So I get this call today from this lawyer out in Kentucky about some class action case etc. that I never heard of before.

Well, I just had a chance to skim through the document (was putting up Halloween decorations) and it looks good to me so here it is…


Sorry I do not have time to excerpt…

From the Ticker…

MERS/MBS/Foreclosure Goes RICO

It’s about damned time.

This is worth a read, even though it’s VERY long.  The bottom line is that all the Tickers I’ve written on this subject, from bad conveyances into REMICs, to the tax issues, to the fraudulent documents, to the fact that the MBS are “empty boxes”, up and down the line – it’s all in here.

Anyone who thinks this is a “nothingburger” after reading this has rocks in their head.

This is a rather lengthy filing, 124 pages worth.  It asserts virtually everything that I’ve written about for the last three years related to REMICs and MBS (that the notes were not conveyed and now can’t be under the law), and alleges Racketeering.

I’ve read the whole thing, and want to present just a few short cites, but am embedding the entire document as well for those who “want it all”.

REMICS were newly invented in 1987 as a tax avoidance measure by Investment Banks. To file as a REMIC, and in order to avoid one hundred percent (100%) taxation by the IRS and the Kentucky Revenue Cabinet, an MBS REMIC could not engage in any prohibited action. The “Trustee” can not own the assets of the REMIC. A REMIC Trustee could never claim it owned a mortgage loan. Hence, it can never be the owner of a mortgage loan.

57. Additionally, and important to the issues presented with this particular action, is the fact that in order to keep its tax status and to fund the “Trust” and legally collect money from investors, who bought into the REMIC, the “Trustee” or the more properly named, Custodian of the REMIC, had to have possession of ALL the original blue ink Promissory Notes and original allonges and assignments of the Notes, showing a complete paper chain of title.

58. Most importantly for this action, the “Trustee”/Custodian MUST have the mortgages recorded in the investors name as the beneficiaries of a MBS in the year the MBS “closed.” Every mortgage in the MBS should have been publicly recorded in the Kentucky County where the property was located with a mortgage in the name similar to “2006 ABC REMIC Trust on behalf of the beneficiaries of the 2006 ABC REMIC Trust.” The mortgages in the referenced example would all have had to been publicly recorded in the year 2006.

59. As previously pointed out, the ¡°Trusts¡± were never set up or registered as Trusts. The Promissory Notes were never obtained and the mortgages never obtained or recorded.

60. The “Trust” engaged in a plethora of “prohibited activities” and sold the investors certificates and Bonds with phantom mortgage backed assets. There are now nationwide, numerous Class actions filed by the beneficiaries (the owners/investors) of the “Trusts” against the entities who sold the investments as REMICS based on a bogus prospectus.

61. In the above scenario, even if the attorney for the servicer who is foreclosing on behalf of the Trustee (who is in turn acting for the securitized trust) produces a copy of a note, or even an alleged original, the mortgage loan was not conveyed into the trust under the requirements of the prospectus for the trust or the REMIC requirements of the IRS.

62. As applied to the Class Members in this action, the end result would be that the required MBS asset, or any part thereof (mortgage note or security interest), would not have been legally transferred to the trust to allow the trust to ever even be considered a “holder” of a mortgage loan. Neither the “Trust” or the Servicer would ever be entitled to bring a foreclosure or declaratory action. The Trust will never have standing or be a real party in interest. They will never be the proper party to appear before the Court.

63. The transfer of mortgage loans into the trust after the “cut off date” (in the example 2006), destroys the trust’s REMIC tax exempt status, and these “Trusts” (and potentially the financial entities who created them) would owe millions of dollars to the IRS and the Kentucky Revenue Cabinet as the income would be taxed at of one hundred percent (100%).

Yep.  And this is just the first key into the circle of Hell where these folks are headed.

See, without standing they can’t foreclose, but then we get back to “who can?”  And what we find is that the originator was paid, and thus they can’t either.  Worse, for those originators that are bankrupt, their “assets”, such as they are, can’t go anywhere without a bankruptcy trustee’s signature, and further, even if someone was to acquire that, which nobody has, THE REMICs CAN’T TAKE THE PAPER ANYWAY AS THEIR CLOSING DATE HAS EXPIRED.

So we have a bankrupt originator who was paid in full and can’t foreclose, and we have a note that can’t be transferred into the REMIC without destroying its tax preference (retroactively, incidentally), which instantaneously trashes the value of the MBS – probably by more than they could hope to recover if they were going to take the note anyway.

In all cases, the lack of acquisition of the Class Members’ mortgage loans violates the prospectus presented to the investors and the IRS REMIC requirements.

If an MBS Trust was audited by the IRS and was found to have violated any of the REMIC requirements, it would lose its REMIC status and all back taxes would be due and owing to the IRS as well as the state of Kentucky. As previously stated, one hundred percent (100%) of the income will be taxed.

As the Class Members are identified and the identity of the MBS REMICs revealed through this action, the individual “Trusts”/ MBS REMICs will be turned over to the IRS for auditing.

Yep.  Welcome to the second circle of Hell.  Incidentally, I think both the Federal and State governments have a revenue problem, right?  This ought to help that situation materially.

While attempting to circumvent Kentucky recording Statutes, the MBS Trust created for itself a situation wherein it had no legally recognizable interest in the loans for the benefit of the investors. The investors were invested in nothing. The MBS possessed nothing on the date the REMIC closed and perpetrated a fraud on the investors and the American taxpayer through its fraudulent qualification as a REMIC with the SEC.Or is that


or is that


No legal plan was ever in place to deal with the fact that the original Prospectus to the shareholder/investors was a myth.

No kidding.

MBS/Trustees and their lawyers discovered in the foreclosure process that the Note and Mortgage Assignments would never be located because they never existed. They also discovered that states did not allow blank Assignments or Assignments with retroactive effective dates. To solve the problem of the missing and non-existent Assignments, the MBS/Trustees, their attorneys and their Servicing Agents, decided to fabricate Assignments from thin air and then quietly record the fabricated Assignments.


Oh, let’s see, a year ago I was writing about this….. the fact that there were an awful lot of assignments and endorsements “in blank” which is not legal in a large number of states with regard to trusts, and that in addition back-dating assignments can’t be done either.

It’s never the original issue that really gets you – it’s your attempt to cover it up!

The Assignments of the Mortgage were signed and notarized many years after the actual date of the loan and the date listed with the SEC and IRS as the “Closing” of the REMIC. In every one of these cases, the MBS Trust has been operating illegally as a tax exempt REMIC. The federal government is in turn, owed billions of dollars in income tax from these entities. The individual states of the union has causes of action on behalf of their citizens for the unpaid state tax.

Yep.  And the really bad news is that as soon as these things happened the loss of tax exemption is not only immediate, it’s irrevocable.

As previously set out, often the MERS held the Mortgage as “nominee” for a lender who was out of business and/or liquidated in bankruptcy. There could be no party legally able to Assign the Mortgage on behalf of the dissolved lender. The only party who could authorize the Mortgage Assignment for a bankrupt lender would be the Bankruptcy Trustee. In these cases where a MERS mortgage has been assigned on behalf of a bankrupt entity, a criminal violation of the bankruptcy code had occurred.

Yep again.  A bankrupt entity cannot take actions without the approval of the trustee.  If someone is “assigning” things without that written approval you got big trouble – bankruptcy fraud is serious business.





  1. Danelle Hills says:

    This was filed back in September 2010. What is its status NOW? And how do we join the class if we wish to do so?

  2. margaret hamblin says:

    need to talk to someone regarding this situation. in same situation. i live in wv; however, it for my son in nashville, tn. i have research for 1 yr + and turned over to fbi which is investigating at this time. in fact, they are do to be foreclosing today 3/17/2011. it is bankrupt lehman with aurora as the servicer. requested original note, only got copy of what i signed in 2007 with blank for witness and no raised seal. i then requested the assignment and who the investor is that is holding the original note (iou). they have not responded at all. i found the loan on the mers site and it says the investor choosed not to display who they are and to contact aurora, the servicer. i have told my son to not move and make them prove the chain of title and get the original note and that is the holder of the debt.

    please let me hear from someone quickly. i, parent of son, live in wv, about 3 hours from lexington/louisville.

  3. Betsy says:

    Ryan you have to be a idiot, and probably one of those that got caught in fraud in the foreclosures….happy times in jail!!

  4. mary says:

    here is a scenerio: took a predatory loan, under protest at the time, due to funds needed. Was lied to about rate until closing, no hud 24 hours prior to close. Ironically, New Century Mortgage Corp, lender on documents, (not true lender??). cloud. Servicers, collecting high interest payments over one year, finally mods the rate, but notes, no change to original note and mortgage, except rate. transfers servicing to another, oh and by the way (all connected to goldman sachs) I fell behind and then caught up. They forced place insurance, un-needed, tacked on fees and etc., then told me still behind thousands. I requested proof in writting, nothing came, another month, paid and nothing came. I got served to foreclose. Low and behold, by a Plaintiff, Ive never heard of. wording as if it were a trust, but they left the important part off, the actual trust. I got an attorney, a predatory one, in my opinion, who doesnt file for a motion to dismiss for lack of standing and/or capacity, among other things. No note filed, an assignment made by servicer as mers officer for originating lender, NCMC, whom is out of business and bankrupt, by the way. and no attachment to show they are authorized by the bankruptcy trustee. NCMC had been paid in full a month after close and then they filed for bankruptcy. Now Plaintiff or ahem, pretender lender, fails to answer interrogatories and produces nothing. Seems like they are pleading the fifth. Request for Admissions out there and wonder, if they will plead the fifth as well. The original documents and/or paperwork never made it to the trust, the trust was a lie, the cutoff date has long past to now try and assign mortgages (fabrications) the tax status needs to be revoked and the government should collect on the billion s that these fruadsters got over for.)and the investors where ripped off and so are borrowers who have paid monthly to some unknown theives. Not to mention the insurance these crooks got for the insurance they placed. So if you ask me and millions of others, we were defrauded, they violated our rights, our trust in the banking system has been seriously tarnished, because the government is letting them get away with it. What is happening to our fair society ? Stop thinking like a banker and realize it was not the borrowers fault one bit, they, we as a borrower were trying to make an honest transaction, why werent they????

    • tusense96761 says:

      It is just shocking what the banking system is doing to homeowners all over the world. The Bank is an institution that one has to trust above all others. We have trusted them with our life savings, the loans on our family homes, our roof over our heads. They broke this trust and the government (Obama)
      this was a national emergency, the 2008 economic crisis. Yet the government still hasn’t stepped in and it is Oct. 2015 and fraud foreclosures are still taking place with zero changes . This is even after these banisters were paid out trillions by the tax payers, us, to bail them out. These greedy Zionist Jewish banksters were paid out by the insurance companies when they put our homes loans in default status after 3 months, because they sold the same loans into more than one Trust, they were paid on the same house more the once by insurance companies, then they were paid in the bail out and now they want to rip the equity and the family home and throw us out on the street with a credit report that shows a foreclosure making it difficult for us to rent a house when they check our credit report.
      They do all this illegally. They never had any money in the property to begin with because banks operate on fractional lending , they making up dollars out of thin air and just type digits and transfer those digits from one back to another. They are all in on this scheme. These banisters are buying our politicians and writing the laws and regulations for their owner industry and everything goes in their favor because they have also bought up our news media and judges. In the long run they have hurt themselves because people aren’t stupid and they will continue to lose business because they have no ethics or social conscience. They will be rejected as corporate citizens. What is keeping them going is fraud on top of fraud and this fraud train won’t last forever. May God be their judge and show mercy on the homeowners that have been hurt by their practices and show them a way to get their families through such a web a fraud they have had to deal with to a place where they can rebuild their life for cash so they never have to do business with these banks again.

  5. David Justian says:

    MERS cannot be a nominee. There are three successive MERS corporations. At least the present MERS, i.e., MERS III, according to its corporate secretary-treasurer in his ‘Nebraska’ deposition, has “no” employees. It is a shell corporation designed and created, according to the same secretary-treasurer, to be a ‘buffer’ corporation to protect its parent corporation, MERSCORP, from bankruptcy. Having no employees, who then, can sign an assignment or any other document for MERS? Oh, that’s right, according to the MERS secretary-treasurer, he was granted the right pursuant to a corporate resolution passed by the board of directors of a different corporation, MERS II, to appoint anyone (LPS, a law firm foreclosure mill, the local pizza parlor) to,in turn appoint anyone (in one case a Ukrainian immigrant who couldn’t read English) as a corporate officer of MERS. There are, he said, ‘thousands’ of vice presidents and assistant (corporate) sercretaries, none of whom were known to MERS III, none of whom received any supervision, direction, control, training or compensation from MERS III. And, some of whom did not know that they were a MERS III vice president. And, none of whom were appointed directly by the MERS III board of directors by resolution as required by the MERS III corporate charter or as required by any state law. Actually, MERS III does not legally exist as a functioning entity. So, MERS III cannot be a ‘nominee’. LOL

  6. Ryan says:

    McKeever is a crackpot and so is anyone who believes the crap she’s shoveling. She filed this ridiculous manifesto because she’s got an axe to grind — she lost her $1 million house to foreclosure. And that happened NOT because of MERS, or securitization, BUT BECA– USE SHE DIDN’T PAY HER BILLS. Of course, no one in this country is responsible for their own screw-ups anymore. It has to be someone else’s fault; it has to be “the fraud.” She’s filed the same lawsuit a few times before and they’re always dismissed because they’re baseless. The same will happen here in due order. I challenge any of you to explain why either (a) MERS is “fraudulent” or “illegal”; or (b) securitizing a mortgage loan is somehow unlawful. And if you say because it “hides the fraud” I’m going to bang my head against the wall. I’d also be curious to hear how the loans have all been paid off with “credit default swaps” and “credit enhancements.” Those are stand-alone contracts between investors and insurers — just like any insurance policy. The fact that you don’t necessarily understand it doesn’t mean it’s “unlawful.”

    Look, we find ourselves in a difficult spot and lots of people are suffering right now. But that doesn’t mean they were defrauded. They made bad choices (e.g., borrowered more than they could afford to repay, gambled on investment property) or had bad things happen to them (e.g., lost their jobs). But all of this venom is simply unproductive, and more than anything, it’s stupid.

    • David Justian says:

      Ryan, there are many folks out here with an ax to grind because, unable to pay their mortgage payment for some reason or another, they are being foreclosed upon (rightly so perhaps inspite of the HAMP promise to help). Grasping for straws to avoid becoming homeless in a country facing a poor job market and poor health care for those who are medically unable to continue with mortgage payments, they discover that not only does the lender (or lender’s nominee) want to foreclose, it wants to foreclose using sworn statements based on forgery, fraud and false statements. While admitting that they owe money to their mortgage ‘note’ holder, may a borrower object to such sworn statements? And, if so, what result? Should the lender be required to foreclose pursuant to law, i.e., with documents not based on forgery fraud or false statements? The issue is not whether the borrower owes money (well, okay, it is an issue), but whether , damn! I lost my train of thought…

    • Kelly says:

      How about we start with this?
      What is the purpose of MERS?
      MERS is a recreation of the Registry of Deeds basically.
      But it is not government run and citizens do not have a right to research thru their records.
      It was created to circumvent the legal proccess.
      When a deed is registered at a county registry of deeds a chain of title is able to be followed.
      When a deed goes into the MERS system the chain cannot be publically followed.
      Then the whole idea is for the deed to be spit out the other end with whatever party wishes to make use of it.
      Is the most important part of a mortgage deed (which is a contract)the ability to have property foreclosed on?
      Or is the most important thing that the contract is formed, executed,assigned and utilized legally ?
      Because what you seem to be saying is that the homeowner in default should have property taken away but the banks that are at fault should not have any property taken away.
      I have to tell you that the banks breaking laws and having property forfeited is what should be the end result in hundreds of thousands if not millions of mortgages whether they are in default or not.

    • Herb says:

      Stupid as you are, I have the same problem with this scam, I was not going to go through with the closing because of fraud being right in the open on the closing day that was postponed to a Sunday morning in a Real estate office with no Lawyers or Notary present. Not even any reps from the lender or mortgage broker. So how do you define closing fees of $7000 and bait and switched Note and Mortgage documents that were Robosigned? I guess I set all this up all by my self for a $48000 purchase that turned out to be $53,000 on the forged documents with different amounts on the TILA and other documents showing another amount that are thousands off the real price of the mortgage of $48650.
      How do you explain that I did all this so I could get a free home? Fraud is fraud and you are part of the problem in society. This was all done by the Broker and GMAC, and now Nationstar trying to forclose when they don’t have any assignments of standing, besides what they assigned themselves as the lender three years after the closing, and the did this through MERs without any assignments to Homecomings, GMAC, or Nationstar, so that leaves MERs who can’t be a assignee, because they were not stated in the Note. At least the true Note, not the forgery they are using. You see I am left handed and my signature is very complex and the forgeries are very right handed. So stuff it all up yur asses damn crooks!

    • Herb says:

      Read my reply below this post, it was intended for Ryan to read, but somehow was put after the next post.
      Furthermore you are just being a crybaby and trying to put it on the borrowers who did not forge these documents. You are probebly pissed because they screwed you over by stealing your retirement investments that were also used to screw the people. If you lost your retirement, I don’t feel sorry for you because I will never be able to retire because I am disabled, and all the company’s I worked for went out of business in the 80’s and90’s and all I get is a measley $297 a month from SSI. I was railroaded into a home with Radon that was not disclosed until after I handed over the Bank draft of $7000 and was refused a rescission. I did not plan on a mortgage that was $678 per month when it was supposed to be $375/mo. So don’t go shootin off your mouth against us poor slobs that were scammed.

    • Richard says:

      The only crackpot here is Ryan. Evidently he hasn’t reviewed many of the court cases that have been awarded to homeowners because of MERS, REMIC, Lost promissory Notes! Who has the Notes! How come the Banks never recorded the the new mortgages at the court house when every state in the US the statute says to be able to collect on a mortgage it has to filed! I could go on and on. She did not say Securitizing a loan was a fraud she indicated the way it was securitized was a fraud on the government. Because they said the REMIC was tax excempt, it had no assets! If the REMIC had NO assets how did they pay off the Loan. Before you write something I would suggest you check all of the Court Cases that have been won against MERS and robo-signing and the current case awarded against BofA, and all of the major Banks for fraud.

  7. linda says:

    Speaking of standing, that is my biggest worry about this lawsuit, that the parties bringing it might be found not to have standing. These are crimes against the IRS and bankruptcy laws and so on. Maybe it would have to be the state or US attorney general.

  8. john says:

    Great! MERS is really an acronym for Making Everyone Rebuke Securitization.

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