Reuters: Ex-Credit Suisse Manager Pleads Guilty in Subprime Bond Probe

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Editor’s Comment: So SOMEONE is going to jail for up to five years. But the meat of this lies between the lines.
First, it was a conspiracy charge. You can’t run a PONZI scheme the size of the Madoff scheme without channels that are sending “marks” to you to “invest.” The securitization scam is several hundred times the size of the Madoff scam, and that means there were literally thousands of traders and managers who knew that they were acting improperly — illegally, that is.
Second, Higgs told a Federal Judge that his criminal behavior consisted of manipulation and inflation of the cash bond position markings in his tradings book (called ABNI), in order to hide the losses. Most people will never know what that means. It simply means that the trades were kept out of the system where losses would be easily apparent.
There are numerous reports that the book was kept literally in pencil on paper, so they could change the contents or destroy the book if that became necessary. This is why tracking the the actual money trail becomes challenging but it can be done through what one of our senior analysts calls “reverse engineering. IN other words, take the money going into the system and see where it went or where the trail ends. This will give you sufficient clues to determine whether payments in part or in whole were made to REMICS upon whose behalf foreclosures are being filed. In most cases, the figures are wrong, the debt to the investor has been paid in whole or in part, and there is no default. That is why we do the loan level accounting for those readers who are willing to fight about it.
Sadly, this guy seems like the fall guy for what was ordered by his managers. HIs statement that he fooled Credit Suisse management rings hollow when you compare the facts and the the history of the business. It simply isn’t possible for these events to occur without senior management knowing what was going on. Their mantra is plausible deniability. Soon you will see other people, like Higgs, who “flip” and testify against the large Banks upon which they depended for employment at rates of compensation that were too high — unless you factor in the hush money.

Ex-Credit Suisse manager pleads guilty in subprime probe

NEW YORK |

(Reuters) – A former London-based Credit Suisse trader pleaded guilty to a criminal conspiracy charge on Wednesday, and he is cooperating with a U.S. government investigation on writedowns of subprime mortgage derivatives at the height of the financial crisis.

David Higgs told a federal judge in New York that while he was a managing director in the investment banking division of Credit Suisse in 2007 and 2008, he and others manipulated and inflated the cash bond position markings of a trading book, called ABNI, in order to hide losses.

“As a result of my actions, senior management of Credit Suisse was given the false impression that the ABNI book was profitable and caused Credit Suisse to report false year-end numbers for 2007 in their books and records,” Higgs said in court. “I did this because I wanted to remain in good favor with my boss, Kareem Seregeldin, and enhance my job performance.”

Higgs said Seregeldin and others he did not identify had known about the manipulation and assisted in it.

Higgs faces a maximum possible prison sentence of up to 5 years on the charge of conspiracy to commit falsification of books and records and to commit wire fraud. He was released on a $500,000 bond and will be allowed to return to his home in Britain while the investigation continues.

(Reporting By Grant McCool; Editing by Lisa Von Ahn)

 

28 Responses

  1. @ KATE
    “orginators had already pre picked (designated) the properties they considered (prime) that would eventually become an asset in the off shore accounts serviced by the same bunch of crooks here in the US”

    Yes–actually local brokers of private label originators. Step 1 was for the burn company [3-5 yrs and out] originators to hire local bank reps who knew the local loans that were out there for prime real estate. The brokers would give you a call unsolicited–“have I got a deal for you–I now represent a new competitive force in the area that can give great rates and a tailored deal unlike that fussy old local bank i worked for”

    you knew the guy and trusted him

    you bought into the sucker game as he put you in a teaser rate 4 option ARM ——-and you did not have a clue the teaser did not exist–disappeared in 2 weeks instead of 12 months —–but they handed you a coupon book–one pmt–the one on the dront of the note—you paid the coupons thinking you were paying the correct amount

    wrong—-because the teaser “vaporized” immediately–you were underpaying from the 1st pmt—–the underpmt was added to the principal—you went from a prime to subprime on your 1st pmt–

    now you are trapped and your broker knew it–the title company knew it–your casualty insurance company knew it–only you did not know it

    you cant refi out of the trap—you are subprime and with the pumped in house appraisal –probably below water from the day you signed the note—–they really pushed added debt–even when you just wanted to refi into a lower rate loan—because they wanted to be sure you could not escape–nor your prime house

    now its like the Komodo Dragon–once bit even the largest prey takes a while to develop blood poisoning–and die and so the dragon just follows and waits–

    so the broker has followed and waits—waits for the foreclosure so he can swoop in with his already greased relationship with the servicer property managers and then get a sweetheart deal for his crew–then flip at 2-3 times purchase cost for the dragons quick kill

    watch the activities of the realtors and brokers who participated in biting you on the front end–they will be back to fight over your corpse now

  2. @dcb

    I takes me a little longer to digest most of this stuff but I think what you are saying is the orginators had already pre picked (designated) the properties they considered (prime) that would eventually become an asset in the off shore accounts serviced by the same bunch of crooks here in the US. Insider trading of sorts? If my understanding of what you said is somewhat correct, and stay with me cause I’m no Einstein, it is really no different than setting up the loans to fail using premeditation and forethought, and collecting on bets made that they would fail. I just looked at that website TMT posted a link to with regards to title searches by title cos. done through MERS. It just keeps getting better and better yet they all run free. No charges no criminal penalties; no justice for those of us duped. Ain’t life grand! If you’re a GSM (that is my acronym for them now) because that’s exactly what they are. government sponsored mafia.

  3. @ KATE

    One major problem that bothers me is that so much effort is expended trying to unravel devious acctg trails laid by people in anticipation of bankruptcies that occured 2007-2009——all the kings horses and men cant even unravel $1.2 billion that supposedly “evaporated” from MF Global’s accounts a couple months ago over a couple weeks. Thus it is highly unlikely that we will live long enough to connect up everything for every corrupt originator–etc

    I would like to leap fwd in tme to the here and now—-we know that they knew that todays’ firesales would come. I will be sorely disappointed in the GS contingents if they did not erect complex offshore private funds under common control with servicers/collection agencies etc to target cherry-picked properties to affiliates and push throgh sweetheart deals—this drives foreclosure vs mods or short sales—if we identify the conflicted players it will interfere with the rotten insider self dealing and take some of the wind out of the sales.

    look to present day connectivity. the original loan brokers know the cherries

  4. dcb

    I have been cleaning my very dirty house while posting here and there today. Not anything real productive. Good point with regards to conflict of interest. Will be out tomorrow, but I will be doing more research. It really bothers me that I have connected many dots with BoA’s MRC beneficiary account, LPS, ReconTrust, etc., Internal Docs showing the loan was not great with regards to repayment ability, but I can’t get anyone to listen to me. It would clearly show premeditated fraud..if there such a thing? You know what I mean. The fraud is so pervasive and seems to just seep everywhere. That was the goal to make it so complicated and intertwined that everyone keeps chasing their tail and can’t put any one theory out. I know the follow the money is fairly simplistic, but the courts aren’t buying it.

  5. There is a connection between Blackstone–ross and BankUnited—and Ross is connected to AHMSI–a large subprime collection agency that siezes homes

    question is whether any of these are also tied into purchase of distressed homes and might have a conflict of interest or undisclosed interest in flipping homes at unusual margins

  6. @DCB

    I don’t recall seeing anything in my searches yesterday. If I get time later today I’ll see If I can find anything. If there is a connect in some way what does it mean?

  7. Have you seen any connection between this buying group and either Blackstone [schwartzman] or BankUnited or W. L. Ross????

  8. @DCB

    If you read some of the information put out there by the partners, they are looking forward to when the market starts up again. They are buying at very low “bulk” pricing of the homes in blocks. Kind of like the Costco of housing. What bothers me about this is the fact that these guys/gals all came from the stink holes that were orchestrating the sinking of the market. They had inside information and direct knowledge of what was coming down and how to get ready for the next GRAB. I spent the last two days preparing and filing an Objection to BoA’s notice of Depositions. Sneaky bastards tried to schedule my husband and I on two different days when we live two hours away and also the immediate two days prior to the court hearing my Motion to Compel discovery I served on them. This is as I continue to read and keep up with what else the devils are up to. I’ve had a stomach and non-ending headach this entire week. It is weeks like this that it is a good thing I don’t partake in the use of drugs or alcohol or I’d be dead out! LOL

  9. @KATE

    Thats good work–i ran them too but not as well–i smelled the dead fish too——-i was looking for another player—–

    i managed a dozen or so single-family rental homes for 35 yrs—-i do not believe that the properties will be worth a crap if a NY vulture is trunning the maintenmance—–it would be an awful landlord–the outfit knows apts and hotels–it knows nothing about maintenance on single family homes—-it has to be an insurance scam—–for years i feared winter—-people hop—heat fails places freeze overnite—

    utter destruction–maybe work better in florida?

  10. Speaking of the theives sticking together like glue, and I’m sure that I am paranoid by this point and time, but something does not pass the preliminary “sniff” test. A good reporter might want to check this out. In my few minutes of research, (GTIS) Partners – Golden Tree Asset and Golden Tree Insite is the formation of this company. This is the company that is buying up distressed properties and will rent them out. Thomas Shapiro (Insite) Steven Shapiro (Asset) The corporation is the whois who of the Goldman, Credit Suisse and many of the other fine up-standing “white collar” organizations.

    A quote from Mr. Shapiro:

    Tom Shapiro is the President and Founder of GoldenTree InSite Partners. In addition, Mr. Shapiro is the Chief Investment Officer and oversees all investment activities and strategy of the firm. Prior to starting GoldenTree InSite Partners, Mr. Shapiro was a Senior Managing Director at Tishman Speyer where he sat on the firm’s Investment and Management Committees. While at Tishman Speyer, he worked in the acquisitions, leasing, asset management and development areas as well as ran GTS properties, an acquisitions joint venture with Goldman Sachs. Most recently, he was responsible for Tishman Speyer’s global equity capital markets and dispositions groups.
    “This is a very exciting time in the domestic real estate market,” said Tom Shapiro, President of GTIS Partners. “We now see an unprecedented opportunity to capitalize on the housing market dislocation and we are actively buying residential assets across the country at what we believe will prove to be extremely compelling prices. Richard’s deep real estate investment industry experience will be enormously beneficial to us and our investors as we pursue these timely opportunities.”

    I’m sure it is an exciting time. After they all robbed us blind and are stealing our homes, they will graciously and from the bottoms of their dear concerned hearts, rent them back to us. This whole thing, from my few minutes of research, stinks to high heaven. Even the Lord himself is holding his nose.

    Check out the partners of Golden Tree Assets and their previous employment: http://www.goldentree.com/index.cfm?sID=1464

  11. Carie, i am going to do my part soon. I am filming something for a local community event and I am going to put it up on the web.

  12. We the people need to consolidate this entire Occupy movement around housing, mortgage and securities fraud. We must demand that the Justice Department obtain a search warrant and go in to the National Association’s and grab the same scribble pads they use to keep the second set of marked books.

    Second, while they are in the office we should also ask them to seize the Notes endorsed in blank, because that is where they are all at, or that ultimately is the interested party.

    Take Notice that all homes being foreclosed in judicial states are now receiving new FDCPA Notice incorporated into the acceleration / demand letter. The new notice simply states that “Your Mortgagee” This is proof that the servicer who is paid by the NA to hire counsel wants off the hook and the Trustees want to keep their indemnification intact secured through the PSA. The last thing the Trustee Plaintiff / Defendant wants to due is go into Court and tell the truth; “We are the not the real party in interest, we also sold synthetic swaps along with the Seller Bank, and that shell over-collateral account is bleeding the monies back out into the shell account that sits with the NA. We could have done all this the right way, but we do not want to pay taxes on the monies we receive from the default insurance our REO proceeds. We are an extremely greedy bunch and that is why we are keeping our homes despite defrauding millions.

    You must answer and demand that the folks sending the demand letter provide the current creditor name and the originator name. The originator name being the most important, because well… that si where the fraud begins. if they abbreviate the name, such as calling Bank of New York Mellon as Trustee, blah blah blah – simply BONY or calling Bank of America National Association, as trustee, invalidate the debt in a second letter and demand strict proof thereof. That is how your case in Court will begin every time.

  13. State of Nevada
    Office of the Attorney General
    Catherine Cortez Masto
    Mortgage Fraud Unit
    Nevada Mortgage Fraud Strike Force
    100 North Carson Street
    Carson City, Nevada 89701-4717
    http://ag.state.nv.us/

    In-state fraud may be reported to:

    State of Nevada
    Office of the Attorney General
    Catherine Cortez Masto
    Bureau of Consumer Protection
    Mortgage Fraud Unit
    555 East Washington Avenue, Suite 3900
    Las Vegas, Nevada 89101
    702-486-3786, 3132 HOTLINE

    Office of the Arizona Attorney General
    Thomas C. Horne, Attorney General
    Special Investigations Section (SIS)
    1275 W. Washington
    Phoenix, Arizona 85007-2926
    Telephone: (602) 542-5763
    or 1-800-352-8431
    In Re: [Secrecy issue]
    In state Arizona general abuse should be reported to the below using the attached link.

    Office of the Arizona Attorney General
    Thomas C. Horne, Attorney General
    Consumer Information and Complaints
    1275 W. Washington
    Phoenix, Arizona 85007-2926
    Telephone: (602) 542-5763
    or 1-800-352-8431
    http://www.azag.gov/consumer/MailInInstructionsEng.html
    [See also Assistant Attorney General Carolyn Matthews litigator on the secrecy case]

  14. FEDERAL TRADE COMMISSION (FTC)
    CUSTOMER RESPONSE CENTER
    600 PENNSYLVANIA AVENUE, NW
    WASHINGTON DC 20589
    (877) FTC-HELP
    877-382-4357
    or
    Federal Trade Commission (FTC): Complaint Assistant
    https://www.ftccomplaintassistant.gov/
    https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?lang=en

    Office of the Comptroller of the Currency
    Communications Division
    Washington, DC 20219
    (202) 874-5000, (800) 613-6743
    publicaffairs3@occ.treas.gov
    http://www.helpwithmybank.gov/complaints/index-file-a-bank-complaint.html

    Can’t find your bank’s name or have a banking question? Contact any of the federal bank regulators noted below:
    Office of the Comptroller of the Currency at (800) 613-6743
    Federal Reserve Board at (888) 851-1920
    Federal Deposit Insurance Corporation at (877) 275-3342
    Consumer Financial Protection Bureau at (855) 411-2372

  15. State of Foreclosure as a Tool for Frauds on Investors:
    The Federal Reserve Board, and the Treasury Department’s FDIC and OCC divisions have in the aggregate made a factual and legal determination: statutes and rules within those agencies’ jurisdictions have been violated by fourteen (14) regulated named banks. As a result of these agencies’ investigations and findings they have collectively imposed a civil order of sanctions upon the 14 banks. Implementation of the sanctions order has been assigned in a rule-making action to a 1st tier of OCC-supervised group of independent contractors—including major accounting firms. The most basic jurisdictional reason the sanctions could be imposed was the abuse of federal judicial and administrative machinery to seize or attempt to seize borrowers’ homes. The sanction was imposed through “alternative dispute resolution” process of review of a wide-swath of borrower grievances The core conduct penalized was misuse of defective documentation to motivate court actions.
    Additionally, there are five (5) of these institutions that have implicitly made an admission of the abusive practices in state courts. The federal sanction against 14 signed servicer-collectors is now reinforced by an offer of $25 billion by 5 of the largest of these institutions to 40-50 states in exchange for releases of state civil liability for abuses of the processes of the state courts, and County Clerks of Court, and county records keepers generally. These filings constituted an industry practice that presumptively injured the home-owners, and abused state court processes generally. The remaining issues to be decided by the OCC, though its contractors, and the several states which agree, involve the orderly distribution of proceeds to victims proportional to injury suffered. It is now a matter of legislative and judicial notice that misconduct and unethical conduct occurred as an industry practice.
    The sanctions and settlements in lieu of civil action with states’ Attorneys General relate exclusively to federally-regulated bank-affiliated collection agencies. There will be individual borrowers who suffered equal or greater harm from the same types of misconduct for whom no relief is granted by either the federal sanction or the planned state settlements:
    1) those who were involved with the named bank-collectors but which did not elect to submit requests for review,
    2) those who were not involved with the named bank-collectors—but with independent “non-bank” or private label independent collection agencies—these remain subject to FTC jurisdiction which has not been exercised.
    3) Those who entered into SEALED or otherwise “Confidential” settlement agreements prior to the matters complained of becoming a matter of widespread public knowledge, susceptible of judicial notice. The publication of the front-page robo-signing expose by the New York Times in October 2010 is a rational cutoff date.
    Private label loan origination is often associated with similar private-label debt collection. These often involve initial predatory lending and predatory collection—surpassing the misconduct found for 14 and admitted widely by 5—all banks. By implication the private labels’ securitization conduct, misrepresentations and omissions resulted in substantial investor losses. The comparative lack of regulatory oversight at all levels of these private label operations was also not disclosed to homeowners who entered into agreements with these “rogue” operations. There was a substantial undisclosed risk and future cost in dealing with these entities—fundamental to the transaction—but not disclosed to the borrower. Only now does the full cost become known to hapless homeowners.
    By default, for these homeowners, David VS Goliath civil litigation is the only route allowed to preserve those citizens’ Rights: the First Amendment Right to “Redress of Grievances,” the Fourth Amendment Right to “Due Process of Law,” and the Fourteenth Amendment which imports those Rights into the laws of the states. The industry practice found and admitted by the regulated banks is left unbridled among the private label debt collectors. These rights have been impaired by the admitted practices and face further risk because of lack of equal application of justice among similarly situated citizens—by reason of the lack of regulation of private label enterprises.
    Under the First Amendment to the Constitution of the United States, these Citizens must have a protected Right to apply to, and state their case to: any legislative body, any judicial body and any division of the administrative branches. They would otherwise be disenfranchised from vitally protected Rights of great importance to the Public and to Public Policy. Today these Rights are commonly impaired by secrecy imposed by these private label collectors in civil litigation. There are: Sealed and Confidential settlement talks and drafts, Sealed and Confidential enforced settlements incorporating broad non-disparagement prohibitions, Sealed and Confidential Motions, Complaints, Answers and Counter-complaints. These secrets lay the foundation for demands for emergency and closed hearings, gag orders and other restraining orders and injunctions. If connected to actions taken by the unregulated collection agency, rather than simply the amount of settlement, then this course of action is taken by the collection agency is designed to prevent identification of patterns of misconduct. This cloak of secrecy substantially impedes civil and criminal, private and public, investigations—and may rise to Obstruction of Justice, commonly characterized after Nixon’s Watergate fiasco as a “cover-up”. These facts are described by the State of Arizona:
    “BoA is Impeding Investigation Says Arizona Attorney General’s Office”…Jan. 26, 2012 (Bloomberg) — “Bank of America Corp. is impeding an investigation of its loan modification practices by negotiating settlements with borrowers who must agree to keep them secret and not criticize the bank in exchange for cash payments and loan relief, Arizona officials say… The borrower ‘will remove and delete any online statements regarding this dispute, including, without limitation, postings on Facebook, Twitter and similar websites,’ and not make any statements ‘that defame, disparage or in any way criticize’ the bank’s reputation, practices or conduct, according to documents filed in state court in Phoenix….” BUT, “…the…bank won’t enforce the non-disparagement provision if [the borrowers] talk to investigators, the bank’s lawyers have said in court filings.” http://findsenlaw.wordpress.com/2012/01/26/boa-is-impeding-investigation-says-arizona-attorney-generals-office/ http://www.bizjournals.com/phoenix/news/2012/01/26/arizona-attorney-general-bank-of.html?page=all
    In summary, many of the worst collection agency actions are not subject to governmental scrutiny under any current plan proposed, and if in private civil actions the cloak of secrecy should prevail, the planned agency investigations of past, present, and future misconduct will necessarily fail.
    A letter or E-mail to the interested persons may be helpful to prevent a growing shroud of Secrecy to preserve the Rights of all citizens of the United States, where not just dollars but citizens’ Rights are infringed. The Rights to seek Redress of Grievances, to Due Process in the Courts, and the Rights to Speak and Hear of Ills besetting Americans are under attack. The power of the States to exercise their protective roles for the benefit of borrowers and investors is abridged. Addresses and contacts below:

  16. JOINT FED/STATE MORTGAGE INVESTIGATION TASK FORCE
    NEW YORK ATTORNEY GENERAL ERIC SCHNEIDERMAN, CO-CHAIR
    OFFICE OF THE ATTORNEY GENERAL
    THE CAPITOL
    ALBANY, NY 12224-0341
    General Helpline: 1-800-771-7755
    TDD/TTY Toll Free Line: 1-800-788-9898
    http://www.ag.ny.gov/

    Subcommittee on Financial Institutions and Consumer Protection
    Chairman, Hon. Senator Sherrod Brown (D-OH)
    534 Dirksen Senate Office Building
    Washington, D.C. 20510
    P: (202) 224-7391
    F: (202) 224-5137
    Subcommittee on Financial Institutions and Consumer Protection
    Hon. Senator Bob Corker (Ranking Member)
    534 Dirksen Senate Office Building
    Washington, D.C. 20510

    Senate Committee on Banking, Housing and Urban Affairs
    Chairman, Hon. Senator Tim Johnson (D-SD)
    136 Hart Senate Office Building
    Washington, DC 20510
    p. (202) 224-5842
    f. (202) 228-5765

    AND
    Hon. Senator Richard Shelby, (R-Al) Ranking Member,
    304 Russell Senate Office Building
    Washington, DC 20510
    p: (202) 224-5744

    The Permanent Subcommittee on Investigations
    Hon. Senator Carl Levin, Chairman
    340 Dirksen Senate Office Building
    Washington, DC, 20510
    (202) 224-2627

    House Financial Services Committee
    Chairman Spencer Bachus (R-Ala.)
    2129 Rayburn House Office Building
    Washington, DC 20515
    T (202) 225-7502 Press (202) 226-0471
    http://financialservices.house.gov/

    House Financial Services Committee
    Hon. Barney Frank (D-NY.), Ranking Member
    B301C Rayburn House Office Building
    Washington, DC 20515
    (202) 225-4247
    http://democrats.financialservices.house.gov/

    Subcommittee on Financial Institutions and Consumer Credit
    Congresswoman Carolyn Maloney Ranking Member (D. NY)
    House Financial Services Committee
    Democratic Staff
    B301 C Rayburn House Office Building
    Washington, DC 20515
    Phone: (202) 225–4247
    The Democrat side of this subcommittee is at http://democrats.financialservices.house.gov/singlepages.aspx?NewsID=404

    Consumer Financial Protection Bureau
    P.O. Box 4503
    Iowa City, Iowa 52244
    Fax (855) 237-2392
    (855-411-2372)
    http://www.consumerfinance.gov

    Whistleblowers
    The Bureau welcomes tips from sources that know of potential violations of Federal consumer financial law. Whistleblowers and law enforcement tipsters – including current or former employees of potential violators, contractors, vendors, or industry competitors – should contact the CFPB directly at:
    whistleblower@consumerfinance.gov
    (855) 695-7974
    http://www.consumerfinance.gov/the-cfpb-wants-you-to-blow-the-whistle-on-lawbreakers/

    Residential Mortgage-Backed Securities (“RMBS”) Working Group
    c/o Robert Khuzami, Co-Chair
    S.E.C. Director of Enforcement
    U.S. Securities and Exchange Commission (SEC):
    Center for Complaints and Enforcement Tips
    Office of the Whistleblower
    SEC, 100 F Street, NE, Mail Stop 5971
    Washington, DC 20549
    https://denebleo.sec.gov/TCRExternal/index.xhtml

    Financial Fraud Enforcement Task Force,
    (RMBS Working Group)
    c/o Lanny Breuer
    Assistant Attorney General for the Criminal Division
    U.S. Department of Justice
    Criminal Division
    950 Pennsylvania Avenue, NW
    Washington, DC 20530-0001
    (202) 514-2000
    e-mail ffetf@usdoj.gov , Criminal.Division@usdoj.gov
    http://www.justice.gov/criminal/about/contact.html
    http://www.justice.gov/criminal/about/aag.html

    Office of the Associate Attorney General
    Associate Attorney General Thomas J. Perrelli
    950 Pennsylvania Avenue, NW
    Washington, DC 20530-0001
    (202) 514-9500
    http://www.justice.gov/iso/opa/asg/speeches/2011/asg-speech-111115.html
    http://www.justice.gov/asg/
    http://www.youtube.com/watch?v=4Ri-idIEP_k

    To report Mortgage Fraud or Loan Scams to FBI:
    Federal Bureau of Investigation
    Phone: 1-800-CALLFBI (225-5324)
    Online Tips: FBI Tips and Public Leads Form
    https://tips.fbi.gov/
    http://www.fbi.gov/contactus.htm

  17. In fact at least 35% of the population would appear to reside in the hardest-hit foreclosure states identified below. All citizens within those states are clearly affected adversely to some extent. These citizens have state attorneys general that are concerned about unconstrained predatory collection activities: Arizona, California, Delaware, Illinois, Massachusetts, Nevada, New York, maybe Michigan, Florida, Iowa, and Washington State. [The underscored states were named participants on the state side of the “Residential Mortgage-Backed Securities Working Group,” a Fed/State Task Force appointed by President Obama in his State of the Union Speech discussed below. Previously, Ohio was such a state: before AG Dann resigned in an unrelated management-related political blunder, and before his colleague and successor AG Cordray failed in his election bid and was promoted to the newly formed Federal Consumer Protection Bureau (“FCPB”). In some of these states there is at least a yellow sign posted “CAUTION: WE ARE WATCHING YOU” to collection agencies and would be “new” loan profiteers. In the remainder of the states the attorneys general have not aggressively raised this flag—though the intent of the statutes and nature of the facts and activities are substantially similar. How could it be possible for example for XXXX Co. to be engaged in a pattern of criminal conduct in Nevada—but not so in Ohio? However, as has been the case in Ohio and even battered Florida, the dedication of the transitory AGs waxes and wanes with the occupant’s political interests.
    State Attorneys General in the aggregate and the United States Department of Justice (“DOJ”) must be under close review by the legislative branch of federal and state governments. Performance requires support. There must be express aggressive interest in supportive legislation, agency rule-making, agency administrative practice, and administration—and most importantly, “enforcement” of government policy by attorneys and investigators. All of it supported by human resources, equipment and funding. A source of funds for this program is vital at the states’ level. The escheat of pre-foreclosed properties with notes or REO of questionable ownership should fund this enterprise—in the course of its assigned missions on existing state legislation and ancient common law. The state with primary nexus is the default successor by escheat to all intangible or real property which is lost or abandoned without heir or legal successor. There will be at least a small fraction of intangible rights and interests in real estate that will inure to the state as a result of its attention to the foreclosure process.
    The enforcement power may be exerted directly at large players in respect of past proved conduct—hard of proof.
    Alternatively the power may be exerted by intervention in strategic civil actions of chosen great public interest. They may raise the claim of escheat at any time a civil litigant makes a plausible claim that the adverse party lacks standing, whenever that defect is discovered. These issues arise in private civil actions. This has rarely occurred. The lack of fiscal balance between a consumer and an overreaching interstate/international collection agency at the judicial level gives rise to abuse of the civil process. The intervention of the legal enforcement branch of government is vital to protect: the collective economic interest of their citizenry; and preserve the tax base. As well the various governmental entities—Department of Justice and State AGs have a direct Constitutional Duty to insure that Due Process of Law, the First Amendment Right to seek Redress of Grievances, as well as to assure the Freedoms of Speech, and to Hear, are not dangerously infringed by excessively zealous advocates in courtrooms. This is all the more important where the economic interests so clearly compete and the prospect of self-dealing in real estate transactions becomes manifest. http://www.bloomberg.com/news/2012-01-31/foreclosures-draw-private-equity-as-u-s-selling-200-000-homes-mortgages.html

  18. Lies and corruption from all of them!!!Doesn’t matter what name,what bank or who did it.It was a proven to work business model that all these guys and businesses used to structure our downfall.It was definatley pre meditated and done with malice of fore though.These two factors alone should be enough to convince people that they wouldn’t want to do business with them but the contrary is still taking place and sub prime mortgages still exsist.Time to rid ourselves of this terrible disease and get back to square one.

  19. YES Talk about nondiclosure and problems from origination. Aurora just sent me something as proff that the underwriting of my loan was correct. For starters it has the underwriters name on it. I wonder if this could be an avenue to take for “clarrification” or fraud. Maybe I could get a statement from him?

    Anyway the underwriters page states close as RFC 30MTA and Product type RFC 30…I’m thinking that the RFC stands for Residential Funding Company (GMAC) 30 Month Treasury Average. Which would make sense because it was a 5 year arm. (RFC is also the depositor on my loan and the first party my note is endorsed to). The underwriters closing instruction is dated same as my closing date. If I am correct it would mean that the correct parties were not identified since inception of the loan.

    Is anyone familiar with the abbrevation RFC in realestate? I’ve seen it used in securitization but I’m not sure what else RFC could stand for or represent?

  20. from iwantmynpv:

    “These guys planned the expansion and unwind prior to the first sub-prime loan being underwritten.”

    This is what ANONYMOUS has been saying all along…

  21. @iwantmynpv

    Okay, so what would you do to help stop the people from being kicked out of their homes? Any ideas? Or is it a lost cause?

    Seems to me the only solution anybody is coming up with is “let’s just modify the fraudulent debt”!!

  22. These people stole our 401k’s, our stocks & bonds, our equity in our homes. We worked 30yrs honest hard work …. And to top it off they used me as a Notary in their refinance schemes the last 5 yrs. Before last year we had to download all the docs … yep. 5yrs of refi’s, reverse, heloc and purchase loans all for the A.G.. I am Blessed to have a Husband who can make the Mortgage payment while I stand ready to bury these Buttwipes with my Shovel in the holes they dug for themselves.

    DON’T MESS WITH GRANDMA’S CRAYONS!
    God Bless America

  23. @ iwantmynpv
    I am the MBS Investor . … no one gets a Free House
    I am the Homeowner … with a corrupt title
    I am the Tax payer … no one gets a Free Ride (bailouts)
    I am the Employee … who was used to comit a fraud(unknowingly)
    I am the U.S citizen … who wants JUSTICE!

    But most of I am a child of God … I will bring Greed & Evil into the Light!

  24. The Justice Department should raid the National Associations today and grab all their pencils and pads. I think we all know where the money starts and eventually winds up, unless of course they threw the FDIC into the mix to wash out the losses that are so significant the FASB rule change and all the erasers in the world couldn’t fix it.

    You know how many traders would flip in a second on the entire executive teams of the NA’s if they could avoid prosecution and keep their couple bucks.

    I think i am right about one thing still – you steal several billion you go to jail, you steal hundreds of billions, your credit swiss employee goes to jail. You steal trillions – Olive Stone makes a movie about how you were caught off-guard, and you further use your clout / investments in media outlets to paint a picture of how this whole crisis is someone is the fault of someone else, and do not look behind curtain #2.

    These guys planned the expansion and unwind prior to the first sub-prime loan being underwritten.

  25. So…fraud at origination—proof—yet, no moratorium on the fraudulent foreclosures…one has EVERYTHING to do with the other…ponzi from beginning to end…yet the home stealing continues unabated…

  26. The Ponzi here it is

  27. Excellent…just the tip of the iceberg!

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