Here are some nice gems from a suit filed in Massachusetts this past Friday July 09, 2010.
(see complaint below) It has two pages of Defendants…
How could of all these investors been defrauded by Wall Street, SHOULDN’T THEY OF KNOWN BETTER?
How could of all these investors been defrauded by Wall Street without the homeowners being defrauded as well?
Everything that was misrepresented to the investor was also misrepresented to the borrower. It was all a lie. It couldn’t of worked any other way!
AGAIN, HOW CAN COURTS GRANT SUMMARY JUDGMENTS AT ALL IN FORECLOSURE CASES HERE IN FLORIDA OR ANYWHERE ELSE FOR THAT MATTER WITH ALL THAT IS NOW KNOWN???
FRAUD ON THE BORROWERS. FRAUD ON THE INVESTORS. AND NOW FRAUD ON THE COURTS!!!
Mortgage Investors Turn to State Courts for Relief
By GRETCHEN MORGENSON
Published: July 9, 2010
Last Friday, an investment management firm that lost $1.2 billion in mortgage securities it bought for clients filed suit in Massachusetts state court against 15 banks, accusing them of abetting a fraud. The firm, Cambridge Place Investment Management of Concord, Mass., purchased $2 billion in mortgage securities from the banks, and it says the banks misrepresented the risks in the underlying loans — both in prospectuses and sales pitches.
The complaint says the banks misled Cambridge Place by maintaining that the mortgages in the securities it bought had met strict underwriting requirements related to the borrowers’ ability to repay the loans. Cambridge also contends it relied on the banks’ claims of having conducted due diligence to verify the quality of the loans bundled into the securities.
The complaint also details the anything-goes lending practices during the subprime mortgage boom.
Interviews in the complaint with 63 confidential witnesses turned up such gems as Fremont Investment & Loan, which had been based in California, approving loans for pizza delivery men with reported monthly incomes of $6,000, and management at Long Beach Mortgage, also in California, directing underwriters to “approve, approve, approve.”
One Long Beach program made loans to self-employed borrowers based on three letters of reference from past employers. A former worker said some letters amounted to “So-and-so cuts my lawn and does a good job,” adding that the company made no attempt to verify the information, the complaint stated.
Such tales are hardly shockers. But they provide important context when Cambridge moves up the ladder to the banks that bundled and sold the loans.
For example, the complaint contended that Credit Suisse, from whom it bought $88 million of mortgage securities in 2005 and 2006, told Cambridge of its “superior” due diligence, including a performance review of every loan. Three-quarters of these loans are delinquent, in default, foreclosure, bankruptcy or repossession, the complaint said.
Bear Stearns, now a unit of JPMorgan Chase, sold Cambridge $65 million of securities. It owned three mortgage lenders and told Cambridge it sampled the loans it sold to check underwriting procedures, borrower documentation and compliance, the complaint said.
Among others named in the suit are Bank of America, Barclays, Citigroup, Countrywide, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley and UBS. All of those, as well as Credit Suisse and JPMorgan, declined to comment.
CAMBRIDGE’S lawyers brought its case in Massachusetts under laws barring those who sell securities from making false statements about them or omitting material facts.
Read article in its entirety here…
Read entire fascinating complaint below…
Wondering why the courts still are allowing these fraudulent foreclosure mills to continue? A couple reasons. The media has basically again laid down on their backs and then flipped over for more from their puppet masters. Our media is like a wet sponge full of dirt. They are worthless when the need arises to inform the people of things like this. Pathetic display of non investigative journalism. The main reason though the courts allow it still is that these judges who do allow these frauds to continue are some of the ones making millions by investing their money (which is again another fraud they are perpetrating due to them being barred from any invested interest in things they have any involvement in no matter how innocent or vaguely tied to it) into the purchase of the failed loans at pennies on the dollar and then turning them. You can include the court clerks and of course the attorneys and basically anyone who is present at these fraud circuses on a regular basis. I’ll tell ya though, as soon as enough people do actually hear of this and put two and two together and realize that they themselves have a legitimate axe to grind just like all the rest of us who do know, oh man oh man oh man. It could go vigilante style real easy. I mean these Aholes have pretty much ruined everyones lives in levels that not all will ever be known. Like divorce and suicides, having to give up pets or even deciding to give up a child for adoption due to financial reasons. People dying from lack of medical care they used to be able to afford. This crap hits everyone and no one is left unscathed. Even people who don’t miss a payment and don’t get foreclosed on could still have had their notes and related mortgage papers resold and lost and then when they finally pay of their home, there is now no way to proof it because the title is not clear. Oh boy these bankers are gonna pay and pay and pay and pay. With more than their wealth I bet. Although if they do go to trial they will get nothing sentences or even no time or fines to pay or even restitution. This will then direct the mob at the courts. Which is a great place to direct it in my opinion. Them and the rest of the committers. I mean heck, you can look at gov’t and see it is clearly the one true place where all the fraud committed begins. It is legislated and allowed and promoted and encouraged. Then ruled as being legal or lawful for them. But any of us try that &^%$ we go to jail and lose everything. When I say all fraud, I mean ALL fraud, in evey aspect of society. The frauds committed are done because a legislator decided they could make money on the act in many ways usually. Our gov’t. creators of the biggest game to deceive those they are elected to protect and to serve. They do neither.
really feel in many ways what you are saying is very true. We have victims of Operation Homewrecker under Mr. Charles Head. The case is being actively pursued in California. But our home is here in Illinois. Unfortunately other than my Atty here in Illinois no one who is in a position of athority will do anything. Lots of promises but no help. Many legal issues, to complicated. We are victims under Head Case2. There are over 5000 homes across the U.S. (Now more like 21000) That are victims of this man and his many minions. The entire case is a fraud. And to make matters worse the utilities are fighting us too. No electric for 57 days and counting. No money available from any agency, because every fund has been cut off. It is a criminal case since 2008 in California. And since 2005-6 for us. We need help now. We take care of many other people and animals. and now we need help to help others. The media here on W.G.N. is aware because my neighbor is Robert Jordan News Reporter for them. So we wait,and wait!
I live in New York. It doesn’t appear that there is any qualified legal representation of the homeowners, here.
We have “Foreclosure Mill” attorneys who have taken over my county (that I know of) and no one is doing anything about it. We only have a couple of attorneys/judges who knows what they’re doing. I’d like to be a
plaintiff in this complaint.
Rosetta – there is a lot you can do yourself with a little research and a mind to do so…. As NY is a Judicial State the rules are slightly different than out west , however there are several people out there – yes in NY as well – that are helping those out in need to keep the banksters from foreclosing on folks as well as calling them on the fraud and getting peoples properties free and clear of any obligation.
How can you do this you say? by calling them on the fraud asking for a forensic accounting of their books and asking them what actual part of a contract did the bank fulfill when executing this Mortgage?
You can continue by asking them what consideration did they give you as the National Banking Laws state that Banks can not – by Charter – lend their own money! Additionally, guess what? they can’t lend their depositors money either !! Where did the money to pay the Seller come from then? YOUR OWN CREDIT – THIS IS WHAT THEY LENT YOU….
Thank you, Chris
and the walls come tumbling down!
EVERYONE IS STANDING UP FOR THE INVESTORS AND RIGHTLY SO. I AM ALSO INTERESTED IN THE FRAUD TO THE BORROWER. MY NOTE DOES NOT MATCH MY MORTGAGE I COULD — USE SOME ADVISE ON THIS MATTER. I FEEL THAT THEY — USED MY ABILITY AS A BORROWER TO SIGN DOCUMENTS AT CLOSING AND WITHOUT MY KNOWING HELPED PERPETRATE THE FRAUD ON THE INVESTORS. WHAT IS OUR LEGAL RIGHTS ON THESE MATTERS HELP
I see a laughing BOZO the Clown in that atomic mushroom ….The two extremities are BOZO’s hair ….anf the Middle is a laughing Bozo…
To whom it may concern since we are victims of mortgage fraud, check out “Operation Homewrecker”Charles Head cases 1 and 2. We belong to case 2.(Because we don’t live in California) As such I agree with the comment about the media. Ever since this began I have tried to get someone here in Illinois to help my lawyer with this case. Everyone who can do somthing won’t because California Atty general, I.RS.-C.I., prosecutors,FB.I. are all working on this case in California. So the rest of us “victims” have to twist while these crooks are tried and convicted. We live in Illinois not California. And there are at least 14 homeowners probably more now who can’t get justice,who live in Illinois. WE are fighting Deutches Bank/Chase Bank to keep our home,since the entire mortgage transaction is a fraud. Any one interested in a class action lawsuit? Please let us know. phone cell 314-744-0942. My husbands family is from Mo. but we live in my family home in Illinois.