Finally! Kentucky Law Journal Article Cites Accountability for Lawyers Who Wrote Securitization Documents

Back at the beginning of creating the false pyramid of “Securitization” 9 lawyers in the New York metropolitan area resigned rather than contribute to drafting securitization documents. They all agreed that what was being requested of them was the drafting of documents to cover up a criminal enterprise. This article spells out part of the problem.

Get a consult! 202-838-6345 to schedule CONSULT, leave message or make payments.
Hat tip to Bill Paatalo
The issue of attorney accountability for illegal or even criminal activities of their clients is as old as organized crime. The more money there is to be made, the more willing the lawyers are willing to rationalize their involvement. But when their conduct actually enables or promotes illegal conduct there should be (and actually there is) accountability for their illegal actions.
The problem is not just about the stealing from investors and applying the proceeds of “investments” to enable an illegal enterprise. It is also, as homeowners have long complained, that taking the attorney food chain as a whole, the prosecution of wrongful foreclosure where there was no evidence that their purported “client” knew of the foreclosure and no evidence that the “client” had any interest in the debt, note, mortgage or foreclosure.
“​Although mortgage-backed securities (‘MBS’) and other financial products that nearly caused the collapse of the global financial system could not have been issued without attorneys, the legal profession’s role in the financial crisis has received relatively little scrutiny. This Article focuses on lawyers’ preparation of MBS offering documents that misrepresented the lending practices of mortgage loan originators. While attorneys may not have known that many MBS would become toxic, they lacked incentives to inquire into the shoddy lending practices of prominent originators, such as Washington Mutual Bank (‘WaMu”), when they and their clients were reaping considerable profits from MBS offerings. The subprime era illustrates that attorneys are unreliable gatekeepers of the financial markets because they will not necessarily acquire sufficient information to assess the legality of the transactions they are facilitating.”

9 Responses

  1. Charles,

    Certainly I get IT! I wish you all the luck one could muster. In Superior Court now and have 100% original documents of fraud, counterfeit paperwork, certified by a Federal Court. I too, have doubts about the outcome. This is without a doubt the largest theft, crime spree in history. Most have turned a blind eye. Now-a-days you can steal with immunity. Unreal!

  2. Poppy,

    Unfortunately, the corrupt judges were spewed out from under the same pile of rocks lying lawyers are so they will seldom if ever sanction a lawyer for their misdeads.

    We’ve attempted to sanction lawyers many times for claiming to represent parties that don’t exist; lacking legal services agreements and failing to comply with the requirement they research into what they are representing to the court before filing ANYTHING. They routinely fail at these sanctionable rules and statutes and are NEVER held accountable for their fraud on the court.

    I’ve got one case up on appeal (happens to be my own case) before the 9th Circus now…I doubt it will go anywhere on these issues merely one of many frauds perpetrated by these so-called lawyers.

  3. neidermeyer:

    You are 100% right. And let me add; how many incompetent lawyers promise a product they cannot deliver? Taking the last of our money with no clue how to handle the foreclosure, right down to knowing procedure and filings. Three of them got me…that’s when I decided there was nothing to lose, going pro se. Most lawyers cause more problems than they fix, IMHO. If a specialized physician started doing work outside their expertise they would be admonished or terminated, then sued. Not lawyers…Disgraceful!

  4. @ Poppy ,,

    Indeed , the law became much more corrupt when “the bar” was created and adopted as the arbiter of wrongdoing ,,lawyers are corrupt , we all know lawyers that have flat out stolen from their clients or made side deals and stabbed their clients in the back… judges are worse the joke “What do you call a lawyer with an 80 IQ?” “Your Honor” is generally true ,, and I’d rather have a stupid one because the smart ones are more corrupt… We need citizen oversight over lawyers and to kick the bar out of all aspects of oversight and the nominating process in state and federal governments.

    Neil recommends we hire slip and fall accident attorneys to fight foreclosure and wrongful foreclosure… AND HE IS RIGHT… Why? because the judges are in awe of the ambulance chasers ability to turn a dogbite into $1M dollars,, the judges respect their ability to milk the system… and quite simply they are thought of as being honest in that they are open and honest in their greed… and they typically only take cases with at least a speck of reality in the narrative … Typical contract or other foreclosure defense lawyers are unwilling to fight for us because they are cowed by judges … ambulance chasers are seemingly exempt from retribution by the court… I think it has to do with payoffs but that’s just me.

  5. I have a number of customers who work in the financial “services” industry. One of them, an atty for a NYC firm with 200 attys on staff, conjured up securitization docs. My customer told me that the MBS docs were written in shifts. So an atty would start writing on Monday thru Friday the first week, and another atty would take over the writing the next week, and so on, until all 300 or so pages were finished.
    “No one reads them” he told me.
    My beef was with the ratings agencies, they were the gatekeepers. Pension funds and other entities could only buy AAA rated securities. So S&P, Fitch, D &B took their “credit enhancement fee”, usually 1.1 to 1,4 million dollars,
    And made sure the MBS were rated AAA . If they werent rated AAA, the market would have dried up overnight.

  6. Reblogged this on Mario Kenny.

  7. Reblogged this on Deadly Clear.

  8. No way the lawyers didn’t know, zero possibility. Even now, they knowingly submit hearsay paperwork, fraudulent documents, perjure themselves and no one says a thing.

    It’s about time someone is asking these questions. Without the lawyers there would be few foreclosures. These cats are not even interested in a work out plan. Too much money in the foreclosure. They can rack up the hourly pay and enrich themselves at the peril of every homeowner. Make no mistake, they know what they do!

    Sanction many of them and disbar the others…

  9. The article puts the legal profession into the similar framework as the borrower. That is, ignorance of the facts providing cover for their ‘isolated’ work with limited exposure to the big picture.

    In the Conclusion, I don’t believe an answer was proposed.

Contribute to the discussion!

%d bloggers like this: