GOLDMAN WEB OF DECEIT AND TAX EVASION: BKR TRUSTEE SUES FOR FRAUD

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Lee Farkas of TBW was right when he said, “I could rob a bank with a pencil.”

AUCTION SALES INCOMPLETE FOR NON-PAYMENT: TRUSTEE DEED SHOULD NOT BE ISSUED

SUBSTITUTE TRUSTEE COULD BE SUED FOR DAMAGES

EDITOR’S COMMENT: It’s like a checklist of things to examine when reviewing the document trail, the money trail and the loan closing procedures. At the heart of it lies not only the usual fraud and deceit, but what emerges is that the “substitute trustee” is no substitute trustee at all. And even if they were the trustee, they breached every duty set forth in the statutes governing the conduct of the trustee on a deed of trust.

The courts have repeatedly confirmed the extra duty of the Trustee on a deed of trust to exercise due diligence and good faith. What the banks have done is literally appoint themselves as the Trustee and then ran amok doing whatever they wanted. But the law catches up.

Virtually all deeds issued upon auction sales where the “credit bid” was entered, resulted in the issuance of a deed without the Trustee ever having received any consideration — no note and no money, leaving the obligation hanging out there. Just an oral “bid” in which the bidder does not identify any creditor and where the bidder does not tender the note as a credit bid or the money for the house. And if you drill down further you find that there is a cause of action for damages and injunctive relief against the original trustee, the substitute trustee and the parties behind this farce.

Here we have laid bare the following:

  1. Defective Notice of Default
  2. Improper Substitution of Trustee
  3. Notary Stamp Fraud
  4. Altered Affidavit of Mailing
  5. Fabricated Assignment of Deed of Trust
  6. Defective Notice of Sale

From Jake Naumer

This article was written by
George W. Mantor
The Real Estate Professor
Founder, American Foreclosure Resistance Movement

“in their rush to steal another home, Wall Street has inadvertently called attention to the massive repledging of the collateral and the tax evasion at the center of the securitization fraud.”

“I have before me six documents that could lead no reasonable person to any other conclusion than this: Bank of America, hiding behind a bogus Goldman Sachs Pooling and Servicing agreement aided and abetted by MERS, Litton Loan Servicing, Lender Processing Services, and Quality Loan Service, have manufactured documents, to try to steal the beneficial interest of an unknown creditor believed to be Washington based lender MILA, the originator, currently insolvent and in Bankruptcy. The Bankruptcy Trustee is suing MILA for fraud.

Robo-Signers, a Tangled Web Indeed

I was about seven years old when I heard my mother repeat this Sir Walter Scott phrase to my sister, “Oh what a tangled web we weave when first we practice to deceive.”

I’ve always thought it was more practical advice than moral lesson. Men who speak their minds tend to have few false friends and too many enemies but they don’t have to work to keep their stories straight. So, when they do say something, people know they mean it.

Where I come from, it’s so sparsely populated that there isn’t anyone to scam. Loggers, miners, and farmers come right to the point, and it makes some people uncomfortable.

Southern California is beautiful, and most of the people are terrific, but what I was not prepared for is the sort of tacit acceptance of bullshit…like an art form. I’ve been here more than thirty years and I still overhear things that make me involuntarily roll my eyes.

Not that long ago I had a conversation with a woman who asked me, “Do you know what your problem is?”

Here we go. I know the answer to that would take longer than a trip to the DMV, but just as I was about to concede one or two obvious shortcomings, she told me. “You are too direct!”

Ouch! Wow! I had no idea. Thanks for sharing. I’ll try to get better. I didn’t know that you could be too direct. You are either direct or indirect.

It got me wondering if it was a problem I wanted to fix. How would I go about it such a transformation? Is there a twelve step program for that where I can master the skills of less directedness? Do I need to set goals? Should I start out slowly with a few little white lies or should I jump right in and get a job at Goldman Sachs?

Because when it comes to tangled webs, Goldman Sachs is the epitome of deceit. They have admitted and substantial evidence exists that the Goldman plan was to deceive everybody and keep right on doing it until the courts stop them. Which the courts seem strangely disinclined to do despite mountains of evidence piling up at every imaginable agency.

So here I sit with the smoking gun, right in my lap.

Today, I have before me the remnants of GSAMP Trust 2006-HE3 and what has to be the clumsiest attempt ever to transfer the asset of another into a trust years after the cutoff date.

Trust me; you’re going to love this story. For in their rush to steal another home, Wall Street has inadvertently called attention to the massive repledging of the collateral and the tax evasion at the center of the securitization fraud.

This little bit of foreclosure fraud is an absolute classic and we just have to thank our friends at Bank of America for a perfect example.

Hold everything, Ladies and Gentleman…We Have a Winner; this has to be the steamiest pile of doo-doo, yet.

For the few people left out there who do not believe that many of the foreclosures are fraud, and Darrell Issa you know who you are, I have before me six documents that could lead no reasonable person to any other conclusion than this: Bank of America, hiding behind a bogus Goldman Sachs Pooling and Servicing agreement aided and abetted by MERS, Litton Loan Servicing, Lender Processing Services, and Quality Loan Service, have manufactured documents, to try to steal the beneficial interest of an unknown creditor believed to be Washington based lender MILA, the originator, currently insolvent and in Bankruptcy. The Bankruptcy Trustee is suing MILA for fraud.

A Defective Notice of Default

A document purporting to be A Notice of Default was prepared by LSI Title Company dated July 7, 2009 and signed by Merrilyn L. Aguas as Agent for Beneficiary. LSI Title is a division of Lender Processing Services recently under heavy fire for forging loan documents to accommodate illegal foreclosures.

But every indication is that the document was printed at foreclosure mill, Quality Loan Servicing in San Diego. I’m looking into that.

The Notice of Default was recorded on July 9th, 2009 by Elena Davis representing LSI Title Company (CA). But only against one of the borrowers, a husband and wife. Absent from the notice of default was the name of the husband.

This may have been an error, but the result is that the notice of default is defective. One of the very few requirements of a non-judicial foreclosure concerns the filing of the NOD.

Improper Substitution of Trustee

Coincidentally, also on July 7, 2009 in faraway Harris County Texas, a document purporting to be a Substitution of Trustee was prepared.

This is signed by Marti Noriega, who according to his or her LinkedIn page is AVP of Foreclosures at Litton Loan Servicing.

On this document she is representing herself as an Assistant Vice President of Mortgage Electronic Registration Systems, Inc.

She identifies LANDAMERICA/SOUTHLAND as the original Trustee, and Mortgage Electronic Registration Systems, Inc., as Nominee For MILA, as the Original Beneficiary.

Based on this representation, Quality Loan Service Corporation, a law office and well known foreclosure mill becomes the new Trustee under the original Trust Deed.

See how easy that was?

A trustee is supposed to protect the interests of the trustor as well. How a law firm working for the bank trying to steal the home can be the trustee is beyond me.

Notary Stamp Fraud

If that isn’t bad enough, we have notary fraud on the document.

This document purports to have been notarized by a Melissa Bell on 07/14/09, in Harris, Texas. A week after it was signed in San Diego. No big deal you say? Fair enough.

The notary signed the name M Bell, but her stamp clearly shows Melissa Bell. The law in Texas is that the notary must sign exactly as the name appearing on the stamp. Still too picky? They were busy? Okay.

The stamp has a commission expiration date of March 28, 2011. Multiple inquires to the Texas Secretary of State produced no evidence of a Melissa Bell whose commission expires on that date and if anyone knows where she is, we have some questions we’d like to ask her.

There is a Melissa Bell who works or did work for Bank of America. You don’t suppose…?

But wait, there’s more. This document, provided to the borrower, is not the same document recorded on file at the San Diego County Recorder’s Office.

The recorded document, not recorded until August 21, 2009 has been altered. Lined out are the words, “who proved to me on the basis of satisfactory evidence and hand printed “personally known to me”.

The unnotarized document without the interlineation obviously was the original? What effect does this change have? Why was the borrower or borrower’s attorney never provided a copy of the new and improved version?

In recording this document, there is no reference to the borrower so it does not show up in the County Recorders main public portal, the Grantor/Grantee Index, making it virtually invisible to the property owner.

Altered Affidavit of Mailing

An Affidavit of Mailing for Substitution of Trustee By Code was executed by Cynthia Tran representing that she is an employee of Quality Loan Service Corp., an agent for beneficiary whose business address is: 2141 5th Avenue, San Diego, CA 92101.

Herein she swears that she mailed a copy of the substitution on or before 7/16/2009. The copy she mailed to the borrower predated the altered copy in regard to the notarization.

There are two different versions of this as well; the recorded copy was signed by Ms. Tran, if she even exists. The signature line above the name Cynthia Tran is blank on the copy sent to the borrower. In addition, “/s/”, is on the signature line but absent from the recorded copy.

The Substitution wasn’t recorded until August 21, 2009. Why was the borrower mailed a different copy six weeks before it was recorded?

Fabricated Assignment of Deed of Trust

Frankly, I consider this the absolute masterpiece. Also dated 7/7/2009 1:50 PM is an Assignment of Deed of Trust signed again by Marti Noriega, who this time purports to be:

“Assistant Vice President of Mortgage Electronic Registration Systems, Inc., As Nominee For MILA, Inc., DBA Mortgage Lending Associates, Inc. A Washington Corporation.”

(And you think your job title is too long.) (Oh, and the DBA, well, it’s DOA. The original lender and beneficiary under the deed of trust was Mortgage Investment Lending Associates who ceased operation in 2007 and is in bankruptcy as mentioned above.)

Herein, Noriega names, “Bank of America, National Association as successor by Merger to LaSalle Bank National Association, as trustee under the Pooling and Servicing Agreement dated as of May 1, 2006, GSAMP Trust 2006-HE3.”

Of the Documents created in Harris Texas on July 7/7/2009 this is the only one that is time stamped.

Though purportedly created on 7/72009, it wasn’t notarized until November 20, 2009.

Further, this Assignment was not recorded until December 2, 2009 nearly a month after the posted sale date. Had the homeowner not filed a lawsuit, the property would have already have been sold before the assignment was recorded. Now that’s a slandered title.

The borrower was never provided a copy of this document and absent from the recording was any mention of the borrower’s name. As a result this document was not listed in the San Diego County Recorders Grantor/Grantee Index making it virtually invisible to the public and the borrower.

I simply cannot wait to hear the depositions of the people who cooked this up. They want us to believe that a document supposedly created on July 7, 2009 along with two others wasn’t notarized until more than two weeks after the sale date.

They also, and this really is my favorite part, want us to believe that an employee of Litton can transfer an asset from a lender in bankruptcy to a pool of loans that is closed and, by its own rules, cannot accept assets in default and cannot accept any but a performing replacement loan after mid-2006. It stopped reporting to the SEC in 2008, so it must be an empty shell into which they try to launder the theft of the property and disguise the broken chain of title.

So guess what I did? Yup, I picked up the phone and called the Trustee handling the MILA bankruptcy.

Keep in mind that he had been in control of the company for more than two years, winding down MILAs assets and liabilities. He will provide an affidavit to the effect that it did not happen.

Another complete fabrication.  According to him, MILA originated loans to sell them and did not retain notes or trust deeds.

I can’t wait to have Marti Noriega explain this.

What this blizzard of phony documents reveals is the biggest crime in history.

The Pooling and Servicing Agreements are a complete fiction. The loans that are referenced are just that, a reference to something seemingly tangible and yet diluted to worthlessness.

The Pooling and Servicing Agreement, by its very language, requires that all loan documents go to the trust properly assigned and endorsed upon closing and no later than 180 days in rare circumstances which do not apply here.

That means the Mortgage or Trust Deed and the Note should have been with the custodian of the trust documents long before August of 2009.

But wait. The loan, or at least the pledge of the loan, already shows up in the GSAMP Trust 2006-HE3. Out of more than 10,500 loans this is referenced as number 4,067.

That means that MILA did not comply with the terms and did something else with the note and deed of trust. Now an employee of a division of Goldman Sachs, Litton, is trying to use the opportunity to seize a property to which they have no legal right.

The Assignment of the Trust Deed was assigned to the trust three years after closing. So why wasn’t it assigned at origination?

Where oh where might it have been for three years? Is it referenced in multiple pools and legally assigned to none?  Was it used to double or triple fund the loan? And where oh where do you suppose the promissory note might have gone to?

More importantly, this activity causes the trust to lose its status as a REMIC with preferred tax provisions. These cases would be a slam dunk for the IRS. But the IRS, just like every other agency responsible for this economic Katrina, has much smaller fish to fry. Doesn’t anyone, anywhere, in a position of authority, have any balls?

Also, at the exact same time the loan was being originated by MILA, MILA also registered a pool of mortgage backed securities with the SEC. But there is scant information and it appears that it may never have been completed. Why? Would its existence allow MILA to re-pledge the obligation?

MILA owner Wayne Sapp, like Taylor Bean and Whitaker CEO Lee Farkas was, in all likelihood, pledging the loans to multiple pools, submitting the same loan to multiple warehouse lines of credit and keeping the proceeds from those repledgings and destroying the original notes and trust deeds.

According to the MILA bankruptcy trustee, MILA was insolvent as far back as 2004 and covered their position through fraud. Selling the loans to multiple pools and destroying the original Note and Trust Deed would be an easy way to do that because the aggregators of the loan pools knew it was all designed to implode and provide plausible deniability when it did. Knowing the pools were destined to fail, Wall Street bought Credit Default Swaps.

Litton Loan may claim they have the note and trust deed but if they did, why would they produce all of the forged documents to try to justify the foreclosure? And if you knew the documents had been destroyed, why not just launder the theft and the title through a confusing, possibly nonexistent Goldman Sachs Trust on its way to Bank of America and get a kickback?

In a Florida lawsuit Bank of America says the following in one of their pleadings, “Indeed, it appears as though many loans and other mortgage assets have been double-and even triple-pledged to various constituencies.”

Or maybe more, way more. If you do it twice, you might as well do it over and over.

Defective Notice of Sale

On October 13, 2009, Quality Loan Service issued a Notice of Trustee Sale Scheduled for November 4, 2009. This document was recorded on October 16, 2009, six weeks prior to the recording of the Assignment of the Deed of Trust.

Here again the borrower’s copy is unsigned.

In this case, it isn’t just the borrower whose home they are trying to steal, they are also trying to steal an asset from the true beneficiary who may actually possess the note and the Deed of Trust. These aren’t scrivener’s errors or the result of overworked employees. This is RICO.

This is a conspiracy against a presently unknown entity because we know from the documents recorded by the servicer, Litton; that it isn’t that entity.

The evidence in this case, as submitted by the foreclosing attorneys, shows that the loan was originated by MILA and that MILA although a bankrupt entity is the beneficiary under the Deed of Trust and the only party with standing to foreclose.

The MILA bankruptcy Trustee who has been overseeing the company since 2007 denies that Marti Noriega had any authority regarding MILA.

What does it all prove? It proves that Lee Farkas of TBW was right when he said, “I could rob a bank with a pencil.”

And you can steal people’s homes the same way. But beware the web you weave; Bank of America, you sure got some ‘splaining to do. Let the “disco” and the “depos” begin, this is gonna’ be some fun.

33 Responses

  1. LDTX
    May I ask a question please? Can Melanie D Cowan Be a VP to HSBC Bank, Argent Mortgage Company, VP trustee Services at ReconTrust/Bank of America, Bank of America, N.A., Countrywide Home Loans, Nations Bank, The Bank of New York Mellon, Deutsche Bank National Trust Company, New Century Mortgage Corp and the Assistant Secretary to MERS all in 2010-2012? Her signatures change too as well as the notary’s Leslie Jo Lovell. Since I last mentioned the name of these people, the Substitute Trustee Documents with these signatures out of Dallas TX have been removed off of the internet. I smell a dirty rat!

  2. Quality Loan Service forclosed on my parents home in Nov 2011 and we are facing eviction this week. I did not realize the seriousness of this until I began my own research and I am beyond disgusted at the fact these people ever even BEGAN to get away with all of this. I went to recorders office and all our documents from NOD to trustee sale is signed by a know robo signer, in another state (Minnesota), and look like a 5year old signed and dated them. I cannot believe these people are still in business! I refuse to leave my home, and am searching for attorney asap to fight this . I’ve been submitting so many complaints to several organizations, the state, and federal gov. I do not intend to stop until this matter is resolved and QLS is shut down! Nevada already began legal action towards QLS so when is California going to step up to the plate? My next step is to contact the media…anyone else in the same situation, or have been in the past should go to recorders office and get copies of your documents.

  3. I am in Harris County Texas every bit of this is unfolding before my very eyes. I have recently reviewed my records with Harris County Clerks office and printed my recorded D/T’s through Texas Land Records and County Records. OMG, I am in disbelief of what I am seeing. My D/T has America’s Wholesale Lender; CTC Real Estate; and MERS, Under the MERS ID Database, reads Bank of America Servicer Simi Valley CA; Investors Bank of America, National Association Getzville, NY. 2nd Lien has Servicer Bank of America N.A., Simi Valley, CA, Investor The Bank of New York Mellon, N.A. Cypress, CA. I love the fact that I printed out a paid receipt for these documents and they are all dated and time printed off of my computer.
    Now I am going to send out demand letters of property ownership to these so called Investors and ask for proof. My Deed of Trust is Blank that was printed from the Texas Land Records and County Records. I can’t wait to see who my Robo-Signer is and what date will be on the documents. I need help being told where I need to go for legal assistance and help to file a claim to save my home.
    This website is the best reference ever to guide you in how to track these documents and do research. Thank you and I will be happy to donate to this website because of all of the hard work and effort put into it to help people.

  4. can’t find the original article……

  5. Same parties in my case minus BofA and same scenario except Sub of Trustee Never recorded. Quality is not a law firm and they have an expired CA Corp license. In this case, my case and this case > Pro Value Properties, Inc. v. Quality Loan Service Corp. ( http://scholar.google.com/scholar_case?case=1881195379473182097 ), Quality has demonstrated a RICO pattern that would at the very least make the Foreclosures Void.

  6. […] Loan fraud – Trustee fraud Posted on June 30, 2011 by shupec| Leave a comment GOLDMAN WEB OF DECEIT AND TAX EVASION: BKR TRUSTEE SUES FOR FRAUD […]

  7. If the dot trustee does not ascertain as a fact that he is acting for the proper party, he is also not fulfilling his fiduciary to the
    true beneficiary.
    And please remember that paying the wrong party is no defense against a holder in due course. The trustee has an obligation to see that the true beneficiary does not come calling on you some day.
    A borrower should not be subject to double jeopardy by the gross negligence of a dot trustee. I’m sorry to say, and I don’t think it will ever come to this, but as things stand now. there’s a good possibility that thousands and thousands of former homeowners could find themselves in that spot.

  8. Well now, tn harry, you and I part company on that one. Some circuits hold the dot trustee has a dual fiduciary and some don’t. I got my first license, well, a long time ago. We were always taught the dot trustee had a dual fiduciary. Now, some states have made a mockery of the legislative intent of the dot. But one way or another, the dot trustee owes a duty of care and good faith, whatever you call it- (brain checked out).
    One way or another, a dot trustee has an obigation to determine that he is acting at the behest of the proper party. Read my blog on the subject at sourceoftitle and tell me if you think I’m high.

  9. Most dot trustees should be sued before they’re imprisoned. They’re part of the MERS / WS organized crime ring, perveyors of RICO, etc.
    One brave soul among us has done just that:
    ihis person has sued the dot trustee for breach of fiduciary.
    What was that Bruce Willis said, Yippee kayah something?

  10. RICO!!!

  11. MERS is organized crime.

  12. What corrective assignments?

  13. “Corrective Assignment of the DOTs”
    Any comments would be appreciated.

  14. http://www.scribd.com/doc/59014434/FDIC1Onewest-4-ONEWEST-DOES-MAY-2011-FDIC-ASSIGNMENT-ONEWEST-ROGER-STOTTS

    ONEWEST FDIC ASSIGNMENT OF THE DEED OF TRUST. THIS OCCURRED AFTER THE AUTHORITY OF ONEWEST TO ACT AS ATTORNEY IN FACT FOR THE FDIC FOR THE FAILED INDYMAC.

  15. FDCPA does not allow for a corrective claim by a debt collector after 4.21.10 . They have to be correct in every statement and there is no excuse for mistake doing their job. If they do that in your county record, you may have them making a false claim. You may get to ask which time were they lying.

  16. Sounds almost identical to my foreclosure complaint, except, 2007HE2, in Florida.

    FRAUD< FRAUD< FRAUD

  17. @ Neil Garfield,

    Can you share your thoughts on these “Corrective Assignment of the DOTs” we are seeing?

  18. tnharry. This is cubed2k and I approve your message.

    “The difference is that 99% of people do nothing and let it go on through. Their whole business model is based on the 99% being pure profit to fund the settlements for the 1% who complain. Until more people start fighting back it will continue.”

    Clearly by this video, there are more of us then THEM, if you will. How does it that they control the outcome. As Neil said many moons ago – the borrower and people are more ethical and moral than the people in the finacial world, wall street, congress, banks. Unfortunately they get to use our morals and ethics against us. It’s a shame.

    http://www.youtube.com/embed/_2F9kn9KfFA

  19. Does anyone have a cite to this case yet?

  20. @ tnharry: Yes, it was inserted after my observation. Thank you, Neil.

  21. @ tnharry:

    The last sentence quoted here mentions the BK Trustee suing for fraud:

    “I have before me six documents that could lead no reasonable person to any other conclusion than this: Bank of America, hiding behind a bogus Goldman Sachs Pooling and Servicing agreement aided and abetted by MERS, Litton Loan Servicing, Lender Processing Services, and Quality Loan Service, have manufactured documents, to try to steal the beneficial interest of an unknown creditor believed to be Washington based lender MILA, the originator, currently insolvent and in Bankruptcy. The Bankruptcy Trustee is suing MILA for fraud.”

    This paragraph can be found in the article right above the heading “A Defective Notice of Default.”

    I agree that the Deed of Trust is a very one-sided document, however, by legal definition, a “trustee” is required to look out for the interests of all those involved in the “trust.” Of course, the pretender lenders will argue that such is not the case, but making that argument could prove quite difficult for them.

  22. @Frank – I see the credit there now. Did he change it?

  23. TNharry: It was not directed at you, but I have a phoney assignment in my chain of title, and the other side is saying that their new corrective assignment fixes it, but it does not.

  24. @Louise – I don’t understand your comment. was it directed as a reply to mine or as a reply to the original post?

  25. Please give credit where credit is due.

    This article was written by
    George W. Mantor
    The Real Estate Professor
    Founder, American Foreclosure Resistance Movement
    http://www.realtown.com/gwmantor/blog
    http://www.gwmantor.hersid.com/

  26. A forged document is a forged document. It is in the Chain of Title, and it does not disappear because a pretender/lender says they don’t like it.

  27. I don’t see where the story says the BK trustee is suing for fraud as the title claims. This is all good stuff, but it’s not new by any stretch of the imagination. Happens every day in non-judicials. The difference is that 99% of people do nothing and let it go on through. Their whole business model is based on the 99% being pure profit to fund the settlements for the 1% who complain. Until more people start fighting back it will continue.

    As to the trustee owing fiduciary duties to the borrower, that’s a little more murky than you might think. Review the document creating the trust – the deed of trust. It’s a very one-sided document. Borrower pledges to trustee to secure payment….nowhere does it say the trustee will protect the borrower nor does it say that the trustee will verify default, etc. It’s absolutely a claim to be included in your complaint, but it’s not the best one.

  28. The banks are robbing us with nothing but a rubber stamp.

  29. And yet the fraud continues and they are all getting away with it. Amazing. I have lost total faith in this country and its leadership.

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