page 23 of 35 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11

52. Florida Attorney General Bill McCollum’s office has been reportedly I “reviewing” 20 or more complaints from consumers who paid up to $35,000 for I various Live Events.

On a side note:  Florida Attorney General Pam Bondi dropped pursuing Trump University thanks to a nice contribution by Donald Trump for her re-election. Here is the story:

A Sept. 14 Orlando Sentinel story noted that Schneiderman cited dozens of complaints filed with the Florida Attorney General’s Office in 2008, two years before Bondi took office. A spokeswoman for Bondi was quoted as saying the office was reviewing the New York lawsuit.

Three days later, the Donald J. Trump Foundation, based in New York, made a $25,000 contribution to And Justice for All, a political fundraising committee raising money for Bondi’s re-election.

Florida hasn’t followed New York’s lead against Trump. Bondi couldn’t be reached for comment. Jenn Meale, a Bondi spokeswoman, suggested no action is necessary because the affected Florida consumers would be compensated if New York wins that case.

And what happen to the probe in Texas? Then Texas Attorney General and now Gov. Abbott Forced Trump University from operating in the state and investigated it for claims of “deceptive trade practices”:

Trump University, rather than producing the documents, agreed to stop doing business in Texas and later that year, ceased operations completely.
 

HSBC: The connection between money-laundering and mortgages

More on chemist Dean Moore’s fight against HSBC and DOJ on the deferred prosecution agreement of HSBC money laundering probe to be released to the public:

The money-laundering/mortgage connection

Moore’s logic for wanting to see the report is explained here:

Moore contends that the report, which says that the bank has operational problems in its mortgage operations, could be relevant to his claim with the CFPB.

“It is my contention that the report would (or will) validate my claims that HSBC is in direct violation of multiple sections of multiple Consent Decrees,” he wrote in a letter to Gleeson.

The Office of the Comptroller of the Currency agrees with Moore—HSBC has violated at least one consent decree, specifically one from 2011 concerning death-pledges.  Here is a quote from a document styled as “Consent Order Amending The 2011 Consent Order and 2013 Amendment To The 2011 Consent Order”:

(3) The OCC has determined the Bank has failed to comply with forty-five (45) actionable items under Articles III, IV, V, VI, VIII, and IX of the Consent Order, including the Bank’s obligations under the Consent Order with respect to the sub-servicing performed by the third-party servicer on its behalf.

(4) The OCC has determined the Bank is in continuing noncompliance with and in violation of the Consent Order, and continues to engage in unsafe and unsound practices.

So at least two government agencies—the DOJ and the OCC—have determined that HSBC is in violation of multiple legal agreements between the bank and the government, yet HSBC continues to be allowed to operate and no one is being prosecuted or put in jail.  Moore is definitely onto something and apparently the same judge that approved the DPA regarding drug money-laundering is now inclined to honor Moore’s request to have the 2015 compliance report be made public.

It’s not at all surprising, of course, that a bank that engages in money-laundering also tries to scam homeowners looking for help on making their mortgage payments.  But that’s not the only connection between money-laundering and mortgages, in my view.  So-called “securitization” with the use of the MERS system to make ownership of promissory notes completely opaque, is the ultimate form of seemingly legal money-laundering.  Indeed, as we have written here before at LRM, MERS is the “invisibility cloak of the banksters”:

Yes, the banks don’t want you to see what they’re doing–or not doing, as the case may be.  Specifically, they don’t want you to see that they have separated your note from your deed of trust/mortgage.  In my opinion (and I am not an attorney) there are two main, unstated reasons for the existence of MERS: 1) to separate the security document from the note and 2) to purport to rejoin them as if they’d never been separated at the time of foreclosure.

The purpose of point 1 above (the purpose of point 2 is self-explanatory): for banks/financiers to be able to pledge or “sell” the same note multiple times (see this, this, and this)–i.e.,rehypothecate–without having to indicate that the note has been sold multiple times in the county land records (via assignments in said records that used to be required for each sale of the note).

In any event, HSBC is but the tip of the iceberg, and hopefully Moore’s request for the release of the HSBC compliance report will be granted and the rest of the iceberg will be revealed, or at least begin to be revealed.

And here is Moore letter to the judge including a copy of Notice of Sale of his mortgage loan sold from HSBC where he was acquiring a loss mitigation application to Caliber Home Loans on November 2 2015. Letter of the Notice of Sale is dated November 12, 2015, yet Moore received a letter from HSBC of acknowledgement of loss mitigation application dated November 5, 2015. Click here.

On a side note: here is information of Moore’s loan in the MERS registry:

2 records matched your search:

MIN:1001761-0603140944-5 Note Date:03/27/2006 MIN Status:Active
Servicer: Caliber Home Loans, Inc Phone:(405) 608-2530
Oklahoma City, OK
If you are a borrower on this loan, you can click here to enter additional information and display the Investor name.
MIN:1000137-0006558299-9 Note Date:10/30/2001 MIN Status:Inactive
Servicer: JPMorgan Chase Bank, National Association (fka Chase) Phone:(800) 848-9136
Monroe, LA
If you are a borrower on this loan, you can click here to enter additional information and display the Investor name.
For more information about Mortgage Electronic Registration Systems, Inc. (MERS) please go to www.mersinc.org