The financial crisis has spawned hundreds of criminal prosecutions for alleged fraud. Yet so far, defendants have been mostly minor players such as real-estate agents, mortgage brokers, borrowers and a few low-level bank employees. No senior executives at large financial institutions face criminal charges. That’s in stark contrast to prosecutions during the savings and loan scandal two decades ago, when the government’s strategy targeted and snagged some of banking’s most powerful players. The approach back then succeeded in sending scores of S&L executives to prison, as well as junk-bond king Michael Milken and business tycoon Charles Keating Jr.

One explanation for the difference may be that key bank regulators – who did the detective work during the S&L crisis and sent more than 1,000 criminal referrals to prosecutors – have this time left reporting fraud up to the banks themselves. This is similar to the Florida Attorney General’s Office when investigating Florida Default Group, the investigator once worked there, and still did part-time work for the firm, WITH THE WRITTEN PERMISSION OF THE ATTORNEY GENERAL.

Besides the absence of criminal referrals, other excuses for the lack of major prosecutions may include a skittishness among prosecutors about filing cases they could have trouble winning, and a severe decline in investigative resources. The FBI dramatically shifted resources away from white-collar crime after the 2001 terrorist attacks. The strategy of leaving it to banks to ferret out all the fraud. Institutions will not make criminal referrals against the people who control the institutions. The system that tracks Suspicious Activity Reports, or SARs, detected a dramatic increase in mortgage fraud starting in 2003, when reports of mortgage fraud nearly doubled within a year from 5,400 to 9,500. By 2007, the number had exploded to 53,000. During those same years, many mortgage lenders dramatically lowered their lending standards. Banks often required no proof of income. Borrowers could even get loans without be able to repay them. The system that tracks Suspicious Activity Reports, or SARs, detected a dramatic increase in mortgage fraud starting in 2003, when reports of mortgage fraud nearly doubled within a year from 5,400 to 9,500. By 2007, the number had exploded to 53,000. During those same years, many mortgage lenders dramatically lowered their lending standards. Banks often required no proof of income. Borrowers could even get loans without be able to repay them. Lending executives may have encouraged the making of bad loans, but they generally did not personally approve the loans. They didn’t send emails telling the troops to make fraudulent loans instead they paid big commissions to loan offers who made risky loans. Then the executives were able to reap huge bonuses for making the company look so profitable. the administration may have been more focused on saving failing banks – and an entire financial system – than in prosecuting bank executives. Giving billions in bailout dollars to executives who encouraged fraudulent practices not only could complicate a case, it could prove embarrasing.

The timing was perfect, less cops around, your only accomplice was the government that bailed you out, the criminal is the investigator, and the big fish merely give up the small fish, that in all likelyhood, aren’t even in business anymore.

HENCE- THE PERFECT CRIME

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.

Homeowners are continuing victims of this foreclosure fraud and their consequences and penalties continue, but the chief players in the fraud walk away from the game with a petty fine and huge profits and bonuses.  Suffice it to say, the rules really are different when you commit high level, mind-boggling crimes.

Next, consider the impact that senior judges, making $350/day are going to have on foreclosure cases.  These judges will be executing billions of dollars in judgments yet I fear they lack the resources and staff to properly supervise the files they are asked to plow through. I am deeply troubled by the feeling that our judicial branch is bowing to pressures from the legislative branch and I’m concerned by my perception that many of our elected judges feel like they have a duty to plow through these foreclosure cases…rather than examine the cases from a proper Court of Equity perspective.

The influence and interference of the Legislative branch with the judicial branch is a breach of basic Constitutional law. Law, justice, equity, fairness, equality, evidence have become merely words and have no outcome or relevancy  in the Courts. Like the old adage, “money talks”, with billions at stake, the banks and financial institutions will have the final say in the legal system. It is no longer “innocent until proven guilty” it has become of matter of “guilty until proven broke”. We were victims of predatory lenders, now we become the Defendants, when in a truly just society it should be the other way around.

Refers to a home financing method in which the seller of the property carries a second trust deed and note against the property. It is a transaction in which the seller of real property defers collection from the buyer of some portion or all of the price of the real property and takes a promissory note from the buyer for the amount due, secured by a mortgage or deed of trust on the real property.

It is typically used when the buyer can’t afford the down payment or is unable to obtain another loan. One advantage may be that the seller will usually go at or below market interest rate and no closing costs are involved. It benefits the seller by producing an income that is usually higher than the rate banks offer.  See also Owner Financing.

Defending your foreclosure properly with use of discovery documents causes a legal delay in the foreclosure process.

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You need the proper response to the Court, in the proper form to avoid a default on your property. After default, your options to keep your home become limited. Reserve your legal rights, forms available at: http://www.foreclosureself-defense.com/

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Learn when and what a Summary Judgment consists of.

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Learn about your PERSONAL financial problem, present and future.

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Learn what a Final Judgment consists of, including the sale date of your home.

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Learn your Foreclosure Options and Defenses early in the Foreclosure process.

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