by David Dayen
239 “It’s both”: Brady Dennis, “Q and A: Head of Probe Says Victims of Wrongful Foreclosure Should Get Compensation,” Washington Post, November 16, 2010.
239 Miller received $261,000 from banking interests: Jon Prior, “Report Spotlights Iowa AG’s Campaign Contributions from Banking Industry,” Housing Wire, April 22, 2011.
239 Miller acknowledged asking bank lawyers for contributions: Massimo Calabresi, “Foreclosure-Probe Chief Asked Bank Lawyers for Money,” Time, May 9, 2011. http://swampland.time.com/2011/05/09/foreclosure-probe-chief-asked-bank-lawyers-for-money/
239 Miller told the Senate Banking Committee: “Problems in Mortgage Servicing from Modification to Foreclosure,” Senate Banking Committee, November 16, 2010, transcript accessed at www.gpo.gov/fdsys/pkg/CHRG-111shrg65258/pdf/CHRG-111shrg65258.pdf, p.8
240 “we will put people in jail”: Arthur Delaney, “Tom Miller: ‘We Will Put People in Jail’ for Foreclosure Fraud,” Huffington Post, December 14, 2010.
240 Miller kept a low profile after that: Yves Smith, “Iowa Attorney General Tom Miller, Head of 50 State Investigation, Retreats from ‘Tough With Banks’ Stance,” Naked Capitalism, January 26, 2011; David Dayen, “The Mystery of Tom Miller’s Shifting Comments on Criminal Sanctions for Foreclosure Fraud,” FDL News, January 6, 2011, http://shadowproof.com/2011/01/06/the-mystery-of-tom-millers-shifting-comments-on-criminal-sanctions-for-foreclosure-fraud.
240 “hundreds of investigators crawling all over the banks”: Felix Salmon, “Treasury’s Plan to Fix the Mortgage Mess,” Reuters, November 23, 2010.
240 “global solution”: David Dayen, “Bair’s ‘Global Solution’ Doesn’t Address Criminal Prosecution,” FDL News Desk, October 25, 2010, http://shadowproof.com/2010/10/25/bairs-global-solution-doesnt-address-criminal-prosecution.
241 Hawaii transformed from a state with fairly lenient hurdles: Martin Andelman, “Governor Abercrombie Signs SB 651—Toughest Foreclosure Bill in Nation Now Law!” Mandelman Matters (blog), May 6, 2011, http://mandelman.ml-implode.com/2011/05/governor-abercrombie-signs-sb-651-toughest-foreclosure-bill-in-nation-now-law.
242 Banks restarted the Great Foreclosure Machine: David Dayen, “Banks Resume Foreclosure Sales,” FDL News, December 13, 2010, http://shadowproof.com/2010/12/13/banks-resume-foreclosure-sales.
242 “We have not discovered a single instance”: Testimony before the House Financial Services Committee, November 18, 2010, video at C-SPAN, www.c-span.org/video/?296661-2/mortgage-services-foreclosure-practices-bankers-panel.
243 “Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases”: June Clarkson, Theresa Edwards, and Rene Harrod, “Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases,” Office of the Attorney General, Economic Crimes Division, 2010, available at www.scribd.com/doc/46278738/Florida-Attorney-General-Fraudclosure-Report-Unfair-Deceptive-and-Unconscionable-Acts-in-Foreclosure-Cases.
243–244 That got the presentation leaked: Kimberly Miller, “State Report on Foreclosure Crisis Slams Banks, Mortgage Industry, Lawyers,” Palm Beach Post, January 5, 2011.
244 “We object to the Florida Attorney General’s characterization”: Stefan Kamph, “June Clarkson and Theresa Edwards Were Fired After Revealing Widespread Foreclosure Fraud,” Broward/Palm Beach New Times, June 21, 2012.
244 Pam Bondi . . . received thousands of dollars in campaign contributions: Michael Redman, “Pam Bondi, Lender Processing Services, Provest and Campaign Contributions from Companies Under Investigation from AG’s Office,” 4closurefraud, July 28, 2011.
244 Bob Julian, their supervisor, expressed frustration: Kamph, “June Clarkson and Theresa Edwards Were Fired.”
246 Moratorium Monday continued and expanded: Lisa Epstein, “Announcing Moratorium Mondays: Monday Morning Protests at Courts, Offices of Elected Officials, and Government Buildings Across the State and the Country,” Foreclosure Hamlet, February 9, 2011.
246 Dozens of protestors marched: Lisa Epstein, “Jan 13th Protest March Against Criminal Foreclosure Fraud: Goal Met!” Foreclosure Hamlet, January 14, 2011.
246 Lisa and Michael held Torch the Fraud: Michael Redman, “Torch the Fraud | 4closureFraud.org and ForeclosureHamlet.org Host a Bonfire on the Beach,” 4closurefraud.org, February 28, 2011.
247 The sheriff ordered deputies to remove money: Michael Redman, “Deadbeat Bank | Raw Video of Sheriff Serving Writ of Possession on Bank to Seize All Property Including All Cash,” 4closurefraud, February 9, 2011.
247 “Deadbeat bank” actions became more widespread: Jeff Gelles, “Phila. Homeowner Wins Judgment Against Wells Fargo over Mortgage Fees,” Philadelphia Inquirer, February 15, 2011; The Daily Show with Jon Stewart, “The Forecloser,” Comedy Central, August 8, 2011.
247 second annual Rally in Tally: Michael Redman, “Continuously Updated | March 9, 2011: Second Annual Freedom Ride and Rally in Tally for Combatants of Illegal Foreclosures,” 4closurefraud.org, February 23, 2011; Michael Redman, “Pictures of Our Rally in Tally,” 4closurefraud, March 10, 2011.
247 Michael found the e-signature of Shapiro & Fishman lawyer Anna Malone: Kimberly Miller, “Lawyers’ Name Shows Up on Foreclosure Docs Filed Months After She Resigned,” Palm Beach Post, February 21, 2011.
247 an instruction manual on how to manufacture affidavits: Lisa Epstein, “Ben-Ezra Katz Foreclosure Mill—Internal Instructions on How to Copy/Cut/Paste, Perjury and Fraud upon the Court,” Foreclosure Hamlet, February 19, 2011.
247 one company even taking the ashes of a woman’s late husband: Andrew Martin, “Banks Accused of Illegally Breaking into Homes,” New York Times, December 21, 2010.
247 making all their loan modification payments and still getting foreclosed: Carolyn Said, “Family Faces Foreclosure after Following the Rules,” San Francisco Chronicle, November 25, 2010.
247 paid off her house and then got a default notice: Jon Yates, “Problem: Paying Off Mortgage Results in Default,” Chicago Tribune, February 20, 2011.
247 conducting an eviction and finding a dead body: Kelli Cook, “Deputies Serving Eviction Notice Find Dead Body Inside Home,” News 13 Orlando, February 17, 2011, available at https://web.archive.org/web/20110221193858/http://www.cfnews13.com/article/news/2011/february/209025/Body-found-along-with-suspicious-item-inside-Orlando-home.
247 one on children of foreclosure: Scott Pelley, “Homeless Children: The Hard Times Generation,” 60 Minutes, CBS News, June 20, 2011. Based on this post at 4closureFraud, the story appears to have run that March: http://4closurefraud.org/2011/03/07/60-minutes-homeless-children-the-hard-times-generation.
247 and her segment, which aired on April 3: Scott Pelley, “The Next Housing Shock,” 60 Minutes, CBS News, April 3, 2011.
19. Wriggling off the Hook
250 Loeb Award for excellence in business reporting: “UCLA Anderson Announces 2012 Gerald Loeb Award Winners,” press release, Anderson School of Management, UCLA, June 26, 2012.
250 Lynn got the case dismissed: Michael Redman, “Victory | Our 60 Minutes Hero, Lynn Szymoniak, had Her Foreclosure Case Dismissed,” 4closurefraud.org, April 5, 2011.
250 everyone had the name Linda Green: Michael Redman, “Another Successful Foreclosure Fraud Happy Hour,” 4closurefraud.org, April 22, 2011.
252 O’Brien contacted state attorney general Martha Coakley: John Carney, “The MERS Wars Heat Up in Massachusetts,” CNBC, November 30, 2010; Jenifer B. McKim, “Firm May Skirt Millions in Property Fees,” Boston Globe, December 15, 2010; “O’Brien Calls on MERS to Come Clean and Pay Up: Says Essex County Owed $22 Million Dollars,” press release, February 22, 2011, available at www.foreclosurehamlet.org/profiles/blogs/deadbeat-mers-to-be-billed-22.
252 “I believe the banks’ actions speak louder than words”: David Dayen, “Register of Deeds John O’Brien Releases Forensic Study, Finds Mass Fraud in Foreclosure Docs,” FDL News, June 30, 2011, http://shadowproof.com/2011/06/30/register-of-deeds-john-obrien-releases-forensic-study-finds-mass-fraud-in-foreclosure-docs.
&n
bsp; 253 Thigpen and O’Brien drafted an open letter: “Register of Deeds Jeff Thigpen (NC) and John O’Brien (MA) Ask 50 State Attorney General Foreclosure Work Group to Require All Past and Present MERS Assignments to Be Filed!” press release, April 7, 2011, available at http://myemail.constantcontact.com/MEDIA-RELEASE-Register-of-Deeds-Thigpen—NC—and-O-Brien—MASS—Letter-to-Iowa-AG-Miller-and-50-State-Attorney-Generals-Foreclos.html?soid=1100673877654&aid=3bL0Fyi43yE.
253 “a betrayal of public trust”: WGHP-TV, Greensboro, “Thousands of Guilford Mortgage Documents Could Be Fraudulent, County Officials Say,” May 4, 2011, available at https://web.archive.org/web/20110507073044/http://www.myfox8.com/news/wghp-story-guilford-mortgage-fraud-110504,0,379574.story; David McLaughlin, “BofA, Wells Fargo Mortgage Papers Challenged in North Carolina,” Bloomberg Business, May 4, 2011.
253 the whole thing would cost $20 billion to $30 billion: Nick Timiraos, Dan Fitzpatrick, and Ruth Simon, “U.S. Pushes Mortgage Deal,” Wall Street Journal, February 24, 2011.
253 “a good deal of fraud”: Charles Jaco, “Missouri Foreclosure Fraud: Some Say the Entire System Is Broken,” KTVI-Fox2Now, March 17, 2011, available at https://web.archive.org/web/20110321075547/http://www.fox2now.com/ktvi-foreclosure-fraud-missouri-31711,0,7746033.story.
253 The proposed settlement sounded like HAMP 2.0: Marcy Wheeler, “HAMP II: The $20 Billion Get Out of Jail Free Card,” Emptywheel, February 23, 2011.
253 “I really feel I shouldn’t talk”: Matt Stoller, “AG Tom Miller Negotiating in Secret With Banks over Whether to Put Bankers in Jail,” Roosevelt Institute, February 26, 2011.
254 “settlement term sheet”: David McLaughlin, “Foreclosure Settlement Terms Sent to Banks by U.S., States,” Bloomberg Business, March 4, 2011.
254 “Without CRIMINAL INDICTMENTS, there is no settlement”: Michael Redman, “50 State Attorney General 27 Page ‘Settlement’ on Fraudclosures,” 4closurefraud.org, March 7, 2011.
254 They described a tension between doing something quickly: David Dayen, “Democratic Attorneys General Question Unclear, Rushed Mortgage Servicer Settlement,” FDL News, March 24, 2011, http://shadowproof.com/2011/03/24/democratic-attorneys-general-question-unclear-rushed-mortgage-servicer-settlement.
254 That vaunted interagency review . . . concluded: Testimony of John Walsh, acting comptroller of the currency, Senate Banking Committee, February 17, 2011, 13–17, available at www.propublica.org/documents/item/testimony-of-occs-john-walsh-feb-17-2011.
254 2,800 loan files . . . 100 foreclosures: Yves Smith, “Feds Reviewed Only 100 Foreclosure Files in Servicer Whitewash,” Naked Capitalism, May 14, 2011.
254 “critical deficiencies”: Testimony of John Walsh, 15.
255 JPMorgan acted swiftly, firing the executive: Dawn Kopecki, “JPMorgan Ousts Home-Lending Chief After Foreclosure Lapses,” Bloomberg Business, June 14, 2011; Associated Press, “JPMorgan to Make Amends with Military Clients,” February 15, 2011.
255 this was “camo-washing”: David Dayen, “Camo-Washing: BofA Offers Principal Reduction Program for Service Members,” FDL News, March 10, 2011, http://shadowproof.com/2011/03/10/camo-washing-bofa-offers-principal-reduction-program-for-service-members.
255 the Office of the Comptroller of the Currency and the Federal Reserve: Board of Governors of the Federal Reserve System, press release, April 13, 2011, www.federalreserve.gov/newsevents/press/enforcement/20110413a.htm.
255 guilty parties in charge of determining their own punishment: David Dayen, “A Slap on the Wrist for Mortgage Fraud,” American Prospect, April 15, 2011.
255 Page 3: “The reviews showed”: Lisa Epstein, “Federal Banking Regulators Expose Massive Mortgage Backed Securities Fraud as Part of Fraudclosure Investigation?” Foreclosure Hamlet, April 14, 2011.
256 In re Wilson: Memorandum Opinion, In re Wilson, United States Bankruptcy Court, Eastern District of Louisiana, Case No. 07-11862, filed April 7, 2011, available at www.scribd.com/doc/52867919/In-Re-Wilson-Memorandum-Opinion-07-Apr-2011.
256 Veal v. American Home Mortgage Servicing: Opinion, Veal v. American Home Mortgage Servicing et al., United States Bankruptcy Appellate Panel of the Ninth Circuit, BAP Nos. AZ-10-1055-MkKiJu and AZ-10-1056-MkKiJu, Appeal from the United States Bankruptcy Court for the District of Arizona, opinion filed June 10, 2011, http://cdn.ca9.uscourts.gov/datastore/bap/2012/11/08/Veal-10-1055corr_06_10_2011.pdf.
256 Horace v. LaSalle . . . Hendricks v. U.S. Bank: Opinion and Order, Phyllis Horace v. Lasalle Bank N.A., District Court of the United States for the Middle District of Alabama, Eastern Division, Civil Action No. 3:08cv1019-MHT, opinion filed February 17, 2009, http://law.justia.com/cases/federal/district-courts/alabama/almdce/3:2008cv01019/39791/32; Opinion and Order Denying in Part and Granting in Part Defendant’s Motion for Summary Disposition and Granting Plaintiff’s Motion for Summary Disposition, James Hendricks v. U.S. Bank, N.A., State of Michigan, Washtenaw County Trial Court, Case No. 10-849-CH, June 6, 2011, available at www.scribd.com/doc/57374561/Hendricks-v-U-S-Bank.
256 Bank of New York v. Silverberg: Opinion of the Court, Bank of New York v. Silverberg, Supreme Court of the State of New York, Appellate Division, Second Judicial Department, Case No. 2010-00131, decided on June 7, 2011, www.courts.state.ny.us/Reporter/3dseries/2011/2011_05002.htm.
256 David J. Stern gave up: Letter from David J. Stern to Chief Judge, March 4, 2011, available at www.scribd.com/doc/50227529/Letter-From-David-J-Stern-to-Chief-Judge.
256 Ben-Ezra & Katz: Kimberly Miller, “Ben-Ezra and Katz to Close Foreclosure Business, Second South Florida Firm to Shut Its Foreclosure Operations,” Palm Beach Post, April 28, 2011.
256 Stern, ultimately, was the deadbeat: Michael Redman, “Deadbeat | David J. Stern, Dethroned ‘Foreclosure King’ Does Not Pay His Bills,” 4closurefraud.org, April 10, 2011.
256 Governor Rick Scott granted the judiciary a loan: Zach Carter, “‘Awful’ Florida Foreclosure Courts May Shut Down Due to GOP Budget Cuts,” Huffington Post, May 19, 2011.
256 “too crowded”: Lisa Epstein, “Foreclosure Hearings Closed to Public Despite FL Supreme Court Justice Canady’s Order,” Foreclosure Hamlet, May 6, 2011.
257 Chip Parker . . . Matt Weidner was also investigated: Julie Kay, “Lawyers Investigated for Criticizing System,” Daily Business Review, May 18, 2011.
257 Bailiffs removed lawyer Mark Stopa: Mark Stopa, “Mark Stopa Thrown Out of Court (Literally),” Stopa Law Blog, April 20, 2011, www.stayinmyhome.com/blog/mark-stopa-thrown-out-of-court-literally.
257 Victor Tobin: Kimberly Miller, “Broward Chief Judge Resigns to Join So-Called ‘Foreclosure Mill,’” Palm Beach Post, May 18, 2011.
257 140,000 foreclosure cases got cleared: Kimberly Miller, “Foreclosure Crisis: Fed-Up Judges Crack Down on Disorder in the Courts,” Palm Beach Post, April 4, 2011.
257 Lee County judge James Thompson: Abigail Field, “The Foreclosure Mess: Florida Judges Can Do Better,” Daily Finance, December 24, 2010; Abigail Field, “Florida Is Still Letting Banks Break the Rules in Foreclosure Cases,” Daily Finance, January 5, 2011.
257 They filed an emergency motion to intervene: “ACLU Charges High-Speed Florida Foreclosure Courts Deprive Homeowners of Chance to Defend Homes,” ACLU press release, April 7, 2011; Petition for Writ of Certiorari or Writ of Prohibition, George E. Merrigan v. Bank of New York Mellon, District Court of Appeal, State of Florida, Second District, Case No. 09-CA-055758, available at www.scribd.com/doc/52504270 (note that petitioner’s name is Georgi Merrigan, but the circuit court erroneously referred to her as “George Merrigan”).
257 denying the ACLU’s request: “ACLU Calls for Immediate Reform of High-Speed Florida Foreclosure Courts,” ACLU press release, June 27, 2011.
258 Citizen Warriors Radio taped Saturday mornings at eight o’clock: Michael Redman, “Warrior Lawyers | New Radio Show Saturdays from 8–10 am EDT with 4closureFraud.org and ForeclosureHamlet.org,” 4closurefraud.org, May 6, 2011.
258 Federal authoriti
es indicted Carol: Kimberly Miller, “Two More Indicted in Alleged Versailles Mortgage Fraud,” Palm Beach Post, April 29, 2011.
259 “I find it very disturbing that the government must use”: Ibid.
259 “He’s just trying to save his job”: Steve Dibert, “Foreclosure Attorney and Owner of 4closurefraud.org Indicted for Mortgage Fraud,” Mortgage Fraud Investigations—Miami, April 30, 2011, http://mfi-miami.com/2011/04/foreclosure-attorney-owner-of-4closurefraud-org-indicted-for-mortgage-fraud.
260 The judge gave her two and a half years in prison: Martha Neil, “Lawyer Who Fought Foreclosure Fraud Takes Federal Plea in Straw-Buyer Money-Laundering Conspiracy,” American Bar Association Journal, October 12, 2011; Kimberly Miller, “‘God-Fearing’ Former Lawyer Will Serve 2½ Years in Prison for Versailles Mortgage Scam,” Palm Beach Post, November 19, 2011.
260 Attorney general Pam Bondi settled: Michael Redman, “Marshall C. Watson | Florida Attorney General Pam Bondi Settles Investigation Against One of Florida’s Largest Foreclosure Firms,” 4closurefraud.org, March 25, 2011.
260 fifty-state settlement without monetary penalties: Kimberly Miller, “Bondi Voices Concern over Home Loan Reductions,” Palm Beach Post, March 23, 2011.
260 “triggering a nationwide review”: Kimberly Miller, “Florida Fraud Report Key to New York Foreclosure Case,” Palm Beach Post, July 16, 2011.
261 “It came from the top. Tallahassee didn’t give me a reason”: Stefan Kamph, “June Clarkson and Theresa Edwards Were Fired After Revealing Widespread Foreclosure Fraud,” Broward/Palm Beach New Times, June 21, 2012.
261 Joe Jacquot . . . Mary Leontakianakos: Ibid.
261 But she landed with foreclosure mill Shapiro and Fishman: Michael Redman, “Erin Collins Cullaro | Fired Assistant Attorney General to Pam Bondi Joins ‘Foreclosure Mill’ Shapiro and Fishman,” May 27, 2011, 4closurefraud.org.