Class Action | BANENIE vs JPMORGAN CHASE – Chase Accused of Brazen Bankruptcy Fraud

Chase Accused of Brazen Bankruptcy Fraud

LOS ANGELES (CN) – JPMorgan Chase routinely fabricated documents to deceive bankruptcy judges, going so far as to Photoshop documents to “create the illusion” of standing “in tens of thousands of bankruptcy cases,” according to a federal class action.

Lead plaintiff Ernest Michael Bakenie claims that Chase’s “pattern and practice of playing ‘hide-and-seek’ with debtors, judges and other bankruptcy players” bore rich fruit: that Chase secured motions for relief of stay and proofs of claim in 95 percent of its cases.

“Through the use of fabricated assignments, endorsements and affidavits that purport to transfer deeds of trust, notes and the rights to all monies due under the terms of tens of thousands of non-negotiable promissory notes (the ‘MLNs’); Chase has demonstrated a pattern and practice of playing ‘hide-and-seek’ with debtors, judges and other bankruptcy players,” the complaint states.

“Chase intentionally conceals the identity of the true parties in interest entitled to enforce the tens of tens of thousands of residential non-negotiable promissory notes (the ‘MLNs’) for its own financial benefit, at the expense of the class and to the detriment of the integrity of the bankruptcy system.”

Bakenie says Chase used a network of attorneys to file more than 7,000 motions for relief from automatic stay in bankruptcy cases in the Central District of California, “wherein they falsely claim to be the party entitled to monies due under the terms of MLNs.”

Chase rewards attorneys based on how quickly they can secure the stays, and uses fabricated documents to establish chain of title on loans, according to the complaint.

“Rather than incur the cost of ‘proving up’ its own standing or the standing of its principal Mortgage Backed Security Trust, Chase systemically misrepresents Chase or a designated MBST to be a creditor in tens of thousands of bankruptcy cases by utilizing manufactured documents,” the complaint states.

Bakenie claims: “That said practice is utilized for all mortgage loans originated by Chase, and other loan originators, including insolvent Washington Mutual Bank, whose assets were purchased by Chase.

“That said manufactured documents are fabrications intended to create the illusion of a valid transfers MLNs and support the assertion of standing in tens of thousands of bankruptcy cases. …

“That the aforementioned fabricated evidence is ‘photo-shopped’ and is highly persuasive and authentic in appearance so as to ensure legal victory in the bankruptcy courts.

“That said manufactured evidence is systemically utilized to deceive bankruptcy players and increase the profits of Chase, its agents and its principals through massive cost savings and the imposition of attorney fees upon class borrowers.

“As a direct result of this practice, over 95 percent of Chase’s motions for relief of stay and proofs of claim are granted without objection.

“That the use of the fabricated evidence has a chilling effect on class debtors and their attorneys. Said business practices discourages bankruptcy players from offering objections or from questioning the validity of Chase’s false claims based on standing.”

Bakenie adds: “That said practice allows Chase to dump defaulted loans that were never properly securitized by WAMU and other originators acquired by Chase into private mortgage backed security trusts by creating the illusion of a valid transfer.

“Said practice shifts the liability of defaulted loans not properly securitized by WAMU, from Chase to private mortgage backed security trusts. The practice allows Chase to effectively mitigate the millions of dollars in liability of the WAMU acquisition, where WAMU failed to transfer MLNs of its portfolio before its demise. Said practice shifts losses from WAMU toMBST bond investors.

“That after a non-judicial foreclosure sale, class members remain indebted to the true beneficiary for the unsecured note but without credit for the loss of the collateral to Chase’s designated assignee.

“Most egregiously, the network attorneys utilize the inducing documents to obtain attorney fees awards from by the bankruptcy judges ranging from $600-$1,000 for each successful motion for relief of stay.”

Bakenie concludes that “degradation of the integrity of our bankruptcy court system cannot be justified in the name of Chase’s cost savings and unjust enrichment.”

Bakenie seeks class certification, disgorgement, compensatory, statutory and punitive damages for unfair and deceptive trade, and “an order vacating all bankruptcy orders, claims and awards granted based on Chase’s misrepresentation and deceptive business practices”.

He is represented by Joseph Arthur Roberts of Newport Beach.

Copy of the complaint below…

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4closureFraud.org

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BANENIE vs JPMORGAN CHASE

Comments
6 Responses to “Class Action | BANENIE vs JPMORGAN CHASE – Chase Accused of Brazen Bankruptcy Fraud”
  1. Beth A. says:

    I just wanted to add —

    To all these good people that take up claims and fight: Bless you!

  2. Beth A. says:

    This is as sick as corporate greed gets…Chase and its officers are nothing better than a fraud ring and all should be cuffed and the key thrown away. I have been praying that the company does a crash and burn…it is so big and the fraud is so widespread across many companies — it boggles the mind. But they have to pay.

    There is a special place in Hell for these people.

    • lvent says:

      I had a similar thought today…someday they will all have to answer for all this…..I wouldn’t want to be them when that day comes…karma is a bitch…!

    • William says:

      Yes, that hell is called ‘Guantanamo’. These are terrorists. No different then any others. To hell with them. No corporate shielding for the criminals. Thats not how it works.

  3. Freddie Demon says:

    This boggles the mind. They just make stuff up. This is like a nightmare that won’t end. We are under attack, under attack!

  4. William says:

    Chase is a corporation. It is an inanimate object. It cant do anything. People do things in the name of the corporation. When people commit fraud, they are PERSONALLY RESPONSIBLE for THEIR actions.
    Law suits must be directed at those who work for the corporations. They are criminally and civilly responsible for their actions. The corporations should be defending itself against its employees crimes, not giving their employees cover behind the corporate shield that does not protect against fraud.
    The way these cases are handled, there appears to be collusion between all the lawyers on both sides to protect the layers who are the brokers of most crime. Unless we prosecute the lawyers, we are DOOMED.

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