OFFICE OF THE ATTORNEY GENERAL ANNOUNCES INDICTMENT IN MASSIVE CLARK COUNTY (NV) ROBO-SIGNING SCHEME

[kpete]

Source: Ritholtz

Nevada Attorney General Robo-Signing Indictments
By Barry Ritholtz - November 17th, 2011, 6:30AM
OFFICE OF THE ATTORNEY GENERAL ANNOUNCES INDICTMENT IN MASSIVE CLARK COUNTY ROBO-SIGNING SCHEME
To:

Office of the Attorney general ANNOUNCES indictment in massive clark county robo-signing scheme

Defendants to be Held Criminally Accountable for Filing Tens of Thousands of Fraudulent Foreclosure Documents

Carson City, NV – The Office of the Nevada Attorney General announced today that the Clark County grand jury has returned a 606 count indictment against two title officers, Gary Trafford and Gerri Sheppard, who directed and supervised a robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008.

According to the indictment, defendant Gary Trafford, a California resident, is charged with 102 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor). The indictment charges defendant Gerri Sheppard, also a California resident, with 100 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor).

Read more: http://www.ritholtz.com/blog/2011/11/nevada-attorney-general-robo-signing-indictments/?utm_source=dlvr.it&utm_medium=twitter

[LiberalEsto]

1. I hope this is the first of many

it's long past time the banksters were held to account for these shameless land grabs.

[Trillo]

3. Perhaps, but are these indictments of "banksters" or "humans"?

Is there any indictment of the "corporate persons" involved, or instead just their human straws?

[Po_d Mainiac]

6. Just starting at the bottom of the food chain

I hope....Wood the real Linda Green, please stand up

[FreakinDJ]

53. LONG Past time Banksters be held accountable

[Bigmack]

2. If all those documents are false...

who owns the freakin' mortgages? Who owns the houses?

If there is no paper trail... legal paper... WTF?

[boppers]

57. Whoever it was sold to, I presume.

Though, it is interesting to contemplate rolling the US back to the level of civilization found in Somalia.

[naaman fletcher]

4. Going after the little guys...

So the big guys go free. Yes, these people should be prosecuted, but they probably each make like 75K per year. What about their bosses? What about the banks who knew what LPS was doing yet paid them to do it anyway?

[Freddie Stubbs]

5. Let them make plea deals so that they can testify against the higher-ups.

[Kolesar]

13. The attorney general of Florida knew what LPS was doing, but they did not investigate

LPS employs a lot of people in Jacksonville, FL and their wealthy owners have influence.

[Thav]

18. Well hopefully

the little guys will start naming names and pointing fingers upwards.

[banned from Kos]

21. LPS responds ---

"Based on the company's reviews, LPS acknowledges the signing procedures on some of these documents were flawed; however, the company also believes these documents were properly authorized and their recording did not result in a wrongful foreclosure."

LPS has $83 million in cash and over $1 billion in debt. They won't survive a large monetary award.

[quakerboy]

38. Thats how you start these things

You start by getting the foot soldiers. You find one willing to turn on the next level to save his own skin. Eventually you work your way to the top. In theory.

In reality, I think we should treat the financial world much the way we treat organized crime. Send in the undercover agents, as well as starting at the outside to mitigate.


So... A question. Do you think the witness protection program would work to protect someone from their credit history, from the ability of the financial world to track someone?

[naaman fletcher]

43. yes in theory

I just have no faith in this..

[quakerboy]

47. That I get

Me either.

On the other hand, I will take this over nothing. And have at least a hope that it is the start of something, even as I am skeptical that it really is.

[SomeGuyInEagan]

49. Perhaps this will lead up the chain. But if not, these people need to do time.

While I would have no issue with giving them some sort of deal for testimony against those further up the chain, if they don't then lock them away for as long as possible. They knowingly participated in this.

[wordpix]

7. excellent, now sing about their corporate puppetmasters

i.e., if they did not do this on their own

[ms.smiler]

8. Here is a video news report

http://www.8newsnow.com/story/16048074/desert-underwater-robo-signing-problems-on-foreclosure-documents

The situation is really worse than just robo-signers and the problem exists for both homeowners in foreclosure and those making their payments.

The banks never properly securitized the loans and defrauded investors in a number of ways. This happened unbeknownst to the homeowner. The failed securitization process did succeed though in breaking the chain of Title to millions of properties.

Homeowners are unaware of what was done with their Promissory Notes and what happened to their Titles.

The banks set up MERS as their own private and secret land records system to conceal fraud. MERS though never created any Assistant Secretaries or Vice Presidents in accordance with Delaware state law where they are incorporated. All the signatures upon these documents are invalid because legally no such officers exist, no matter who signed them.

The invalid documents include Satisfactions of Mortgage for homeowners that refinanced. These invalid documents cloud the property Title.

I began researching mortgage/foreclosure fraud 3 years ago. About a year into it, I hired a fine attorney after discovering fraud in my own 30 year fixed rate mortgage. It was of course, not the extent of the fraud.

This past May, I filed a Quiet Title suit against my mortgage servicer along with 299 other homeowners in PA & NJ. We challenged the authority of the person who signed MERS documents filed on our properties.

In 297 of the cases, the servicers chose to lose by default, rather than set foot in court. Some voluntarily withdrew the liens from our property records. Some companies voluntarily withdrew foreclosure suits on homeowners.

Not only did mortgage securitization create toxic Titles, but it appears the fraudulent documents that result are toxic as well.

Only 3 cases are going to trial and my case is closest to trial, presently scheduled for May of 2012.

It makes no sense to me to pay for something I will never receive – a valid Deed and clear Title. Homeowners need to come to understand that they were defrauded, the same as the investors on the opposite side of the transaction. Both the investors and homeowners need to sue the banks and their servicing companies. It’s likely the only way the banks will ever be held accountable.

I’m delighted to see that two “robo-signers” were indicted. Notary fraud is another component of this Wall Street scheme. As a business person, I was amazed that in 3 years of research I found no actual business, only numerous types of fraud.

[1StrongBlackMan]

12. Would you detail your research process?

How did you know to look at your particular circumstance? What should I look for?

Maybe you should write a "How To Do" book on the process you went through. At $5.00 per e-book, it would be a best-seller and make you a millionaire (as well as a folk hero) ... especially when/if you prevail in court.

Oh yeah ... please send me an advance copy!!!

[ms.smiler]

30. I started out wondering how so many homeowners got into trouble

with their mortgages. Upon review of the debtor in the transaction, I found little that was disturbing. Less than 1% of home buyers purchased more home than they could afford. I knew many defective mortgage products were sold to home buyers so I next examined the mortgage contracts. That is when I learned a great deal about MERS. After that, I examined the creditor side of the transaction and learned even more about mortgage securitization and how what transpired on Wall Street impacted homeowners on Main Street.

Homeowners understand traditional mortgages, and unfortunately they bring that understanding to present day securitized mortgages which are entirely different. It took months for my own understanding to evolve. At that point, my mortgage servicer changed and the new company was one I knew to be disreputable. I dug out my mortgage papers and my heart sunk. I realized I had a problem mortgage just like so many other homeowners.

I first spotted MERS in the mortgage and knew that was a problem because it meant my mortgage was turned into a security used to defraud investors. Then I examined the Settlement Sheet and discovered over $54,000 in fraud.

Check your Sheet for any amount in Yield Spread Premium and/or a loan origination fee that is greater than $2,000. YSP is a strong indicator of fraud and it only takes $35 to violate Federal law.

I also checked our land records online and found a fraudulent Satisfaction of Mortgage and only the mortgage lien that contained MERS. That means there were 4 or 5 transfers of my loan, prior to securitization that was never filed in the land records as required by law. That lack of Assignments clouds the property Title.

I’m an honest person and business person and I don’t appreciate being defrauded. I then searched for months for an attorney who well understood securitized mortgages. I finally found her and hired her, giving her a deposit plus ongoing monthly payments, knowing there would one day be a court fight. (She finally told me to stop sending her money.) :)

My attorney is requesting $2,500 to file two Quiet Title suits as she decided on a divide and conquer approach and $10,000 only after she obtains the Deed free and clear of any debt. This type of suit is much less expensive than defending a foreclosure action. It also places the burden of proof on those who committed the fraud.

It was about 1 ½ years later that the Quiet Title suit was filed. As a business person I knew MERS didn’t have over 20,000 Vice Presidents or Assistant Secretaries while having no employees. It was my attorney though who uncovered the legal reason why there are no such officers, which was confirmed by other attorneys across the country with whom she shared the information.

You can find your MERS MIN number on the upper left hand corner on your mortgage. Select Search by MIN and enter number. A Servicer will appear and if you enter your Social Security Number the Investor may or may not be disclosed in the search results. The complete chain of Title will not be revealed to you without a Subpoena.

https://www.mers-servicerid.org/sis/

Fannie Mae lookup tool: http://www.fanniemae.com/loanlookup/

Freddie Mac lookup tool: https://ww3.freddiemac.com/corporate/

Compare that information with what appears in your local land records. It is entirely possible that whoever owns your loan doesn’t have a valid lien on your property.

If you have a non-MERS mortgage, you’ll need to find a competent professional who can determine if your loan was securitized. Many non-MERS mortgages have been securitized as well.

My attorney said the banks and their servicing companies don’t want any rulings on this issue. They don’t want homeowners to walk into court easily striking fraudulent liens on their properties and obtaining their Deeds. That though is exactly what I intend and expect to do. Even better, someone owes me more money than I might still owe on my property so I also expect 6 figure money damages as icing on this cake.

Those homeowners that were wrongfully foreclosed can expect 7 figure damages.

When I first hired my attorney I told her I would love to be part of something groundbreaking in the fight against the banks. She fulfilled my wish. My case will likely be the first to obtain a ruling. My servicer is objecting to everything and is unable to prove the authority of the persons who signed the documents. After months, they have yet to answer Discovery. We’re presently awaiting a hearing to address their many objections.

My mortgage and likely yours is actually part of the largest Ponzi scheme in history. A securitized mortgage is actually a sophisticated Wall Street scheme designed to collect multiple times upon the same debt.

What we’re doing in PA & NJ appears to be a splendid way to extract homeowners from the scam. I’m hoping that homeowners soon wake up to the fact that because of what was done to their property Titles, someone likely owes them more money than they might still owe on their mortgages.

[Autumn Colors]

44. Please combine your two posts into a new OP

This is valuable information.

I only wish I had $2,500 for the initial attorney's fee. I think that's the problem in a lot people's cases. Houses are going into foreclosure as people lose their jobs and then their Unemployment. People in these types of situations, just don't HAVE $2,500 to hire an attorney or the ability to represent themselves (and would more than likely be bullied by the bank's attorneys).

Any attorneys here in CT want to take my case on to set precedent in my state in exchange for a bigger cut of the damages at the end?? I'm sure ms.smiler's attorney will share the strategy with you.

My mortgage is one of these MERS mortgages and it originated at a regional bank here, then was sold to Countrywide, and is now serviced by Bank of America. (The terms were 30-year, fixed-rate - NOT an ARM - and I made a 10% downpayment.) I received Notice of Intent to Accelerate in March and the deadline in that letter was in April. The deadline came and went and I have yet to ever be served with actual foreclosure papers although people from BofA told me repeatedly on the phone for a while that my mortgage was in foreclosure. Whether it really is or is not, I don't know. No one has served me. No one has put a sign in front of my house.

The bank stopped calling me altogether about two months ago. No phone calls, no letters, nothing.

[ms.smiler]

51. Autumn Colors, here’s an idea I think you’ll like.

Imagine a nonprofit Trust or entity, funded by settlement money and/or money damages from successful law suits with the banks. A financially stressed homeowner could apply for and receive the funds necessary to file their own Complaint. Upon completion of their suit, they repay a slightly higher amount than they received, in order to grow the Trust to help even more homeowners.

My own accountant is licensed for real estate and securities and is wise to securitized mortgages. I’ve asked her about setting up such a Trust and she’s exploring the best approach. I just know that I want to pay it forward somehow and I love the idea of helping other homeowners while using the banksters own money against them. :evilgrin:

In PA, it can take a year and a half or more before the servicer actually files the foreclosure action. You could have months or even a year yet before you are actually served. It is a bit strange though that they stopped phoning.

The banks know they have this particular problem with MERS. MERS now wants notification of any Complaints that include a challenge to the authority of MERS officers, not that it will do them any good.

In Word, I wrote an OP which includes many links to support the information I present, and the darn thing wound up being a 5,000 word essay. At the same time, I know if I present only a few paragraphs, sharp DU members will seize upon every aspect of the post. It’s just not easy trying to reveal and explain the largest Ponzi scheme in history. What do I do?

[fasttense]

58. I may not understand everything you are saying here but

I understand this:

"At that point, my mortgage servicer changed and the new company was one I knew to be disreputable."

The same thing happened to our mortgage. We were with a reputable bank. After about 8 years they sold our loan to a very disreputable mortgage servicer. We checked them out on line and found they were very bad and had complaints everywhere.

So we decided to refinance our loan with a commercial credit union we have been with for over 20 years. Now we are having trouble getting the pay off. When my husband called they refused to tell us what the pay off was. Now our credit union is fighting with the servicer and our closing is delayed.

I hope we are not in the same situation as you. We managed to get a fairly low priced title insurance which gives me hope that our paperwork has not all been messed up through MERS.

We'll see.....

[zalinda]

9. This is great, but what happens to the people

who lost their homes, through no fault of their own?

zalinda

[SoapBox]

11. Ditto. They should be owed restitution from the Banksters.

[Javaman]

29. In reality, yes, be we don't inhabit that land.

the houses will remain in the banks hands.

What should be done next is a class action lawsuit against the banks for holding their property under false pretense.

[DallasNE]

10. Are They Going After The Little Fish Again

By all means, go after these two crooks, but who were they working for and why not go up the food chain. They need to follow the money because it is always about the money.

[No Elephants]

14. I'll bet you $50,000 they are Republicans.

[defendandprotect]

15. kr

[MannyGoldstein]

16. Anyone want to bet $50 against this geting quashed by the Obama administration?

Bankers and torturers are officially a protected class.

Of course these people should be prosecuted.

[ColesCountyDem]

23. I will.

Cash, money order or cashier's check only.

[MannyGoldstein]

54. You're on, as long as we agree to terms

If the Obama admin obviously quashes it, I win
If there's a conviction or acquittal after due process, or a guilty plea, you win.
If there's an outcome that causes the case to end before coming to a conclusion (e.g., charges thrown out), then we draw - the Administration didn't need to act.

Deal?

[rucky]

48. Didn't Holder already do that in New York?

I won't take that bet.

[MannyGoldstein]

55. Shhh... I'm about to win fifty bucks, don't ruin it. nt

[david_vincent]

60. Hey Manny, I have a bet for you

but since I'm living on the edge, I'd like to make it a gentleman's bet. I'd like to wager that, if convictions are handed down, the man gets a far harsher sentence than the woman (assuming that the person named Gerri is a woman, of course). Wanna bet? Warning: reams of evidence are on my side.

[MannyGoldstein]

62. Not taking that bet, but

I'd love to see the evidence, if it's easy for you to point to.

Thanks.

[FarCenter]

17. LPS Responds to Nevada Attorney General Announcement

JACKSONVILLE, Fla., Nov. 17, 2011 /PRNewswire/ -- Lender Processing Services has previously disclosed that since 2010, the company has conducted reviews of the processes used in the signing and notarization of documents used in foreclosure proceedings. LPS recently learned of an inquiry from the Nevada Attorney General into its document execution practices and expressed its willingness to fully cooperate with the investigation. Earlier this month, the Attorney General's office confirmed that the company was not a target of this inquiry.

The Nevada Attorney General has elected to charge two Lender Processing Services (NYSE: LPS) employees for document execution and notarization practices related to notices of default and deeds of trust filed in Clark County, Nevada from 2005 to 2008. Based on the company's reviews, LPS acknowledges the signing procedures on some of these documents were flawed; however, the company also believes these documents were properly authorized and their recording did not result in a wrongful foreclosure.

"I am deeply committed to ensuring that LPS meets rigorous standards of professional conduct and operating excellence," said newly appointed LPS President and CEO Hugh Harris. "I have full confidence in the ability of our leadership team and more than 8,000 dedicated employees to deliver on that commitment."

http://phx.corporate-ir.net/phoenix.zhtml?c=222167&p=irol-newsArticle&ID=1631597&highlight=

---

Lender Processing Services was spun out of Fidelity National Information Services (FIS) in 2008. FIS is a third-party service provider and software provider to financial companies. FIS is unrelated to Fidelity the mutual fund company in Boston.

[DallasNE]

39. What "Rigorous Standards"?

That is not a strong suit for LPS. In fact it goes to the heart and soul of the problem. Standards and oversight were missing in action. Due process is an important principle in America and due process corners were repeatedly cut over a long period of time. Frankly, anyone that reviewed these documents should have been able to see that the handwriting appeared to be the same on several documents and should have raised red flags all over the place. The Nevada Attorney General was hasty in letting LPS off the hook, that's for sure.

[CanonRay]

19. Luckily we have state AGs and County DA's

because the DOJ is worthless under Eric Holder.

[banned from Kos]

22. foreclosure law is a state issue - DOJ has nothing to do with this

[Enrique]

56. DOJ has been trying to get state AG's to drop their prosecutions

and agree to a single settlement.

[CanonRay]

59. It certainly does when banks do business interstate

When a mortgage company in California writes a mortgage for a house in Nevada (as in these cases), it's Fed business. When Federal laws are broken, e.g. wire and mail fraud, fraud by computer, etc, it's prosecutable by the Feds. In fact, the fraud is so systemic and widespread that DOJ should be taking the lead.

[Initech]

20. If corporations are now people, let's try and execute Bank Of America first.

[The Wizard]

32. I don't know about executing the bank

but the CEO should get the Mussolini treatment.

[Sherman A1]

24. It's a start

and a good one. Hopefully the case will develop to include their higher ups.

[Seedersandleechers]

25. What was the purpose for these foreclosures?

I thought the banks lost money on foreclosures. :shrug:

[1StrongBlackMan]

33. Not if the borrower had/was made to purchase mortgage insurance. n/t

[ms.smiler]

35. 1StrongBlackMan, you are correct on that point.

Previously though, there were Credit Enhancements & Credit Default Swaps that paid against the securitized loans and paid to the banks who constructed the garbage mortgage backed securities. Then, the banks sold trillions of dollars of the failed MBS to the U.S. government and the Federal Reserve and collected payment yet again.

The banks and their servicing companies aren’t owed any money.

The banks can then abandon their private land records system, (MERS) and return to our public land records to file a fraudulent Assignment of Mortgage from the loan originator to the servicer and claim to own the loan and foreclose on the property.

The servicers do collect PMI plus obtain a free home.

It would feel like cheating if I asked my attorney rather than confirm this on my own, but often a servicer Titles over a property to Fannie after foreclosure. I suspect that noteworthy funds pass between Fannie and the servicer for the Title. It appears like laundering Titles to me. So I suspect that the servicing company either obtains a free house to sell or can quickly turn into cash with Fannie.

Regardless though, the servicer, (foreclosing party) does not own the Note.

[1StrongBlackMan]

61. Thank you ...

I have a pedestian knowledge of mortgages and such from my years of working in Fair housing; but you are helping me understand - what I am coming to believe, as you stated, - that this was/is one big ponzi/looting scheme.

I was only, half way, kidding when I suggested that you write a book about your experience/tactics. I know that I would be one of the first purchasers of it, if for no other reason to pass it on to some "public interest" attorneys that I worked with when I was doing fairhousing work.

Please keep us/me up-dated on the progress of your litigation.

On a related note, I suspect in the near future you will be faced with a vexing decision ... do you accept the settlement that will benefit you - a lot - or do you hold out for the court ruling that would provide a road map for 100s of 1000s of people that you do not know. I, honestly, can't say what I would do!

[ms.smiler]

63. I knew I liked my attorney when I first met her but I also knew that I

wouldn’t ever want to play chess with her. I see now why I made that assessment.

The banks use our public land records to create an illusion for homeowners and the courts. It’s that very same illusion that can be used against them to the homeowners advantage. My attorney has these servicers positioned to either go along with what we want and acknowledge some fraud, or fight us and reveal even greater fraud to the court. It shouldn’t matter to the homeowner, because either way, they’ll win.

I took part in two conference calls with my attorney and many of her other clients in two states. She said that the banks have no defense or strategy for this type of attack. She said she knew many of her clients “want blood” but that she expected the servicers to return with open checkbooks.

No one asked about money, in fact my attorney reminded her clients of the money damages. People instead inquired about the importance and consequences of this issue and if it would save homes from foreclosure and truly fix the Title. People inquired about whether our cases could help other homeowners in other states.

I was heartened, because those many individuals, who didn’t know each other, viewed themselves not as individuals, but as some sort of collective engaged in a fight against the banks. They looked beyond their own circumstance to the greater good that could be achieved.

I value much in addition to money and this feels like the most patriotic thing I’ve done in my life. I know there are two other cases, but I would consider it a great honor and service for my case to receive the first ruling.

Numbers on a piece of paper doesn’t hold the same appeal to me as the opportunity to possibly engrave my own name on the slingshot that is poised before the Wall Street Goliath.

My attorney did say she expected this issue to “take down MERS.” None of her clients minded.

Please approach the attorneys that you know. MERS has well established how they create their Certifying Officers. There are documents, court filings, reports, sworn testimony, business records, etc. MERS did not just violate their own bylaws. Tell the attorneys to look at Delaware state law regarding Corporate Resolutions.

Once you can destroy the banks fraudulent documents - they got nothin’.

Homeowners – think of your local Recorder of Deeds office as a crime scene, because it is. I think it was so nice and thoughtful of the banksters to not only supply the rope, but store it so close to our own homes.:)

[matmar]

26. The AG better be flipping these to get the big fish otherwise it's theater.

[katty]

27. this is big here in CA, this is just the beginning!

[Uncle Joe]

28. Kicked and recommended.

Thanks for the thread, kpete.

[freshwest]

31. Unfortunately, I don't see jail in their future. I wonder if the collateral damage of their fraud...

Will generate additional charges or if they'll be sued for inflicting financial losses on those they shafted.

[DeSwiss]

34. K&R

[percussivemadness]

36. I have it on really good authority

that another State is about to do the same...

God bless the lawyers, America`s last line of defense..

[Celebration]

37. Great news nt

[The Last Democrat]

40. Yes, Yes !

good deal.

[percussivemadness]

41. Robo Signing Mortgage Fraud - Meeting Mrs Green

http://foreclosurelawllc.com/questions-about-foreclosure/robo-signing-fraud-meeting-mrs-green.html

some of you may find this interesting.

[Duval]

42. OK. It is a small beginning. n/t

[DonCoquixote]

45. WE need this in Florida

The GOP would really hate to see Florida voters up in arms...

[DirkGently]

46. Hmmm. What about the lenders & servicers who knew or should have known?

[alp227]

50. Luckily, Nev. AG Catherine Masto is a Democrat.

Otherwise, a Republican AG would've taken the fraudsters out to dinner.

[lonestarnot]

52. Fuck yeah! Now what about AZ!

:applause: