Countrywide’s Mozilo to pay $67.5 million settlement

Countrywide’s Mozilo to pay $67.5 million settlement

angelo_mozilo.gi.top.jpg By Blake Ellis, staff reporterOctober 15, 2010: 3:29 PM ET

NEW YORK (CNNMoney) — Angelo Mozilo, the former co-founder of Countrywide Financial, has agreed to pay $67.5 million to the SEC to settle fraud charges.

The fine was one of the largest penalties ever issued for a corporate executive charged with filing false documents with the Securities and Exchange Commission.

The settlement was announced Friday at a status conference in the case before U.S. District Judge John Walter in Los Angeles, who called the settlement “fair and in the public interest.”

Mozilo was slated to appear in the federal courthouse on Tuesday. But there were published reports in recent days that Mozilo and the SEC had been in confidential settlement negotiations.

Former Countrywide president David Sambol also settled and will pay fines totaling $5.25 million, while ex-CFO Eric Sieracki will pay a penalty of $525,000.

The three former executives were charged last year with defrauding investors by hiding the growing risks of the company’s mortgages.

The defendants had previously denied the accusations, saying details about Countrywide loans were properly disclosed. In Friday’s settlement, they did not admit or deny the charges.

David Sambol’s attorney, Walter Brown, issued a statement defending his client.

“Bank of America will pay the entire disgorgement amount prescribed in the settlement on Mr. Sambol’s behalf,” Brown said. “While the agreement with the SEC prevents him from discussing the case, it makes clear that Mr. Sambol does not admit to any of the SEC’s assertions.”

The SEC accused only Mozilo of insider trading, alleging that he sold millions of dollars worth of Countrywide stock after he knew the company was doomed.

Mozilo has long been the poster boy of the subprime mortgage meltdown. By settling the SEC charges early, the former Countrywide co-founder will avoid a trial that could have provided fodder for furture criminal charges.

Bank of America (BAC, Fortune 500), which acquired Countrywide in 2008 for $8 a share after the deteriorating quality of the mortgage lender’s portfolio was realized, agreed in August to pay $600 million to settle similar charges.

The plaintiff lawyers on the case called the penalty the largest shareholder settlement since the mortgage meltdown started in 2007.  To top of page

39 Responses

  1. So my fellow Americans. Let me get this straight. The Banksters, wall street, mortgage companies,brokers,appraisers,title companies,SOME lawyers, the government swindled all the pensions and homes of 50 states and in other countries.
    They are now settling their agreements in full view of aN IGNORANT AND TRUSTING AMERICAN PUBLIC.
    REMEMBER THE GUY THAT SAID IGNORANCE IS BLISS WAS ON THE RECEIVING END.
    THE FN AUDASITY OF THIS REGIME IS AMAZING. IT MAKES ME WANT TO PUKE,etc……
    I think this as MAFIOSA AS YOU CAN GET.
    YOU DO THE DEED. YOU GIVE ME MY TAKE OR CUT. THEN I PROTECT YOU.
    OR I WILL BURY YOU AND WE KNOW THEY HAVE.
    FREDDIE MAC CEO HUNG IN HIS OWN HOUSE.
    MADOFF IN JAIL, BILLIONARES IN GERMANY DECAPITED ETC.
    THIS IS USA,INC. TYPICAL CORP MENTALITY.
    WE THE PEOPLE ARE NOTHING,HAVE NOTHING, AND WILL DO WHAT WE ARE TOLD. OR THEY WILL DESTROY YOU TOGETHER OR INDIVIDUALLY. THEY DON’T CARE.
    FOLKS, IF YOU DON’T PARTICIPATE IN THE GAME.
    THERE IS KNOW GAME.
    THINK ABOUT IT.
    TAKE YOUR MONEY OUT OF THE BANKS AND STOCK MARKET,MUTUAL FUNDS, MUNICPLE BONDS,ETC AND PUT IT IN A HOMESAFE WITH 460VOLT 3 PHASE.
    STOP PAYING BILLS ON THE INTERNET(COLLECTING YOUR INFO AND SELLING IT). THEY HAVE DONE THIS FOR YEARS. Facebook-info billionaire.
    HELL IF YOU STOPPED PAYING EVERYTHING TO THE BANKS AND PUT It IN ESROW ACCOUNT TILL THIS MESS WAS OVER WOULD——-DESTROY THEM.
    WITHOUT US THE PEOPLE
    THEY ARE NOTHING, HAVE NOTHING, WILL GET NOTHING AND DISAPPEAR.
    The ponzi scheme of schmoozing OUR money to get them RICH needs to FN STOP NOW.
    I’m just saying if we don’t play what do they have to play with?
    Nothing accept each other.

  2. Yeah, what happens to the homwowners and the investors that were screwed?

    This is all starting to look like a scheme where the perpetrator gets away with it by paying the government entity. So, the fraudster gives up a bit of money, gets to keep the rest, if it shares the profit with the Fed.

    Bull. I say we take over.

  3. Jose

    Thanks for your post – Kondaur. It was corporations like Kondaur that snapped up the Trust loan rejects – i.e. repurchases. This means your loan may have been on the original Mortgage Schedule – but, shortly thereafter – sold back to the originator (repurchased) – who would then sell the loan to entities like Kondaur. This was done far more often than anyone knows – and no where will you find access to this information.

    In addition, default loans are packaged into portfolios and also sold to hedge funds to which the banks had proprietary relationships – as well as distressed debt buyers such as Kondaur. This is particularly so if the loan amount was not that large – banks tend to retain rights to large loans.

    All this means is – you do not know where your loan is and the path it took from origination.. And, no one knows what is really on banks balance sheets – related securities are not the same as whole loans. Question remains – at what price (and time) is sale of whole loan collection rights beneficial to bank – and, are the buyers willing to pay that price. If not – whole loans stay with the bank. .

  4. SUBJECT: GOLDMAN SACHS LOAN EMBEZZLEMENT SCHEME
    In May 2005 we deposited and invested $200,000 in Real Property, where we recently found out that $118,800 was embezzled out of our property from Mortgage Lenders and Trust Brokerage Companies, namely Goldman Sachs through an escrow Transaction. The $118,800 in funds was paid to these embezzlers from the Investors unbeknownst that the securitization happened by encumbering our property and making up a fraudulent fake Promissory Note and Deed of Trust.

    See the link for further information: https://fdaaccount.box.net/shared/a1pjz9sz5c

  5. 10/15/2010:

    “The banking industry is anxious to get foreclosures on track again and quickly. There are reports that bank executives are meeting with executives from the title insurance companies to get them to lift their freeze on title insurance. According to these reports, the deal being discussed will involve the big banks providing guarantees to the insurance companies that any documentation problems in foreclosures going forward will be the responsibility of the banks, who will indemnify the insurers for losses they may suffer from such problems. This will apparently ease the concerns of the title insurers and it is estimated by the end of this week a deal will be done to lift the ban.”

    The banks have a post haste need to get foreclosures back on track. They need to steal as many homes as they can before the jig is up. They have a woody for your home.

    Grab your pitch forks America. It’s time. Next stop, the white house.

  6. Welcome to Kondaur Capital Corporation

    Kondaur Capital Corporation is the only premier purchaser of Scratch & Dent residential mortgage loans. Kondaur maximizes its bids through its unique management, servicing and liquidation strategies.

    Kondaur will competitively bid any type of one-to-four family residential loans whatsoever, including
    Kondaur Home

    * “Story” loans
    * Hyper-defaulted loans
    * Loans secured by unique properties
    * Loans with origination fraud
    * Loans with regulatory violations
    * Loans rejected for investor purchase

    KONDAUR WILL BID ON A SINGLE LOAN ON A ONE TIME BASIS OR ON A POOL OF LOANS. KONDAUR WILL GIVE LOAN LEVEL PRICING ON WHICH A SELLER MAY “CHERRY PICK” LOANS TO SELL

  7. this people admit on their web site that they specialize on dented and non compliant loans.

    when will lawyers wake up and hit them hard, they like working in minority neighborhoods and are very aggressive. They are very active in DC. they enjoy working in Non-Judicial States mostly.

    RED ALERT ON THESE GUYS!!!!!!!

    KONDAUR CAPITAL…Predator Buys Mortgage Notes for Pennies from Citi, Chase, BAC, WF…REPOST BY POPULAR DEMAND
    Posted on October 15, 2010 by Foreclosureblues
    Predator Buys Mortgage Notes for Pennies from Citi, Chase, BAC, WF
    Posted on July 14, 2010 by Foreclosureblues

    Homeowners vs. Home-Loan Buyers
    Article
    Comments (33)
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    By RUTH SIMON

    Eddie Patrick thought he had a deal with Kondaur Capital Corp. to restructure the mortgage on his Baltimore house after he fell behind on his payments. The 54-year-old taxi driver dropped a lawsuit against the company after he says it promised to “work with me” on a loan modification, according to a court filing.

    View Full Image

    Jonathan Hanson for The Wall Street Journal
    Eddie Patrick, a Baltimore cab driver, battled Kondaur Capital for a mortgage modification. He didn’t get it, and the firm foreclosed.

    Kondaur foreclosed anyway—and then offered to sell the house back to Mr. Patrick for $140,000. “I don’t know why they are so inhumane,” he says about the Orange, Calif., company, one of the nation’s largest buyers of troubled mortgages.

    The appetite is huge among companies like Kondaur, hedge funds and investors to buy shaky mortgages, credit-card debts, auto loans and even payday loans from lenders eager to cut their losses. So far this year, nearly $10 billion in troubled mortgages has changed hands, according to Private National Mortgage Acceptance Co., or PennyMac, a mortgage-loan buyer started in 2008.

    Such loans often sell for just pennies on the dollar, with the buyers hoping to make a profit by restructuring the loan, selling it to someone else or, in the case of mortgages, foreclosing if all else fails.

    But some borrowers complain that consumer-debt buyers have strong-armed them with threats, tried to collect the wrong amount or sought money from the wrong person. The Federal Trade Commission is examining nine large buyers of credit-card and other unsecured debts to determine their role in questionable debt-collection practices.

    Kondaur and some of its competitors have deep roots in the subprime industry and, as was the case with subprime lenders, the company’s operations fall under a hodgepodge of regulators, making it hard to enforce one set of standards.

    As a result, some state officials say they aren’t sure whether home-loan buyers should be regulated as mortgage companies or debt collectors, making it harder to effectively monitor the growing industry’s behavior. “I have concerns that some of these activities fall through the cracks of the regulatory structure,” says Mark Pearce, North Carolina’s chief deputy banking commissioner.

    Industry executives say they are working hard to meet all government requirements. “We take this compliance very seriously and realize that behind each of our loans is a borrower who is counting on us to act in the highest ethical manner,” says David Spector, PennyMac’s chief investment officer.

    Kondaur Chief Executive Jon Daurio says the company “works diligently … to find resolutions where the homeowners become renters, not homeless.” Mr. Daurio adds that Kondaur never offered to modify Mr. Patrick’s mortgage in exchange for dropping the lawsuit.

    Buying and selling unsecured debts has been a big business for years. Now the action is revving up in mortgages. Many banks have begun dumping bad home loans to make room on their balance sheet for new credit once the U.S. economy shows more signs of momentum.

    Kondaur has snapped up more than $1 billion of banged-up home loans so far this year. The sellers include traditional lenders Citigroup Inc., J.P. Morgan Chase & Co., PNC Financial Services Group Inc. and Wells Fargo & Co.

    Some loan buyers try to reduce a borrower’s payments or even the loan balance. At Kondaur, standard operating procedure is to pay the borrower to move out and hand over the property in good condition, known as a “cash for keys” deal. Only about 5% of the loans bought by Kondaur are modified; the company says it won’t restructure a mortgage unless it can be resold immediately.

    “We help borrowers understand they have a house they can’t afford,” says Mr. Daurio, who aims to recoup his investment on any given loan within six months. Before starting Kondaur in 2007, he was a co-founder of subprime lender Encore Credit Corp.

    Mr. Daurio says Kondaur pays anywhere from pennies on the dollar to 85% of the unpaid loan amount for the mortgages it buys. Buying at a steep discount gives the company lots of room to negotiate—and still walk away with a profit.

    To move the merchandise, Kondaur’s team of nearly 200 “Combat Loss Mitigators” analyzes and bids on individual loans. An employee is in charge of each loan until it is resolved. Employees are paid $9.50 an hour, plus a portion of the profit on each of their mortgages. The longer the loan sits on Kondaur’s books, the less the employee gets once it is sold.

    That approach has given some borrowers a fresh start. Last year, Deloris Raines’s house in Jacksonville, Fla., was in foreclosure when Kondaur bought her $65,250 mortgage.

    Kondaur offered to settle the debt for $38,000—and then agreed to take $16,000. “It really was a surprise to me,” Ms. Raines, 63, says. “I didn’t think I would be able to stay.”

    Some borrowers say Kondaur is too aggressive. In an affidavit filed in a Florida state court earlier this month, Isidro Chavez alleged that a real-estate agent working for the company threatened in an answering-machine message to evict him unless he agreed that day to a cash-for-keys offer or to buy the house.

    Mr. Chavez’s lawyer, Gloria Einstein, says the real-estate agent had no legal right to contact the borrower because he was in foreclosure litigation. Mr. Daurio responds that the “alleged actions … were neither authorized nor condoned by Kondaur.”

    Truck driver Keith Myles says he was pressured by Kondaur employees to find a relative or friend who would buy the $220,000 loan on his Chicago home, “or you will be put out.” Mr. Daurio denies that the company squeezes borrowers to locate a loan buyer. Kondaur says it has a database of “several thousand” potential debt buyers, mostly individual investors.

    In January, Kondaur agreed to pay as much as $200,000 to settle a federal-court lawsuit in Chicago alleging the company violated Illinois law and a federal debt-collection law. Mr. Daurio says Kondaur agreed to the settlement “in the interest of resolving the matter, and without admitting any liability.”

    Such mortgage-related lawsuits are likely to increase as more troubled home loans are sold, says Ira Rheingold, executive director of the National Association of Consumer Advocates.

    Mr. Daurio says Kondaur is trying to evict Mr. Patrick, the Baltimore taxi driver, who was offered $8,100 to move out by the end of August. Kondaur also cut its sale price on the house to $130,000. Mr. Patrick says he can’t afford it. His six-year-old son recently had two brain-cancer operations, he says.

    It is no surprise that some borrowers are unhappy when Kondaur forces them to face the music, Mr. Daurio says, but it isn’t his fault that borrowers got themselves into houses they can’t afford.

    “The vast majority of these people knew the risk they were taking,” Mr. Daurio says. “Like so many of the borrowers I dealt with when I was originating loans, they thought housing prices were going up.”

    Write to Ruth Simon at ruth.simon@wsj.com

  8. We need to make sure that AGs are in sync with our legitimate concerns. I don’t want the typical $$$ settlement, with everyone going free. If you’re in agreement, consider the following letter:

    He or She’s name
    Attorney General
    Street address
    Suite #
    City, State, Zip
    Dear Attorney General FillintheBlank,

    I know I don’t have to bring your attention to the fraud running rampant throughout the foreclosure and banking industry. It’s evident from mortgage origination to securitization that this was a well orchestrated Ponzi scheme, albeit an ill conceived one. I’m aware that your office is investigating these crimes and I commend you and your staff for all of your efforts in pursuing these obvious acts of corruption.

    Thank you on behalf of all [your state] residents.
    I would, however, like to bring your attention to an important issue, one that matters greatly to every single person affected by these heinous acts, that is, the nature of recompense due. I would like to make it understood that I’m not interested in seeing simple monetary damages brought against these firms, no matter how large or small, levied towards institutions that we know were making billions upon billions perpetrating these frauds. This will not suffice. These institutions need to be terminated, like the pariah that they are.

    The egregious nature of these crimes warrant appropriate prison sentences, from CEO’s on down, to anyone who helped further these fraudulent schemes, along with severe financial penalties. Our European counterparts are already pursuing these remedies, it’s high time we do the same.

    If we allow the criminal conduct of these corrupt individuals that brought our entire global economy to it’s knees, forcing millions of hard working people worldwide to lose their jobs and homes to go unpunished, we are guaranteeing a repeat of this behavior. Our society cannot handle a reprise, plain and simple. Please see to it that the perpetrators of these crimes not only payback any monies gained through theft, but that they also spend lengthy sentences behind bars.

    Last but not least, please keep in mind that those of us who have lost our homes due to this criminal activity should be remembered when compensation is factored. We’ve suffered more than could ever be repaid by the lawless.

    Thank you for your time,

    Regards,

    Your Name
    Your email:

  9. Here is what I think is going to happen, there is no way the power brokers are going to let their fraud out. No way no how, just like how they settled with Goldman and TAN MAN.

    http://www.cnbc.com/id/39686897

  10. Comment from ZeroHedge.
    by daneskold
    on Thu, 10/14/2010 – 15:28
    #650982

    This VASTLY understates the potential liability.

    Utah, as has every other state, enacted a statute to punish vexatious litigators who sue judges and record liens against their real property. Typically, a victim of a wrongful lien is entitled to treble damages and attorney fees incurred to obtain a court order nullifying the wrongful lien.

    Such statutes are broadly written to provide easy, total, equitable relief from the wrongful lien.

    A fraudulent assignment of note and trust deed, substitution of trustee, and trustee’s sale deed, all would constitute wrongful liens.

    Assuming a loan and credit bid of $333,333, a dead beat house owner whose house is foreclosed and sold based on a fraudulently-signed document would then be entitled to not only recover the house, but also a check for $666,666 plus attorney fees.

    How long do you reckon it will take astute attorneys to realize they’ve got a gold mine on their hands based on these robo-signed documents?

    And how easy is it to win on a petition to nullify wrongful lien?

    Cake

    If the nominal value of these bad mortgages is say, a $500 Billion, treble that for potential liability.

    ———-
    Think Green Tip.
    “Thanks to the action we have taken a 2nd Great Depression is no longer a possibility…”
    President Obama

  11. I just had some interesting reading. i went to the Virginia code for property and conveyance and found that the law, the statutes were modified in 2006, allowing for the pretender lenders, their felonious, trustees and lawyers to have a clear path to foreclose even without the note. they only need to write up some affidavit, do it within their own little office and that will be it.

    The sale cannot be stopped, it is done in thirty days. these crooks were getting ready for the debacle as early as 2006. they changed all the relevant statutes precisely in the areas they knew they were going to get hit.

  12. can we explore applying wrongful lean statutes on these clowns, if they were paid in full why would the record a lien?

    there are severe penalties for this in all 50 states

  13. Mr. Bernanke:

    Quantitative easing is not going to solve the problem. You and your pals – Mr. Henry Paulson and Mr. Timothy Geithner – should have addressed the fraud from the onset. Covering up – did nothing to solve the problem in the long run.

    There is much egg to go around.

    http://www.aolnews.com/nation/article/fed-grapples-for-another-tool-to-rescue-economy/19675867

  14. Today marked another deafening blow to the citizens of this country when the FBI was not waiting in the courtroom to slap handcuffs on Mozilo and cart him away under a RICO indictment. It further demonstrates the 1% ‘S are immune from the laws of this country because they own it and we, the peons are disposable.

    How could the SEC forego a trail for a mere 67 Million? He stole Hundreds of Millions and was allowed to keep most of it. What happens to the Fine???

    They are all criminals. I would like to make an analogy. The devastation criminals like Mozilo have caused society as a whole is unconscionable. The effects of the damage will be felt by some for as long as they live. Sadly, some have taken their own lives in the face of this destructive element.

    And this is the perpetrators punishment, take a little of what he stole, let him keep the rest and live as he is accustom, in the lap of luxury we surely will never know.

    Notwithstanding, If while I am in court I walk over to opposing counsel and Punch him in the Mouth, what would happen to me, arrest and jail, what harm have I really caused, a fat lip, with any luck a broken jaw. A minor infraction as far as I am concerned and I certainly haven’t decimated an entire society and my crime would be a far less evil than the ones committed by this criminal and his ilk.

    Where is the justice? I hate to say it, but it is time to make dueling legal again, because I would be the first one to walk up to Mozilo, slap him in the mouth and challenge him to a duel to the death at dawn. Choose your weapon Mozilo and prepare to meet your maker. How nice would that be? They are literally getting away with murder and not one of our government crime fighters are bringing them to task for their crimes. It is well settle law in this country that “the wrong doer shall bear the brunt of the uncertainty which their wrong doing has created”. This is just another example of whom the true rulers of this Nation truly are. It makes you wonder if any of the Names on the “Friends of Angelo” list were at play here. Who whispered in whose ear??? I’m off to sharpen my sword (pen). See you on the battlefield (court).
    BM

  15. ~”Will the SEC ask where the $67.5 mil come from?”~

    In 2005 alone, Mozilo took home $160,000,000.00. That was long before he started dumping stocks two years later, all the while telling investors that things were huncky dorey, which is what this SEC suit is about.

    So, the poor man has to cough up $67,500,000.00. But wait! He only has to pay $22,500,000.00. The rest, $45,000,000.00 will be paid by B of A, the lucky recipient of TARP funds.

    If there ever was proof that crime pays, you’re looking at it. Like Bill Black says, the best way to rob a bank is to own one. Maybe we could ask the SEC to at least require him wear an ankle bracelet for a week. I’d love to see him suffer at least a little.

  16. http://www.scribd.com/doc/39435217/The-Coming-Collapse-of-the-Real-Estate-Market-Seeking-Alpha

    EXCELLENT WELL WRITTEN ARTICLE ON THE COMING COLLAPSE OF THE REAL ESTATE MARKET AND REVENGE OF THE MIDDLE CLASS

  17. Message: Don’t mess with small time stuff. Ransack the nation so that there is enough cash to pay off those who can nail you.

    Will the SEC ask where the $67.5 mil come from?

    How can we look our children in the eye when we teach them: Do not steal?

  18. Has anybody thought of suinng Mozilo and Moynihan Personally?

    What about the SocioPath Judges? shouldnt they be criminally charged

  19. Brian Davies You da man.

  20. Foreclosure Issues Spur S&P To Cut B of A Stock to “Hold”
    Analysts lower target price by $3 to $14

    By Aleksandrs Rozens
    October 15, 2010

    Equity analysts at Standard & Poor’s on Friday slashed their target price for Bank of America shares and cut their recommendation on the Charlotte, N.C., financial giant to “hold” from “strong buy” because of uncertainties related to how lenders can process foreclosures.

    “We have a lower level of confidence that BAC [Bank of America] has adequately prepared for, and reserved for, future mortgage repurchase demands from the GSE’s [government sponsored enterprises] and investors, and for the potential administrative and legal costs of the rising foreclosure crisis,” S&P said.

    S&P said it cut its target price on BofA shares by $3 to $14 based on a discount to peers 8.6 times its unchanged 2011 earnings per share, or EPS, estimate of $1.62.

    BofA shares traded on Friday at $11.98 each, down 63 cents.

    The bank, one of the leading participants in U.S. housing finance, is trading just pennies above a price low not seen in more than a year.

    Bank of America shares have traded over the last 52 weeks as low as $11.78 each and as high as $19.86.

    On Friday morning, BofA shares were the second most actively traded stock on the New York Stock Exchange.

  21. Many thanks to Neil Garfield who has fought this fight for years and educated us with the proper forum and thoughts.

    Thanks and more special thanks to Jan Van Eck–“Boom Boom Dutchman” for all the support, psychotherapy, education and friendship.

    And anonymous–….for those anonymous discussions into the minds of these sick predatory bankers.

    Daniel Edstom, Denotos, Abbie, Charles and other the others who are on the front lines.

    ……………………………..

  22. Chapter 7 unsecured debt—341 hearing.

    http://www.scribd.com/doc/39002836/ONEWEST-HAS-NO-STANDING-MOTION-FOR-RELIEF-FROM-STAY-WITH-OBJECTIONS

    Out of nowhere comes Attorney Ed Treder, head counsel of NDEX WEST LLC owned by Dolan Media (ticker DM) saying he represents Deutsche Bank. (no proof of claim on file), but as a creditor.

    Trustee–Mr. Treder you represent Duetsche
    Treder-Yes, I want to ask questions.
    Mr. Davies–ok
    Treder–Did you sign a Mortgage?
    Mr. Davies–No,, I signed a note.
    Treder–(surprised)-oh, and how much is it for.
    Davies–Two notes for a total of $550,000
    Treder–what is the value of the property?
    Davies–$230,000.
    Treder–so you are looking for a free house.
    davies–No!
    Treder-Do you have a civil case filed? Did you put it on schedule D.
    Davies–Yes
    Treder–Are you asking for money.
    Davies–Yes
    Treder–How much?
    Davies–Well with all the news of fraud going on I think it maybe alot of money.
    Treder–You are trying to get a free house
    Davies–No
    Trustee–I see you have a civil case with $2.7 mm judgment.
    Davies–Yes
    Trustee-Well I need the details of who is collecting.
    Davies-Ok
    Treder–You say this is unsecured.
    Davies–Yes
    Treder–What are your arguments.
    Trustee-Stop
    Furst (atty Davies)–we have a hearing on the objection to Onewest motion for relief from automatic stay. Our position is outlined in our (Van Eck) objection.
    Trustee–You mean sell the house and pay the creditors.
    Davies–Yes.
    Treder–Treder–Treder
    Davies–Close your mouth.

    Trustee–It is ok with proceeding on the unsecured claim. I need details of the civil case.

    After the hearing while walking out. Davies and Treder have words. Alot of words. @#$%$%^^&&**(%%*(*))(*)*))((*&&(*)((&(&(fat m…..f….)@#@#$$%^^**)(

    It was conveyed to Treder (a rather Fat man) that Davies felt that the behavior of Treders foreclosure mill and others like the one in Florida risk the owners of such acts to criminal sanctions, or at least it has been conveyed as such to Davies. Davies repeated this to Mr. Treder several times in the across the street rather loud conversation.

    :):):) For those screwed by NDEX WEST LLC–that one was for you.

  23. Where’s AlQaeda when you need them?

  24. I agree with Jan & his death by 1000 cuts. My little old cut against BOA was filed at the end of Sept. by a “lawyer who gets it.” Now we wait & see.

  25. DJ,

    Exactly. There should be no fraud against investors – IF – there was no fraud against the home owners. But, the SEC only works for investors. Until the 50 states AGs stepped in – there has been no government agency working on our behalf. It was Paulson’s/Bernanke’s/Geithner’s intent to blame the home owners. Gee- we were pretty darn good to defraud all those investors weren’t we??

  26. We just have to keep fighting, he will pay in due time. Believe me.

    I know this reinforces the belief that poor people serve, rich people walk.

    Those are the negotiations we need to be aware of. Well he can still be a defendant for whatever crap they did to you or me at the time he was riding high on the hog.

    keep that option open, he did not agree to any of the charges, but that does not mean he did not allegedly procured an environment under his direct leadership and supervision of fraud and illicit behavior in his Countrywide house of cards.

    Now you all can understand why BOA bought Countrywide, even when they knew this company was in trouble, they had a huge database of homes to foreclose.

    No documents, no loan ownership, no propblem, the robosigners are in charge

  27. Some one send a lollipop to that judge!!! 🙂

    it is pay back time, Mr. Stephans, it is public information and your activities may in fact be criminal in nature, now you can bear the mark, and justly so of what you, your bosses and the people you work for and made billions of dollar on the backs of decent and hard working American Home owners.

    We have had to bear the weight of your bosses P.R. as DEAD BEATS, and push against a huge mountain of injustice, lack of proper opportunity, due process, and you Mr. Stephan were a direct player in the infringement and disenfranchisement of our rights. By your “TECHNICALITIES) OR ALLEGEDLY CRIMINAL BEHAVIOR AND POSSIBLY UNDER THE DIRECT INSTRUCTION AND SUPERVISION OF OTHER THAT IF YOU WERE SMART YOU WOULD COOPERATE WITH JUSTICE, NOT BY DENYING ACCESS TO IT AS YOU SO EFFICIENTLY WORKED ON, BUT BY HELPING BRING THE REAL AND MOST GUILTY OF THEM ALL INTO FACING THE MUSIC OF JUSTICE.

    I hope that now, just like millions of us you may find some comfort in some local pharmacy for your probable lack of sleep, that some of your former neighbors you helped be foreclosed on understand that those hundreds of thousands of technicalities were just accidental. And that they understand that you, yes you are now a VERY PUBLIC figure.

    Way to go Bank hero.

    I do not believe you bosses will be willing to pay your settlement or legal fees.

    did you get your orange suit fit?

    Are you going to be placed in one of those exterior detention centers in Maricopa County , Arizona, I have already set up a reservation for you and your other colleagues there. Do you like pink underwear?

  28. Liquidate ALL of the foreclosing banks, including Deutsche ,Goldman Sachs, AIG, for FRAUD. Nullify their foreclosures*, transfer their remaining liquid assets to the depositors, and any remaining profits, assets, & buildings pro rata to the cheated pension funds.

    *Carpenter v. Longan 83 U.S. 271, at 274

  29. This is sad. He should be riding a metal toilet with Bernie Madoff. The SEC settles with someone that defrauded the country and ruined millions of lives. Justice is for someone else. Will someone read the criminal statutes to the SEC? Just so we know they haven’t forgotten.

  30. Other articles and editorials in the NY Times today:

    “From a Maine House, a National Foreclosure Freeze” at: http://www.nytimes.com/2010/10/15/business/15maine.html?src=un&feedurl=http%3A%2F%2Fjson8.nytimes.com%2Fpages%2Fbusiness%2Findex.jsonp

    NY Times editorial “The Foreclosure Crises” at: http://www.nytimes.com/2010/10/15/opinion/15fri1.html?hp

    Paul Krugman / NY Times op-ed “The Mortgage Morass” at: http://www.nytimes.com/2010/10/15/opinion/15krugman.html?hp

  31. The article forgot to mention that they got to keep their country club memberships, their homes, their ill gotten millions, and to laugh about how the US Government is simply a push over for the rich and felonious.

  32. Let’s stay focused on the task at hand. If you want to obtain compensation, then you have to file your suit. A few lawsuits they can handle; it is part of the game-plan. When these bad-actor institutions get absolutely buried in thousands of lawsuits, then you will quickly see a settlement to the aggrieved homeowners. Even Bank of America cannot handle 150,000 homeowner suits for damages; they do not have the resources. Same for the other players. You break them by inflicting the death of a thousand cuts.

  33. Since Countrywide was listed on the NYSE in 1984, Mozilo has sold $406 million worth of its stock, mostly obtained through stock option grants. $129 million of this was realized in the 12 months ending August 2007.

    http://en.wikipedia.org/wiki/Angelo_Mozilo#Life_and_career

  34. Just a joke

  35. Breaking News
    Osama bin laden settled with the United States
    Pays fine of $10.00

  36. So the SEC gets their money. What about the Homeowners? When are the borrowers who were defrauded going to get our money back plus triple damages??

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