Thursday, January 19, 2012

Class Action Lawsuit Alleges JP Morgan Engaged in Systematic Document Fabrication to Move Mortgage Losses from Its Books into Mortgage Backed Securities « naked capitalism

Class Action Lawsuit Alleges JP Morgan Engaged in Systematic Document Fabrication to Move Mortgage Losses from Its Books into Mortgage Backed Securities « naked capitalism

This story of the banking criminal activity just continues to unfold and it is becoming more and more unbelievable as the evidence to support massive bank fraud and criminal activity is finally seeing the light of day.  In that sense the story is playing out just as most people who knew the truth thought it would play out.  What is the truth?  The truth is that banks have egregiously committed fraud and other criminal activity for their own gain and to try and purposefully break the law and beat the system.  The real crazy thing is that the government seems to be okay with the massive lies and law breaking that has been going on by the major bank players.  It is disgusting and appalling to see the government try to brush such a massive abuse of the American taxpayer under the rug for the sake of political gain.  It is becoming more and more clear every day that the banking industry screwed just about every home owner in the country to some degree and they knew they were doing it.  Now we are seeing why they felt no shame in doing so as they have gotten away with what could be seen as the banking industry's rendition of the prefect murder.  However, it is only perfect because the politicians and current administration are in the tank for the too big to fail banks.  It is a shame that the failure of our "democracy" has to be revealed with the systematic wiping out of trillions of dollars of wealth.  

taken from story on Naked
We’ve reported repeatedly of widespread evidence of grotesque procedural abuses as servicers and foreclosure mill lawyers try to cover up for the fact that in many cases, mortgage notes were not transferred properly to securitization trusts, and the rigid way these deals were structured makes it impossible to remedy those failures at this juncture. Absent creating a time machine, the only fix is to fabricate documents that make it appear than things were done correctly. We’ve seen (as in in person) obvious forgeries submitted to the court (signatures obviously Photoshop shrunk to fit) and servicer personnel caught perjuring themselves, yet judges are remarkably unwilling to issue a ruling that hinges on finding that the plaintiff filed phony documents.
If this case moves forward, that reticence may change. Note that this case, which covers only the Central District of California, alleges that Chase engaged in over 7000 filings of motions of relief of stay in bankruptcy court using fabricated documents. Remember that filing for bankruptcy puts a “stay” or hold, on all creditor claims. They all go wait while the court determines which creditors get what from the under water borrower. A “motion for relief of stay” by a mortgage lender is tantamount to saying, “Judge, let me grab the house.” Motions for relief of stay are typically a costly nuisance for bankruptcy lawyers. It wastes the borrower’s scarce money to shoo them away (and some plaintiffs’ lawyers will take advantage of inexperienced bankruptcy lawyers by getting them to sign a waiver in return for dropping the motion for relief of stay that looks innocuous but has a paragraph in it changes the burden of proof from the bank to the borrower, which almost always puts them at a fatal disadvantage and results in the loss of the home).

No comments:

Post a Comment

your feedback and opinions welcome.