Eric Schneiderman: Mortgage Task Force Eyeing Broader Suits


Eric Schneiderman: Mortgage Task Force Eyeing Broader Suits

One year after President Obama launched a new task force to investigate fraud during the subprime mortgage crisis, a co-chair of the group says a desire is now growing among prosecutors for a more aggressive response to the meltdown.

New York Attorney General Eric Schneiderman says there is little question fraud played a role in the 2008 financial crisis. In October, his office filed the task force’s first case, a civil suit alleging “a systemic fraud on thousands of investors” by JPMorgan Chase between 2005 and 2007.

As FRONTLINE reported in The Untouchables, the case also marked the government’s first major fraud suit against a Wall Street bank for the crisis.

“I think what we’ve expanded and what we have done is to increase the appetite for these broader-platform cases that address systemic patterns of fraud rather than going on a deal-by-deal basis,” Schneiderman told FRONTLINE correspondent Martin Smith. “I think that’s a huge step … And that’s what we are seeking accountability for, and that’s what we’ll continue to pursue.”

Schneiderman said his investigations began with the due diligence firms that banks hired to gauge the quality of loans they were buying and packaging into mortgage-backed securities. “We found in several cases that we brought already — and we have other investigations under way — it was a sham,” he said.

This is the edited transcript of an interview conducted on Dec. 4, 2012:

Read it here…


11 Responses to “Eric Schneiderman: Mortgage Task Force Eyeing Broader Suits”
  1. coco21 says:

    @ Bonnie Green we have owned our home for 24 years at the time. Our son is a Combat Veteran who returned from his 2nd deployment in Iraq to find out the only home he ever knew was gone. He fought for our Country and then his family is victims of FRAUD and victims of a corrupt Judge and legal system. My MS has progressed so rapidly because as you know STRESS is the #1 contributor to MS progressing. I feel like we were given a life sentence just don’t have to serve it in jail. Good luck to you and keep in touch.

  2. coco21 says:

    @ Bonnie Green I also suffer from MS and we are victims of Eastern Savings Bank.

  3. Bonnie Green says:

    I just read the other posts. I hope this is not another empty promise. Not another way to stall while INNOCENT PEOPLE are forced out of their homes. Don’t let the people of New York down. Our economy depends on putting us back in our homes. Think about what happens when people are unable to feed into the economy because they are bankrupted by the foreclosure process. The middle income collapses. UNLESS IT IS THE INTENT TO CREATE A LIVE EDITION OF “THE GREAT GATSBY”. Which does away with the middle income ! Don’t get sick in America you lose everything. A real disgrace to what was a great country. Give us back the American Dream we worked so hard for. Tell these BANKSTERS YOU WILL NOT TOLERATE ROBBING NEW YORKERS IF THEIR HOMES. GO TO JAIL ALL WHO PUT FAMILIES ON THE STREET.

  4. Bonnie Green says:

    Please I have been contacting your office for over a year now saying exactly what you have found out about these banks. My bank is Eastern Savings Bank –BUT IS IT REALLY? Forgeries on Notary stamps n forgeries on my documents. Improper service (30 days) (if at all) many people in New York foreclosed or in the process of being. Pretrial conference does not establish if foreclosing party has right to foreclose. Please help Foreclosed after 40 years in my home. I have Multiple Sclerosis n this move will surely exacerbate my condition. I work full time n will have to now until I die. I would like to be on your Task Force. Please please please help sincerely BONNIE GREEN CALL ME at 516 343-2980 I only have till July to empty my home. The Judge never even spoke to me. I was never at a pretrial conference. PLEASE HELP US ALL

  5. joe parisi says:

    Is it another slap on the wrist that lawyers and Wall Streeters get.?
    If a mob guy did the same crimes that these felons did, would they get a slap on the wrist. Even if they rolled over, they would be subject to time, or an ankle bracelet, or witness protection.
    Tell me if I am wrong.?
    Thanks, Neil, Michael, Matt and several writers at the NY Times. The last bastion of truth and first amendment rights.

  6. For me, this is really awesome! Impressive! Thanks for sharing!

  7. coco21 says:

    If you live in MA don’t hold your breath for our AG Martha Coakley taking any action despite what you might read. The only good politician we’ve had in MA in a long time was Scott Brown and he lost to Elizabeth Warren. I guess no Democrats in MA were victims of losing their homes illegally while having a perfect payment history. Oh did I forget to mention the bank ignored the MA state laws and never notified us of the Foreclosure nor was it published in the newspaper? They obviously didn’t send a Notice of Default because we weren’t in arrears. This is just a small portion of what occurred. All the MA state officials are so corrupt as well as the legal system and our Judges. Lets start allowing Lie Detectors in our court rooms, it would discourage the GUILTY from lying and protect the INNOCENT!

  8. Steve says:

    “a systemic fraud on thousands of investors” AND HOMEOWNERS!!!

    I never saw one homeless investor, at a protest, angrily crying over their losses.

  9. Joe Parisi says:

    Just spoke with Assistant AG Adam Cohen. All they do is refer you to these community groups that basically do nothing. He casually looked at my papers.
    I personally will fight this in federal court. Criminality is criminality. If the average Joe forged, back dated, impersonated VP’s etc, he would be indicted and sent to jail.
    Look at the previous Ag, Cuomo. Record illegal contributions and he took several years paycheck from an out of state landlord who he was after to the tune of several million dollars. Must be nice!!!

  10. Fed Up says:

    Civil cases what a JOKE

  11. Bobbi Swann says:

    Not impressed either with Schneiderman nor his little group. All have been civil cases that do not further any aid or restitution to the citizens who were robbed. The monies, if any, derived from any of these cases will go right back to the gov’t pot. Sham, he says! Everything that this so-called task force is a sham in itself.

Leave a Reply