Today the Attorney General’s Office of Florida started an investigation of the three largest “foreclosure mills’ in the foreclosure capital of America, Florida, with the epicenter being Broward County. The remaining largest foreclosure mill, Florida Default Group, was already under investigation (by its own former employee Erin Cullaro, no its not a joke, it is a fact).
The Circuit Court Judges that have turned a blind eye to the foreclosure fraud committed by these firms because of pressure from the Legislature will now have a lot of explaining to do. By the way, in the “checks and balances system” established by the Constitution, how can the legislative body effect the judicial branch?
The firms named today in the investigation are the Law Offices of David J. Stern, P.A. of Plantation, FL (Broward County), Marshall C. Watson of Fort Lauderdale (Broward County) and Shapiro & Fishman, LLP of Boca Raton & Tampa. David J. Stern already had several class actions filed in Federal Court of the Southern District of Florida, and being investigated in multiple states across the nation for everything from false documents used in Court cases to “sewer service”, (not servicing due process properly and throwing the complaints and summons in the sewer) Their process server in New York has already admitted to this “common and necessary practice” to maintain his contract with Stern’s office
David J. Stern also runs his own title company, which was found liable for 2.1 million dollars in false fees in 2000. He has since “refined” it and made it an off-shore corporation with several layers of distance between him and DJSP and DocX. Unfortunately, due to his greed and ego, the paper trail was easy to follow. It’s difficult for the average homeowner to fight a person with a 1.2 billion dollar/year gross revenue, 900 attorneys, 15 million dollars house, 130 foot yacht, and 4 Ferraris, but people are starting to fight back.
Marshall C. Watson also has the same problem, they perform their own title work, which costs them $35 and the title company “bills” Watson $325, which is passed on to the homeowner in costs.
What I am puzzled about is this; if 4 crooks committed thousands of robberies in the same state, the same way for many years, stole up to 1 billion dollars, thousands of homes and ruined families, would it have taken the police this long to just “start investigating them”. I guess with the Attorney General running for Governor, now was the right time in his career, the hell with the thousands of people that lost their homes, life savings, and self esteem, they will forget by election day.
Through depositions and discovery we’re increasingly aware that the foreclosure mills and institutions are engaging in fraud in the litigation of these cases. Even in those cases where there is not abject fraud, in some cases the legal standards applied to obtain foreclosure has been so diminished that it’s become a meaningless farce. Rewarding those who committed fraud and the law firms that continue to diminish the rules of law and evidence that should apply in our courtrooms deeply offends my sense of justice.
Our local judges are the last line of defense against the inequitable conduct that brought us all to this place. This is not just about foreclosure. It’s not just about borrowing money and paying it back. It’s very much about all the sophisticated scams that were playing on Wall Street and continues to play out in courtrooms across this country. The judges sitting on circuit court benches are by and large some of the brightest, most dedicated and intelligent people you’ll ever meet. For those that still do not, we all need to do our job of telling the story in their courtroom until they get it.
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3 Responses to “Foreclosure Wake Up Call”
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The government has been so heavily involved in the real estate world the past few years, no one really knows what to expect. It can literally change from month to month depending upon what new laws and programs they decide to try. Take out Gov involvement and you would get a clearer picture pretty quickly.
i found out that select portfolio servicing is on the client list of law offices of marshalll and watson to forclose,we have been charged forclosure fees for years and corp fees,att fees that we dont owe.
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