$3 BILLION BANK BUSTER FILED IN CA AND NV

HUGE PRIVATE LAWSUITS FOR TAX EVASION BY SECURITIZATION PLAYERS:

Totaling more than $3 billion between just three states and probably more, my estimate is that these cases will succeed and that they will lead to settlements that will dwarf the Tobacco settlements.

California Qui Tam False Claims Recording Fees

Nevada Qui Tam

Nevada Qui Tam False Claims Tax Exemption

This is the case we have been waiting for. It will lead to the cure of state deficits where these actions are brought privately or by the AG of the state. I spent a good part of the Spring of 2009 trying to get Arizona to do this. They even figured out that their $3 billion deficit would be eliminated. But POLITICALLY they decided against it because people like McCain and Kyle were getting so much money from the bank lobby.

The $3 Billion figure is mine. I put pen to paper and came up with figures that dwarf that number, but in an effort to be conservative, I can’t up with figures less than that amount. The total figures would most likely be ten times that amount, although the eventual settlements would more likely be closer to the low figure.

There are many cases filed under seal in many states. In a nutshell these cases are going after the obvious – the taxes, transfer fees, costs and other statutory amounts that are due to the states and counties from the multiple transfers and movement of interests in real property without reporting it, recording it, or paying for it. There is at least $50 billion by my estimation in unreported taxable profits in Arizona alone but Arizona doesn’t permit qui tam actions like Florida, California and Nevada. So it’s up to the State AG. AZ official calculated the taxes due at $3 billion, exactly the amount of the States deficit, and that is without all the filing fees that were avoided. Hager and Hearne law firm in Reno heard me and expanded on what I (and others) have been saying for three years — we don’t need to be in a financial hole. All we need to do is collect what is due.

NOTE RECEIVED FROM BOB HAGER, A PRIME MOVER IN THESE LAWSUITS
There are two different cases in NV.  One is the MERS recording fee qui tam and the other is for false claims of tax exemption made to avoid payment of transfer taxes on foreclosures taken by Fannie and Freddie.  One week after Fannie was served with the NV transfer tax qui tam, the Federal Housing Finance Association ordered Freddie and Fannie to de-list from the New York Stock Exchange.  Please note in the transfer tax complaint where I lay out the factors the courts have looked at in determining without exception going back to the 1970’s that Fannie and Freddie are not tax-exempt for purposes of state transfer taxes.  The 9th Circuit so ruled in 1996.  I estimate the penalties and treble damages for unpaid taxes in the transfer tax case in NV to be from $300 M to $500 M.

31 Responses

  1. More info on Qui Tam / whistle blower actions:

    X_http://www.callawyer.com/story.cfm?eid=909871&evid=1

    Dan Edstrom
    dmedstrom@hotmail.com

  2. Dan Edstrom and David C Breidenbach

    Please post your findings here on Livinglies or send me the info brian_tracy AT cfl.rr.com I need to lookup this exciting discovery ,, I have a WF loan serviced by AHMSI (previously AHM) , My PSA (fixed 2007-1) doesn’t name the trust but I know WF usually kept all their stuff vertically integrated within their organization.

  3. angry & NOT TAKING IT!,
    Freedom is not the illusion, the working hands of We the People powerless over the mouths we feed that is our government is the illusion. Take a look at how careful they are sometimes. Like look at Sen. LIEberman’s(ID-Israel) citizenship stripping bill and notice that they never mention it as something never done, that’s because the real 13th Amendment (that our gov tries to hide) reads as follows
    “If any citizen of the United States shall accept, claim, receive, or retain any title of nobility or honour, or shall, without the consent of Congress, accept and retain any present, pension, office, or emolument of any kind whatsoever, from any emperor, king, prince, or foreign power, such person shall cease to be a citizen of the United States, and shall be incapable of holding any office of trust or profit under them, or either of them.”
    and that would mean all attorneys, senators, congressmen holding the title of esquire, judges holding the title of honor and everyone in gov with their hands elbow deep in AIPAC $$$$ would have to go live on Gilligan’s Island. So that’s why in the bill they only punish those who lend aid not get it.

  4. CHINESE JUSTICE NEEDS TO BE INTRODUCED.

    A FEW PUBLIC EXECUTION IS WHAT WE NEED.

    START WITH JUDGES THAT HAVE NOT RECLUSED THEMSELVES FROM CASES THAT THEY HAVE RELATIONSHIPS WITH THE BIG BANKS GET THEM ON CHARGES OF CORRUPTION. TREASON CRIMES AGAINST HUMANITY.

    http://matchbin-assets.s3.amazonaws.com/public/sites/990/assets/Judge_Waddoups_Financial_Disclosure_Statement___2008.pdf

    FOOD FOR THOUGHT

    GOD BLESS AMERICA

  5. David C Breidenbach – please contact me.

    Dan Edstrom
    dmedstrom@hotmail.com

  6. Is there a group here that we can work with to extend these case theories? Are you all aware of the American Home Mortgage failure to file lists of mortgages on 7 of 12 trusts? Currently, they typically bring suit in the name of the trusts –however we reviewed the SEC docket and found that the required mortgage loan schedules were supposedly filed manually-meaning paper submissions—however , AHM never followed up and file the 70 page documents. SEC provided a FOIA response verifying that it did not have custody of the list. the recordation of these paper filings is indicated by a docket reference to scanning the paper list. Further, Delaware UCC filings to reflect transfers of loans to the trust showed “available upoon request” —-Dela. says that request is of the filer –bankrupt AHM!!!!

    Now all this means the trusts dont have assets —lawyers out there should recognize that this means the trust failed because it had no corpus–no assets “entrusted to it” ——-these trusts do not exist as separate legal entities–they are acctg artifices to defraud , by concealing the true owner -which now we cant be sure of—-the notes are lost –even if you pay off one of these things —–the payee cant release you folks. The failure to file these loan lists allowed AHM to sell the notes multiple times and AHMSI apparently has latitiude to allocate the foreclosure proceeds any way it choses.

  7. Long ago posed this question of missing fee’s and taxes to the local County Clerk who was up for re-el-election… emphasis on RE- ELECTION… she looked at me as if I had ten heads and just crawled out from under a rock.
    Sort of sum’s thing’s up… as for our current AG here in NY, now just what do you think he would do with this information while running for Governor? Not much.
    Better to bleed the remaining few then jeopardize their political future which is bank rolled by the taxpayer bailed out banks!

  8. Long ago posed this question of missing fee’s and taxes to the local County Clerk who was up for re-el-election… emphasis on RE- ELECTION… she looked at me as if I had ten heads and just crawled out from under a rock.

    Sort of sum’s thing’s up… as for our current AG here in NY, now just what do you think he would do with this information while running for Governor? Not much.

    Better to bleed the remaining few then jeopardize their political future which is bank rolled by the taxpayer bailed out banks!

  9. Just sent this to my state AG. Let’s see if they have any…….testicles.

  10. this is not new only becoming more invasive & prevalent .
    The 9/11 homeland security measures needed to turn the entire country into suspects; anytime anywhere for any reason you are a suspected subject !
    Freedom is the ultimate Illusion .

  11. Trying to keep hope…but, looks like we’re really losing all semblance of ‘rights’ in this country, the U.S.A.

    Check out Sott.Net, ‘Is the U.S. a Fascist Police-State?’

    the link: http://www.sott.net/articles/show/211215-Is-the-U-S-a-Fascist-Police-State-

  12. Patrick Pulatie is absolutely correct here… 2923. point bla bla was and is nothing more the a diversion & lip-service , 100% meaningless cal bureaucratic government nonsense ” look what we”re doing for the homeowner” , so dont chase that ghost.

  13. A Team,

    The truth is that most 2923.5 and 2923.6 claims are going to be dismissed because the lenders, including Aurora, are generally complying with the statutes.

    2923.5 & .6 sets a process for contacting, or attempting to contact, a borrower 30 days prior to filing a Notice of Default. Sending of the required letters and attempts at calling fulfills the requirements.

    Most of the allegations in the lawsuits are going to be easily countered by the lenders. When actions like Marby b Aurora are filed, then it becomes a question of fact as to whether such compliance has occurred.

    Marby was about attempted contact and the Right to Private Action. The Appellant Court ruled that there was a Right of Private Action and that compliance was a matter of fact and needed to litigated out at the Trial Court level.

    Federal Preemption was denied only because the 2923.5 requirement is a temporary action, only delaying foreclosure by 30 days.

    This is the problem when people review the rulings coming out. Generally, they see what they want, and jump on the “hope” offered, without fully considering the scope.

    I had discussions with many different attorneys after Marby. Many were hopeful, until key passages were pointed out, and then most realized that it was nothing more than a 30 day reprieve.

  14. $3 BILLION BANK BUSTER FILED IN CA, FL AND NV

    Has a Qui Tam been initiated in FL?

  15. Remember McCain was slapped around during the 1985 S&L scandal. He got off then and will get off now. His game is to divert your attention towards the Mexico fence and watch the tax payer of Arizona continue to be fleeced while living in usury and slavery. I have yet to hear McCain speak one word to resolve this mess. If anything McCain and this government owes the Arizona taxpayer, an apology and they should do what ever it takes to put the home owners back into position as we once were 7 years ago.

  16. Sorry I just had to post this guy who gets it…
    check out his blog, wow…wait i cant say that in public.

    CLUSTERFLUCK NATION
    Posted on June 29, 2010 by Foreclosureblues
    Editor’s Note…this article was sent to me from my sister in Brazil, she got fed up quite some time ago and couldn’t stand it no mo…lol. I really kinda get what Mr. Kunstler is sayin’.

    http://foreclosureblues.wordpress.com

    By James Howard Kunstler
    on June 28, 2010 8:43 AM

    I think America missed something. It must be the time of year, what with inhaling all those fumes from the charcoal starter… and fueling up the Jet-skis so as to turn a perfectly good mountain lake into something like a Cuisinart on the guacamole setting… and the rousing evenings in the Nascar parking lots hitting palmetto bugs with your wiffle bat… and all that anxious waiting for a 10W-40 hard rain to fall on the Gulf Coast states – but President Obama made a very interesting remark when the financial regulation package passed in the senate the other day. He said the bill would make sure that “Main Street is never again held responsible for Wall Street’s mistakes.”
    Whoosh….
    That was the sound of something going over America’s head. Something about the size of Rodan the Flying Reptile. And frankly I don’t think the president even meant to be coy or deceptive. It just means he doesn’t get it either. Never again….
    Never again?
    What the fuck?
    Why even this time? Why isn’t there an army of federal attorneys out there, their teeth bristling with subpoenas, beating the bushes in every lane and skyscraper floor of lower Manhattan (and Fairfield County, Connecticut, not to mention a thousand office parks around the USA) to roust out the grifters and swindlers who took Main Street to the cleaners this time.
    The audacity of cluelessness! And the hilarity of “next time.”
    Earth to President Obama: there isn’t going to be a next time. This time was enough to git ‘er done. Wall Street – in particular the biggest “banks” – packaged up and sold enough swindles to unwind 2500 years of western civilization. You simply cannot imagine the amount of bad financial paper out there right now in every vault and portfolio on the planet. Enough, really, to sink any company even pretending to trade in things more abstract than a mud brick or an hour of labor. What’s more, the cross-collateralized obligations between them are so vast and intricate that all the standing timber in North America could not be fashioned into enough pick-up sticks to represent the hideous death-dealing tangle of frauds waiting for the wing-beat of a single black swan to come crashing down.
    Go out and get a copy of Michael Lewis’s recent book The Big Short for a close-up view on one micro-corner of the investment world. You will discover that the people fabricating things like synthetic collateralized debt obligations (CDOs) had no idea what the fuck they were doing – besides deliberately creating documents that nobody would ever understand, that would never be unraveled by teams of law clerks or secret words or magic incantations or prayers to some dark hirsute deity, and were guaranteed to place in jeopardy every operation of the world economy above the barter level. Sorry to invoke the hoary old metaphor about the horse being out of the barn – but the larger problem is what the horse left behind in a great steaming mound clear up to the rafters. There was nothing to understand in all this crap, except that betting against it was a good idea, and then only for those who placed the earliest bets – because everybody else is going to get just as screwed as those who stuffed their vaults and portfolios with Triple-A rated horseshit.
    What banks and governments have been doing for the past eighteen months is a dumbshow meant to distract the public from the fact that the world financial system has been effectively destroyed. There isn’t enough money left in the known reaches of the universe to pay off the outstanding claims. In fact, not even close. Everything that proceeds from this fiasco will be in service of impoverishing most of the population and, incidentally, probably bringing down governments and, with them, convenient social usufructs such as due process of law and civil order. What remains – what you’re watching right now on CNN or Fox – is just a representation of the former structures of civilized life, what Joe Bageant refers to as “the hologram,” a kind of 3-D picture you can see around, that looks like reality, but is actually immaterial, a collective hallucination. It’s comfortable living in a hologram – until you discover that you’re in one.
    In the summertime, when there are weenies to grill and Jet-skis to commit suicide on, the public is usually having too much fun to pay attention to anything. Maybe this is how come summertime is also when lots of bad shit happens, or gets ready to happen. The guns of August… blitzkrieg… 9-11… the death of Lehman Brothers….

  17. DEUTSCHE BANK

    WIKIPEDIA

    http://en.wikipedia.org/wiki/Deutsche_Bank

    VERY INTERESTING.

    GOD BLESS AMERICA

  18. Posted on June 29, 2010 by Foreclosureblues

    Editor’s Note…This is about the previously sealed blockbuster Qui Tam lawsuits that freedom fighter attorney Neil Garfield has been working on. (I didn’t even know what qui tam was, so i posted the definition below). Man it’s good to know that TRUTH is the biggest dog in the room, and that the U.S. Supreme Court ruled that we still have the right to bear arms. Because that is exactly what we may need when the banks start to lose their stranglehold on our legal rights. I’m not sure how long they will last when honorable people and the legal system that the banks use to carry out their fraud and illusion find out that they are also victims.

    http://foreclosureblues.wordpress.com

    Qui Tam…Whistleblower’s Guide to the False Claims Act

    The False Claims Act, sometimes referred to as the FCA, was enacted in 1863, and was amended most recently in 1986. The FCA contains an ancient legal device called the “qui tam” provision which is shorthand for the Latin phrase:

    qui tam pro domino rege quam pro se ipso in hac parte sequitur
    he who brings a case on behalf of our lord the King, as well as for himself

    The False Claims Act allows a private individual with knowledge of past or present fraud on the federal government to sue on the government’s behalf to recover compensatory damages, civil penalties, and triple damages.

    With Congress’ 1986 amendment to strengthen this Civil War Era statute a powerful public-private partnership was put in play to uncover fraud against the federal government and obtaining the maximum recovery for the U.S. Treasury. The FCA has become an important tool for uncovering fraud and abuse of government programs. The FCA compensates the private whistleblower, known as the relator, if his or her efforts are successful in helping the government recover fraudulently obtained government funds.

  19. […] $3 BILLION BANK BUSTER FILED IN CA, FL AND NV Today, June 28, 2010, 5 hours ago | Neil Garfield […]

  20. Rhode Island and Massuchusetts Call the Christian Law Firm that gets it! We will slay the lender’s together
    Over 300 active cases and growing. No family turned away. Budget plans for everyone.Call for a free consultation at 401-274-1905 and ask for Kim or George at the Law Office of George E.Babcock or check out our website at:babcocklawoffices.com

  21. DIALOGUE BETWEEN BANK OF AMERICA AND ANY SUPERIOR COURT JUDGE IN SOUTHERN CALIFORNIA

    BANK OF AMERICA: JUDGE JUMP

    JUDGE: HOW HIGH

    BANK OF AMERICA I WONT PAY YOUR 401K OR I WONT LEND THE STATE OF CALIFORNIA ANY MONEY AT PERFERED INTEREST RATE.

    JUDGE: I WILL JUMP AS HIGH AS A KITE.

    GOD BLESS AMERICA

  22. DEAR PATRICK
    IF THEY COULD ONLY COMPLY WITH 2923.5 THEY WOULD HAVE DONE IT IN THE FIRST PLACE.

    BUT THEY CANT.

    AND THEY DONT HAVE TO BECAUSE

    THESE JUDGES IN CALIFORNIA ARE OWNED BY THE BANKS JUST LIKE MCCAIN. MCCAIN COULD SUSTAIN TORTURE BUT NOT THE LURE OF MONEY.

    MEN AND WOMEN WHO HAVE POWER HAVE A WEAKNESS SEX AND MONEY. READ ANY SPY NOVEL.

    GOD BLESS AMERICA

  23. Diana,

    The CA lawsuit is Mabry v Aurora. It dealt with 2923.5, the statute regarding loan modification efforts. The ruling essentially said that there was a Right of Private Action regarding compliance with 2923.5. However, all the lender needs to do is comply with 2923.5 and then continue foreclosure. All you get is a 30 day postponement.

    Most people have taken this case and others to mean much more that what they do. Everything must be taken in consideration of what the local courts are ruling.

  24. well said dan

  25. Does someone have the link for the FL case?
    Thanks!

  26. I live in California. I had begged Aurora Loan Services to modify my loan to go from an arm to a fixed. After dragging me through dirt they refused. The foreclosed.
    Now I am facing an unlawful detainer. I am a group of about 100 victims of Aurora.
    I read in your blog about a CA homeowner winning an U.D. suit against Aurora.
    Can you help me out – perhaps that homeowner or the attorney can assist me.

  27. I bet McCain would hate this to hit the News !!!!!!! The AZ AG is in the banks pocket, so doubt they do diddly 🙁

  28. Who are the lead attorneys in CA?

  29. Seems like AZ officials are going against what is good public policy. I would think their oath of office goes against what they have “decided” for their constituents. The people of AZ should put this to a ballot initiative (if that is possible). They should also throw out those in office who do not correct this injustice.

    The needs of the few outweigh the needs of the many?? Nothing new, but still offensive nonetheless.

    Dan Edstrom
    dmedstrom@hotmail.com

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