If Sexual Harassers must Face the Consequences, Why shouldn’t Bank CEO’s?

By J. Guggenheim, LendingLies
Sexual harassers in media and Hollywood are just now paying the price for their crimes, while bankers who destroyed millions of lives have faced no punishment.  The federal government has had a luke-warm response to those with wealth and power who commit sexual crimes, and yet, they are complicit in protecting those who steal homes by forgery, document fabrication and fraud.
The federal government has acted indifferently to cases of sexual harassment but directly benefits and profits from bank fraud.  Therefore, the prosecution of crimes in America is no longer based on legal grounds but political favoritism.  When does justice and the rights of the American people matter more than Too Big to Fail?
If reports of home thefts procured with fabricated documents flooded the headlines, like reports of sexual misconduct, homeowners’ would have a fair chance of due process and justice.   And yet, millions of damaged American homeowners have been unable to gain similar results or relief.  The millions of Americans terrorized by faux-lenders are effectively voiceless.  While sexual crimes are often done without witnesses behind closed doors,   bank crimes are done in plain site with the courts and law enforcement complicit in the cover-up.

The most egregious example of American judicial impotency came several weeks ago when Manhattan district attorney Cyrus Vance Jr. declined to prosecute Harvey Weinstein, even though misdemeanor cases of non-consensual sexual touching are routinely prosecuted with far less evidence than having Weinstein admit to the crime.


Chain of Title author, David Dayen, who writes about foreclosure and financial fraud, said in The New Republic that America’s “broken justice system” contributed to the current sexual harassment crisis. “The burst of allegations since the Weinstein scandal broke……springs from frustrations with the justice system. The crowd isn’t good at enforcing the law because it’s not their job. But what are people supposed to do when they have no other choice?”    What are homeowners with strong cases of servicer fraud supposed to do when the court refuses to acknowledge the compelling evidence that the foreclosure was wrong and the servicer fabricated standing in order to prevail?

Both sexual assault and banks fabricating documents to create a chain of title are legal matters, or at least according to the law.  When a family loses a home to a bank who had no proof they owned the home (and resorted to forgery and fraud to create the appearance that they did), the homeowner has but one choice- to seek redress in the courts.

Its not a fair playing field from the beginning when a homeowner with limited finances must battle a servicer with unlimited financial resources, and who can extend the litigation process indefinitely until the homeowner no longer has the resources to fight. There is no way to put bank CEOs in the public stockades or challenge them to a duel, and the courts aren’t a fair alternative.  Homeowners have but one viable alternative- to organize, speak out with a single message, and to put pressure on their elected leaders to do something to help, while rallying the media to report.

This is not only a story about a few bad men who manipulated the repeal of Glass-Steagal to guide their corporations to record profits, but a blight on the American judicial system that refuses to prosecute the wrongdoers, and continues to cater to the wealthy who now dictate law and control our courts.

Victims of sexual abuse are able to name their perpetrators who should feel shame, remorse and fear of prosecution. Homeowners are dealing with faceless banks, CEOs and judges who unite to protect each other’s interests.  To date, journalism’s finest including Gretchen Morgenson of the New York Times, Art Levine of the Washington Post, and others who exposed the securitization and mortgage fraud from 2007 to 2010, were  unable to tip the needle and eventually started writing about something else.

Shaming and calling out the guilty parties like Bank of America, JPMorgan Chase and CitiMortgage was not effective for long, and unlike victims of sexual misconduct whose social media campaign circumvented the broken court system, by 2012 the general public was tired of the foreclosure crisis and ready to move forward.  Thus permitting the banks to continue their fraudulent practices, and government representatives to look the other way.

Meanwhile, the banks were using the rules implemented to stop foreclosure fraud to commit more foreclosure fraud.   Hamp modifications that were designed to assist homeowners were hijacked.   Instead, the banks used trial modification plans to extract what little cash the homeowners had left (that could have been used to relocate for example), and denied the loan modifications for no legitimate reason.

Like sexual abuse violations, the larger and more shocking the allegations became, and the more people that were named, the less potent the accusations become- despite the findings.  With every major bank in America implicated, the immensity of the crime, was unfathomable. Even the #MeToo social media campaign is losing steam as more and more men are named and the public becomes desensitized.

Despite nationwide outrage, the public is more vested in the innocence of the banks and the financial system, over the victimization of financially struggling homeowners, even when the bank is committing fraud in order to foreclose.

Although homeowners have failed to properly organize in order to be heard, despite the fact that the banks have convinced the general public that the housing crisis is behind them and their home values will continue to increase, the ugly festering truth remains and there is no way to cauterize the ongoing crime except to remove the rule of law, end due-process, and allow banks to victimize its customers with impunity.

99% of the homeowners we speak to at LendingLies have mortgage documents that are fabricated, forged by robosigners, are assigned late to non-funded trusts, paid off by insurance proceeds and/or derivatives, and are improperly assigned.   That means that most people are losing their homes to phantom banks who are committing fraud in order to foreclose or collect.

Apparently banking ethics have no principles except to profit, and we are going to need to unite if we are going to stop rampant and systemic bank fraud.  Because your state representatives won’t.  The Federal Bureau of Investigation hasn’t.  The state Attorney General already received their profit from the mortgage settlement.   And lastly, the judges are more interested in their own judicial retirement funds and protecting the banks who now control them.

The elite now hold themselves above the rules and laws that are for the ‘little’ people.  It must be said, that in foreclosure cases there is a lot of activity going on behind the scenes.  What is required to make a judge ignore irrefutable evidence?  What favors are doled out?  Why are bank attorneys unafraid of submitting fraudulent documents in the court records that would ordinary result in the loss of their license?  There is no justice system for most of America and we now know how the world works.

If you steal a candy bar and you are an average working American you will end up with a fine, a misdemeanor, and community service hours.  If you steal a home and you have an advanced degree, you will receive a promotion and a bonus.  Our district attorneys do not prosecute bank crimes against homeowners.  Banks can engage in fraud, break into occupied homes, and fabricate securities. You can’t.  Our law enforcement looks the other way when a homeowner brings a crime to their attention.  Millions of homeowners have paid the price of this economic assault- and millions more will.

Accountability is dead.  The courts are corrupt.  So what can you do?  What will you do?



19 Responses

  1. GREAT article Neil. We need a movement that would OUST every politician who does not support “foreclosure reform!”
    If we were media-labeling this wrongdoing we suggest “financial collusion” or “financial exploitation”…which seems to have some political momentum presently. Suing en masse is the only way to make one’s voice heard and we do it here helping pro se’s regularly with some impressive results. Ask about Beverley T in NY who just won her house this year from WF free and clear due to the bank’s and lawyers gross chicanery.
    Reach out to us at Consumer Rights Defenders at 818.453.3585.

  2. do something NOW !!

  3. Power is in the hands of the lobbyists.
    Gary Durbin is uniting homeowners nationwide to become the people’s lobbyist
    Power is in our numbers. Use it or lose it. Not lawyers but warriors. Carry on!

  4. When r they going to shake up! From all the Articles you’ve been writing convincing. Those criminal what their ♥️ made of inhuman we have to buy coffee to be allowed to use restroom even in McDonald & Jack in the box we have been kicked out due t Fake modification interest was 5.25% at least we r on the street now

  5. These people could also expose fraud in the assignment of mortgages and fabrication of notes as well.

  6. If you are really concerned with changing the Capitalistic process in this country, certain attornies should forget about making money from all this and get in front of this crisis by being transparent; giving homeowners the free knowledge and representation that is going to be needed to shift out of this predicament to truly make a real difference and change. It is not going to happen any other way! You know that! And, so do the Pro Se people of this world! Good trial lawyers are hard to find. Paper pushing attornies are a dime a dozen! In fact, it is hard for new attornies to find employment for various reasons. Until lawyers, who are “officers of the court” start to simplify the analogies and understandings of the laws, in laymen’s terms, to the masses, we will have no change! I fought for over 6.5 years, AND WON, in one of the most powerful states in this country because of a collaborative effort by non-attornies! I doubt wholeheartedly that I will get a response from an attorney about my opinion but I would love to hear from folks who are not attached to their own monetary gain. I am sure there are good attornies helping people that would also benefit from this ideology.

  7. Great article Neil. And, the enablers are Congress. They know about all of this and have allowed it to continue. Reps and Dems alike. Anyone who was not affected by the fraud thinks everything is just rosy now. Stock Market is for them. Media is also an enabler. The truth is never told — except by you Neil.

  8. To Karen Curtis pleae send an email to new NAR President Elizabeth Mendenhall I am trying to raise this issue with her as they lobby Congress

  9. https://www.facebook.com/events/293798681129891/?ti=cl

    Go to SIGTARP crimestoppers link on Jan 1. Tell your story of fraud. Ask for an explanation for letting the banks use HAMP to steal America’s wealth. 15 MILLION foreclosures. Not front page news, why? Less than 100 men accused of sexual misconduct gets the headlines. Who do you think controls the press.

  10. We should all meet and protest at the Capitol of every state….you could organize this…. maybe every 1st Monday of every month until everyone knows what is going on.

  11. I admire your never ending cause, more than you know. I am a real estate agent and for years I worked with homeowners that were in trouble with their mortgage, my business was called Center for Homeowner support. My last short sale was a year ago and when Wells Fargo foreclosed on a listing I had an offer on, they said they would only postpone the sale once, that was my final blow. The homeowner had equity ( about $80,000) and he had owned the home for 16 years, then he got into trouble when he lost his executive position with a company he had been with for several years.

    The few attorneys that worked on foreclosures in Utah quit long before I did, I could not find one that would take on our courts any longer. Thank you for all of your efforts, you are remarkable.

    Karen Curtis
    Coldwell Banker

  12. Perhaps the Venus project is not so far fetched. The current monetary system promotes injustice.

  13. Great article…I have heavily quoted it on twitter #wellsfargo and given you credit….

  14. Because the theft of our property happens behind closed doors, we have been found guilty. No trial. No public outcry. No such thing as presumed innocence in the court system.

  15. Very well said, Neil. As you said,it’s not a new scheme. German gov/banks used mortgage back securities like currency in lat ’30s.It eventually failed. Seems U.S.thinks they can do the same today but better. They need the Notes to be easily transferrable, like cash is. So MERS and tolerance for bank mortgage deception is necessary.
    Deception is only useful in the short term. This scheme will collapse too.
    Hate to think what a mess the courts will be when that happens.

  16. I agree! However, remember, we are supposed to be innocent until proven guilty. Just because someone is accused of violating one’s Rights or the law, does not make it true. Most of the cases of women accusing a man of sexual abuse happened behind closed doors with no witnesses.

  17. Same sad story.

  18. I believe State and County funds in Florida are held in the mega banks now. Our little county of Franklin, with zero mega bank presence, banks with Well Fargo, I believe

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