Chain of Title

by David Dayen

  195 She started Moratorium Monday: Lisa Epstein, “Moratorium Mondays: Monday Morning Protests at Courts, Offices of Elected Officials, and Government Buildings Across the State and the Country,” Foreclosure Hamlet, 2011.

  196 “A BOGUS ASSIGNMENT OF MORTGAGE filed”: Brief of Amicus Curiae Lisa Epstein, Pro Se, in Support of Neither Party, HSBC Bank v. Anabel Santiago, Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Case No. 50-2008-CA-016305.

  197 Lynn compiled dozens of examples: Lynn Szymoniak, “Suddenly Appearing Endorsements Used by Bank-Trustees in Foreclosures,” Housing Justice Foundation, June 27, 2014.

  197 “Holders of the notes are often unfamiliar with the status”: Michael Redman, “Response to the Florida Supreme Court RE: Amendments to the Florida Rules of Civil Procedure Motion for Rehearing,” 4closurefraud.org, May 13, 2010.

  197 She teamed up with Nye Lavalle, writing: Lisa Epstein and Nye Lavalle, “Comments and Response in Opposition to Shapiro-Fishman, LLP’s Motion for Rehearing or Clarification,” Supreme Court of Florida, Case No. SC09-1460, available at http://api.ning.com/files/ndc8DqfBQG6hENNk8laYm3Rmu8kuMuiez2S0-Z*tgoWUZYfhOfmLacMhWQcNvz4eGIGTLnRzCoHWUUJWYC4-1KIOEk94TpIK/NyeLisaFLASCEfile.pdf.

  197 switched from robo-signers to robo-verifiers: Michael Redman, “Florida Example—Verification of Mortgage Foreclosure Complaint,” 4closurefraud.org, April 18, 2010.

  198 “It is all about awareness”: Michael Redman, “Palm Beach County Bar Association Professional Committee—Thank You for Listening!” 4closurefraud.org, May 19, 2010.

  198 On June 3 the state supreme court denied: Supreme Court of Florida, “In re Amendments to the Florida Rules of Civil Procedure,” Case Nos. SC09-1460 and SC09-1579, June 3, 2010, www.floridasupremecourt.org/decisions/2010/sc09-1460order.pdf.

  199 The U.S. attorney told Charney they were working: Peter Coy, Paul Barrett, and Chad Terhune, “Joseph Lents Dodged Foreclosure for 8 Years, Started a Movement,” Bloomberg Business, October 21, 2010.

  199 “The defendants concealed that the notes and the assignments”: United States of America (Lynn Szymoniak, relator) v. American Home Mortgage Servicing et al., Second Amended Complaint, filed May 13, 2011, available at http://2zn5qz3e2exll8kh0e3kfc7c.wpengine.netdna-cdn.com/wp-content/uploads/2013/08/complaint-symoniak-false-claimS.C.-Second-Amended-Complaint-ECF-3.pdf.

  200 “For all of the reasons set forth above, I conclude”: Sample affidavit from U.S. Bank National Association v. Shirley McFarland, Circuit Court of Cook County, Illinois (Municipal Department—First District), Case No. 13 M1 708544, Affidavit of Lynn E. Szymoniak, Esq. as Defendant’s Expert Witness in Opposition to Summary Judgment.

  202 “I cannot get my group to act”: Martin Andelman, “Some of Lynn Szymoniak’s Millions May Belong to Someone Else,” Mandelman Matters (blog), September 16, 2013. See also Figueroa v. Szymoniak, Seventeenth Judicial Circuit in and for Broward County, Florida, March 4, 2013, available at www.scribd.com/doc/168544786/Figueroa-v-Szymoniak.

  202 Kim Miller at the Palm Beach Post wrote a big story on it: Kimberly Miller, “Lawsuit Claims That Florida’s Largest Foreclosure Firm Faked Documents,” Palm Beach Post, August 4, 2010.

  202 The bloggers were certain that would come back to haunt Sasser: Michael Redman, “I Haven’t Seen Any Widespread Prob, Oh, Wait, What? Foreclosure ‘Robo-Signers’ Appear to Be Widespread?” 4closurefraud.org, October 12, 2010.

  202 The suit was the latest in a host of setbacks for Stern: Susan Martin, “Foreclosures Bring Wealth, Rebukes for Florida Lawyer,” Tampa Bay Times, July 17, 2010. Also Michael Redman, “Florida Bar v. David J. Stern—Complaint, Consent Judgment, Report of Referee and Judgment,” 4closurefraud.org, July 19, 2010.

  202 Damian’s new lawyer, Trent, released a deposition of Shannon Smith: Deposition of Shannon Smith, Citimortgage v. Dennis Brown, Circuit Court of the Seventeenth Judicial District in and for Broward County, Florida, Case No. CACE 08-011097, available at www.scribd.com/doc/34340050/Full-Deposition-of-David-J-Stern-s-Notary-Para-Legal-Shannon-Smith.

  202 A separate class action alleged that Stern refused: Hugo San Martin and Melissa San Martin v. Law Offices of David J. Stern P.A., United States District Court for the Southern District of Florida, entered on docket July 29, 2010, available at www.motherjones.com/files/Port_Lt_Lucie_David_J_Stern_Consumer_Suit_July_2010.pdf.

  202 “way to create a profit center”: Stan Cooper and Neeraj Mehti v. DJSP Enterprises, United States District Court, Southern District of Florida, Fort Lauderdale Division, entered on docket July 20, 2010, available at www.scribd.com/doc/34646050/Stan-Cooper-and-Neeraj-Methi-v-Djsp-Enterprises-Inc-David-j-Stern-and-Kumar-Gursahaney.

  203 Andy Kroll at Mother Jones released his story on David Stern: Andy Kroll, “Fannie and Freddie’s Foreclosure Barons,” Mother Jones, August 4, 2010.

  203 He settled that suit out of court: Bridgette Balboni v. Law Offices of David J. Stern, P.A., United States District Court, Southern District of Florida, Case No. 99-6009-Civ-Ferguson/Snow, filed July 6, 1999, available at www.motherjones.com/files/Sexual_Harassment_Amended_Complaint.pdf.

  203 new investigations of Stern and two other mills: Andy Kroll, “Florida AG Unveils Foreclosure Mills Probe,” Mother Jones, August 10, 2010. http://www.motherjones.com/mojo/2010/08/florida-ag-probing-foreclosure-mills

  204 A couple weeks later McCollum lost the primary: “Scott Shakes Up Florida Governor Race with GOP Primary Win over McCollum,” FoxNews.com, August 25, 2010.

  204 “The plaintiff is not a proper party to the suit”: M&T Bank v. Lisa D. Smith, Circuit Court of the Seventh Judicial Court in and for St. Johns County, Florida, Case No. CA09-0418, available at http://api.ning.com/files/mzeTxRs3d7j0HRsuMlUH-Zb9jXNaO6kuX7m3hDkkSM3G3uhTEqH1ZJea1**aFugMSTbMXz*soAWvoyHPBoF0fLBiEwg*Px8O/SmithOrderdismissalwithprej2.pdf.

  204 “I want responsible attorneys who meet the basic standards”: HSBC Bank v. Orlando Eslava, Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida, Case No. 1-2008-CA-055313, transcript of hearing available at http://api.ning.com/files/WrhLWtvQuslFmfpxKAiuxo51H8souSjcsF5L-UwzuJ1tYWkjL-ReheX3nB3HV0iZ*EFVMkA5B1hxxVhcCIIHs5NvdFN9Co2C/JudgeBaileyOrderSanctionFDLG.pdf.

  204 Lisa started keeping a list: Lisa Epstein, “Half-Dozen Florida Judges’ Rulings Reveal the Dawning of Understanding,” Foreclosure Hamlet, June 20, 2010.

  205 “I never thought that being in Foreclosure could be so invigorating”: Michael Redman, “Foreclosure Fraud—The Florida Bar Convention Strategic Defense Session,” 4closurefraud.org, June 27, 2010.

  16. Downfall

  206 62 percent within a year: Gretchen Morgenson and Geraldine Fabrikant, “Florida’s High-Speed Answer to a Foreclosure Mess,” New York Times, September 4, 2010.

  206 Orange and Osceola Counties completed 1,319 cases: Ibid.

  206 “clear the foreclosure cases”: Kimberly Miller, “Extra Help Hired to Pare Caseload,” Palm Beach Post, July 8, 2010.

  206 “What is this HAMP”: Foreclosure Hamlet, “Extra Extra Read All About It! Calling All Retired Judges for Easy Weekly Extra Money to Sit and Deny Deny Deny!!!” posted by user “Jen” on July 23, 2010.

  206 “I know all about sickness, I know all about divorce”: Rhonda Swan, “Legislature Did Not Approve $9.6 million for Judges to Listen Only to Lenders,” Palm Beach Post, September 23, 2010.

  207 Attorney Greg Stopa saw a judge: Mark Stopa, “When Do Judges Decide Who Wins a Foreclosure Case?” August 20, 2010, www.stayinmyhome.com/blog/when-do-judges-decide-who-wins-a-foreclosure-case.

  207 Other summary judgments were entered without informing: Jeff Barnes, “Florida Courts Out of Control: Summary Judgment Entered in Miami-Dade County Without a Hearing; ‘Hallway Hearings’ in Broward County; and ‘Magistrate References’ Without Consent in Lee County; Due Process Being Thrown Out the Window,” Foreclosure Defense Nationwide, September 15, 2010, http://foreclosuredefensenationwide.com/?p=282.

  207 In Broward County
they did it in the hallway: Ibid.

  207 her job was to “dispose of cases”: Morgenson and Fabrikant, “Florida’s High-Speed Answer.”

  207 April got an email an hour later from Judge Soud: Matt Taibbi, “Invasion of the Home Snatchers,” Rolling Stone, November 10, 2010.

  208 Lisa contacted Laurence Tribe: Charlie Savage, “For an Obama Mentor, A Nebulous Legal Niche,” New York Times, April 8, 2010.

  208 4closureFraud routinely posted depositions: Michael Redman, “Bryan Bly, Is It a Lie? Robo-Signer for Nationwide Title,” 4closurefraud.org, June 20, 2010; Michael Redman, “Cheryl Samons Notary Fraud? Full Deposition of David J. Stern’s Notary Shannon Smith,” 4closurefraud.org, July 16, 2010.

  209 GMAC promised it would: Order Granting Defendant’s Motion for Sanctions, TCIF REO2, LLC v. Martin L. Leibowitz, Circuit Court of the Fourth Judicial Circuit, in and for Duval County, Florida, Case No. 16-2004-CA-4835-XXXX-MA, May 15, 2006, available at https://www.nclc.org/images/pdf/litigation/archibald-exhibits1-4.pdf.

  209 “It’s too many entities for me to actually quote”: Deposition of Jeffrey Stephan, GMAC Mortgage v. Ann Michelle Perez et al, Circuit Court of the Fifteenth Judicial Circuit, in and for Palm Beach County, Florida, Case No. 50-2008-CA-040805XXXX-MB, December 10, 2009, available at http://api.ning.com/files/s4SMwlZXvPu4A7kq7XQUsGW9xEcYtqNMPCm0a2hISJu88PoY6ZNqanX7XK41Fyf9gV8JIHDme7KcFO2cvHqSEMcplJ8vwnDT/091210gmacmortgagevsannmneu1.pdf.

  210 “The statements appearing herein are based”: Sample of Affidavit in Support of Mortgage Indebtedness, available at www.mortgage-investments.com/wp/wp-content/uploads/Sample%20Forms%20Downloads/2_affidavit-in-proof-of-claim.pdf.

  210 “These depositions would be comical if it weren’t for the fact”: Michael Redman, “Full Deposition of Jeffrey Stephan—GMAC’s Assignment/Affidavit Slave—10,000 Documents a Month,” 4closurefraud.org, March 22, 2010.

  211 She lived in a tiny wood-framed house across from a construction site: David Streitfeld, “From a Maine House, a National Foreclosure Freeze,” New York Times, October 14, 2010.

  212 Ice Legal got Stephan to admit that Kwiatanowski was his boss: Deposition of Jeffrey Stephan, GMAC Mortgage v. Ann Michelle Perez et al.

  212 “I compare the principal balance. I review the interests”: Oral deposition of Jeffrey Stephan, Federal National Mortgage Association v. Nicolle M. Bradbury, Maine District Court, District Nine, Division of North Cumberland, Docket No. BRI-RE-09-65, June 7, 2010, available at http://graphics8.nytimes.com/packages/pdf/business/15mainestephandeposition.pdf.

  213 He posted the Stephan deposition on his site on June 15: Matthew Weidner, “New Robo Signer Deposition Jeffrey Stephan,” June 15, 2010, http://mattweidnerlaw.com/new-robo-signer-deposition-jeffrey-stephan.

  213 Michael Redman saw it and cross-posted it: Redman, “2nd Deposition of Jeffrey Stephan.”

  213 “When Stephan says in an affidavit”: Martha Neil, “Humble Maine Home, Ex-Lawyer at Epicenter of Storm over Defective Docs in Foreclosure Cases,” American Bar Association Journal, October 15, 2010

  213 “The Court is particularly troubled”: Order on Four Pending Motions, Federal National Mortgage Association v. Nicolle M. Bradbury, Maine District Court, District Nine, Division of North Cumberland, Docket No. BRI-RE-09-65, September 24, 2010, available at http://graphics8.nytimes.com/packages/pdf/business/FourMotionsOrder.pdf.

  213 FDLG “has recently been notified”: Notice in the case of Bank of New York Mellon Trust Company v. Roberto J. Sanchez et al., Circuit Court of the Fifteenth Judicial Circuit, in and for Palm Beach County, Florida, Case No. 50-2008-CA-027182, September 7, 2010, available at www.scribd.com/doc/37455360/FDLG-Admits-to-Violation-of-Professional-Conduct-Code-Jeffrey-Stephan-Affidavits-GM AC. Also Michael Redman, “What, What!!! Re: Jeffrey Stephan of GMAC—Florida Default Law Group Admits to Violation of Professional Conduct Code,” 4closurefraud.org, September 14, 2010.

  214 Lisa put out an APB to her network: Lisa Epstein, “Anthology of the Works of a Prolific Robosigner: Jeffrey Stephan of GMAC (Compilation in Progress),” Foreclosure Hamlet, September 14, 2010.

  214 As Lynn was searching, she found a mortgage assignment: Assignment of Mortgage, Clerk and Comptroller of Palm Beach County Public Records, book 23845, page 381, Recorded May 13, 2010.

  214 Ramsey Harris: George Andreassi, “Neighbors Aid Disabled Veteran Ripped Off During Eviction from Rocky Point House,” Treasure Coast Palm, September 17, 2010.

  214 Liquenda Allotey, a known robo-signer, affirmed: Michael Redman, “Now I Am Pissed—Disabled Vet Evicted, Home Trashed Out, Property Stolen by Jack Booted Thugs,” 4closurefraud.org, September 19, 2010.

  214 GMAC announced a suspension: David Streitfeld, “GMAC Halts Foreclosures in 23 States for Review,” New York Times, September 20, 2010.

  214 So did a reporter for the Washington Post: Brady Dennis, “‘Robo-Signer’ Played Quiet Role in Huge Number of Foreclosures,” Washington Post, September 22, 2010.

  215 Paola Iuspa-Abbott of the Daily Business Review: Paola Iuspa-Abbott, “Grassroots Effort Leads to Attorney General Probe,” Daily Business Review, September 7, 2010, available at https://web.archive.org/web/20100911083631/http://www.dailybusinessreview.com/news.html?news_id=65012.

  215 Jeffrey Stephan’s Ice Legal deposition: Michael Redman, “Full Video Deposition of Jeffrey Stephan??? Assignment/Affidavit Slave,” 4closurefraud.org, September 28, 2010.

  215 “an advanced-age Beavis or Butt-head”: Taibbi, “Invasion of the Home Snatchers.”

  215 “That can’t be real”: Yves Smith, “Meet GMAC’s Robo Signer Jeffrey Stephan,” Naked Capitalism (blog), September 30, 2010. http://www.nakedcapitalism.com/2010/09/meet-gmacs-robo-signer-jeffrey-stephan.html

  215 “This deposition is even better than Jeffrey Stephan’s depo”: Michael Redman, “GMAC, You Ain’t the Only One—Full Deposition of Beth Cottrell Chase Home Finance—Robo-Signer Extraordinaire,” 4closurefraud.org, September 21, 2010.

  216 “I have personal knowledge that my staff has personal knowledge”: Michael Redman, “Full Deposition of Beth Cottrell Chase Home Finance—Robo-Signer Extraordinaire,” 4closurefraud.org, May 27, 2010.

  217 But most homeowners never mounted a defense: Jennifer Brunner, Cupcakes and Courage (Columbus, OH: Little Blue Valiant, 2012), 527.

  217 When Brunner got wind of this, she asked Dettelbach: Jennifer Brunner referral letter to U.S. Attorney Steven Dettelbach re: Foreclosure Fraud, accessed at www.scribd.com/doc/38478473/Jennifer-Brunner-Ohio-Secretary-of-State-Referral-Letter-to-U-S-District-Attorney-Steven-Dettelbach-RE-Foreclosure-Fraud. Also Jennifer Brunner, “Notarize This: The Brewing Foreclosure Storm,” Huffington Post, October 1, 2010.

  217 Chase Home Finance announced it would suspend: David Streitfeld, “JP-Morgan Suspending Mortgage Foreclosures,” New York Times, September 29, 2010.

  217 the Amazing Mystico: Monty Python’s Flying Circus, episode 35, transcript available at www.ibras.dk/montypython/episode35.htm.

  218 The next day Cha wrote an article: Ariana Eunjung Cha, “Ally’s Mortgage Documentation Problems Could Extend Beyond 23 States,” Washington Post, September 23, 2010.

  218 Kim Miller at the Palm Beach Post published a tip: Kimberly Miller, “More Foreclosure Affidavits Withdrawn as Another Document Signer Identified,” Palm Beach Post, September 27, 2010.

  218 documents signed by Linda Green, the infamous DocX robo-signer: Lisa Epstein, “Shaprio [sic] Fishman, ‘Linda Green of DocX Had No Signing Authority on Behalf of MERS,’” Foreclosure Hamlet, August 26, 2010.

  218 Michael Olenick found Beth Cottrell’s name attached: Michael Redman, “Promiscuous Girl Beth Cottrell—Looks Like She Had Multiple Partners (Banks),” 4closurefraud.org, October 1, 2010.

  218 “The GMAC announcement was the mushroom cloud”: Streitfeld, “JPMorgan Suspending Mortgage Foreclosures.”

  218 Curing a defective mortgage would cost you $12.95: Michael Redman, “Psst. Hey You, Yea, You. I Got Just What You Need. Lender
Processing Services’ DOCX Document Fabrication Price Sheet,” 4closurefraud.org, October 2, 2010.

  218 As finance blogger Yves Smith of Naked Capitalism explained: Yves Smith, “4closurefraud Posts DocX Mortgage Document Fabrication Price Sheet,” Naked Capitalism (blog), October 3, 2010.

  218 “If you’re right, we’re fucked”: Yves Smith, “FUBAR Mortgage Behavior: Florida Banks Destroyed Notes; Others Never Transferred Them,” Naked Capitalism (blog), September 27, 2010.

  219 both Jason Grodensky and Fannie Mae owned the home: Harriet Johnson Brackey, “Lauderdale Man’s Home Sold Out from Under Him in Foreclosure Mistake,” Fort Lauderdale Sun-Sentinel, September 23, 2010.

  219 Bank of America foreclosing on another house with no mortgage: Lee Weisbecker, “Cooper: BofA Foreclosed on Homeowner Who Paid Cash,” Triangle Business Journal, October 7, 2010.

  219 Martin and Kirsten Davis: Teresa Dixon Murray, “Mortgage Foreclosure Uproar Sweeps Up Northeast Ohioans,” Cleveland Plain Dealer, October 17, 2010.

  219 Nancy Jacobini: Joel Siegel, Felicia Biberica, and David Muir, “Mortgage Bullies?: Banks Accused of Illegally Breaking into Homes Facing Foreclosure,” ABC News, October 11, 2010; “Housing Crisis Reaches New Low,” Dylan Ratigan Show, October 6, 2010; “Why Are Bailed-Out Banks Breaking into Struggling Borrowers’ Homes?” Democracy Now, October 12, 2010.

  219 “There is no room for errors”: Barry Ritholtz, “Why Foreclosure Fraud Is So Dangerous to Property Rights,” The Big Picture (blog), October 12, 2010, www.ritholtz.com/blog/2010/10/why-foreclosure-fraud-is-so-dangerous-to-property-rights.

  220 “When you have people in Texas and Florida being foreclosed on”: Barry Ritholtz, “What’s the Foreclosure,” The Big Picture (blog), October 12, 2010, www.ritholtz.com/blog/2010/10/whats-the-foreclosure; CNBC, air date October 11, 2010, 5:00 p.m. ET.

  220 And without title insurance, nobody would risk a purchase: David Streitfeld, “Company Stops Insuring Titles in Chase Foreclosures,” New York Times, October 2, 2010.