What we have here is what I dubbed in 2008 “A holographic image of an empty paper bag.”
The farce of securitization continues every day. In the savings and loan crisis of the 1980’s more than 800 bankers were jailed. This time only one person was jailed and she is about to be set free. Despite the revelations of illegal and fraudulent practices by banks acting in multiple roles as REMIC Trusts, Trustees, Master Servicers, and attorneys in fact, despite the fact that the money for loans was converted by those banks and covered up with a trail of paper that was garbage, despite the wholesale gutting of investors and homeowners alike, this appears to be the end of criminal prosecution even as the fraud continues.
THE FOLLOWING ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
The only thing they continue to get wrong is the presumption that the bank conduct was the result of negligence. There was no negligence. All the acts were the components of a carefully constructed criminal enterprise. And that is why 9 lawyers who were tasked with writing the documents for “securitization” quit. They refused to take part in what they called a criminal enterprise.
The truth is they rented the name of Linda Green to be used on tens of thousands of documents in order to distance the perpetrators from the actual fraud. This practice of “rent-a-name” is mirrored in the role of “Trustees” for “REMIC Trusts” that never conducted business, “Master Servicers”, “Subservicers” and others.
In a case I won last week with Patrick Giunta, a state court judge laid out the discrepancies and absence of any connection between the “evidence” and the myriad of companies meant to complicate the relationships such that piercing through the veil of fraud would be nearly impossible. But a very persistent Judge did it anyway — after painstakingly going through the documents and other evidence, while we waited nearly 2 hours for his decision.
Watch for my article on this when the case has been completed. Spoiler alert: Look carefully at the PSA on exhibit “A” and think about what was required to tie in the “MLS” (Mortgage Loan Schedule) with the PSA. The robo-witness was at best mistaken when he testified that the MLS, bearing no markings of any kind as to where it came from, was Exhibit “A” to the PSA “Trust Instrument.”And the presentation of the MLS was in direct conflict with what was written on “Exhibit “A”. What we have here is what I dubbed in 2008 “A holographic image of an empty paper bag.”
Here are some excerpts from the VICE article:
Brown was CEO of DocX, the third-party document-processing company that engineered the production of some 2 million fictitious mortgage assignments, often forged by people whose name didn’t match their signature, as a recent VICE investigation documented. These assignments were used as evidence in foreclosure cases nationwide beginning in the mid 2000s, leading to an untold number of people being ejected from their houses. Some 9 million Americans have surrendered their homes to banks since 2006, according to the Wall Street Journal, and the case that netted Lorraine Brown added to the evidence pile suggesting much of that misery was based on fraud.
Linda Green, a former shipping clerk for an auto-parts store, signed as the vice president of at least 20 other financial institutions, according to records compiled by Lynn Szymoniak, a whistleblower who wrote the fraud complaint that triggered the Jacksonville FBI investigation. But Green’s signatures all featured different styles of handwriting, because various people in the office wrote her signature on DocX mortgage assignments. According to a 60 Minutes profile from 2011, Green was selected to be the authorized bank officer because she had an easy-to-spell name.
Federal officials in Jacksonville believed that not only DocX, but their clients—the mortgage companies seeking false evidence—committed fraud by lacking a clear chain of title on millions of homes. And their superiors at FBI headquarters saw potential in the case, according to the FOIA documents. “If evidence collected shows intent to defraud investors by the real estate trusts, this matter has the potential to be a top ten Corporate Fraud case,” read one reply from the FBI’s Criminal Investigative Division that authorized additional resources to the Jacksonville office.