by David Dayen
284 Beau Biden settled with MERS for $0: “Biden Secures Reforms from National Mortgage Registry,” press release, Delaware.gov, July 13, 2012. See also David Dayen, “Delaware AG Biden Settlement with MERS Promises Reforms Already Pledged,” FDL News, July 13, 2012, http://shadowproof.com/2012/07/13/delaware-ag-biden-settlement-with-mers-promises-reforms-already-pledged.
284 The facts came out in an affidavit provided to the court: Affidavit of John P. Kelleher, State of Nevada, County of Clark, December 2012, available at http://nevadajournal.com/assets/uploads/2013/02/affidavit-of-john-p.pdf.
284 a notice of default taped to Kelleher’s door: Steven Miller, “AG Covered Up Conflict of Interest in Robo-Signing Case, Says Brief,” Nevada Journal, November 29, 2012.
284 The judge dismissed the charges against Trafford and Sheppard entirely: Ken Ritter, “Judge Tosses Mortgage ‘Robosigning’ Case in Vegas,” Associated Press, February 26, 2013.
284 “complete embarrassment”: Kyle Gillis, “New Robo-Signing Brief: Misconduct by AG Masto’s Office Could ‘Seriously Damage Public Confidence’ in That Office,” Nevada Journal, February 25, 2013.
285 “When we first got involved in the case”: Brian Mahoney, “How They Won It: Irell Unravels Nevada Robosigning Case,” Law360, April 1, 2013.
285 Curtis Hertel, a register of deeds: Hertel v. Bank of America N.A. et al, Thirtieth Circuit Court, Ingham County, Michigan, Case No. 11-687-CZ, filed June 22, 2011. The case was eventually moved to U.S. District Court, Western District of Michigan, on July 22, 2011. Opinion in the U.S. District Court case available at https://scholar.google.com/scholar_case?case=2806553639914624068.
285 Thigpen had just sued MERS: Complaint and Motion for Appointment of a Special Master and for Injunctive Relief, Guilford County ex rel. Jeff Thigpen v. Lender Processing Services et al., General Court of Justice, Superior Court Division, Guilford County, North Carolina, Case No. 12-CVS-4531, filed March 14, 2012, available at www.scribd.com/doc/85343328/Guilford-Complaint. Case dismissed on May 29, 2013: www.ncbusinesscourt.net/opinions/2013_NCBC_30.pdf.
286 Palm Beach County had 1.3 million residents: United States Census Bureau Quick Facts, http://quickfacts.census.gov/qfd/states/12/12099.html.
286 So she announced her intent to run: George Bennett, “Redistricting Could Pit Several Incumbent Palm Beach County State Legislators Against Each Other,” Palm Beach Post, March 18, 2012.
287 a case management contract with a division of LPS: “Florida Court Selects LPS Case Management Software,” MortgageOrb, June 26, 2009, www.mortgageorb.com/e107_plugins/content/content.php?content.3769; “LPS’ Largest Implementation of ShowCase® Court Case Management System to Date in Palm Beach County, Fla.,” LPS press release, PRNewswire, March 14, 2012.
287 LPS gave Sharon a maximum-level contribution: Florida Department of State, Division of Elections, Campaign Treasurer’s Report Summary, Sharon R. Bock for Clerk of the Circuit Court, covering period from 1/1/2012-3/31/2012, 5, 10.
288 other activists, inspired by her run, started their own campaigns: Ryan Grim and Arthur Delaney, “Foreclosure Victims Aim to Take over County Courthouses,” Huffington Post, May 2, 2012.
290 “our public land records have been defiled”: “Lisa Epstein Clerk of Court Channel 12 Interview,” WPEC-12 TV, uploaded June 14, 2012, https://www.youtube.com/watch?v=9jr8hvOfgwI.
290 “damage Lisa Epstein as the voice of the dispossessed”: George Bennett, “PBC Races Are Drawn: Bock, Vana, Negron All Draw Late Challenges,” Palm Beach Post, June 8, 2012.
290 Lynn bought a Buick: Karen Weise, “Mortgage Fraud Whistle-Blower Lynn Szymoniak Exposed Robosigning’s Sins,” Bloomberg BusinessWeek, September 12, 2013.
291 Foreclosure filings rose 85 percent: Kimberly Miller, “Foreclosures, Repos up from Last Year in South Florida,” Palm Beach Post, April 12, 2012.
292 It was the 274th and final docket entry: Docket report, Deutsche Bank v. Lynn Szymoniak, Clerk and Comptroller, Palm Beach County, available at http://courtcon.co.palm-beach.fl.us/pls/jiwp/ck_public_qry_doct.cp_dktrpt_frames?backto=P&case_id=502008CA022258XXXXMB&begin_date=&end_date=.
292 Steve Dibert trashed Lisa as “a joke”: Steve Dibert, “Yves Smith’s Plea for Votes for Lisa Epstein Puts a Serious Bite into Her Credibility,” Mortgage Fraud Investigations—Miami, August 10, 2012, http://mfi-miami.com/2012/08/is-yves-smith-at-naked-capitalism-sniffing-glue.
293 the Palm Beach Post, which had endorsed Sharon Bock: Rhonda Swan, “Editorial: Bock for Clerk of Court,” Palm Beach Post, July 25, 2012.
293 Three clerks were under criminal investigation: Daphne Duret, “West Palm Beach Woman’s Arrest Reveals Clerk’s Office Probe Focused on 1,000-Plus Missing Oxycodone Pills,” Palm Beach Post, August 21, 2012.
293 Michael accused the Post of sitting on the story: Michael Redman, “Well, Wouldn’t Ya Know . . . PBC Clerk Sharon Bock’s Office Criminal Arrest Reveals Probe Focused on 1,000-Plus Stolen Oxycodone Pills from Evidence Department,” 4closurefraud.org, August 21, 2012.
293 Lisa was proud to have received 27,003 votes: Palm Beach County Supervisor of Elections, primary election results, August 14, 2012, available at http://results.enr.clarityelections.com/FL/Palm_Beach/41045/96143/en/summary.html.
293 Leticia Arias was a known robo-signer: Release of Mortgage Lien, Clerk of Palm Beach County Public Records, book 26197, page 1091, recorded July 22, 2013. Sampling of Leticia Arias documents via Lisa Epstein, “Pigs Ass: A Sampler of Ocwen Documents (Leticia Arias Notary Examples),” Foreclosure Hamlet, November 16, 2010.
Epilogue
294 the Housing Justice Foundation: Official website at http://thjf.org.
294 SunTrust, a regional bank that paid fines: Michael Corkery and Jessica Silver-Greenberg, “SunTrust Settles with Justice Dept. over Mortgages; Talks Continue for Citigroup and Bank of America,” New York Times, June 17, 2014.
295 Brent Bentrim: Brent E. Bentrim v. Wells Fargo Bank, County of Charleston, South Carolina, Court of Common Pleas, Ninth Judicial Circuit, Case No. 2011-CP-10-2946, series of filings in the case available at http://imgweb.charlestoncounty.org/CMSOBView/Service1.asmx/StreamDocAsPDF?viewertype=cms&ctagency=10002&casenumber=2011CP1002946&docseq=P2A14, case docket at http://jcmsweb.charlestoncounty.org/PublicIndex/CaseDetails.aspx?CourtAgency=10003&Casenum=2011CP1002946&CaseType=V&Org=CR&AspxAutoDetectCookieSupport=1; Yves Smith, “Repeated Foreclosures on an On-Time Borrower Demonstrate Failure to Fix Servicing and Fallacy of ‘Save Banks at All Costs’ Policy,” Naked Capitalism, June 17, 2014.
295 Abby Lopez: HSBC Bank v. Abby Lopez, Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, Civil Division, Case No. 50-2009-CA-0304030XXMBAW. Emails posted at 4closurefraud.org, “Lender Processing Services (LPS) Internal Email Accidentally Leaked in a Fraudclosure Case,” April 24, 2012. The Florida First Amendment Foundation filed motions to prevent the purge of the emails from the court record; its filing is available at http://floridafaf.org/files/2012/12/HSBC-v-Lopez---Motion-for-In-Camera-Hearing-attachment-2.pdf.
295 Phoenix Light v. JPMorgan Chase: Complaint, Phoenix Light v. JPMorgan Chase, Supreme Court of the State of New York, County of New York, September 4, 2013, available at www.scribd.com/doc/165380406/Phoenix.
295 A 2012 case against Barclays Bank: Consolidated Complaint, HSH Nord-bank et al. v. Barclays Bank, Supreme Court of the State of New York, County of New York, Index No. 652678/2011, filed April 2, 2012, available at www.iabaton.com/en/cases/upload/HSH-v-Barclays-Consolidated-Complaint.pdf.
296 “some of the least ethical behavior on Wall Street wasn’t illegal”: Interview with President Obama, 60 Minutes, CBS News, December 11, 2011, transcript p. 8, www.cbsnews.com/news/interview-with-president-obama-the-full-transcript/8.
297 “This Assignment of Mortgage was inadvertently not recorded”: Second Amended Complaint, United States of America ex rel. Lynn E. Szymoniak v. American Home Mortgage Servicing et al., United States District Court, District of South Carolin
a, Rock Hill Division, Case No. 10-cv-01465-JFA, 47, available at http://mattweidnerlaw.com/wp-content/uploads/2013/08/complaint-symoniak-false-claimS.C.-Second-Amended-Complaint-ECF-3.pdf.
297 the Justice Department declined to intervene: Jef Feeley and David McLaughlin, “Mortgage Whistleblower Stands Alone as U.S. Won’t Join Lawsuit,” Bloomberg Business, April 27, 2014.
297 Judge Joseph Anderson threw out most of the case: Order, United States of America ex rel. Lynn E. Szymoniak v. American Home Mortgage Servicing et al., United States District Court, District of South Carolina, Rock Hill Division, Case No. 10-cv-01465-JFA, filed May 12, 2014, available at https://casetext.com/case/united-states-ex-rel-szymoniak-v-am-home-mortg-servicing.
297–298 Lynn kept alive a sliver of the case: Notice of Appeal, United States of America ex rel. Lynn E. Szymoniak v. American Home Mortgage Servicing et al., United States District Court, District of South Carolina, Rock Hill Division, Case No. 10-cv-01465-JFA, filed June 26, 2015.
298 Damian said Lynn stole his research: Complaint and Demand for Jury Trial, Figueroa v. Szymoniak, Seventeenth Judicial Circuit, in and for Broward County, filed March 4, 2013, available at www.scribd.com/doc/168544786/Figueroa-v-Szymoniak; Martin Andelman, “Some of Lynn Szymoniak’s Millions May Belong to Someone Else,” Mandelman Matters (blog), September 16, 2013.
298 Damian, whose class action suits against the banks were all dismissed: Per Curiam Opinion, Figueroa v. Merscorp, Inc., United States Court of Appeals for the Eleventh Circuit, Case No. 11-10984, May 11, 2012, available at https://casetext.com/case/figueroa-v-merscorp-inc.
298 That line is the essence of Damian’s argument: Complaint and Demand for Jury Trial, Figueroa v. Szymoniak, 5.
299 just 83,000 homeowners received a first-lien principal reduction: David Dayen, “Just 83,000 Homeowners Get First-Lien Principal Reduction from National Mortgage Settlement, 90 Percent Less than Promised,” Naked Capitalism, March 19, 2014. Total first-lien mortgage modifications (less “conditional” forgiveness, which can be withheld, and “180DPD forgiveness,” which extinguishes a loan that is unrecoverable): Bank of America 30,609, JPMorgan Chase 18,114, Citi 10,296, Wells Fargo 23,428, Ally Bank (known post-bankruptcy as ResCap) 1,149, for a total of 83,596.
299 Donovan touted over $50 billion in tangible benefits: Shaun Donovan, “Mortgage Settlement Begins to Deliver,” Politico, June 21, 2013.
299 Servicers received credit for “forgiving” debt already discharged: Shahien Nasiripour, “US Mortgage Bond Investors Take Large Hit,” Financial Times, November 15, 2012; Gretchen Morgenson, “How to Erase a Debt That Isn’t There,” New York Times, September 29, 2012.
299 this supposed “gift” to homeowners had no material value: David Dayen, “IRS Confirms That $12 Billion in ‘Mortgage Relief’ in National Mortgage Settlement Completely Worthless,” Naked Capitalism, November 18, 2013.
299 an insulting $1,480, less than two months’ rent: $1,480 figure via the Joint State-Federal National Mortgage Servicing Settlement FAQ, www.nationalmortgagesettlement.com/faq.
299 Oklahoma . . . set up a mortgage fund: Cary Aspinwall and Casey Smith, “Facing Foreclosure: Oklahoma Goes Its Own Way in Facing the Foreclosure Mess,” Tulsa World, October 20, 2013. It should be noted that the Oklahoma program has helped significantly fewer borrowers, as the state tried to make subjective determinations of harm, which limited payouts. But each homeowner received an average of $11,173, according to the Oklahoma attorney general.
300 The other big settlement: Yves Smith, Whistleblowers Reveal How Bank of America Defrauded Homeowners and Paid for a Cover Up—All With the Help of “Regulators,” self-published e-book based on an investigative series published at Naked Capitalism, available at http://econ4.org/wp-content/uploads/2013/04/Naked-Capitalism-Whistleblower-Report-on-Bank-of-America-Foreclosure-Reviews-12.pdf.
300 banks instead paying $3.6 billion in cash: “Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement,” press release, Office of the Comptroller of the Currency, February 28, 2013; Independent Foreclosure Review Payment Agreement Details, Office of the Comptroller of the Currency, www.occ.gov/news-issuances/news-releases/2013/nr-ia-2013-60a.pdf.
300 But robo-signing, document fraud, and predatory servicer abuse continue: Roger Lohse, “Couple’s Paid-Off Home Foreclosed Mistakenly,” WPLG-TV Miami/Fort Lauderdale, March 17, 2014; Matt Drange, Amy Julia Harris, and Elizabeth Wagner, “Error Claims Cast Doubt on Bank of America Foreclosures in Bay Area,” KNTV-TV San Francisco, April 27, 2013.
300 no executive director, no offices, no phones, and no staff: Mike Gecan and Arnie Graff, “Obama’s Mortgage Unit Is AWOL,” New York Daily News, April 18, 2012.
300 “most of the investigative work”: Robert Khuzami, testimony before House Financial Services Committee, May 17, 2012; David Dayen, “Waters Challenges Khuzami on Securitization Fraud Task Force, Gets Revealing Answers,” FDL News, May 18, 2012, http://shadowproof.com/2012/05/18/waters-challenges-khuzami-on-securitization-fraud-task-force-gets-revealing-answers.
300 the task force secured several headline-grabbing settlements: Ben Protess and Jessica Silver-Greenberg, “Tentative Deal Hands JPMorgan Chase a Record Penalty,” New York Times, October 19, 2013; Aruna Viswanatha, “Citigroup to Pay $7 Billion to Settle U.S. Mortgage Probe,” Reuters, July 14, 2014; Evan Perez, “Bank of America to Pay $16.65 Billion over Mortgages,” CNNMoney, August 21, 2014.
300 a high “bullshit-to-cash” ratio: Yves Smith, “Bank Settlement Grade Inflation: High Bullshit to Cash Ratio in $17 Billion Bank of America Deal,” Naked Capitalism, August 21, 2014.
301 the $37 billion fine looked more like $11 billion: David Dayen, “Tony West’s Departure Ends Era of Pathetic Bank Settlements,” Naked Capitalism, September 5, 2014.
301 Theresa and Joe Giudice: Karen Sudol, Todd South, and Chris Harris, “Despite Tearful Pleas, ‘Real Housewives’ Stars Joe, Teresa Giudice Sentenced to Prison,” NorthJersey.com, October 2, 2014. Case was United States of America v. Giuseppe & Teresa Giudice, United States District Court, District of New Jersey, filed July 29, 2013, available at www.justice.gov/sites/default/files/usao-nj/legacy/2013/11/29/Guidice%2C%20Giuseppe%20and%20Teresa%20Indictment.pdf. “Stars of ‘Real Housewives of New Jersey’ Television Series Indicted on Fraud and Tax Charges,” press release, U.S. Department of Justice, July 29, 2013, lists four agencies that worked on the case.
301 Lanny Breuer and Eric Holder: Katelyn Polantz, “Holder’s Return to Covington Was Six Years in the Making,” National Law Journal, July 5, 2015; Catherine Ho, “Lanny Breuer, Chief of DOJ’s Criminal Division, Returns to His Old Law Firm Covington and Burling,” Washington Post, March 28, 2013.
302 Lorraine O’Reilly Brown: United States of America v. Lorraine Brown, United States District Court, Middle District of Florida, Jacksonville Division, Case No. 3:12-cr-198-J-2S, filed November 20, 2012, available at www.scribd.com/doc/113917843/Brown.
302 LPS wiggled out of criminal indictments: “Florida-Based Lender Processing Services Inc. to Pay $35 Million in Agreement to Resolve Criminal Fraud Violations Following Guilty Plea from Subsidiary CEO,” press release, U.S. Department of Justice, February 15, 2013.
302 the 10,567 polluted DocX land records: John O’Brien, Affidavit and Request for Restitution, United States of America v. Lorraine Brown, United States District Court, Middle District of Florida, Jacksonville Division, Case No. 3:12-cr-198-J-25, filed January 11, 2013.
303 “I don’t know how you fix that”: Excerpt of Sentencing Hearing, United States of America v. Lorraine Brown, United States District Court, Middle District of Florida, Jacksonville Division, Case No. 3:12-cr-198-J-25, April 23, 2013, 17–18.
303 Brown got five years, the maximum sentence: “Former Executive at Florida-Based Lender Processing Services Inc. Sentenced to Five Years in Prison for Role in Mortgage-Related Document Fraud Scheme,” press release, U.S. Department of Justice, June 25, 2013.
305 Too many judges in Florida,
and really nationwide: Allison Fitzgerald, “Homeowners Steamrolled as Florida Courts Clear Foreclosure Backlog,” Center for Public Integrity, September 10, 2014.
306 the state did pass a law to speed up the foreclosure process: Drew Harwell, “‘Faster Foreclosures’ Law Unintentionally Slows Florida Filings,” Tampa Bay Times, September 10, 2013.
306 One judge in Broward County closed 786 cases: Fitzgerald, “Homeowners Steamrolled.”
306 Bondi threw up her hands: Kimberly Miller, “Attempt to Subpoena Foreclosure Mills Stalls,” Palm Beach Post, February 6, 2012.
306 The Florida Bar belatedly disbarred David Stern: Andy Kroll, “Fallen Foreclosure King David J. Stern Disbarred,” Mother Jones, January 13, 2014.
306 Marshall C. Watson agreed to a plea deal: Law Office of Evan M. Rosen, “Marshall Watson Foreclosure Mill Shut Down After Guilty Plea and Consent to Judgment, Changed Name to Choice Legal Group,” January 9, 2013, www.evanmrosen.com/2013/01/09/marshall-watson-foreclosure-mill-shut-guilty-plea-consent-judgment-choice-legal.
306 They’ve built up significant appellate court case law: Adolfo Pesquera, “4th DCA Robo-Witnesses Ruling a Win for Former Condo Owners,” Daily Business Review, August 29, 2012.
307 Off that deposition, Rosen won the case: Michael Redman, “Full Deposition of Lona Hunt: Robo-Verifier of Foreclosure Complaints for Seterus/Fannie Mae,” 4closurefraud.org, November 12, 2014; Michael Redman, “Happy Thanksgiving from Lona Hunt—Foreclosure Case Dismissed After Taking Depo of Fannie Mae/Seterus Robo-Verifier,” 4closurefraud.org, November 26, 2014.
307 the state supreme court ruled that voluntary dismissal was fine: Revised Opinion, Roman Pino v. Bank of New York, Supreme Court of Florida, Case No. SC11-697, issued February 7, 2013, available at www.floridasupremecourt.org/decisions/2013/sc11-697.pdf.