by David Dayen
261 Then her spokesperson issued a statement: Kathleen Haughney, “Florida Attorney General, Two Fired Lawyers in Public Dispute,” Orlando Sun-Sentinel, July 21, 2011.
261 As Clarkson and Edwards found out: Letter from Andrew Spark, Assistant Attorney General, Tampa Economic Crimes, August 8, 2011, available at www.tampabay.com/specials/2011/PDFs/bondi081811/sparkletter.pdf.
261 Lisa requested a formal review: Michael Redman, “Dissecting the Pam Bondi/Jeff Atwater Inspector General Report re June Clarkson, Theresa Edwards and Lisa Epstein,” 4closurefraud.org, January 9, 2012, http://4closurefraud.org/2012/01/09/dissecting-the-pam-bondi-jeff-atwater-inspector-general-report-re-june-clarkson-theresa-edwards-and-lisa-epstein/
261 Public interest group Progress Florida echoed that demand: David Dayen, “Update on the Investigators Fired by Florida’s AG for Pursuing Foreclosure Fraud,” FDL News, July 28, 2011, http://shadowproof.com/2011/07/28/update-on-the-investigators-fired-by-floridas-ag-for-pursuing-foreclosure-fraud.
262 including on Citizen Warriors Radio: Michael Redman, “Citizen Warriors Exclusive Part Deux | Former Bondi Assistant Attorneys General & Foreclosure Fraud Investigators June Clarkson & Theresa Edwards Live on WDJA 1420AM Saturday from 8–10 am EDT,” 4closurefraud.org, August 5, 2011.
262 Bondi agreed to have the inspector general: Catherine Whittenburg, “Bondi Wants Probe on Firings,” Tampa Tribune, August 3, 2011.
262 It was a petty tactic to harass the family into silence: Zach Carter, “Deutsche Bank Sues Foreclosure Fraud Expert’s Son with No Financial Interest in Her Case,” Huffington Post, May 13, 2011.
262 the IRS acknowledging an “active review” of REMIC practices: Scot Paltrow, “Exclusive: IRS Weighs Tax Penalties on Mortgage Securities,” Reuters, April 27, 2011.
262 When Yves broached REMICs: Yves Smith, “IRS Likely to Expand Mortgage Industry Coverup by Whitewashing REMIC Violations,” Naked Capitalism, April 28, 2011.
262 “backdoor bailout of the financial system”: Paltrow, “Exclusive: IRS Weighs Tax Penalties.”
20. The Final Whitewash
264 “Boy, I wish I could’ve done that”: “Ocwen—Delivery of Modification Package and Petition by Bermuda Triangle Recovery Services,” posted by Michael Redman, October 19, 2011, https://www.youtube.com/watch?v=8ZviWlPbcOE.
264 Dixie did get a modification: Michael Redman, “Victory | National Campaign Pressures Ocwen Financial to Modify Dixie Mitchell’s Loan,” 4closurefraud.org, October 24, 2011.
265 born from a suggestion in the Canadian magazine Adbusters: “#OCCUPYWALLSTREET,” Adbusters, July 13, 2011.
265 “We have no leverage”: “AG Eric Schneiderman Opposes Foreclosure Deal,” Rochester Democrat and Chronicle, June 28, 2011.
266 the beating heart of securitization FAIL: Gretchen Morgenson, “Two States Ask if Paperwork in Mortgage Bundling Was Complete,” New York Times, June 12, 2011.
266 “Please everyone, we must support this man”: Michael Redman, “Dismissal of NY Attorney General Schneiderman Shows Obama Administration and Iowa AG Miller Poised to Let Big Banks off the Hook for Mortgage Fraud,” 4closurefraud.org, August 25, 2011.
266 “actively worked to undermine”: Brady Dennis, “N.Y. Bumped from 50-State Foreclosure Committee,” Washington Post, August 23, 2011.
266 “Wall Street is our Main Street”: Gretchen Morgenson, “Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal,” New York Times, August 21, 2011.
266 hosting tea-and-cookies settlement talks: Dina ElBoghdady, “Shaun Donovan on Confronting Hurricanes, Homelessness and Big Banks,” Washington Post, June 11, 2014.
266 everyone would benefit from a speedy resolution: Morgenson, “Attorney General of N.Y. Is Said to Face Pressure.”
266 all had active foreclosure investigations in their states: David McLaughlin, “Foreclosure-Deal Releases Draw State Resistance Amid Probes,” Bloomberg Business, July 26, 2011; David McLaughlin, “Nevada Joins States Balking at Releases in Foreclosure Practices Deal,” Bloomberg Business, August 16, 2011.
266 “that has not been investigated”: David Dayen, “Minnesota AG Swanson Backs Schneiderman: No Settlement with the Banks Without Investigation,” FDL News, September 13, 2011, http://shadowproof.com/2011/09/13/minnesota-ag-swanson-backs-schneiderman-no-settlement-with-the-banks-without-investigation.
266 “immunity against the banks”: David Dayen, “Kentucky AG Conway Joins Growing Coalition Backing Schneiderman on Foreclosure Fraud,” FDL News, September 22, 2011, http://shadowproof.com/2011/09/22/kentucky-ag-conway-joins-growing-coalition-backing-schneiderman-on-foreclosure-fraud.
267 Californians for a Fair Settlement: Alejandro Lazo, “Kamala Harris Pressured to Reject Bank Foreclosure Settlement,” Los Angeles Times, September 30, 2011.
267 “inadequate for California homeowners”: David Dayen, “California AG Kamala Harris Rejects Foreclosure Fraud Settlement,” FDL News, September 30, 2011, http://shadowproof.com/2011/09/30/california-ag-kamala-harris-rejects-foreclosure-fraud-settlement.
267 JPMorgan Chase’s headquarters has a moat: Betsy Dillner, “Storming the JP-Morgan Chase Castle,” Alliance for a Just Society, May 20, 2011, http://allianceforajustsociety.org/2011/05/storming-the-jp-morgan-chase-castle.
267 make it painful for banks to toss people into the street: Mike Konczal, “The Sword and the Shield: Occupy Foreclosures,” Rortybomb, October 19, 2011, https://rortybomb.wordpress.com/2011/10/19/the-sword-and-the-shield-occupy-foreclosures.
267 a tactic they called a “live-in”: Michael Redman, “Take Back the Land | Rochester Liberates Home, Moves Lennon Back into House,” 4closurefraud.org, May 10, 2011.
268 Occupiers mobilized to defend those homes: Zaid Jilani, “Movers and Sheriff’s Deputies Refuse Bank’s Order to Evict 103-Year-Old Atlanta Woman,” ThinkProgress, November 30, 2011; Zaid Jilani, “Occupy Cleveland Saves Woman’s Home from Imminent Foreclosure,” ThinkProgress, November 15, 2011; Micah Uetricht, “Occupy Minneapolis Occupies Second Foreclosed Home as Housing Occupations Spread,” ThinkProgress, November 22, 2011; Kari Huus, “Homeowner Taps ‘Occupy’ Protest to Avoid Foreclosure,” MSNBC.com, October 17, 2011.
268 “This is a shift from protesting Wall Street”: Justin Elliott, “Occupy’s Next Frontier: Foreclosed Homes,” Salon, November 30, 2011.
268 Lisa organized two events: Lisa Epstein, “December 6th National Day of Action Against Foreclosures—Occupy Our Homes,” Foreclosure Hamlet, December 5, 2011.
268 In the evening, protesters lit candles: Lisa Epstein, “Video—Occupy Our Homes National Day of Action Dec 6, 2011—Palm Beach County Fraudclosure Candlelight Vigil,” Foreclosure Hamlet, December 7, 2011.
268 Other Occupy Our Homes groups were more aggressive: Occupy Our Homes, “National Day of Action to Stop and Reverse Foreclosures,” December 6, 2011, www.occupyourhomes.org/blog/2011/dec/6/national-day-action-stop-and-reverse-foreclosures; Alain Sherter, “Occupy Wall Street, Homeowners Ally to Fight Foreclosures,” CBS News, October 25, 2011; Zaid Jilani, “Occupy Atlanta Encamps in Neighborhood to Save Police Officer’s Home from Foreclosure,” ThinkProgress, November 8, 2011.
268 Rose Gudiel: Huus, “Homeowner Taps ‘Occupy’ Protest.”
268 Beth Sommerer: Jilani, “Occupy Cleveland Saves Woman’s Home.”
268 Vita Lee: Jilani, “Movers and Sheriff’s Deputies Refuse Bank’s Order.”
268 Bobby Hull: Steve Frank, “Former Marine’s Home Saved from Foreclosure,” MSNBC.com, February 27, 2012.
269 Rose Parade float: David Dayen, “Occupy the Rose Parade: Working Through the Next Stage of the Occupy Movement,” FDL News, January 1, 2012, http://shadowproof.com/2012/01/01/occupy-the-rose-parade-working-through-the-next-stage-of-the-occupy-movement.
269 Nevada, where three out of every five homeowners: Samuel Weigley and Michael Sauter, “States with the Most Homes Underwater,” NBC News, July 26, 2012.
270 he recognized the depth of the problem: J. Patrick
Collican, “Housing Scam Artists Staying on the Move,” Las Vegas Sun, September 25, 2009.
270 “Bank of America misrepresented”: Never should have represented they could: State of Nevada’s Second Amended Complaint, State of Nevada v. Bank of America Corporation et al., United States District Court, District of Nevada, Case No. 3:11cv-00135-RCJ (RAM), filed August 30, 2011, available at http://graphics8.nytimes.com/packages/pdf/business/SecondAmendedComplaint.pdf.
271 employees from the Vegas LPS office, including Tracy Lawrence: Tracy Lawrence’s story taken from grand jury testimony, State of Nevada v. Gary Trafford and Gerri Sheppard, Eighth Judicial District Court, Clark County, Nevada, Case No. 11AG3037AB, taken November 8–9, 2011, available at www.scribd.com/doc/75153635/Transcript-Day-1, www.scribd.com/doc/75153619/Transcript-Day-2.
271 “Regarding the signature of my name”: Ibid., day 1 transcript, 151.
271 Trafford replied affirmatively: Ibid., day 1 transcript, 153.
272 “I didn’t really think about it”: Ibid., day 1 transcript, 166.
272 606 counts of signing documents: Indictment, State of Nevada v. Gary Trafford and Gerri Sheppard, Eighth Judicial District Court, Clark County, Nevada, November 16, 2011, available at www.scribd.com/doc/72962780/Indictment.
272 “the signing procedures on some of these documents were flawed”: “LPS Responds to Nevada Attorney General Announcement,” press release, PRNewswire, November 17, 2011.
272 When police reached Tracy’s apartment, they found her dead: “Foreclosure Fraud Whistleblower Found Dead,” MSNBC.com, November 29, 2011; Mark Ames, “Tracy Lawrence: The Foreclosure Suicide America Forgot,” The eXiled, August 23, 2012, http://exiledonline.com/tracy-lawrence-the-foreclosure-suicide-america-forgot.
273 they had other notaries from the Vegas office: Ken Ritterthe, “Three More Nevada Notaries Charged in Foreclosure Fraud Case,” Associated Press, December 5, 2011.
273 suing LPS for document fraud: David Dayen, “Nevada AG Masto Sues LPS for Document Fraud,” FDL News, December 16, 2011, http://shadowproof.com/2011/12/16/nevada-ag-masto-sues-lps-for-document-fraud.
273 “Sharon Bullington may lose her home”: Mark Puente, “Pasco Couple Fear Losing Home to Foreclosure for Paying Mortgage Too Early,” Tampa Bay Times, August 19, 2011.
274 “Love, Your Broken Home”: Tim Miller, “Love, Your Broken Home,” live studio recording uploaded by Tim Miller on May 14, 2010, https://www.youtube.com/watch?v=Hm_W445bidA.
274 “It is premature to sign an agreement”: David Dayen, “Lawmakers, ‘Fair Settlement’ Coalitions Pressuring AGs on Foreclosure Fraud,” FDL News, December 15, 2011, http://shadowproof.com/2011/12/15/lawmakers-fair-settlement-coalitions-pressuring-ags-on-foreclosure-fraud.
274 “conducting foreclosures when the defendants lacked the right”: Complaint, Commonwealth of Massachusetts v. Bank of America et al., Suffolk County Superior Court, Docket No. 11-4363, December 1, 2011, www.mass.gov/ago/docs/press/ag-complaint-national-banks.pdf.
274 “We are disappointed that Massachusetts”: Diana Olick, “First Major State Lawsuit Filed over ‘Robo-Signing,’” CNBC, December 1, 2011.
274–275 released his report about the firing of June Clarkson and Theresa Edwards: Florida Department of Financial Services Office of Inspector General, “Report of Inquiry Number 12312,” January 6, 2012, available at https://www.scribd.com/doc/77393414/IG-Report-1.
275 They were unprofessional: Letter from Barry Richard to June Clarkson, March 12, 2010, available at www.scribd.com/fullscreen/66947197.
275 According to the report, Lisa and Lynn leveraged: Michael Redman and Lisa Epstein, “Bondi/Atwater Inspector General Report Fail | Pointing Out a Few of the Many IG Report Deficiencies,” 4closurefraud.org, January 12, 2012.
276 “may have used a couple of slides”: Ibid.; Florida Department of Financial Services Office of Inspector General, “Report of Inquiry Number 12312,” January 6, 2012, available at www.scribd.com/doc/77393414/IG-Report-1.
276 Richard Lawson told Scott Maxwell: Scott Maxwell, “On Foreclosure Fraud, Pam Bondi Comes Up Short,” Orlando Sentinel, December 20, 2011.
276 Lisa obtained confidential communications: Michael Redman and Lisa Epstein, “Public Records Request from FL AG Employees to LPS,” 4closurefraud.org, September 22, 2011.
276 Michigan had issued more damaging criminal subpoenas: Lisa Epstein, “LPS/DocX: MI AG Opens Criminal Investigation. Frmr Dep. FL AG Jacquot Revolving Doors into LPS,” Foreclosure Hamlet, June 16, 2011.
276 Sue Sanford from the Michigan AG’s office”: Abigail Field, “Meet Pam Bondi, Foreclosure Fraudsters BFF,” Reality Check, January 10, 2012, available at https://web.archive.org/web/20120113202317/http://abigailcfield.com/?p=691.
276 “It’s a simple cover-up”: David Dayen, “IG Report Whitewashes Firing of Foreclosure Fraud Investigators in Florida,” FDL News, January 9, 2012, http://shadowproof.com/2012/01/09/ig-report-whitewashes-firing-of-foreclosure-fraud-investigators-in-florida.
277 “Tonight, I’m asking my Attorney General”: Remarks by the president in State of the Union Address, January 24, 2012, www.whitehouse.gov/the-press-office/2012/01/24/remarks-president-state-union-address.
278 why would they do it now?: David Dayen, “The Schneiderman Gambit: Financial Fraud Unit Appears Designed to Fail, and Grease Skids for Foreclosure Fraud Settlement,” FDL News, January 25, 2012, http://shadowproof.com/2012/01/25/the-schneiderman-gambit-financial-fraud-unit-appears-designed-to-fail-and-grease-skids-for-foreclosure-fraud-settlement.
278 he would bolt in the showiest, most public way possible: David Dayen, “How the Schneiderman Panel Could Work,” FDL News, January 26, 2012, http://shadowproof.com/2012/01/26/how-the-schneiderman-panel-could-work.
278 The Campaign for a Fair Settlement front organization fell in line: Dayen, “The Schneiderman Gambit.”
278 state and federal regulators announced the National Mortgage Settlement: “Federal Government and State Attorneys General Reach $25 Billion Agreement with Five Largest Mortgage Servicers to Address Mortgage Loan Servicing and Foreclosure Abuses,” press release, Department of Justice, February 9, 2012.
278 Forty-nine states joined, all but Oklahoma: Richard Mize, “Oklahoma Is Lone Maverick in National Mortgage Settlement Signed by 49 States,” Oklahoman, February 10, 2012.
278 Eric Schneiderman said at the time: “AG Eric Schneiderman Opposes Foreclosure Deal.”
279 Headlines touted the largest corporate payout: Brady Dennis and Sari Horwitz, “Settlement Launches Foreclosure Reckoning,” Washington Post, February 10, 2012.
279 one million borrowers would get mortgage balances cut: Margaret Chadbourn and Aruna Viswanatha, “One Million Homeowners May Get Mortgage Write-downs: U.S.,” Reuters, January 18, 2012.
280 violations of the False Claims Act: Rick Rothacker, “Whistleblowers Reap Millions in U.S. Mortgage Suits,” Reuters, March 14, 2012.
280 she would receive $18 million of that herself: Alexander Eichler, “Lynn Szymoniak, Mortgage Victim, Receives $18 Million for Investigating Mortgage Crisis,” Huffington Post, March 15, 2012.
21. Lisa’s Last Stand
281 “It’s very satisfying to recover this money”: Zach Carter, “Lynn Szymoniak, Foreclosure Activist, Says $18 Million Doesn’t Make Up for Homeowners’ Harms,” Huffington Post, March 20, 2012
281 Deutsche Bank removed Mark Elliot from the case: Zach Carter, “Bank Drops Legal Pressure on Foreclosure Fraud Expert’s Family,” Huffington Post, June 13, 2011.
282 Akerman said they wanted to depose pool maintenance staff: Kimberly Miller, “Pool Guy, Landscaper of $18 Million Foreclosure Winner Subpoenaed,” Palm Beach Post, March 27, 2012.
283 “failing to maintain accurate account statements”: Complaint, United States et al. v. Bank of America Corporation et al., United States District Court for the District of Columbia, Case No. 1:12-cv-00361-RMC, filed March 14, 2012, 22, available at https://d9klfgibkcquc.cloudfront.net/Complaint_Corrected_2012
-03-14.pdf.
283 thirty-five of those cases: Office of Inspector General, U.S. Department of Housing and Urban Development, “JPMorgan Chase Bank N.A. Foreclosure and Claims Process Review, Columbus, OH,” Memorandum No. 2012-CH-1801, March 12, 2012, 8, available at https://www.hudoig.gov/sites/default/files/documents/audit-reports//2012-ch-1801.pdf.
283 “pay what you can” corporate penalties: Aruna Viswanatha, “Government Details Mortgage Pact, Promises Tough Oversight,” Reuters, March 12, 2012.
283 nearly half the penalty—over $1 billion: Pamela M. Prah, “States Used Mortgage Settlement Money to Balance Budgets,” USA Today, October 8, 2013.
284 The settlement codified predatory servicing: Consent Judgment, United States of America et al. v. Bank of America et al., United States District Court for the District of Columbia, Case No. 1:12-cv-00361-RMC, filed April 4, 2012, E-4, E-5, E-8-E-12, E1-1-E1-14. Each of the five mortgage servicers in the National Mortgage Settlement agreed to a separate consent judgment, but the language on threshold error rates in all of them is the same.
284 folded into the settlement: “Notice of Anticipated Settlement by Petitioner Attorney General Mike DeWine,” Ohio v. GMAC, Supreme Court of Ohio, Case No. 2011-0890, filed February 6, 2012, available at http://www.sconet.state.oh.us/pdf_viewer/pdf_viewer.aspx?pdf=701829.pdf; “Attorney General Masto Announces Two Historic Mortgage Servicing Foreclosure Settlements,” press release, Office of the Attorney General, Nevada, February 9, 2012.
284 Eric Schneiderman filed a last-minute suit: Ruth Simon and Nick Timiraos, “New York to Settle Some Mortgage Claims with 5 Banks,” Wall Street Journal, March 13, 2012.
284 Martha Coakley got only $2.7 million: “Four National Banks to Pay $2.7 Million to Massachusetts over Unlawful Foreclosures,” press release, Office of Attorney General, Massachusetts, January 16, 2015.
284 $350,000 settlement with Nationwide Title Clearing: Final Consent Decree, People of the State of Illinois v. Nationwide Title Clearing, Circuit Court of Cook County, Illinois, County Department, Chancery Division, Case No. 12-CH-03602, filed December 11, 2013, available at http://stopforeclosurefraud.com/2013/12/13/the-people-of-the-state-of-illinois-v-nationwide-title-clearing-inc-final-consent-decree-alleging-violated-the-consumer-fraud-act-and-the-uniform-deceptive-trade-practices-act.