Investigator Bill Paatalo: The Money Trail Dead-Ends

By J. Guggenheim, LendingLies

Investigator Bill Paatalo has not put down the shovel since he started digging through voluminous amounts of bank data almost a decade ago.  He sifts through thousands of documents filed by the SEC, FDIC, OCC, court dockets, FBI, Attorney General offices, internet and documents submitted from concerned citizens and whistle-blowers.  Every so often he stumbles on a fascinating revelation along the way hidden deep in a document that amounts to one more piece of the puzzle.

Paatalo is obsessed with finding that sliver of truth that could put this entire fraud-scheme into context and he believes he may have found a critical element the banks don’t want anyone to know:  The Banks have NO IDEA who owns your loan and must resort to document fabrication to create the appearance that they do.

It was originally assumed that all foreclosure litigation in America could easily be solved if the court simply ordered the banks to simply provide individual loan level wiring receipts (show the money trail where the homeowner’s payment is wired to).   No need to produce notes or assignments or spend years in litigation.  Instead of following a fraudulent paper trail, litigation could be ended quickly by simply showing the money trail- except the money trail may be a dead-end too.

But in most cases, the courts didn’t care about real evidence, or documenting the movement of money, and fought the homeowner on obtaining loan-level files.   Instead of handing over the loan-level data, an elaborate ruse of litigation theater would ensue for years and years- to obfuscate the truth: there are no individual loan level files to produce and if a judge demanded that they be produced- confidential settlements were quickly inked.

The Mortgage Chess Game that resulted, instead of simply providing the loan wiring information, follows a predictable pattern:

  1. The loan goes into default.
  2. The servicer produces an unendorsed note to foreclose.
  3. If the homeowner contests the foreclosure, a few assignments are manufactured to complete the appearance of a clear chain of title.
  4. The loan is then transferred to a new servicer to create distance and plausible deniability from the first servicer.
  5. A new law firm is hired to distance the current servicer from the crimes of the first servicer or attorney.
  6. An endorsement will magically appear on the note. Fabricating an endorsement creates “bearer paper” and makes it much easier to foreclose on a homeowner.
  7. If foreclosure isn’t successful at that point, the loan might be transferred again to another new servicer to confuse the judge and then:
  8. The new servicer or law firm claims the original note is lost to distance themselves further from the fabricated and forged documents.

The servicer’s strategy is so predictable now, you can almost set your watch to it.

Last week in a Florida case entitled Proodian-V-Chase, the judge ordered Chase to produce the individual loan-level wiring information for the Proodian loan.  The homeowner who was not in default, simply wanted to know if he was paying the correct party.  The records indicated that Chase was not in control of the loan or records, and when compelled Chase admitted they couldn’t provide the documents the court demanded.  Chase filed a motion for clarification when in fact, it was actually a motion for reconsideration.  The judge stuck to his guns and again demanded that Chase produce the goods.

Had this been a foreclosure situation, and not a preemptive lawsuit, Chase would have likely gotten away with their subterfuge.  But why should the loan status matter?  Don’t all homeowners have an absolute right to know who owns their note and where their payments go?  What is the purpose of all consumer protection laws if a homeowner is prevented from determining who their true creditor is, especially in a time when mortgage documents are passed around like Cheetos at a April 20th celebration?

When a homeowner’s check is cashed, where does the money go?  Chase is claiming that Proodian is filing a ‘frivilous’ action and is now resorting to intimidation tactics.  Chase has admitted that they take Proodian’s payment, cash the check, and forward the funds to the Trustee Wells Fargo with thousands of other loans- and cannot distinguish any individual loans.  The important question to ask is where does Wells Fargo, as Trustee, send that large multi-million-dollar payment?  What creditor receives those funds?  No accounting has been brought forth and no investors or certificate holders appear to exist.

Apparently, Chase and Wells Fargo don’t know where billions of dollars go and claim they have no records.  Certainly, the FBI could trace the funds wired through the Federal Reserve?  If the FBI can’t trace the funds- then the big banks have created the most sophisticated money-laundering strategy in the world, and can successfully divert funds to criminal enterprises like ISIS, or even the deep state.

Through securitization, and lax accounting, the banks have effectively defeated the anti-money laundering safe-guards meant to protect against this type of massive- off-shore criminal enterprise- and no one is willing to stop the banks.  The investors and certificate holders don’t know it yet- but they are not protected.

In Yvanova, the court ruled that the homeowner does not owe a debt to the world at large, but to a specific creditor, but if you can’t track or trace who the creditor is how can you ever be sure you are paying the right party and able to satisfy your loan?  In most cases, if your loan has been securitized, it appears you have no right to identify your creditor, and must resort to paying a stranger.

Chase and US Bank are on the record stating there is no creditor that can meet the legal description of a creditor.  Therefore, mortgage docs are nothing but pretty paper that represent no underlying transaction.  The paper documents with ink have no value beyond scrap paper but they are traded like they represent billions of dollars.  This is the way a Ponzi scheme works.  The United States is failing to halt this systemic risk that threatens to destroy the US economy, as well as the world economy.

This issue goes way beyond the Federal Reserve.  The International Monetary Fund is also benefitting from this corrosive Ponzi scheme that has helped international markets to thrive.  These AAA-rated mortgage backed securities aren’t even backed with bad paper- they aren’t backed by any type of  paper at all.  The papertrail ends because the investment grade securities that were sold to investors are now toxic derivatives that must be hidden until the entire system eventually collapses.

Wall Street sold investors doomed securities and the Fed printed up new money through Quantitative Easing to allow the banks to hide their losses, while paying the orchestrators of this fraud huge bonuses, likely to keep their mouths shut. The TARP funds only augmented the implementation of this fraudulent scheme.

The servicers and trustees have failed to disclose material issues like the fact that there may be no loan-level accountability available to investors of securitized trusts.  This massive Ponzi scheme has been subjugated to allow the economy to “recover” but this charade can’t continue indefinitely.  Homeowners and investors, not to mention taxpayers, have become unwilling investors funding Wall Street’s fraud and have been swindled by their representatives.  Winston Churchill stated that we must “alert somnolent authority to novel dangers”, but our regulators are complacent, even as the dangers are now revealing themselves.

Where are the large forensic accounting firms?  Where are the mass audits of the receivables?  The Department of Justice isn’t interested in finding out, so how could you expect your servicer to know?  No amount of discovery will help you prove your case, if the information doesn’t exist.   You must focus on the fact the information does not exist, not that it does.  This fraud on the court has allowed the big banks, along with Fannie Mae and Freddie Mac to “harvest people’s homes,” according to investigator Bill Paatalo.  He also claims that this arrangement is a national security threat where billions of dollars are exchanging hands without any oversight.

The Take-Away Message is this: Any person in the United States who has a securitized mortgage is at risk.  Ask the Proodians. Taking out a mortgage that will be securitized is a high-risk venture that can easily result in the loss of your home and the destruction of your credit rating, not to mention years of trauma trying to determine who you owe.  You have no choice who your servicer will be and if it is Ocwen, SPS, PHH, Nationstar or a bottom-feeder debt collection operation- they will leverage any issue into a default if possible.

We encourage readers to go local, support your local independent bank or credit union who will hold your loan in-house and avoid the big banks at all costs.

If you are in litigation, Neil Garfield endorses Investigator Bill Paatalo who can help you to determine what evidence will help you prevail against the entities claiming to own your loan- but unable to prove it.  Bill Paatalo can be reached at



7 Responses

  1. Why would anyone listen to Paatalo, when he lost his own home making the same ridiculous arguments?

  2. Reblogged this on

  3. 3.If the homeowner contests the foreclosure, a few assignments are manufactured to complete the appearance of a clear chain of title.

    4.The loan is then transferred to a new servicer to create distance and plausible deniability from the first servicer.

    6.An endorsement will magically appear on the note. Fabricating an endorsement creates “bearer paper” and makes it much easier to foreclose on a homeowner.


  4. Semper Fi Bill. Thanks for all you and Neil have done and continue to do on our behalf. I am doing my best to fight these SOBs but it is really hard when you have our very own government in on the huge, gigantic scam to begin with.
    I have tons of evidence on the five (5) loans that were allegedly originated and “table funded” by Countrywide Home Loans and have been fighting nasty old racketeering Bank of America and all its “co-conspirators” for over 8 years- Shellpoint mtg. and Seterus are really bad and a great way that Bank of America shifted some of the heat off them and added even more confusion to this whole mess.
    Keep up the great work and let me know if I can be of help in any way. Semper Fi. I am a 73 year old Vietnam Veteran.

  5. The banks, servicers and banks’ attorneys have been forging documents up the wazoo. Recently, they forged a mortgage with a blue in stamp I have never seen since I bought the house in 2006, and the judge loved it.

  6. Grasp and share

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