JPMorgan’s Independent Foreclosure Review Auditor Deloitte & Touche Along w/ Bear Stearns Settle $295 Million Fraud Lawsuit

A.G. Schuette and Treasurer Dillon Announce $294.9 Million National Settlement With Bear Stearns And Deloitte & Touche

LANSING – Attorney General Bill Schuette and State Treasurer Andy Dillon today announced a federal judge has granted preliminary approval to Michigan’s proposed national class action securities fraud lawsuit against Bear Stearns and Deloitte & Touche. Under the terms of the agreement, Bear Stearns and Deloitte & Touche will pay investors nationwide $294.9 million. The amount the State of Michigan Retirement Systems (SMRS) will receive as part of the settlement will be finalized at a later date. The final settlement hearing will be held before the Hon. Robert W. Sweet, U.S. District Judge for the Southern District of New York, at noon on September 19, 2012.

“This is good news for Michigan taxpayers,” said Schuette. “This settlement demonstrates our commitment to holding accountable any bank or investment firm that violates the public trust.”

“I am pleased we have reached a settlement agreement with Bear Stearns and other defendants in this matter,” said Dillon. “Through this settlement process, the State has demonstrated its obligation not only to thousands of employees, retirees, and their beneficiaries who depend on these pension funds for their retirement, but also to all class members.”

As part of the agreement, the companies have agreed to pay $294.9 million to investors nationwide who bought Bear Stearns stock and other equity securities and options from December 14, 2006 to March 14, 2008. The settlement is meant to compensate investors, including SMRS, who were misled about the value and risks of Bear Stearns’ mortgage-backed assets.

The State of Michigan acted as the court-appointed lead plaintiff in the lawsuit, and argued that Bear Stearns and their auditor Deloitte & Touche misled the state’s pension fund and other investors about risky exposure to the U.S. housing market and subsequent write-downs to its assets, which led to a collapse of the company and its stock.

SMRS, which invests on behalf of Michigan public school employees, state employees, Michigan State Police and Michigan judges, holds combined assets of approximately $50.3 billion, making it one of the largest pension systems in the nation.

SOURCE: http://www.michigan.gov

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4closureFraud.org

Comments
6 Responses to “JPMorgan’s Independent Foreclosure Review Auditor Deloitte & Touche Along w/ Bear Stearns Settle $295 Million Fraud Lawsuit”
  1. John says:

    To have a ready answer along these lines. go by your local Title Company and see what they have on their records in regard to your title being cleared or not.

    In all this mess, the Title Companies are the most honest and right as they are responsible for holding you harmless if anything is filed wrong and they let it go or if wrongs get by them.

    Because it would cost them money to be wrong, they will do all they can to be right.

    Always put the Title Company on the line first!

  2. Gwen G says:

    so if the investors have been paid–that means the notes have been paid in full? as the investors bought the notes in these trusts to pay them money. If the investors have now gotten their money–well “grandma” has paid the notes. The next phase is righting this for the homeowners. Their note is paid off folks, give them their houses!

    • Liz says:

      Have you heard of any case that accepted this theory, if investors got their money, the notes are null or may be made noncollectable on?

      However, if the investors appear not injured and being repaid by this settlement, then paying on the note will constitute their “unjust enrichment”, right? Not saying that they most probably did get unjustly enriched on our notes anyway.

      • dRp says:

        Yes, there is a case. Thirteenth judicial circuit for Hillsborough County, BRANCH BANKING and TRUST COMPANY vs KRAZ, LLC #10-CA-000304

        “In fact, Mr. Bruni testified that Plaintiff may have already applied to the FDIC for a loss share payment on this loan. And Defendants’ expert, Jim Howard, explained that it was possible Plaintiff could have already applied for and received a payment from the FDIC on this loan, perhaps in an amount as high as $1,800,000.00. Notably, Plaintiff nowhere credited such potential payment from the FDIC against the amounts sought in the instant litigation; thereby giving the impression that
        Plaintiff might be “double dipping”, and possibly “triple dipping” if market conditions favorably
        change and the property likewise increases in value.”

        “all funds held by the Receiver shall be paid over to Defendant Kraz’s business operating account; …It is further ORDERED AND ADJUDGED that Plaintiff shall, within thirty (30) days of
        the entry of this Final Judgment, credit the principal of the Note with all payments received by
        Plaintiff from the FDIC concerning this loan”

    • To Tell The Truth says:

      My question exactly! Wonder what loans were in that investment package….what trusts were involved…

      • Bobbi Swann says:

        Those suits are of public record so you can find them and see what “Trusts” were involved. Armed with that information you can go the SEC (Securities and Exchange Commission) website and do a search under that lending institution for that particular trust. It does take some legwork and persistance, but it can be done. Ususally the PSA (Participation & Servicing Agreement) will list all of the loans involved in that trust. If not, you just have to keep looking at each and every document that is filed with the SEC on that particular trust. Chase filed differently with the SEC under numerous names (JP Morgan Chase, Chase Manhatten Mortgage, Chase Bank N.A. etc.). It took me nearly 3 days of searching to find one for my friend but don’t give up!

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