Fraudclosure: Will State AGs Step Up to Their Moment in History?
Rumor has it that the 50-state attorney general investigation into the Fraudclosure scandal is wrapping up. It's time for a backbone check. Will the state attorneys general just ask the big banks and service providers to turn over a chunk of change from seemingly bottomless pockets? (This strategy was pursued by the Security and Exchange Commission (SEC) with little impact). Or will Iowa Attorney General Tom Miller take the lead in wrestling a real settlement out of the banks so that families hammered by unemployment and underemployment can stay in their homes?
Widespread Criminality
Americans know that the big banks and the mortgage service providers got us into this hole by pursuing an array of financial crimes. The SEC settlements alone have revealed a plethora of illegal, predatory and deceptive lending related to mortgages, securities fraud, accounting fraud, insider trading, brokerage fraud, bribery of government officials, criminal conflict of interest, deception of shareholders and investors, and more.
Now the "robo-signing" scandal is pulling back the curtain on Act II of this white collar crime spree -- revealing a new array of financial crimes by the very same institutions: robo-signing, fake witnesses, fake notaries, fake documents, fake attorneys, not to mention plain old theft as servicers rob consumers of hundreds or thousands of dollars in misapplied fees. There are additional crimes related to the way that banks have failed to correctly transfer promissory notes through the system and efforts to mislead and defraud investors. The short story is that many homeowners were foreclosed upon based on falsified documents by a bank who was not the true holder of the mortgage note. This is a crisis not only for individual homeowners, but investors who bought flaws mortgage-backed securities and for financial system as a whole.
Not a Single Prosecution of a Major Player
Perverse incentives on Wall Street allowed top executives to make more money on flawed loans than boring old 30-year mortgages. Even though there is widespread agreement that Wall Street’s endless appetite for high-interest, high-fees loans to fuel the mortgage securitization machine had a causal role in supercharging the housing bubble, not one mortgage servicer provider or big bank CEO has been put in jail. This compares to over 1,000 successful prosecutions of top officers during the Savings and Loan crisis of the late 1980s.
While the SEC has been churning out fines resulting in a long list of "settlements", Wall Street firms are beginning to set aside money and treat these actions merely as the cost of doing business.
There is nothing more instructive than jail time, but the U.S. Department of Justice (DOJ) has been hoodwinked by America’s biggest hoodlums, preferring to arrest a string of penny-ante Jersey mobsters than the Mafioso hiding in plain sight at Wall Street and Broadway. The DOJ delights in arresting people like Vinny Carwash" Frogiero, Frank "Meatball" Ballantoni, Anthino "Hootie" Russo. How about Jamie “Pretty Boy” Dimon, Lloyd “Godswork” Blankfein and Vikram “Slumdog“ Pandit?
History is Calling
In the history of the financial crisis, state AGs have so far come out looking pretty good. State AGs were the first in the nation to recognize that the predatory lending practices of firms such as Ameriquest and Countrywide were a danger to consumers and to the entire U.S. economy. In 2004, they were radically preempted from taking action against these crimes by Bush-appointed federal regulators at the Office of the Comptroller of the Currency. Now state AGs have another moment to outshine negligent federal prosecutors.
State AGs can take a series of actions that the Feds have failed to take. First of all, they can book the crooks and force top officers to trade pinstripes for jail stripes. Secondly, they can force the banks into settlements with individual homeowners that really take a bite out of their profits, complete with foreclosure redos and damages for harmed homeowners. They can also subject the banks to ongoing independent audits of their foreclosure procedures and they can demand that the banks force principle write downs and other across-the-board measures that will stabilize communities and the economy.
February 3rd National Day of Action
National People's Action and other foreclosure groups area calling for a national day of action tomorrow to urge the AGs to do the right thing. But why wait? You can go to BanskterUSA.org to email the lead investigator, Iowa AG Tom Miller, and tell him to do the right thing. You can also click here to find your AG's phone number so you can ask him or her directly for meaningful action on foreclosure.
If you are struggling with these issues, think about meeting up with your neighbors. "Mortgage Madness Meetups" are being facilitated by Huffington Post. The next worldwide meetup day is February 8th. Finally, if you are trapped in the snow today check out Dylan Ratigan's special series on the housing crisis "No Way to Live" on MSNBC.
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read Lender Processing Services newsletter, The Summit
Attorneys Generals all over the country need to read the back issues of Lender Processing Services (formerly known as Fidelity National Foreclosure Solutions) newsletter, the Summit.
Three back issues, from September, '06, October and December, '07, are readily available on the national homeowner support websites. These newsletters offer a startling look inside the foreclosure mill business. The September issue features an article about robo-signing, in which two LPS employees detail the practice and procedures that produced - on average - ONE THOUSAND affidavits per day. Do the math on that! There are articles about golfing junkets, where tens of thousands of dollars were offered for various golf-related prizes. Lawyers wrote articles about foreclosure/bankruptcy-related issues. Lawyers got their smiling faces printed for all to see. Law firms who faithfully used LPS's services were given tiered awards; nearly every state is represented by law firms we now call foreclosure "mills." There are kickbacks, too, in black and white, per billable file: by December, '07, LPS had kickbacked almost $500,000 to lawyers.
The September issue proclaims that the Fifth Annual Attorney Summit had just taken place, which means - duh - that this whole fraudulent scheme had really gotten off the ground by 2001.
The same names come up again and again. Same lawyers. The name that comes up the most is Gerald Shapiro, who has his fingers in law firms all over the country. Who is investigating Mr. Shapiro?
These newsletters establish long-term relationships between law firms (and, since lawyers don't work for free, their clients!) and the people charged with fabricating (as necessary) the documents needed to litigate both foreclosure and bankruptcy cases. These newsletters spell out the steps that were being taken to orchestrate a scheme so vast, so layered, so nuanced, that not only does it stagger the imagination, it has brought our country to its knees and sucked the middle class dry.
Call your AG and tell them to find the Summit. There are at least 30-40 issues out there.
Let's face it: if you or me brought fraudulent affidavits into court, they'd put us UNDER the jail. The banks, their lawyer stooges, and these phony document flunkies generated hundreds of thousands of fraudulent affidavits every year.
Lawyers must be disbarred! People need to go to jail! Fines are fine, but jail time is absolutely required.
From three issues:
FORECLOSURE MILLS, STATE-BY-STATE
No state:
Homecomings Foreclosure (GMAC?)
AK
Alaska Trustee, LLC
AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros
AK,HI,ID,MT,OR,WA,TX Trustee Corps.
Regional Trustee Services
AL
SIROTE & PERMUTT, P.C.
AL, MS Dumas and McPhail, L.L.C.
Shapiro & Pickett, LLP
AL Scott J. Humphrey
Albertelli Law
AR
Mickel Law Firm, PA * major award Oct’ 07
Robert S. Coleman, Jr., P.A.
Wilson & Associates, PLLC (article Oct. ’07)
Dyke, Henry, Goldsholl
Baxter and Schwartz PC
AZ
Malcolm & Cisneros
Tiffany & Bosco
Statewide Foreclosure Services
Folks & O’Connor, PLLC
AZ/NV/OR/UT/WA Law Offices of Les Zieve
CA
Old Republic Default Management Services
Solomon Grindle Silverman & Spinella
Malcolm & Cisneros
Curtis Law Group
Housekey
Quality Loan Service Corp
OPTION ONE (I think CA, see 12/07)
Fremont Investment and Loan Management
Aztec Foreclosure Corp
Old Republic Default Management Services
CO
Aronowitz & Ford, LLP
Robert J. Hopp & Associates, LLC
Edwards & Taylor, LLC
Frascona, Joiner, Goodman and Greenstein
Janeway Law Firm, PC
Moss Codilis
Castle, Meinhold & Stawiarski
Hellerstine & Shore
CT
Reiner, Reiner & Bendett (photos 12/07)
HUNT LIEBERT (now … Jacobson) * photos Oct. ‘06
CT/DC/MD/VA McCabe, Weisberg and Conway
Law Office of Martha Croog
DC
Rosenberg & Associates, LLC
MD/DC/VA Bierman, Geesing & Ward, LLC
CT/DC/ McCabe, Weisberg and Conway
MD/VA
DC/VA Curran & O'Sullivan, PC
DE
Draper & Goldberg
Whittington & Aulgur
Young Conaway Stargatt & Taylor
FL
HOLLAND & KNIGHT
Jonathan Kilne, PA
FL/PA Joseph H Ganguzza & Associates
David J. Stern, PA
Marshall C. Watson
Gary I. Gassel, PA
Law Offices of Daniel C. Consuegra
Ben Ezra Law Firm
Phillips, Flynn, Dareneau
Shapiro & Fishman
Smith, Hiatt & Diaz
Albertelli & Halsema
Enrico Gonzales
Popkin & Rosaler
GA:
Morris, Schneider & Prior
Ellis, Painter, Ratterree & Adams
McCalla, Raymer, Padrick, Cobb, Nichols & Clark
Shapiro & Swertfeger (photos Oct. ’06)
McCurdy & Candler, L.L.C.
Stites & Harbison
Richard B. Maner
Stephen J. Knezo
Albertelli & Halsema, PL
Flanagan & Ireland
Moore & Associates
Shuping, Morse & Ross
MORRIS, SCHNEIDER, PRIOR, JOHNSON & FREEDMAN, LLC (wrote article 12/07)
HI
AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros
AK,HI,ID,MT,OR,WA,TX Trustee Corps.
Pite, Duncan & Melmet
IA
Belin, Harris, Lamson & McCormic
Dunakey & Klatt
Petosa, Petosa & Boecker
ID
AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros
AK,HI,ID,MT,OR,WA,TX Trustee Corps.
McCarthy & Holthus
Regional Trustee Services
Alliance Default Services
IL
Kluever and Platt
Dutton & Dutton
Jaros, Tittle & O’Toole
IL/MI/OH/PA Weltman, Weinberg and Reis
Codilis & Associates * major award ‘07
Wirbicki Law Group
Heavner, Scott, Beyers & Mihlar
Kluever and Platt
Fisher & Shapiro
Freedman, Anselmo, Lindberg & Rappe
“I received yesterday the letter and check regarding the Bankruptcy Incentive Award.
I am very proud of the work that my staff has done to get to this point. We are
striving to be in the top 10 nationwide. I fully understand that you do not need to
give out the incentive awards. I am very appreciated of this and in my way have
tried to use your incentive to create an incentive for my staff. We are going to use
the check to create a "lunch" fund to buy bagels, pizza and other foods.”
- Steven C. Lindberg, FREEDMAN, ANSELMO, LINDBERG & RAPPE October ‘06
IN
Bleecker Brodey and Andrews
KY/IN/OH Reisenfeld & Associates
Nelson & Frankenberger
Feiwell & Hannoy
Foutty & Foutty
Doyle and Friedmeyer
KS
Kozeny & McCubbin
Martin, Leigh, Laws & Fritzlen
Shapiro & Mock
Shapiro & Reid
South & Associates
Gallas & Schultz
KY
KY/IN Reisenfeld & Associates
Manley Deas Kochalski, LLC
Reynolds & Thompson, LLP
Nielson & Sherry
Lerner, Sampson & Rothfuss
Clunk, Paisley and Assoc., PSC
Mapother & Mapother
LA
The Boles Law Firm
Foreclosure Law Firm, LLC
Shapiro & Mentz
Dean Morris
MA
Korde & Associates
Ablitt & Charlton
DOONAN, GRAVES & LONGORIA
MA/NH/RI Orlans Moran PLLC
MD
The Fisher Law Group, PLLC
CT/DC/MD/VA McCabe, Weisberg and Conway
MD/DC/VA Bierman, Geesing & Ward, LLC
Friedman & MacFadyen, PA
Cohn, Goldberg & Deutsch
Shapiro & Burson
Rosenberg and Associates
ME
Shapiro & Morley, LLP
MI
Potestivo & Associates
Trott & Trott (also listed as MN)
IL/MI/OH/PA Weltman, Weinberg and Reis
Orlans Associates
Fabrizio & Brook
Peter, Schneiderman & Associates
MN
TROTT AND TROTT, P.C.
Usset & Weingarden, PLLP
Shapiro, Nordmeyer & Zielke, LLP. (wrote article December ’07)
Elizabeth Mason, PC
Murnane Brandt
MO
Codilis, Stawiarski & Moody
Martin, Leigh, Laws & Fritzlen
Kozeny & McCubbin
Millsap & Singer
Sandberg, Phoenix and Von Gontart
South & Associates
MS
Adams & Edens PA
Shapiro & Massey
Dyke, Henry, Goldsholl
AL, MS Dumas and McPhail, L.L.C.
Morris and Associates (a/k/a Morris Law Firm)
Morris, Schneider & Prior, LLC
MT
AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros
AK,HI,ID,MT,OR,WA,TX Trustee Corps.
Just Law Office
Mackoff, Kellogg, Kirby & Klos
NC
Shapiro & Ingle
Morris, Schneider & Prior, LLC
Brock & Scott
Nodell, Glass & Haskell
Roberson, Haworth & Reese
Erwin, Simpson & Stroud
NE
Kozeny & McCubbin
Eric H. Linquist
NH
Harmon Law Offices, PC
Korde & Associates
Barron & Stadfeld, PC
Shechtman Halperin Savage, LLP
MA/NH/RI Orlans Moran PLLC
NH/VT Law Offices of Jonathan F. Weidman
NJ
Fein, Such, Kahn & Shepard
Zucker, Goldberg & Ackerman
Koury, Tighe, Lapres, Bisulca & Sommers
PLUESE, BECKER & SALTZMAN
McCabe Weisberg
NJ/PA Stern & Eisenberg, LLP
Parker McCay
NM
Little & Dranttel
NV
Malcolm & Cisneros
Aztec Foreclosure Corp
McCarthy & Holthus
National Default Servicing Corp.
AZ/NV/OR/UT/WA Law Offices of Les Zieve
NY
Jonathan D. Pincus
Shapiro & DiCaro
McCabe Weisberg
Rosicki, Rosicki & Associates
Ziccardi & Rella PC
Edward A/ Wiener, Esq.
Eschen, Frenkel & Weisman
Cohn & Roth
Steven J. Baum (in big trouble)
Berkman Henoch Peterson & Peddy, PC
OH
IL/MI/OH/PA Weltman, Weinberg and Reis
Shapiro & Felty
(Cuyahoga County) Manley Deas & Kochalski
KY/IN/OH Reisenfeld & Associates
LERNER, SAMPSON & ROTHFUSS
LAURITO & LAURITO
Luper, Neidenthal and Logan
Law Offices of John D. Clunk Co., LPA
Keith D. Wiener & Assoc.
Reimer, Lorber & Arnovitz Co.
Carlisle McNellie Law Firm
Gerner & Kearns Co., LPA
OK
BAER, TIMBERLAKE, COULSON & CATES (photos Oct. ’06)
Lamun, Mock, Cunnyngham & Davis
Shapiro & Cejda
Kivell, Rayment and Francis
OR
Shapiro & Sutherland, LLC * got major award in Dec. ‘07
OR/WA Bishop White & Marshal
AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros
AK,HI,ID,MT,OR,WA,TX Trustee Corps.
Robinson Tait
Routh Crabtree Olsen
AZ/NV/OR/UT/WA Law Offices of Les Zieve
PA
Shapiro & Kreisman
FL/PA Joseph H Ganguzza & Associates
Goldbeck McCafferty & McKeever
McCabe Weisberg (McCabe, Weisberg, Conway)
Shaffer & Scerni
Udren Law Offices
Zucker, Goldberg, Ackerman
Martha Von Rosenstiel
IL/MI/OH/PA Weltman, Weinberg and Reis
NJ/PA Stern & Eisenberg, LLP
Law Offices of Barbara A. Fein
RI
Nicholas Barrett & Assoc.
MA/NH/RI Orlans Moran PLLC
SC
Finkel Law Firm, LLC
Roger, Townsend, and Thomas (is it “Rogers”?)
Weston Adams Law Firm
McDonald McKenzie
SC, TN Brock & Scott, PLLC
Fleming and Whitt, P.A.(formerly Pearce W. Fleming Law)
Riley Pope & Laney
Bolen Law Firm
SD
Mackoff, Kellogg, Kirby & Klos
TN
Shapiro & Kirsch* wrote article Oct. ’06, photos Oct. ‘06
Apperson, Crump, Duzane & Maxwell PLC
SC, TN Brock & Scott, PLLC
Richard B. Maner, PC
Rodgers, Hill and Kolarich (Price, Rodgers, Hill & Kolarich)
McCurdy & Candler
Wilson & Associates
TX
Winstead Sechrest & Minick P.C.
Hughes Watters Askanase (article 12/07)
AK,HI,ID,MT,OR,WA,TX Trustee Corps.
Robertson & Anschutz, P.C.
Barrett Burke Wilson Castle Daffin & Frappier
Baxter & Schwartz
Brice, Vander Linden & Wernick
Brown & Shapiro
Codilis & Stawiarski
Mann & Stevens * wrote article October ‘06
Kelly Harvey
AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros
Hughes, Watters & Askanase
UT
SCALLEY READING BATES HANSEN & RASMUSSEN, P.C. (article 12/07)
CMS Legal Services
David B. Boyce
Scalley, Reading, Bates, Hansen & Rasmussen
AZ/NV/OR/UT/WA Law Offices of Les Zieve
VA
Shapiro & Burson
Friedman and MacFadyen
Sykes, Bourdon, Ahern & Levy
Bierman, Geesing & Ward
Samuel I. White P.C.
Specialized, Inc. of Virginia
Rosenberg & Associates, LLC
Glasser and Glasser, P.L.C.
MD/DC/VA Bierman, Geesing & Ward, LLC
CT/DC/ McCabe, Weisberg and Conway
MD/VA
DC/VA Curran & O'Sullivan, PC
VT
Lobe & Fortin
NH/VT Law Offices of Jonathan F. Weidman
Jeffery Kosterich & Associates, PC
WA
Robinson Tait
AK,HI,ID,MT,OR,WA,TX Malcolm Cisneros
AK,HI,ID,MT,OR,WA,TX Trustee Corps.
OR/WA Bishop White & Marshal
Meridian Trust Deed Service
Quality Loan Service Corp.
Routh Crabtree Olsen
Shapiro & Sutherland
AZ/NV/OR/UT/WA Law Offices of Les Zieve
WI
Vollmar and Huismann, S.C.
GRAY & ASSOCIATES
Gray & End (could be Gray & Assoc.)
Blommer Peterman
WV
Law Office of D. Kevin Moffatt
Daniel J. Mancini and Associates
WY
Castle, Meinhold & Stawiarski
Rule of Law or Rule of Profit$
I truely hope that we see some criminal charges here, otherwise there will be NO reason for unprincipled bankers, and such, to not repeat this.
We must keep in mind that some people made a LOT of money and some made an absolutely HUGE profit (enough to buy their own small country! & guess who will get to make the laws).