Tonight!! More on Qui Tam (Whistleblower) Actions and their Intersection with Foreclosure Litigation

Thursdays LIVE! Click in to the WEST COAST Neil Garfield Show

with Charles Marshall and Bill Paatalo

Or call in at (347) 850-1260, 6pm Eastern Thursdays

Homeowner groups are forming and lawyers are talking. We are all expecting another tidal wave of foreclosure proceedings arising from false claims against homeowners. But foreclosures impact communities, not just individuals. And communities are run by governments whose revenue is largely derived from taxes and fees on land, transfers and recording of mortgages and deeds of trust.

When government revenue declines the remaining taxpayers get to pay the balance. there is no other way. What happens if when declining revenue and increased costs are the result of false claims by private companies?

Wall Street securities firms have been sidestepping tax liability, stamps, recording fees and even income tax as they freely pretend to transfer mortgages while no money exchanges hands. The courts treat the transfers as real even though the law says no transfer of a mortgage can be completed without a transfer of ownership of the underlying debt.

So if it is real why is state and local government not receiving their fair share of revenue as prescribed by law? And why does state and local government get stuck with the bill on Zombie foreclosures?

More lawyers are looking at qui tam actions, mass joinder, and actions against regulatory capture that interfere with homeowners’ right to counsel and access to the courts.

Qui Tam Actions generally are lawsuits in which an individual sues on behalf of a governmental entity, typically the Federal Government, with the goal of remedying a defrauding of the government by a private organization or individual. These actions typically take the form of a whistleblower exposing the defrauding actions of his or her employer. Qui tam actions in the US are often brought under the False Claims Act, a Federal law specifically empowering individuals to sue as whistleblowers to recover private funds garnered through defrauding the Federal Government.

In the foreclosure context, individuals who are connected with, or in some cases simply apprised of, the defrauding behavior, can then bring a qui tam action to remedy the fraud. As a whistleblower, the suing individual is entitled to substantial compensation, including penalties, attorney’s fees, court costs, on top of the disputed amount of the fraud. The whistleblower receives his or her compensation as a percentage of the fraud money recovered. This amount can and often does run into the millions of dollars, depending on the nature of the fraud and the amount in dispute. Bill will highlight a recent successful qui tam action and address previous qui tam matters, involving for example mortgage servicers such as Nationstar.

7 Responses

  1. Brian Tracey — RMBS fraud is OVER. Unless the people do something.

  2. The new DOJ is starting to do the right things.. https://www.zerohedge.com/markets/goldman-resists-doj-pressure-plead-guilty-1mdb-case

  3. Agree with Summer . . .

  4. Cannot hear or understand what Charles is saying???

  5. I told it many times to all officials.

    The Government does not care, at least not in Illinois. They took all money and allowed Banks to turn vulnerable areas into war zones and let people to deal with it and die. South and West sides of Chicago look absolutely horrible and very dangerous. Even kids have weapons.

    “Community organizer” Obama is not going back to Chicago. He just purchased $11.75 million luxurious mansion in California with his modest $250K per year Presidential salary (about $2 million total during 8 years) and does not want to deal with crime and dirt he left behind.

    Officials like AGs received millions in “settlements” which no one ever saw and allow banks to do anything they want.

    In Chicago tax transfer stamp is $5.25 per $500.00 value, or 10.50 per $1,000

    Which is about $2050.00 per $200K property.

    Banks do not pay a cent for property tax transfers for foreclosures.

    I told Lisa Madigan many times that “bankrupt” Chicago is voluntarily losing millions in revenue from tax transfers. She did nothing.

    Unfortunately, with present collusion between Banks and the Government ( filled by Banks’ insiders) America has only one way for changes – explosion from the bottom – and I am not optimistic about it.

    To whom whistleblowers are going to complaint about Banks crimes?

    Bankers who occupy all public offices and cover for their mob?

    We have nowhere to go.

    I plan to file a Qui Tam, not because I think it will succeed but merely for public records. Absence of such actions creates a better environment for Banks crimes.

    We need an avalanche of Qui Tams and legal cases – but they likely will all be dismissed by Judges.

    https://vineyardgazette.com/news/2019/12/04/president-obama-buys-home-edgartown-great-pond

  6. Off topic of qui tams – but did anyone notice that the ‘cards’ issued for Covi-19 benefits are issued by the biggest criminal of all “ReliaCard” is issued by U.S. Bank National Association – with the blessings of the US Government . . . whoda thunk?

  7. Who is the whistleblower?

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