8 Fraudulent Steps to Ill-gotten Gains
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Charles Marshall, Attorney and Bill Paatalo, licensed investigator discuss the moral hazard created by the banks, the courts and the regulators in allowing “presumptions” to be used even when the actual facts are different from the presumed facts. .
As predicted by myself and Bill Paatalo years back, it didn’t take long for someone to realize that a new business plan had emerged to enrich themselves at the expense of homeowners. Bill calls it “mailbox trolling.” Sophisticated and unethical business people realized that the decisions from the courts were allowing and even ratifying fabrication and forgery of documents that were then recorded. As we said repeatedly this made it easy to anyone to foreclose on anybody’s home. It also makes it easy to get ahead of others on all types of debt in which the borrower is delinquent or in default.
The crazy thing is that there is basically no difference between what the non-institutional scammers are doing when compared with the institutional scammers doing essentially the same thing.
Step one: Troll mailboxes and find out who is getting default letters and final notices.
Step two: Create entities that were either fictitious (like a REMIC common law trust) or real, but temporary. Or that exist on paper and arguable inchoate viable entities even if they don’t have a bank account or an EIN.
Step three: Fabricate documents that use names that are similar to the names of actual entities who are making false claims of securitization like “Deutsch”.
Step four: In nonjudicial states record a notice of substitution of trustee, naming one of your fictitious entities as the new trustee.
Step five: The new “Trustee” sends a notice of default that the homeowner/borrower was expecting anyway.
Step six: The new Trustee sends out a notice of sale.
Step 7: is either selling the property to the false beneficiary named in the substitution of trustee, or, in its more sophisticated form selling the mortgage rights to yet another party or assigning the bid to another party.
Step 8: Sell the property for cash.
Rinse, repeat.
See “Deutsch” gets a taste of its own medicine
Filed under: foreclosure |
Rephrasing:
“The [Old, Continuing] Industry of…”
This one is kind of a stretch for me.
Here’s why. It would take a great deal of sophistication, resources, and ballz to pull this one off. There would be too many moving parts involving institutional players.
But most importantly, this would have the real banksters screaming bloody murder to the FBI, State AG’s, and the Justice Dept. They would be infuriated that some other “small time crooks” were “poaching” in their territory. And this would really get law enforcement at both the state and federal level cracking.