Rep. Grayson Calls on FBI and US Attorney to Prosecute Bank Crimes: “We do not have an apology-based legal system”

October 14, 2010

Robert S. Mueller III
Federal Bureau of Investigation
935 Pennsylvania Avenue, NW
Washington, DC 20535

Robert O’Neill
U.S. Attorney
Middle District of Florida
400 North Tampa Street, Suite 3200
Tampa, FL 33602
Dear U.S. Attorney O’Neill and Director Mueller,

When it comes to foreclosures, there is mounting evidence of a state of rampant lawlessness in Central Florida.  There are increasing signs that big banks routinely evade laws meant to protect homeowners, in many well-documented cases of ‘foreclosure fraud.’  Despite the demonstrated existence, for instance, of ‘robosigners’ signing affidavits attesting to documents that they have never seen, the parties engaging in such misconduct are not being brought to justice.  Big banks are mischaracterizing this as mere ‘technical problems,’ and apologizing only where there is clear and very public evidence of harm.

It is not enough for big banks only to apologize for fraud, perjury, and even breaking and entering – when they are caught.  It is time for handcuffs. Fraud does not become legal just because a big bank does it.

On September 20, 2010, after my office found evidence of systemic foreclosure fraud perpetrated by big banks and foreclosure mills, I called for a halt to illegal foreclosures.

Since then, big banks such as Bank of America, JP Morgan Chase, GMAC, PNC and others have suspended foreclosures or foreclosure sales.  These banks are still claiming that the massive fraud they have perpetrated amounts to nothing more than a series of technical mistakes.  This is absurd.  This is deliberate, systemic fraud, and it is a crime.

To give but two of the many available examples, attached is a deposition from an ex-employee of one of the largest ‘foreclosure mills’ in the state, the Law Offices of David Stern.  In it, this employee testifies under oath that it was routine for that office to falsify documents regarding military records, in order to move foreclosure cases along more quickly.

The local media has reported on the case of Nancy Jacobini; a contractor for JP Morgan Chase broke into her home after the bank mistakenly foreclosed on it.  JP Morgan Chase ‘apologized’ for terrifying her.  But , US ; we have a system of laws.  I am writing to ask you to enforce them.

The organized and systematic manufacturing of falsified documents to deprive people of their homes is not only a threat to the integrity of the legal system.  It also aggravates and extends the weakness in the housing market. Who is going to feel comfortable buying a home if a big bank can simply take it, whether or not that bank has a right to it?  Given the securitization of mortgage-backed securities, this misconduct is a threat to our securities markets as well.  But fundamentally, this is a question of protecting basic
property rights – if you don’t own it, then you shouldn’t try to take it.  Without clear property rights, and a legal system that insists on clear proof of those rights before transferring ownership by force, the economy will fall apart.

If perpetrators of perjured affidavits and other systematic criminal activity can get off simply with civil liability – or even less, an insincere bureaucratic apology – the freedom that Americans enjoy will erode quickly in the face of lawless seizures of property.  I appreciate your work on the joint Middle District of Florida’s Mortgage Fraud Initiative, and respectfully request that the efforts of your offices turn towards reining in this rampant criminality.


Alan Grayson

Member of Congress



Click to Download

Grayson Letter to Mueller and ONeill

Full Deposition of Tammie Lou Kapusta Law Office of David J Stern
[scribd id=38890568 key=key-24i0fee1xl7ny3svnyj2 mode=list]

6 Responses to “Rep. Grayson Calls on FBI and US Attorney to Prosecute Bank Crimes: “We do not have an apology-based legal system””
  1. Ron Moss says:

    Terrorist are very well camoflauged, they masquerade like bankers and members of society but don’t fall for it,
    They want to steal your house like they did mine. I should have paid cash for mine, Had I suspected terrorism, I sure would have, I could have after selling my former place for $900,000 cash but I trusted bankers…then. but no more. Not till Ron Paul is elected and changes it back to a constitutional system, as it was when the founders found it. “Congress shall have power to coin money and regulate the value thereof”
    Is that still valid? 1937 Our Supreme Court ruled, “Congress cannot abdicate it’s duty” Then why do the bankers pretend to have that power?

  2. Thanks to honorable men like Congressman Grayson – the White House is seriously considering a moratorium on foreclosures AND evictions.

  3. Stupendous Man - Defender of Liberty - Foe of Tyranny says:

    William Black has said, in essence, that things won’t really get any better until the folks guilty of committing the fraud/s are charged, prosecuted and convicted.

    I believe Black, and I thank Grayson for stepping up and calling for such.

  4. RAMONA says:

    In the state of florida , doesnt the homestead exemption have some protection also that is being thrown out the door with these banks?

  5. Officer of the Law says:

    Way to go, Congressman Grayson! I wish that I lived in your district and could vote for you!

    However, please don’t overlook the fact that these bankers committed fraud in loan origination which is why so many people got home loans and then found that their payment was much higher than promised. That is also a violation of the Truth in Lending Act. These big bankers knew that this would result in foreclosures, but they hoped to make money off of that and they did.

    The big bank owned mortgage servicing companies charged unauthorized fees which is also fraud and a violation of the Truth in Lending Act. These big bankers knew that this would result in foreclosures, but they hoped to make money off of that and they did.

    As you pointed out last month, these big bankers used MERS to avoid hundreds of millions of dollars in taxes, more crimes and more ill gotten gains.

    There is plenty of evidence to convict all of these bankers, their attorneys and their minions in government. All of their assets could be seized to cover the innocent depositors and repay the victims.

    Please send a letter to the U.S. Attorney in every district asking them to take action to enforce the law. If they don’t take action, subpoena them and have them explain why they are failing to prosecute the criminal bankers who have stolen the homes and life savings of millions of Americans.

  6. Nat-AHA says:

    Is there a video of his press conference yet…?

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