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Florida Attorney Filing Lawsuits Against Deutsche Bank is Facing Sanctions for Telling the Truth, Repeatedly

The Straw Man, Deutsche Bank National Trust Co., the name used to illegally and unlawfully steal homesteads from American homeowners, is seeking sanctions from Lee Segal, a Florida attorney who obtained $30m or so in default judgments against Deutsche Bank. We’re smiling.

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LIT COMMENTARY

Update: Sep 18, 2021

Deutsche Bank is seeking $45,000 in attorney fees as well as other “just and proper” financial penalties from Lee Segal of Segal & Schuh Law Group for multiple filings. Segal is fighting the bid, saying it was filed too late as the case has been dismissed. After our last update on May 6th, 2021, the sanctions has slowly progressed as you can see from the docket, with the last recorded entry on August 6, Doc. 55.

Depoalo v. Deutsche Bank , Case No: 2:21-cv-38-SPC-NPM (M.D. Fla. Mar. 1, 2021)

MAR 1, 2021 | REPUBLISHED BY LIT: MAY 6, 2021

OPINION AND ORDER1

Before the Court is Defendant Deutsche Bank National Trust Company’s Amended Motion to Quash Service of Process and Vacate Clerk’s Default (Doc. 13), Plaintiff Darleen Depoalo’s Motion for Remand (Doc. 21), and Depoalo’s Motion to Strike Untimely Hearsay Declaration and/or for Leave to Reply (Doc. 26).

For the following reasons, the Court grants the motion to quash, denies the motion to remand, and denies the motion to strike.

1 Disclaimer: Documents hyperlinked to CM/ECF are subject to PACER fees. By using hyperlinks, the Court does not endorse, recommend, approve, or guarantee any third parties or the services or products they provide, nor does it have any agreements with them. The Court is also not responsible for a hyperlink’s availability and functionality, and a failed hyperlink does not affect this Order.

PROCEDURAL BACKGROUND

This is one of over 25 virtually identical complaints filed across Florida against Deutsche Bank National Trust Company (“DBNTC”) by a cadre of attorneys associated with Attorney Lee Segal.2 (Doc. 14).3

In short, the plaintiffs in these lawsuits allege DBNTC’s prosecution of foreclosure actions were “fraudulent, illegal, and perjurious” and rendered the rulings void. (Doc. 3 at 4).

2 Mr. Segal signed his filings in federal court as Lior Segal, but as Lee Segal in state court. Mr. Segal’s Florida Bar registration information lists his name as Lee Segal, as does his admission to the Middle District of Florida.

3 This may be a significant under-estimation, as recent filings reference over 50 virtually identical cases. (See Case No. 2:21-cv-42-SPC-NPM, Doc. 27).

JUDGE CHAPPELL

First, the plaintiffs allege DBNTC never legally owned the mortgages it sought to foreclose. (Id. at 4-5).

LIT COMMENT: ABSOLUTELY CORRECT.

Second, the plaintiffs allege that the beneficiaries of the trust holding the mortgages never authorized the foreclosure suits. (Id. at 5).

LIT COMMENT: ABSOLUTELY CORRECT.

Third, the plaintiffs allege DBNTC’s trust license had been revoked so it was illegal for it to act as a trustee to the pooled mortgages.(Id.)

LIT COMMENT: ABSOLUTELY CORRECT.

Thus, the plaintiffs allege, DBNTC engaged in a series of frauds in attempting to collect an unlawful debt, including recording a lis pendens, in violation of Florida’s Civil Remedies for Criminal Practices Act, Fla. Stat. § 772.101, et seq.

LIT COMMENT: ABSOLUTELY CORRECT, NATIONWIDE, NOT JUST FL.

The complaints in each case are fundamentally identical except for the quintessential variables of the plaintiff and property. But these facts are virtually irrelevant to the legal claims as currently pled.

Indeed, the allegations as to the supposed fraudulent behavior in each of the underlying foreclosure actions is generalized and not case specific.

Tellingly threading these complaints together, all but one of the complaints before the undersigned, including those ostensibly filed by attorneys other than Mr. Segal like this one, have the same transposition typos citing non-existent Fla. Stat.§ 772.013(1)–(4) and § 772.014, instead of correct citations to Fla. Stat. § 772.103(1)–(4) and § 772.104. (See Doc. 3 at 11).4

LIT COMMENT: WHAT? LIKE DEUTSCHE BANK, A STRAW MAN, USED BY ROGUE FORECLOSURE MILL LAWYERS, FILED HUNDREDS OF THOUSANDS OF UNLAWFUL COMPLAINTS WITH ROBO-SIGNED, FAKE DOCS – AND WHEREIN NOTHING HAPPENED…TOO BIG TO FAIL, TOO BIG TO JAIL.

But the complaints themselves are not the only similarity linking these cases. Foreclosure actions necessarily take place in the county where the mortgaged property is located.

Nearly every lawsuit filed by Mr. Segal and his colleagues, however, contain the same procedural oddity: they were filed in a separate county from the underlying foreclosure action.

Here, for example, Depoalo’s property is in Palm Harbor, Pinellas County, Florida. Depoalo brought this fraud action related to the Pinellas County foreclosure not in Pinellas County, however, but half a state away in rural Hendry County, Florida.

4 The undersigned has nine cases involving these claims against either DBNTC or the Bank of New York Mellon: 2:21-cv-9-SPC-NPM, 2:21-cv-37-SPC-NPM, 2:21-cv-38-SPC-NPM, 2:21- cv-39-SPC-NPM, 2:21-cv-40-SPC-NPM, 2:21-cv-42-SPC-NPM, 2:21-cv-47-SPC-NPM, 2:21-cv-66-SPC-NPM, and 2:21-cv-80-SPC-NPM. Seven have transposition errors as to § 772.103. Eight have transposition errors as to § 772.104. The only complaint that contains multiple counts, Case 2:21-cv-47-SPC-NPM, is not internally consistent as to its transposition errors, with Count 1 citing § 772.103 and § 772.104, Count 2 citing § 772.013 and § 772.014, and Count 3 citing § 772.103 and § 772.014. Only one case, 2:21-cv-80-SPC-NPM, appears to correctly cite the statutes invoked.

Another pronounced procedural oddity linking these lawsuits is this matter before the Court: service of process. Depoalo sued in Hendry County 20th Judicial Circuit Court on November 17, 2020. Depoalo served her complaint and summons on “CT CORP” at 28 Liberty Street in New York on November 18, 2020. (Doc. 13-1). The process server, Michael Levey, included on the affidavit of service:

Per Jacquelin Walton at the security desk, the respondent Deutsche Bank of 60 Wall Street NY NY has directions to continue to serve process at CT Corp 28 Liberty Street NY NY 10005 as no one currently is present in the building who is authorized to accept legal papers. As of 11/12/20 she does not know when this method will revert to the original service address.

(Id.) On November 20, 2020, CT Corporation System (“CT”) sent a letter to Depoalo’s counsel, Megan Lazenby, indicating that CT was not the registered agent of DBNTC and would be unable to forward the complaint and summons purportedly served by Levey. (Doc. 13-2 at 3).5

Depoalo sought summary judgment after default. (See Doc 1-2 at 27). DBNTC appeared on or about January 7, 2021, (Doc. 21 at 4; Doc. 1-2 at 4), then removed the matter to federal court based on diversity jurisdiction on January 14, 2021, (Doc. 1).

5 CT had sent Ms. Lazenby at least four other letters in November and December 2020 indicating the same—that CT is not the registered agent for DBNTC and could not accept service on its behalf. (Doc. 13-4).

FL. ATTORNEY LEE SEGAL

MOTION TO REMAND

Multiple motions are before the Court, but Depoalo’s motion to remand must be addressed first given it implicates the Court’s jurisdiction. See Univ. of S. Alabama v. Am. Tobacco Co., 168 F.3d 405, 411 (11th Cir. 1999) (“[A] federal court must remand for lack of subject matter jurisdiction notwithstanding the presence of other motions pending before the court.”).

Depoalo argues that DBNTC’s notice of removal was untimely because her complaint was served on November 18, 2020, but removal was not effected until January 14, 2021, well beyond the 30-day time limit.

DBNTC responds that removal was timely because the complaint has never been properly served and notice of removal was filed shortly after DBNTC first learned of this case.

A notice of removal “shall be filed within 30 days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based.” 28 U.S.C. § 1446(b)(1).

A “defendant’s time to remove is triggered by simultaneous service of the summons and complaint, or receipt of the complaint, ‘through service or otherwise,’ after and apart from service of the summons, but not by mere receipt of the complaint unattended by any formal service.”

Murphy Bros., Inc. v. Michetti Pipe Stringing, Inc., 526 U.S. 344, 347- 48 (1999).

“Even where a defendant has actual notice of the filing of a suit, service of process is ineffective where it does not comply with the rules of service.”

Hunt v. Nationstar Mortg., LLC, 782 F. App’x 762, 764 (11th Cir. 2019) (per curiam).

“In actions removed from state court, the sufficiency of service of process prior to removal is determined by the law of the state from which the action was removed.”

Rentz v. Swift Transp. Co., Inc., 185 F.R.D. 693, 696 (M.D. Ga. 1998); Usatorres v. Marina Mercante Nicaraguenses, S.A., 768 F.2d 1285, 1286 n.1 (11th Cir. 1985).

Here, the parties cannot reasonably dispute that DBNTC’s notice of removal was untimely if service was proper, and timely if service was improper.

Thus, resolution of the motion to remand turns entirely on resolution of DBNTC’s motion to quash.

MOTION TO QUASH

Florida law sets specific requirements for serving financial institutions. Fla. Stat. § 48.092.

Financial institutions may designate a registered agent for service of process within the state, but it is not required. Fla. Stat. § 655.0201(2).

If the financial institution has no registered agent, “service may be made to any officer, director, or business agent of the financial institution at its principal place of business or at any other branch, office, or place of business in the state.” Fla. Stat. § 655.0201(3)(a).

DBNTC is a national banking organization formed under the laws of the United States and is authorized by the United States Department of Treasury to transact in the business of banking and to act as a fiduciary. (Doc. 13-3).

DBNTC’s main office is in Los Angeles, California and its primary trust operations office is in Santa Ana, California. (Doc. 24-1 at 3; see Doc. 13-3).6 DBNTC does not have a branch, office, or place of business in Florida. (Doc. 24-1 at 3).

Like many Deutsche Bank-affiliated entities (see Doc. 22-1 at 1; Doc. 22-2 at 1), DBNTC maintained an office at 60 Wall Street to accept service at that address but has not done so since March 2020 due to the COVID-19 pandemic. (Doc. 24-1 at 4).

Since DBNTC has no registered agent, branch, office, or place of business in Florida, Depoalo must have served DBNTC in California to comply with Florida’s law of service. Depoalo asserts she first sought to serve Deutsche Bank at 60 Wall Street, New York, NY, but was instructed to serve CT at 28 Liberty Street, New York, NY.

This is where the defect in Depoalo’s service begins.

Depoalo equated DBNTC—Deutsche Bank National Trust Company— with Deutsche Bank.

Regardless of the connection between these two entities (see Doc. 12) (corporate disclosure statement), Depoalo has not proved that service upon some other Deutsche Bank entity effectuates valid service upon DBNTC.

See Amtrust N. Am. v. Sennebogen Maschinenfabrij GmbH, 2020 WL 5441407, at *11 (M.D. Fla. Aug. 25, 2020) (summons for lawsuit against German company Sennebogen GmbH served upon its American affiliate, Sennebogen LLC, was ineffectual), R&R adopted by 2020 WL 5423203, at *1 (M.D. Fla. Sept. 10, 2020).

Nor can Depoalo prove that attempted service upon Deutsche Bank’s purported agent, CT, renders valid service upon the separate and distinct entity of DBNTC.

Depoalo seeks to save her service defect by arguing about the pre- and post-COVID-19 service norms at 60 Wall Street. Levey is familiar with serving “various Deutsche Bank entities” at 60 Wall Street. (Doc. 22-1 at 1).

Before the COVID-19 pandemic, Levey and his agents would approach the security desk for service, then the security personnel would contact the appropriate Deutsche Bank employee who came to the lobby to accept service. (Id. at 2).

When the COVID-19 pandemic began, 60 Wall Street became vacant and, at some point, a paper sign was taped up that read:

“Please direct all service to: . . . CT Corporation System Registered Agent, 28 Liberty Street.” (Id. at 2, 6-9).

This paper sign was updated in early December 2020 to read:

“Please direct all Deutsche Bank service EXCEPT for service [on] Deutsche Bank National Trust Company to: . . . CT Corporation.” (Id. at 5, 10).

But this misses the mark.

Florida law requires service upon DBNTC in California.

That DBNTC accepted service at 60 Wall Street before March 2020 as a courtesy does not codify a change to statutes governing service. Moreover, DBNTC had not designated CT as its registered agent (Doc. 24-1 at 5), and, given the many identical lawsuits handled by Depoalo’s attorney and her colleagues, Depoalo had ample notice that CT was not a registered agent of DBNTC and could not accept service on its behalf. Service here was defective and must be quashed.

Florida’s service statutes are strictly enforced.

Shurman v. Atl. Mortg. & Inv. Corp., 795 So. 2d 952, 954 (Fla. 2001).

If a party fails to comply with Florida’s service requirements, subsequent judgments are voidable.

Floyd v. Fed. Nat’l Mortg. Ass’n, 704 So. 2d 1110, 1112 (Fla. Dist. Ct. App. 1998).

DBNTC was never served.

Instead, Depoalo served a purported agent of a non- party. This service is so defective that it amounted to no notice whatsoever to DBNTC of the proceedings.

The improper service necessitates a finding of good cause to void the default judgment.

Id.; Fed. R. Civ. P. 55(c) (permitting court to set aside entry of default for good cause).

The irony here is palpable:

Depoalo failed to appreciate the separate corporate identities of DBNTC and Deutsche Bank where her complaint asserts a blurring of mortgage owners and mortgage servicers caused her damages.

The continued, knowingly invalid service on non-party, non-agent CT of lawsuits against DBNTC followed by default judgments in state court…

…has the same stink of fraud-upon-the-court that the numerous plaintiffs allege was perpetrated upon them.

Depoalo will not be afforded a set of rules apart from DBNTC.

Because the Court finds service was defective here, it follows that DBNTC’s removal to federal court was timely. DBNTC learned of the lawsuit and promptly removed it within the 30-day time limit.

Depoalo’s motion to remand is denied.

MOTION TO STRIKE

Depoalo moves to strike the Declaration of Ronaldo Reyes (Doc. 24-1) as untimely. The declaration was attached to DBNTC’s response to Depoalo’s motion to remand.

Depoalo first argues the declaration should be stricken because it was not filed alongside DBNTC’s motion to quash. Depoalo’s argument lacks merit.

As discussed, the motion to remand and the motion to quash are intertwined and resolution of one requires consideration of the other. The Court will not strike an affidavit because it was filed with DBNTC’s memorandum opposing Depoalo’s motion to remand rather than with DBNTC’s motion to quash.

Depoalo then argues that the declaration contains hearsay because Reyes signed it and it was notarized in California where he works, rather than in New York where the service efforts took place.

Reyes’ declaration is signed in his capacity as Vice President of DBNTC and provides sufficient foundation for his knowledge of DBNTC’s operations.

Depoalo’s argument fails.

Finally, Depoalo asks for leave to respond should the Court deny her motion to strike. This request is denied.

Motion practice is not a barter system.

Depoalo’s strategic choice of responding to DBNTC’s motion to quash with her own motion to strike rather than submitting full substantive briefing is hers to make.

The deadline to respond has now passed.

The motion to strike contains ample argument responding to DBNTC’s motion to quash. The Court will not provide multiple opportunities to brief the same motion.

CONCLUSION

Service here was defective and DBNTC received no notice of the lawsuit.

As soon as DBNTC learned of the state court proceeding, it appeared and removed this matter to federal court.

That removal was timely and appropriate.

Until Depoalo serves DBNTC, the Court lacks jurisdiction over it.

The Court will allow 30 days for Depoalo to properly serve DBNTC.

Given the service irregularities in this lawsuit and the related lawsuits, if Depoalo fails to effectuate service, the Court will dismiss this matter with prejudice.

Accordingly, it is now ORDERED:

Defendant Deutsche Bank National Trust Company’s Motion to Quash Service of Process and Vacate Clerk’s Default (Doc. 13) is GRANTED.

Service is QUASHED and the default entered against Deutsche Bank National Trust Company in state court is VACATED.

Plaintiff Darleen Depoalo’s Motion for Remand (Doc. 21) is DENIED.

Plaintiff Darleen Depoalo’s Motion to Strike Untimely Hearsay Declaration and/or for Leave to Reply (Doc. 26) is DENIED.

LEE SEGAL TAKES ON DEUTSCHE BANK NATIONAL TRUST IN FEDERAL COURT

04/30/2021 2950 Summer Swan Land Trust v. Deutsche Bank National Trust Company
2:21-cv-00042-SPC-NPM
ORDERED: This action is DISMISSED with prejudice for failure to serve, failure to prosecute, and failure to comply with Court Orders. The Clerk is DIRECTED to enter judgment, terminate any pending motions or deadlines, and close the case. Signed
Judge Sheri Polster Chappell
04/30/2021 Quest Systems LLC v. Deutsche Bank National Trust Company
2:21-cv-00040-SPC-NPM
ORDERED: This action is DISMISSED with prejudice for failure to serve, failure to prosecute, and failure to comply with Court Orders. The Clerk is DIRECTED to enter judgment, terminate any pending motions or deadlines, and close the case. Signe
Judge Sheri Polster Chappell
04/30/2021 Weber v. Deutsche Bank National Trust Company
2:21-cv-00039-SPC-NPM
ORDERED: This action is DISMISSED with prejudice for failure to serve, failure to prosecute, and failure to comply with Court Orders. The Clerk is DIRECTED to enter judgment, terminate any pending motions or deadlines, and close the case. Signe
Judge Sheri Polster Chappell
04/30/2021 Market Tampa Investments, LLC v Deutsche Bank National Trust Company
2:21-cv-00037-SPC-NPM
ORDERED: This action is DISMISSED with prejudice for failure to serve, failure to prosecute, and failure to comply with Court Orders. The Clerk is DIRECTED to enter judgment, terminate any pending motions or deadlines, and close the case. Signed
Judge Sheri Polster Chappell
04/30/2021 Kenny v. Deutsche Bank National Trust Company
2:21-cv-00009-SPC-NPM
ORDERED: This action is DISMISSED with prejudice for failure to serve, failure to prosecute, and failure to comply with Court Orders. The Clerk is DIRECTED to enter judgment, terminate any pending motions or deadlines, and close the case. Signed

 

 

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

AREIAS, EVA Deutsche Bank National Trust Company, As Trustee Alachua

01 2020 CA 002497

Segal, Lee
AREIAS, EVA Deutsche Bank National Trust Company, As Trustee Clay

2020-CA-000955

Lazenby, Megan
ABPAYMAR, LLC, As Trustee For The 30531 Midtown Court Land Trust Deutsche Bank National Trust Company, As Trustee, In Trust Registered Holders Of Long Beach Mortgage Loan Trust 2005-3, Asset- Backed Certificates, Series 2005-3 Baker

2020-CA-000115

Segal, Lee
ABPAYMAR LLC, As Trustee Deutsche Bank National Trust Company Clay

2020-CA-000695

Segal, Lee; Lazenby, Megan
ABPAYMAR LLC, As Trustee Deutsche Bank National Trust Company Pasco

2020-CA-1437ESB

Segal, Lee
DECOURSY, RICHARD Deutsche Bank National Trust Company, As Trustee USDC ND – Panama City Div. 5:21-cv-00014 Segal, Lee
DECOURSY, RICHARD Deutsche Bank National Trust Company, As Trustee For Residential Asset Securitization Trust Series 2003-A10, Mortgage Pass- Through Certificates Series 2003-AJ USDC MD – Ocala Div. 5:21-cv-00040 Segal, Lee
HAULSEE, MICHAEL AND MARCIA Deutsche Bank National Trust Company, As Trustee USDC ND – Pensacola Div. 3:21-cv-00077 Turner-Hahn, Carla; Wolf, Matthew

 

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

HAULSEE, MICHAEL AND MARCIA Deutsche Bank Trust Company Americas, As Trustee For Residential Accredit Loans, Inc.

Mortgage Asset-Backed Pass-Through Certificates,

Series 2007-QS4

USDC MD – Tampa Div. 8:20-cv-02410

Dismissed

Segal, Lee
LOFGREN, ANNA Deutsche Bank National Trust Company, As Trustee For Wamu Mortgage Pass- Thru Certificates, Series 2006-Ar1 Trust And Deutsche Bank Trust Company Americas, F.K.A Banker Trust Company, As Trustee And Custodian For IXIS 2005-HE4 Bradford

04-2020-CA-000340

Segal, Lee
LOFGREN, ANNA Deutsche Bank National Trust Company, As Trustee Okeechobee 2020-CA-000212 Lazenby, Megan
BCP Management LLC, As Trustee For 11717 81st Place Land Trust Deutsche Bank National Trust Company, As Trustee For The Gsamp Trust 2005- HE3 Mortgage Pass-Through Certificates Series 2005-HE3 Brevard

05-2020-CA-047023

Segal, Lee
BCP Management, LLC, As Trustee For The 10611 Bamboo Road Land Trust Deutsche Bank National Trust Company, As Trustee For Harborview Mortgage Loan Trust 2006-8 USDC MD – Ocala Div. 5:21-CV-00071 Segal, Lee
BCP Management, LLC, As Trustee For 18522 Sunward Lake Land Trust Deutsche Bank National Trust Company, As Trustee For Morgan Stanley Home Equity Loan Trust Series 2006-3 USDC ND – Panama City Div. 5:21-cv-00017 Segal, Lee
JACARANDA, LLC, As Trustee For The Certificateholders Of The Brev 1144 Land Trust Deutsche Bank National Trust Company, As Trustee For Soundview Home Loan Trust 2004-1, Asset-Backed

Certificates Series 2004-1

Brevard

05-2020-CA-035223

Segal, Lee

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

ZIFERRYN VENTURES LLC, As

Trustee Of The 8172 Via Rosa Land Trust

Deutsche Bank National Trust Company, As Indenture Trustee For Mortgage Trust 2005-2 Charlotte

2020-CA-000747

Dismissed

Lazenby, Megan; Segal, Lee
ZIFERRYN VENTURES LLC, As

Trustee Of The 8172 Via Rosa

Land Trust

Deutsche Bank National Trust Company As Indenture Clay

2020-CA-000929

Lazenby, Megan; Mausser, Gregory K.
YHT And Associates, Inc., As Trustee Under 20438 Homosassa Court I.V. Trust Dated January 17, 2012 Deutsche Bank National Trust Company, As Trustee On Behalf Of The Holders Of The Residential Accredit Loans, Inc., Mortgage-Asset- Backed Pass-Through Certificates, Series 2007-Qs3 USDC MD – Jacksonville Div. 3:21-cv-00050 Segal, Lee
KENNY, TAMMY Deutsche Bank National Trust Company, As Trustee Of Argent Mortgage Securities, Inc., Asset- Backed Pass Through Certificates Series 2004- W11, Under The Pooling And Servicing Agreement Dated As Of October 1, 2004 Without Recourse USDC MD – Ft. Myers Div. 2:21-cv-00009 Segal, Lee
GEORGE WEBER, As Trustee Of The 12321 Adventure Drive Land Trust Dated 12/30/2011 Deutsche Bank National Trust Company, As Trustee For New Century Home Equity Loan Trust Series 2005-B, Asset-Backed Pass- Through Certificates USDC MD – Ft. Myers Div. 2:21-cv-00039 Segal, Lee
GEORGE WEBER, As Trustee Of The 12321 Adventure Drive Land Trust Dated 12/30/2011 Deutsche Bank National Trust Company, As Trustee For New Century Home Equity Loan Trust, Series 2005-B, Asset-Backed Pass- Through Certificates USDC ND – Gainesville Div. 1:21-cv-00015 Segal, Lee

 

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

GEORGE WEBER, As Co-

Trustee Of The 10703 Beagle Run Place Land Trust, Dated 12/30/11

Deutsche Bank National Trust Company Lee

2020-CA-005336

Segal, Lee
GEORGE WEBER, As Co-

Trustee Of The 10703 Beagle Run Place Land Trust, Dated 12/30/11

Deutsche Bank National Trust Company USDC MD – Jacksonville Div. 3:21-cv-00102 Segal, Lee
INLAND ASSETS, LLC, As

Trustee For The 4417 Rudder Way Land Trust

Deutsche Bank National Trust Company, As Trustee For GSAMP Trust 2006-NC2,

Mortgage Pass-Through Certificates, Series 2006- NC2

USDC MD – Jacksonville Div. 3:21-cv-00040 Segal, Lee
INLAND ASSETS, LLC, As

Trustee For The 4417 Rudder Way

Deutsche Bank National Trust Company Pasco

2020-CA-001794

Segal, Lee
INLAND ASSETS, LLC, As

Trustee For 4462 Rudder Way Trust

Deutsche Bank National Trust Company Walton

2020-CA-000410

Lazenby, Megan; Wolf, Matthew
BLACKROCK ASSET MANAGEMENT, LLC As

Trustee For The 2950 Summer Swan Land Trust

Deutsche Bank National Trust Company, As Trustee For Indymac Indx Mortgage Loan Trust 2007-AR1, Mortgage Pass-Through Certificates Series 2007-AR1 USDC MD – Ft. Myers Div. MD 5:21-cv-00042 Segal, Lee
BLACKROCK ASSET MANAGEMENT, LLC, As

Trustee For RC Certificateholders Land Trust

Deutsche Bank National Trust Company Hillsborough 20-CA-009950 Wolf, Matthew
MARKET TAMPA INVESTMENTS, LLC Deutsche Bank National Trust Company, As Trustee For Novastar Mortgage Funding Trust, Series 2007 Novastar Home Equity Loan Asset-Back Certificates,

Series 2007

USDC MD – Ft. Myers Div. 2:21-cv-00037 Segal, Lee

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

LP ASSETS, LLC, As Trustee Deutsche Bank National Trust Company Dixie

2020-CA-000035

Segal, Lee
LP ASSETS, LLC, As Trustee DEUTSCHE BANK NATIONAL TRUST COMPANY, As

Trustee For Financial Asset Securities Corp., Soundview Home Loan Trust 2007- WMC1, Asset-Backed Certificates, Series 2007- WMC1

Pinellas

19-008350-CI

Segal, Lee
LP ASSETS, LLC, As Trustee Deutsche Bank National Trust Company, As Trustee For Financial Asset Securities Corp., Soundview Home Loan Trust 2007- WMCI, Asset-Backed Certificates, Series 2007- WMC1 Pinellas

20-003799-CI

Segal, Lee
KEATHEL CHAUNCEY, ESQ. As

Trustee Only For The 1234 Holly Circle Land Trust

Deutsche Bank National Trust Company Escambia

2020-CA-001394

Segal, Lee
GINSBERG-KLEMMT, ERIKA Deutsche Bank National Trust Company, As Trustee For American Home Mortgage Assets Trust 2006- 5, Mortgage-Backed Pass- Through Certificates, Series 2006-5 USDC ND – Tallahassee Div. 4:21-cv-00041 Segal, Lee
GINSBERG-KLEMMT, ERIKA Deutsche Bank National Trust Company, As Trustee For American Home Mortgage Assets Trust 2006- 5, Mortgage-Backed Pass- Through Certificates, Series 2006-5 USDC SD – Key West Div. 4:21-cv-10010 Segal, Lee
COOK, WALLACE Deutsche Bank Trust Company Americas Glades

2020-CA-000084

Segal, Lee

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

COOK, WALLACE Deutsche Bank National Trust Company, As Trustee Of Argent Securities Inc., Mortgage-Backed Pass- Through Certificates 2004- W1, Under The Pooling And Servicing Agreement Dated February 1, 2004, And Deutsche Bank Trust Company Americas, Formerly Known As Bankers Trust, As Trustee And Custodian Nassau

2020-CA-000270

Segal, Lee
COOK, WALLACE Deutsche Bank Trust Company Americas, As Trustee For Residential Accredit Loans, Inc., Mortgage Asset-Backed Pass-Through Certificates, Series 2004-QS4 Volusia 2020-11139 Segal, Lee
BONAFIDE PROPERTIES, LLC,

As Trustee For The Anderson Family Land Trust

Deutsche Bank National Trust Company Gulf

2020-CA-000131

Segal, Lee
DIGIOVANNI, LEONARDO Deutsche Bank National Trust Company F.K.A. Bankers Trust Company Of California, N.A., As Trustee Of The Vendee Mortgage Trust 1999-3, And Deutsche Bank National Trust Company, F.K.A. Bankers Trust Company Of California, N.A., As Trustee Of The Vendee Mortgage Trust 1999-2 Hardee

2020-CA-000292

Segal, Lee
FUBAR ASSETS, LLC, as Trustee For, 3417 70th Glen East Land Trust Deutsche Bank National Trust Company, As Trustee USDC – MD- Tampa Div. 8:20-cv-03090 Lazenby, Megan

 

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

SHEN YI, LLC, A New Mexico Limited Liability Company, As Trustee Of The 1970 Hidden Lake Dr I.V. Trust Under Agreement Dated August 25, 2011 Deutsche Bank National Trust Company Hendry

2020-CA-000336

Segal, Lee
DEPOALO, DARLEEN Deutsche Bank National Trust Company, As Trustee Under The Pooling Abd Servicing Agreement Dated As Of April 1, 2006 Morgan Stanley Abs Capital 1 Trust 2006-NC3, Mortgage Pass- Through Certificates Series 2006-NC3 USDC MD – Ft. Myers Div. 2:21-cv-00038 Lazenby, Megan
FLORIDA LIMITED INVESTMENT PROPERTIES, INC. Deutsche Bank Trust Company Americas USDC SD – Ft. Pierce Div. 2:21-cv-014039 Segal, Lee
ABUNDANT LIFE HOMES, LLC Deutsche Bank National Trust Company, As Indenture Trustee For American Home Mortgage Investment Trust 2007-1 USDC ND – Tallahassee Div. 4:21-cv-00053 Lazenby, Megan; Wolf, Matthew
QUEST SYSTEMS, LLC, As

Trustee Of The 16347 Coco Hammock Land Trust Dated November 29, 2012

Deutsche Bank National Trust Company, As Trustee For American Home Mortgage Asset Tryst 2006- 2, Mortgage Pass-Through

Certificates, Series 2006-2

USDC MD – Ft. Myers Div. 2:21-cv-00040 Segal, Lee
QUEST SYSTEMS, LLC, A New

Mexico Limited Liability Company As Successor Trustee Under The 4787 Woodward Land Trust Dated October 22, 2012

Deutsche Bank National Trust Company, As Trustee For Long Beach Mortgage Loan Trust 2006-4 Sarasota

2020-CA-004318

Segal, Lee; Mausser, Gregory K.

 

PLAINTIFF DEFENDANT COUNTY PLAINTIFF

ATTORNEY

ZIFFERRYN VENTURES, LLC, As

Trustee For The 8172 Via Rosa Land Trust

Deutsche Bank National Trust Company Orange

2020-CA-003153

Segal, Lee
ZIFERRYN VENTURES, LLC, As

Trustee For The 12033 Gandy Blvd Unit 175 Trust

Deutsche Bank National Trust Company, As Trustee For Harborview Mortgage Loan Trust 2005-9 Mortgage Loan Pass-Through Certificates, Series 2005-9 Pinellas

19-000251-CI

Segal, Lee
ZIFERRYN VENTURES, LLC, As

Trustee For The 12033 Gandy Blvd Unit 175 Trust

Deutsche Bank National Trust Company, As Trustee For Harborview Mortgage Loan Trust 2005-9 Mortgage Loan Pass-Through Certificates, Series 2005-9 Pinellas

20-003796-CI

Segal, Lee
JEFFREY M. HAHN and CARLA TURNER HAHN Deutsche Bank National Trust Company, As Trustee For Gsaa Home Equity Trust 2006-10, Asset-Backed

Certificates, Series 2006-10

USDC MD – Tampa Div. 8:21-cv-00039 Segal, Lee; Lazenby, Megan
SHANNON, SEAN Deutsche Bank National Trust Company USDC MD – Orlando Div. 6:21-cv-00198 Segal, Lee
WILSON, ALBERT Deutsche Bank National Trust Company, As Trustee USDC SD – Ft. Pierce Div. 2:21-cv-14036 Segal, Lee

Before the Court is Plaintiff Tammy Kenny’s Amended Motion to consolidate (Doc. 33) and Defendant Deutsche Bank National Trust Company’s response in opposition (Doc. 36).

Kenny asks the Court to consolidate twenty-five similar cases with this one for the purpose of appealing an Order denying remand and quashing service.

Deutsche Bank opposes on many grounds.

To start, Kenny points to nothing suggesting a district court can decide to consolidate cases only for an interlocutory appeal.

Whether to consolidate cases on appeal is a matter handled by the appellate court.

And when cases are consolidated by a district court for all purposes, each case still maintains its separate identity—ending in a separate judgment and notice of appeal. Hall v. Hall, 138 S. Ct. 1118, 1131 (2018). So, the Court denies the request to consolidate.

Even if the Court could consolidate, it cannot do so with all these cases for a separate reason. This Court may consolidate certain cases before it. Fed. R. Civ. P. 42(a); Local Rule 1.07(b).

But Kenny does not seek to only consolidate the cases assigned to the Court.

Kenny wants to consolidate a list of cases assigned to other judges, including many from other Divisions and Districts. Yet the Court does not have the power to simply pluck cases away from other federal judges around Florida.

As Deutsche Bank notes, there is theoretically a process by which Kenny could try consolidating a bunch of cases across the State. But it is much more involved than this empty-handed request to a single judge. So the Motion is denied.

Relatedly, Kenny filed a Notice of Appeal (Doc. 35) yesterday.

There are several issues with this.

Without authorization, Kenny is trying to appeal a nonfinal interlocutory order (i.e., she’s trying to appeal an order that is currently unappealable).

Caterpillar Inc. v. Lewis, 519 U.S. 61, 74 (1996) (“An order denying a motion to remand, standing alone, is obviously not final and immediately appealable as of right.” (cleaned up));

Stelly v. Employers Nat’l Ins., 431 F.2d 1251, 1254 (5th Cir. 1970) (explaining an order quashing service is a nonfinal, interlocutory order if it not effectively dispositive).

What’s more, Kenny misfiled the Notice in CM/ECF as a mere case notice.

Until a notice of appeal is properly filed, the Eleventh Circuit will have no inkling of an attempted appeal and CM/ECF will not trigger its necessary functions to process an appeal.

Finally, Kenny failed to pay the filing fee. Leaving aside the substantive issue—certain dismissal of the appeal—the Court strikes the Notice because it was misfiled.

If Kenny would like to try appealing at this time, she must make any necessary filings.

Accordingly, it is now

ORDERED:

(1) Plaintiff’s Amended Motion to Consolidated [sic] Related Cases for Purpose of Appeal (Doc. 33) is DENIED.

(2) The Court STRIKES Plaintiff’s Notice of Appeal (Doc. 35).

If Plaintiff intends to pursue an appeal, she must make the appropriate filings.

DONE and ORDERED in Fort Myers, Florida on April 2, 2021.

/s/ _________
SHERI POLSTER CHAPPELL
UNITED STATES DISTRICT JUDGE

U.S. District Court
Middle District of Florida (Ft. Myers)
CIVIL DOCKET FOR CASE #: 2:21-cv-00066-NPM

Shen Yi, LLC v. Deutsche Bank National Trust Company
Assigned to: Magistrate Judge Nicholas P. Mizell
Demand: $859,000

Case in other court:  In the Circuit Court of the 20th Judicial Circuit, 2020-CA-000336

Cause: 18:1961 Racketeering (RICO) Act

Date Filed: 01/26/2021
Date Terminated: 04/07/2021
Jury Demand: Plaintiff
Nature of Suit: 470 Racketeer/Corrupt Organization
Jurisdiction: Diversity
Plaintiff
Shen Yi, LLC
a New Mexico Limited Liability Company, as Trustee of the 1970 Hidden Lake Dr I.V. Trust Under Agreement Dated August 25, 2011
represented by Lee Segal
Segal & Schuh Law Group, PL
18167 US Hwy 19 N Ste 100
Clearwater, FL 33764
727-824-5775
Fax: 888-672-7347
Email: lee@segalschuh.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
V.
Defendant
Deutsche Bank National Trust Company
as Trustee, in Trust for the Registered Holders of Morgan Stanley ABS Capital I Inc. Trust 2006-HE8, Mortgage Pass-Through Certificates, Series 2006-HE8
represented by Benjamin Bruce Brown
Quarles & Brady, LLP
Suite 300
1395 Panther Ln
Naples, FL 34109-7874
239/659-5026
Fax: 239/213-5426
Email: benjamin.brown@quarles.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICEDJoseph T. Kohn
Quarles & Brady, LLP
Suite 300
1395 Panther Ln
Naples, FL 34109-7874
239/262-5959
Fax: 239/213-5599
Email: joseph.kohn@quarles.com
ATTORNEY TO BE NOTICED
Interested Party
Lee Segal represented by Brett J. Preston
Hill Ward Henderson, PA
101 E Kennedy Blvd – Ste 3700
PO Box 2231
Tampa, FL 33602-5195
813/221-3900
Fax: 813/221-2900
Email: brett.preston@hwhlaw.com
TERMINATED: 05/27/2021
LEAD ATTORNEYLee Segal
(See above for address)
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Interested Party
Segal & Schuh Law Group, P.L. represented by Brett J. Preston
(See above for address)
TERMINATED: 05/27/2021
LEAD ATTORNEYLee Segal
(See above for address)
LEAD ATTORNEY
ATTORNEY TO BE NOTICED

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Thank you for your trust, belief and support in our conviction to help Floridian residents and citizens nationwide take back their freedom. Your Donations and your Voice are so important.



Bankers

Another Theft of Funds Case, This Time Against SunTrust Bank

Plaintiffs, domiciled in Venezuela, assert that Truist (Sunbank) was negligent in allegedly permitting fraud and theft of funds from their bank account.

Published

on

New case. Bookmark for updates.

DE LA RIVA v. SUNTRUST BANK

(1:21-cv-24412)

District Court, S.D. Florida

DEC 21, 2021 | REPUBLISHED BY LIT: DEC 24, 2021

AMENDED NOTICE OF REMOVAL1

COMES NOW Defendant, Truist Bank, formerly known as SunTrust Bank (“Truist”), by and through undersigned counsel and pursuant to the provisions of 28 U.S.C. §§ 1332, 1441 and 1446, appearing specially so as to preserve any and all defenses available under Rule 12 of the Federal Rules of Civil Procedure, any and all defenses under the federal laws of bankruptcy and specifically preserving the right to demand arbitration pursuant to contractual agreements and the Federal Arbitration Act, 9 U.S.C. §§ 1, et seq., and hereby gives notice of the removal of this action from the Circuit Court of Miami-Dade County, Florida, to the United States District Court for the Southern District of Florida, Miami Division. In support of this notice of removal, Truist states as follows:

1 The amended notice of removal clarifies the Plaintiff’s country of domicile.

INTRODUCTION

  1. Plaintiffs, Shedir de La Riva, Claudia Gil, Adriana Gil C. and Eduardo La Riva C. (“Plaintiffs”) commenced this action by filing a complaint against Truist Bank, formerly known as SunTrust Bank, Inc. in the Circuit Court of Miami-Dade County, Florida, Case Number 2021- 025111-CA-04 (24) on or about November 12, 2021.
  2. Plaintiffs’ complaint asserts that Truist was negligent in allegedly permitting fraud and theft of funds from their bank ¶ 20.
  3. Based on these allegations, Plaintiffs seek to recover damages from Truist with in an amount exceeding $271,020.00. Compl. ¶
  4. This Court has jurisdiction over all of Plaintiffs’ claims under 28 U.S.C. § 1332, which provides federal district courts with original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000.00, and where the action is between citizens of different states. See 28 S.C. § 1332(a)(1).

A.                 The Parties are Completely Diverse.

  1. Complete diversity exists between Plaintiffs and Truist in this matter.
  2. The Plaintiffs are citizens of and domiciled in Venezuela.
  3. Truist Bank is organized under the laws of North Carolina with its principal place of business in Charlotte, North Carolina, and is a wholly-owned subsidiary of Truist Financial Corporation.
  4. Truist Financial Corporation was formed by the merger of SunTrust Banks, Inc. with and into BB&T Corporation on December 6, 2019, the merger of SunTrust Bank Holding Company into BB&T Corporation on December 7, 2019, and BB&T Corporation’s subsequent change of its name to Truist Financial Corporation (also on December 7, 2019). On December 7, 2019, SunTrust Bank merged with and into Branch Banking and Trust Company. Branch Banking and Trust Company was renamed Truist Bank. SunTrust Bank was a wholly-owned subsidiary of SunTrust Banks, Inc.
  5. Truist Financial Corporation is organized under the laws of North Carolina with its principal place of business in Charlotte, North Carolina.
  6. Accordingly, the parties are completely diverse, as Plaintiffs are citizens of Venezuela, and Truist is a citizen of North Carolina.

B.        The Amount in Controversy Exceeds $75,000.

  1. Removal is also proper because the amount in controversy exceeds the $75,000 jurisdictional threshold, exclusive of interest and costs.
  2. In the Complaint, Plaintiffs seek to recover against Truist damages in excess of $271,020.00 under two causes of action sounding in negligence and gross negligence/recklessness. See Compl. ¶ 15-32.
  3. The amount in controversy therefore exceeds $75,000, exclusive of interest and costs.
  4. Accordingly, this case is properly removable because it is between citizens of different states and the amount in controversy exceeds $75,000, exclusive of interest and costs.

ADOPTION AND RESERVATION OF DEFENSES

  1. Nothing in this notice of removal shall be interpreted as a waiver or relinquishment of any of Truist’s rights to assert any defense or affirmative matter, including, but not limited to, the defenses of: (1) lack of jurisdiction over the person; (2) improper venue; (3) insufficiency of process; (4) insufficiency of service of process; (5) improper joinder of claims and/or parties; (6) failure to state a claim; (7) the mandatory arbitrability of some or all of the claims; (8) failure to join indispensable parties; or (9) any other pertinent defense available under Fed. R. Civ. P. 12, any state or federal statute, or otherwise.

PROCEDURAL REQUIREMENTS

  1. This case is a civil action within the meaning of 28 S.C. § 1441(a).
  2. True and correct copies of “all process, pleadings, and orders” filed to date are attached hereto as Exhibit “A”, in conformity with 28 S.C. § 1446(a). There has been no other process, pleading, or order served upon Truist to date in this case.
  3. This Notice of Removal is being filed, pursuant to 28 U.S.C. § 1446, within thirty days from September 22, 2021, the date Truist was served with a copy of the See 28 U.S.C. § 1446(b).
  4. The United States District Court for the Southern District of Florida, Miami Division, is the court and division embracing the place where this action is pending in state court.
  5. Pursuant to 28 U.S.C. § 1446(d), contemporaneously with the filing of this notice of removal, Truist filed a copy of same with the clerk of the Clerk of Court in Miami-Dade County, Florida, as well as a notice of filing notice of removal. Written notice of the filing of this notice of removal has also been served upon the Plaintiff.
  6. Truist reserves the right to supplement this Notice of Removal by adding any jurisdictional defenses which may independently support a basis for removal.
  7. To the extent remand is sought by Plaintiff or otherwise visited by this Court, Truist requests the opportunity to brief the issues and submit additional arguments and evidence, and to be heard at oral argument.
  8. All defendants consent to the removal of this cause of action.

WHEREFORE, PREMISES CONSIDERED, Truist prays that this Court take jurisdiction of this action and issue all necessary orders and process to remove this action from the Circuit Court of Miami-Dade County, Florida, to the United States District Court for the Southern District of Florida.

DATED: December 22, 2021.

Respectfully submitted,

/s/ Nicholas S. Agnello                                               

Nicholas S. Agnello, Esq. (FL Bar No. 90844)
BURR & FORMAN LLP
350 East Las Olas Boulevard, Suite 1440
Ft. Lauderdale, FL 33301

Telephone: (954) 414-6200
Facsimile: (954) 414-6201

Primary Email: FLService@burr.com
Secondary Email: nagnello@burr.com
Secondary Email: rzamora@burr.com

 

David Elliott, Esq. (FL Bar No. 94237)
BURR & FORMAN LLP
420 North 20th Street, Suite 3400
Birmingham, AL 35203
Telephone: (205) 244-5631
Facsimile: (205) 244-5631

Primary Email: delliott@burr.com
Secondary Email: cwingate@burr.com
Secondary Email: sfoshee@burr.com

Counsels for Defendant Truist Bank, formerly known as SunTrust Bank, Inc.

YOUR DONATION(S) WILL HELP US:

• Continue to provide this website, content, resources, community and help center for free to the many homeowners, residents, Texans and as we’ve expanded, people nationwide who need access without a paywall or subscription.

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Thank you for your trust, belief and support in our conviction to help Floridian residents and citizens nationwide take back their freedom. Your Donations and your Voice are so important.



U.S. District Court
Southern District of Florida (Miami)
CIVIL DOCKET FOR CASE #: 1:21-cv-24412-JAL

DE LA RIVA et al v. SUNTRUST BANK
Assigned to: Judge Joan A. Lenard

Case in other court:  11th Judicial Circuit in and For Miami-Dade Co, Fl, 2021- 025111-CA-04 (24)

Cause: 28:1332 Diversity-Notice of Removal

Date Filed: 12/21/2021
Jury Demand: None
Nature of Suit: 190 Contract: Other
Jurisdiction: Diversity
Plaintiff
SHEDIMAR DE LA RIVA represented by Victor K. Rones
Rones & Navarro
16105 NE 18th Avenue
North Miami Beach, FL 33162
305-945-6522
Email: vrones@victorkronespa.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Plaintiff
Claudia Gil represented by Victor K. Rones
(See above for address)
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Plaintiff
ADRIANA GIL C. represented by Victor K. Rones
(See above for address)
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Plaintiff
EDUARDO LA RIVA C. represented by Victor K. Rones
(See above for address)
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
V.
Defendant
SUNTRUST BANK represented by David Alan Elliott
Burr & Forman LLP
420 North 20th Street
Suite 3400
Birmingham, AL 35203
(205) 251-3000
Fax: (205) 458-5100
Email: delliott@burr.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICEDNicholas Steven Agnello
Burr & Forman LLP
350 E. Las Olas Boulevard
Suite 1420
Ft Lauderdale, FL 33301
954 414-6202
Fax: 954-414-6201
Email: nagnello@burr.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED

 

Date Filed # Docket Text
12/21/2021 1 NOTICE OF REMOVAL (STATE COURT COMPLAINT – Complaint) Filing fee $ 402.00 receipt number AFLSDC-15266134, filed by SUNTRUST BANK. (No Answer filed/No Motion to Dismiss filed) (Attachments: # 1 Civil Cover Sheet, # 2 Docket Sheet, # 3 Exhibit State Court File)(Agnello, Nicholas) Text Modified on 12/21/2021 (scn). (Entered: 12/21/2021)
12/21/2021 2 Clerks Notice of Judge Assignment to Judge Joan A. Lenard.Pursuant to 28 USC 636(c), the parties are hereby notified that the U.S. Magistrate Judge Lauren F. Louis is available to handle any or all proceedings in this case. If agreed, parties should complete and file the Consent form found on our website. It is not necessary to file a document indicating lack of consent.

Pro se (NON-PRISONER) litigants may receive Notices of Electronic Filings (NEFS) via email after filing a Consent by Pro Se Litigant (NON-PRISONER) to Receive Notices of Electronic Filing. The consent form is available under the forms section of our website. (scn) (Entered: 12/21/2021)

12/22/2021 3 AMENDED NOTICE OF REMOVAL by SUNTRUST BANK re 1 Notice of Removal (State Court Complaint), Amended (Attachments: # 1 Exhibit) (Agnello, Nicholas) Modified on 12/22/2021 (dj). (Entered: 12/22/2021)
Continue Reading

Bankers

Andy’s Wells Fargo Bank Account Balance is Unexpectedly $455k Lighter and He Wants Those Funds Back

The complaint clearly needs to be fleshed out as the basic information provided is insufficient to determine even the basic facts. We’re trackin’ it.

Published

on

Tong v. Wells Fargo Bank, N.A.

(3:21-cv-01236)

District Court, M.D. Florida

DEC 17, 2021 | REPUBLISHED BY LIT: DEC 18, 2021

VERIFIED COMPLAINT AND DEMAND FOR JURY TRIAL

Plaintiff ANDY TONG hereby sues Defendant, Wells Fargo Bank, N.A., and states as follows:

Jurisdiction

1. Plaintiff, Andy Tong (“Mr. Tong”), is an individual residing in Duval County, Florida.

2. Defendant, Wells Fargo Bank, N.A. (“WFB”) is a Foreign Profit Corporation with a principal address of 420 Montgomery Street, San Francisco, California 94163.

3. All actions material to these proceedings occurred within Columbia County, Florida.

4. Venue is proper under 28 U.S.C. 1391, as all persons, local government authorities and private business entities, involved in this dispute reside or are authorized to do business within the geographic boundaries subject to the Middle District of Florida, Jacksonville Division.

5. This Court has jurisdiction of this cause pursuant to 28 U.S.C. §1331, specifically under 15 U.S.C. §1693m(g) and 28 U.S.C. §1343. 

Background

6. At all times in question, Mr. Tong was the owner and holder of Money Market Account Number xxxxxxxxx5467 (the “Account”) with Defendant, WFB.

7. The Account is located in the United States.

8. An ATM/CheckCard Number xxxxxxxxxxxx5467 (“Check Card”) was issued on the Account to Mr. Tong.

9. At all times in question, Mr. Tong was the sole authorized signatory on the Account.

10. At all times in question, Mr. Tong was living in Columbia County, Florida.

11. On or about January 11, 2021 Mr. Tong went to the Wells Fargo branch in Gainesville to withdraw money from his account and noticed unauthorized funds were withdrawn.

12. On or about January 11, 2021, Mr. Tong advised WFB and reported the unauthorized transactions on the Account and requested all records pertaining to the Account.

13. Upon notifying WFB of the unauthorized transactions, WFB representative advised Mr. Tong that the Account was frozen so that no further unauthorized transactions could be made.

14. The Check Card was never out of Mr. Tong’s possession or control.

15. Prior to January 11, 2021, Mr. Tong never learned of or had reason to suspect of any counterfeit card or of any loss or theft of Account information used to make the unauthorized transfers.

16. With the exception of the occasional gas purchase, all of the transactions identified on the attached Exhibit “A” were unauthorized (the “Unauthorized Transactions.”)

17. As a result of the Unauthorized Transactions, the Account and Mr. Tong have lost approximately $454,636.17.

18. WFB is considered a “financial institution” per 15 U.S.C. §1693a(9).

 

19. “Electronic funds transfer” is defined as “any transfer of funds . . . which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes . . . direct deposits or withdrawals of funds ” 15 U.S.C. § 1693a(7); see also 12 C.F.R. § 205.3(b).

20. The rights, liabilities, and responsibilities of the parties to this action, with respect to the unauthorized transactions on the Account, are governed by the Electronic Fund Transfer Act (15 U.S.C. § 1693, et seq.) (the “EFTA”).

21. The purpose of the EFTA is “to provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund transfer systems. The primary objective of this subchapter, however, is the provision of individual consumer rights.” (15 U.S.C. § 1693, ¶ (b) of the introduction).

22. According to § 1693m(a) of the EFTA, “ any person who fails to comply with any provision of this subchapter with respect to any consumer, except for an error resolved in accordance with section 1693f of this title, is liable to such consumer in an amount equal to the sum of (1) any actual damage sustained by such consumer as a result of such failure; (2)(A) in the case of an individual action, an amount not less than $100 nor greater than $1,000; and (3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court.”

23. In order to be liable to Mr. Tong under § 1693m(a) of the EFTA, WFB must have failed to resolve an error in accordance with § 1693f of the EFTA.

24. For purposes of § 1693f of the EFTA, the unauthorized transactions reported by Mr. Tong constitute errors. See, 15 U.S.C. § 1693f(f)(1).

25. Pursuant to § 1693f of the EFTA, WFB was required to investigate the unauthorized transactions reported by Mr. Tong, determine whether an error had occurred, and report or mail the results of such investigation and determination to Mr. Tong and/or the other account holders within ten (10) business days after WFB received notice of the Unauthorized Transactions (i.e., within 10 business days after January 11, 2021 or, in lieu of such requirement, WFB could have, within ten (10) business days after receiving such notice, provisionally re-credited the Account for the amount of the unauthorized transactions, subject to 15 U.S.C. § 1693g, including any applicable interest, pending the timely conclusion of WFB’s investigation and determination of whether an error had occurred on the WFB Account. See, 15 U.S.C. § 1693f(a) and (c).

26. However, during the requisite ten (10) business-day period, WFB did not report or mail the results of WFB’s investigation and determination of Mr. Tong’s claim, nor did WFB provisionally re-credited the Account for any amount of the unauthorized transactions pending the conclusion of WFB’s investigation and its determination of whether an error had occurred on WFB Account.

27. Moreover, WFB was obligated to re-credit the Account for the amount of the Unauthorized Transactions, as the Check Card used to make the Unauthorized Transactions on the Account was not an accepted card or other means of access as defined in § 1693a of the EFTA. See, 15 U.S.C. § 1693g.

28. Even if the Check Card used to make the Unauthorized Transactions on the Account had been an accepted card or other means of access, as defined in § 1693a of the EFTA, WFB would have been required to reimburse their respective portions of the Account for the amount of the Unauthorized Transactions, less a maximum of fifty dollars ($50.00). See, 15 U.S.C. § 1693g.

29. WFB never re-credited the Account for any amount.

30. By letter dated January 25, 2021, WFB denied Mr. Tong’s claim of January 11, 2021. A true and correct copy of the Claim Denial Letter is attached hereto as Composite Exhibit “B.”

31. January 25, 2021 was more than ten (10) business days after January 11, 2021.

32. In the Claim Denial Letter, WFB stated that Mr. Tong had rights to obtain records upon which WFB decision was based. See Composite Exhibit “B.”

33. WFB was required, upon request, to promptly deliver or mail to Mr. Tong reproductions of all documents upon which WFB relied on to conclude that the unauthorized transactions (i.e., errors) did not occur. See, 15 U.S.C. § 1693f(d).

34. On or about February 16, 2021, Mr. Tong requested the records upon which WFB decision was based.

35. As of the date of this filing, WFB has not reimbursed Mr. Tong for the unauthorized expenditures.

36. Mr. Tong hired the undersigned counsel to represent him in this action, and has agreed to pay a reasonable fee and costs to the undersigned counsel in connection with such representation in accordance with 15 U.S.C. §1693m(a)(3).

37. All conditions precedent to this action have been performed, have occurred, or have been waived.

COUNT I VIOLATION OF 15 U.S.C. §1693f(a)

38. Plaintiff incorporates by reference in this count all allegations set forth above in Paragraphs 1 through 37.

39. This is an action for violation of 15 U.S.C. §1693f(a), which requires WFB investigate the alleged error and mail the results of the same to the consumer within ten (10) business days.

40. WFB did not, within ten (10) business days after receiving Mr. Tong’s claim of January 11, 2021, investigate the unauthorized transactions reported by Mr. Tong, determine whether an error had occurred, and report or mail the results of such investigation and determination to Mr. Tong.

41. WFB did not, within ten (10) business days after receiving Mr. Tong’s claim of January 11, 2021, provisionally re-credited the Account for the amount of the unauthorized transactions, subject to 15 U.S.C. § 1693g, including any applicable interest, pending the timely conclusion of WFB’s investigation and determination of whether an error had occurred on the Account.

42. By failing to timely report or mail the results of its purported investigation or, in lieu thereof, provisionally re-credit the Account, WFB violated 15 U.S.C. § 1693f(a).

WHEREFORE, Plaintiff ANDY TONG demands judgment against the Defendant, WELLS FARGO BANK, N.A., for actual damages, statutory damages of $1,000.00, attorneys’ fees and costs, and interest, plus any and all other relief this Honorable Court deems just and proper.

COUNT II VIOLATION OF 15 U.S.C. §1693f(c)

43. Plaintiff incorporates by reference in this count all allegations set forth above in Paragraphs 1 through 37.

44. This is an action for violation of 15 U.S.C. §1693f(c), which permits WFB, in lieu of investigating and providing the results to the consumer within ten (10) days, provisionally recredit the consumer’s account pending the conclusion of an investigation in to the alleged errors of the account.

45. WFB did not, within ten (10) business days after receiving Mr. Tong’s claim of January 11, 2021 investigate the Unauthorized Transactions reported by Mr. Tong, determine whether an error had occurred, and report or mail the results of such investigation and determination to Mr. Tong; therefore, WFB was required to provisionally re-credited the Account, within said ten (10)-business day period, for the amount of the Unauthorized Transactions, subject to 15 U.S.C. § 1693g, including any applicable interest, pending the timely conclusion of WFB’s investigation and determination of whether an error had occurred on the Account.

46. By failing to provisionally re-credit the Account, WFB violated 15 U.S.C. § 1693f(c).

WHEREFORE, Plaintiff ANDY TONG demands judgment against the Defendant, WELLS FARGO BANK, N.A., for actual damages, statutory damages of $1,000.00, attorneys’ fees and costs, and interest, plus any and all other relief this Honorable Court deems just and proper.

COUNT III VIOLATION OF 15 U.S.C. §1693f(d)

47. Plaintiff incorporates by reference in this count all allegations set forth above in Paragraphs 1 through 37.

48. This is an action for violation of 15 U.S.C. §1693f(d), which requires that WFB provide an explanation of its findings to the consumer within three (3) business days of the conclusion of its investigation. Moreover, upon the request of the consumer, it shall promptly deliver reproduction of all financial documents relied upon in concluding that an error did not occur.

49. Upon receipt of the records request by Mr. Tong, WFB was required to promptly deliver or mail reproductions of all documents upon which WFB relied to conclude that the Unauthorized Transactions did not occur.

50. WFB did not promptly deliver or mail any documents or otherwise respond to the Mr. Tong’s records request.

51. By failing to promptly deliver or mail reproductions of all documents upon which WFB relied to conclude that the Unauthorized Transactions did not occur, WFB violated 15 U.S.C. §1693f(d).

WHEREFORE, Plaintiff, ANDY TONG demands judgment against the Defendant, WELLS FARGO BANK, N.A., for actual damages, statutory damages of $1,000.00, attorneys’ fees and costs, and interest, plus any and all other relief this Honorable Court deems just and proper.

 

COUNT IV

TREBLE DAMAGES UNDER 15 U.S.C. §1693f(e)

52. Plaintiff incorporates by reference in this count all allegations set forth above in Paragraphs 1 through 37.

53. This is an action for violation of 15 U.S.C. §1693f(e), which provides that a consumer shall be entitled to treble damages for any action if the trial court finds a violation of subsection 15 U.S.C. §1693f(c) and the financial institution did not make a good faith investigation of the alleged error; have a reasonable basis for believing the consumer’s account was not in error; or knowingly and willfully concluding the consumer’s account was not in error when such a conclusion could not reasonably have been drawn for the evidence available to the financial institution at the time of the investigation.

54. Upon information and belief, WFB (a) did not make a good faith investigation of the alleged error, or (b) did not have a reasonable basis for believing that the Account was not in error; or (c) knowingly and willfully concluded that the Account was not in error when such conclusion could not reasonably have been drawn from the evidence available to WFB at the time of its investigation; therefore, pursuant to § 1693f(e) of the EFTA, Mr. Tong is entitled to treble damages determined under § 1693m(a)(1) of the EFTA.
WHEREFORE, Plaintiff, ANDY TONG demands judgment against the Defendant, WELLS FARGO BANK, N.A., for treble the amount of actual damage suffered by Plaintiff, ANDY TONG as a result of Defendant’s violations of the EFTA, plus any and all other relief this Honorable Court deems just and proper.

COUNT V

VIOLATION OF UCC ARTICLE 4A (Fla. Stat. Chap. 670)

55. Plaintiff incorporates by reference in this count all allegations set forth above in Paragraphs 1 through 37.

56. The Unauthorized Transactions in Exhibit “A” are governed by Article 4A of the Uniform Commercial Code, codified at Fla. Stat. §§670.101, et seq. (“Article 4A”).

57. WFB’s conduct, as more fully set forth herein, violates Article 4A.

58. The Unauthorized Transactions were processed and facilitated by WFB in violation of §670.202 and/or §670.203, Fla. Stat. and is, therefore, unenforceable against the Plaintiff.

59. Specifically, the Unauthorized Transactions was not caused, directly or indirectly, by a person who was authorized to originate a wire pursuant on the WFB Account as an “Originator.”

60. By failing to contact the Plaintiff, WFB failed to comply with, and adhere to, a commercially reasonable security procedure as expressed to WFB and specifically chosen by the Plaintiff.

61. WFB failed to comply with the security procedures designed to protect the Plaintiff when it failed to contact the Plaintiff to confirm the Unauthorized Transactions. By doing so, WFB failed to accept the wire transfer require in good faith and in compliance with commercially reasonable security procedures.

62. Accordingly, the Unauthorized Transactions were not authorized and is not effective as the order of Plaintiff pursuant to §670.202, Fla. Stat. and/or is not enforceable against Plaintiffs under §670.203, Fla. Stat.

63. WFB is obligated to refund the entire amount of the Unauthorized Transactions to Plaintiff, plus interest pursuant to §670.204, Fla. Stat.

64. As a direct and proximate result of WFB’s multiple statutory violations, Plaintiff has suffered and continue to suffer damages.

WHEREFORE, Plaintiff, ANDY TONG, demands judgment against Defendant, WELLS FARGO BANK, N.A., for damages, costs and such other and further relief as this Court deems just and proper.
Demand for Jury Trial

Plaintiff, ANDY TONG, demands trial by jury on all issues so triable.

DATED this 16th day of December, 2021.

LAW OFFICE OF KELLY B. MATHIS

By: Kelly B. Mathis, Esquire
Florida Bar No. 0768588

James M. Oliver, Esquire
Florida Bar No. 0124458

3577 Cardinal Point Drive
Jacksonville, FL 32257
(904) 549-5755
Primary: kmathis@mathislaw.net
Secondary: carmen@mathislaw.net

Attorneys for Plaintiff

 

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U.S. District Court
Middle District of Florida (Jacksonville)
CIVIL DOCKET FOR CASE #: 3:21-cv-01236-MMH-LLL

 

Tong v. Wells Fargo Bank, N.A.
Assigned to: Judge Marcia Morales Howard
Referred to: Magistrate Judge Laura Lothman Lambert
Demand: $455,000
Cause: Civil Miscellaneous Case
Date Filed: 12/16/2021
Jury Demand: None
Nature of Suit: 430 Banks and Banking
Jurisdiction: Federal Question
Plaintiff
Andy Tong represented by Kelly B. Mathis
Law Offices of Kelly B. Mathis
3577 Cardinal Point Drive
Jacksonville, FL 32257
904/549-5755
Email: kmathis@mathislaw.net
ATTORNEY TO BE NOTICED
V.
Defendant
Wells Fargo Bank, N.A.
a foreign profit corporation
Date Filed # Docket Text
12/16/2021 1 COMPLAINT against WELLS FARGO BANK, NA with Jury Demand (Filing fee $ 402 receipt number AFLMDC-19038015) filed by ANDY TONG. (Attachments: # 1 Civil Cover Sheet, # 2 Exhibit Exhibit A, # 3 Exhibit Exhibit B)(Mathis, Kelly) (Entered: 12/16/2021)
12/17/2021 2 NEW CASE ASSIGNED to Judge Marcia Morales Howard and Magistrate Judge Laura Lothman Lambert. New case number: 3:21-cv-1236-MMH-LLL. (SJB) (Entered: 12/17/2021)

L21000185243
Company Name:
ANDY TONG INVESTMENTS LLC

Date of Incorporation:
2021-04-21

Status:
ACTIVE

Company Type:
Florida Limited Liability Company

State
Florida

Annual Reports
No Annual Reports Filed

Principal Address
1044 NW EADIE ST. LAKE CITY, FL 32055

Registered Agent Name:
CASE, JONATHAN A

Registered Agent Address:
4615 WESCONNETT BLVD. JACKSONVILLE, FL 32210

updated on
2021-05-05

Director details (1)

TONG, ANDY

MGR

1044 NW EADIE ST LAKE CITY, FL 32055

Other companies with agent name CASE, JONATHAN A

A-JAX LOCAL VAPE L.L.C.
2021-02-22
ACTIVE

ACS LOADING SERVICES LLC
2019-03-11
INACTIVE

JACASE INVESTMENTS LLC
2017-08-30
ACTIVE

Continue Reading

Acceleration

Rewind 2008: The Home Snatchers Stole Millions of Homes, Lives and Citizen’s Trust By Unimaginable Fraud

Wall Street and the Government decided, if they were to make it through the Greatest Depression, they’d have to spin their biggest lie in the history of the United States of America. It worked.

Published

on

Invasion of the Home Snatchers

How foreclosure courts are helping big banks screw over homeowners

NOV 10, 2010 | REPUBLISHED BY LIT: DEC 4, 2021

The foreclosure lawyers down in Jacksonville had warned me, but I was skeptical. They told me the state of Florida had created a special super-high-speed housing court with a specific mandate to rubber-stamp the legally dicey foreclosures by corporate mortgage pushers like Deutsche Bank and JP Morgan Chase.

This “rocket docket,” as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and laby­rinthine derivative deals of a type that didn’t even exist when most of them were active members of the bench.

Their stated mission isn’t to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history — an epic mountain range of corporate fraud in which Wall Street megabanks conspired first to collect huge numbers of subprime mortgages, then to unload them on unsuspecting third parties like pensions, trade unions and insurance companies (and, ultimately, you and me, as taxpayers) in the guise of AAA-rated investments.

Selling lead as gold, shit as Chanel No. 5, was the essence of the booming international fraud scheme that created most all of these now-failing home mortgages.

Looting Main Street

The rocket docket wasn’t created to investigate any of that. It exists to launder the crime and bury the evidence by speeding thousands of fraudulent and predatory loans to the ends of their life cycles, so that the houses attached to them can be sold again with clean paperwork.

The judges, in fact, openly admit that their primary mission is not justice but speed.

One Jacksonville judge, the Honorable A.C. Soud, even told a local newspaper that his goal is to resolve 25 cases per hour.

Given the way the system is rigged, that means His Honor could well be throwing one ass on the street every 2.4 minutes.

Foreclosure lawyers told me one other thing about the rocket docket. The hearings, they said, aren’t exactly public.

“The judges might give you a hard time about watching,” one lawyer warned. “They’re not exactly anxious for people to know about this stuff.”

Inwardly, I laughed at this — it sounded like typical activist paranoia. The notion that a judge would try to prevent any citizen, much less a member of the media, from watching an open civil hearing sounded ridiculous.

Fucked-up as everyone knows the state of Florida is, it couldn’t be that bad. It isn’t Indonesia. Right?

Well, not quite.

When I went to sit in on Judge Soud’s courtroom in downtown Jacksonville, I was treated to an intimate, and at times breathtaking, education in the horror of the foreclosure crisis, which is rapidly emerging as the even scarier sequel to the financial meltdown of 2008:

Invasion of the Home Snatchers II.

In Las Vegas, one in 25 homes is now in foreclosure.

In Fort Myers, Florida, one in 35.

In September, lenders nationwide took over a rec­ord 102,134 properties; that same month, more than a third of all home sales were distressed properties.

All told, some 820,000 Americans have already lost their homes this year, and another 1 million currently face foreclosure.

Throughout the mounting catastrophe, however, many Americans have been slow to comprehend the true nature of the mortgage disaster. They seemed to have grasped just two things about the crisis:

One, a lot of people are getting their houses foreclosed on.

Two, some of the banks doing the foreclosing seem to have misplaced their paperwork.

For most people, the former bit about homeowners not paying their damn bills is the important part, while the latter, about the sudden and strange inability of the world’s biggest and wealthiest banks to keep proper records, is incidental.

Just a little office sloppiness, and who cares?

Those deadbeat homeowners still owe the money, right?

“They had it coming to them,” is how a bartender at the Jacksonville airport put it to me.

But in reality, it’s the unpaid bills that are incidental and the lost paperwork that matters.

It turns out that underneath that little iceberg tip of exposed evidence lies a fraud so gigantic that it literally cannot be contemplated by our leaders, for fear of admitting that our entire financial system is corrupted to its core — with our great banks and even our government coffers backed not by real wealth but by vast landfills of deceptively generated and essentially worthless mortgage-backed assets.

You’ve heard of Too Big to Fail — the foreclosure crisis is Too Big for Fraud.

Think of the Bernie Madoff scam, only replicated tens of thousands of times over, infecting every corner of the financial universe. The underlying crime is so pervasive, we simply can’t admit to it — and so we are working feverishly to rubber-stamp the problem away, in sordid little backrooms in cities like Jacksonville, behind doors that shouldn’t be, but often are, closed.

And that’s just the economic side of the story.

The moral angle to the foreclosure crisis — and, of course, in capitalism we’re not supposed to be concerned with the moral stuff, but let’s mention it anyway — shows a culture that is slowly giving in to a futuristic nightmare ideology of computerized greed and unchecked financial violence.

The monster in the foreclosure crisis has no face and no brain.

The mortgages that are being foreclosed upon have no real owners. The lawyers bringing the cases to evict the humans have no real clients. It is complete and absolute legal and economic chaos.

No single limb of this vast man-­eating thing knows what the other is doing, which makes it nearly impossible to combat — and scary as hell to watch.

What follows is an account of a single hour of Judge A.C. Soud’s rocket docket in Jacksonville.

Like everything else related to the modern economy, these foreclosure hearings are conducted in what is essentially a foreign language, heavy on jargon and impenetrable to the casual observer.

It took days of interviews with experts before and after this hearing to make sense of this single hour of courtroom drama. And though the permutations of small-time scammery and grift in the foreclosure world are virtually endless — your average foreclosure case involves homeowners or investors being screwed at least five or six creative ways — a single hour of court and a few cases is enough to tell the main story.

Because if you see one of these scams, you see them all.

It’s early on a sunny Tuesday morning when I arrive at the chambers of Judge Soud, one of four rotating judges who preside over the local rocket docket.

These special foreclosure courts were established in July of this year, after the state of Florida budgeted $9.6 million to create a new court with a specific mandate to clear 62 percent of the foreclosure cases that were clogging up the system.

Rather than forcing active judges to hear thousands of individual cases, this strategy relies on retired judges who take turns churning through dozens of cases every morning, with little time to pay much attention to the particulars.

What passes for a foreclosure court in Jacksonville is actually a small conference room at the end of a hall on the fifth floor of the drab brick Duval County Courthouse. The space would just about fit a fridge and a pingpong table.

At the head of a modest conference table this morning sits Judge Soud, a small and fussy-looking man who reminds me vaguely of the actor Ben Gazzara.

On one side of the table sits James Kowalski, a former homicide prosecutor who is now defending homeowners.

A stern man with a shaved head and a laconic manner of speaking, Kowalski has helped pioneer a whole new approach to the housing mess, slowing down the mindless eviction machine by deposing the scores of “robo-signers” being hired by the banks to sign phony foreclosure affidavits by the thousands.

For his work on behalf of the dispossessed, Kowalski was recently profiled in a preposterous Wall Street Journal article that blamed attorneys like him for causing the foreclosure mess with their nuisance defense claims.

The headline: “Niche Lawyers Spawned Housing Fracas.”

On the other side of the table are the plaintiff’s attorneys, the guys who represent the banks.

On this level of the game, these lawyers refer to themselves as “bench warmers” — volume stand-ins subcontracted by the big, hired-killer law firms that work for the banks.

One of the bench warmers present today is Mark Kessler, who works for a number of lenders and giant “foreclosure mills,” including the one run by David J. Stern, a gazillionaire attorney and all-Universe asshole who last year tried to foreclose on 70,382 homeowners.

Which is a nice way to make a living, considering that Stern and his wife, Jeanine, have bought nearly $60 million in property for themselves in recent years, including a 9,273-square-foot manse in Fort Lauderdale that is part of a Ritz-Carlton complex.

Kessler is a harried, middle-aged man in glasses who spends the morning perpetually fighting to organize a towering stack of folders, each one representing a soon-to-be-homeless human being. It quickly becomes apparent that Kessler is barely acquainted with the names in the files, much less the details of each case.

“A lot of these guys won’t even get the folders until right before the hearing,” says Kowalski.

When I arrive, Judge Soud and the lawyers are already arguing a foreclosure case; at a break in the action, I slip into the chamber with a legal-aid attorney who’s accompanying me and sit down. The judge eyes me anxiously, then proceeds.

He clears his throat, and then it’s ready, set, fraud!

Judge Soud seems to have no clue that the files he is processing at a breakneck pace are stuffed with fraudulent claims and outright lies.

“We have not encountered any fraud yet,” he recently told a local newspaper. “If we encountered fraud, it would go to [the state attorney], I can tell you that.”

But the very first case I see in his court is riddled with fraud.

Kowalski has seen hundreds of cases like the one he’s presenting this morning.

It started back in 2006, when he went to Pennsylvania to conduct what he thought would be a routine deposition of an official at the lending giant GMAC.

What he discovered was that the official — who had sworn to having personal knowledge of the case — was, in fact, just a “robo-signer” who had signed off on the file without knowing anything about the actual homeowner or his payment history.

(Kowalski’s clients, like most of the homeowners he represents, were actually making their payments on time; in this particular case, a check had been mistakenly refused by GMAC.)

Following the evidence, Kowalski discovered what has turned out to be a systemwide collapse of the process for documenting mortgages in this country.

If you’re foreclosing on somebody’s house, you are required by law to have a collection of paperwork showing the journey of that mortgage note from the moment of issuance to the present.

You should see the originating lender (a firm like Countrywide) selling the loan to the next entity in the chain (perhaps Goldman Sachs) to the next (maybe JP Morgan), with the actual note being transferred each time.

But in fact, almost no bank currently foreclosing on homeowners has a reliable record of who owns the loan; in some cases, they have even intentionally shredded the actual mortgage notes.

That’s where the robo-signers come in.

To create the appearance of paperwork where none exists, the banks drag in these pimply entry-level types — an infamous example is GMAC’s notorious robo-signer Jeffrey Stephan, who appears online looking like an age-advanced photo of Beavis or Butt-Head — and get them to sign thousands of documents a month attesting to the banks’ proper ownership of the mortgages.

This isn’t some rare goof-up by a low-level cubicle slave: Virtually every case of foreclosure in this country involves some form of screwed-up paperwork.

“I would say it’s pretty close to 100 percent,”

says Kowalski. An attorney for Jacksonville Area Legal Aid tells me that out of the hundreds of cases she has handled, fewer than five involved no phony paperwork.

“The fraud is the norm,” she says.

Kowalski’s current case before Judge Soud is a perfect example.

The Jacksonville couple he represents are being sued for delinquent payments, but the case against them has already been dismissed once before. The first time around, the plaintiff, Bank of New York Mellon, wrote in Paragraph 8 that “plaintiff owns and holds the note” on the house belonging to the couple.

But in Paragraph 3 of the same complaint, the bank reported that the note was “lost or destroyed,” while in Paragraph 4 it attests that “plaintiff cannot reasonably obtain possession of the promissory note because its whereabouts cannot be determined.”

The bank, in other words, tried to claim on paper, in court, that it both lost the note and had it, at the same time. Moreover, it claimed that it had included a copy of the note in the file, which it did — the only problem being that the note (a) was not properly endorsed, and (b) was payable not to Bank of New York but to someone else, a company called Novastar.

Now, months after its first pass at foreclosure was dismissed, the bank has refiled the case — and what do you know, it suddenly found the note. And this time, somehow, the note has the proper stamps.

“There’s a stamp that did not appear on the note that was originally filed,” Kowalski tells the judge. (This business about the stamps is hilarious. “You can get them very cheap online,” says Chip Parker, an attorney who defends homeowners in Jacksonville.)

The bank’s new set of papers also traces ownership of the loan from the original lender, Novastar, to JP Morgan and then to Bank of New York.

The bank, in other words, is trying to push through a completely new set of documents in its attempts to foreclose on Kowalski’s clients.

There’s only one problem: The dates of the transfers are completely fucked.

According to the documents, JP Morgan transferred the mortgage to Bank of New York on December 9th, 2008. But according to the same documents, JP Morgan didn’t even receive the mortgage from Novastar until February 2nd, 2009 — two months after it had supposedly passed the note along to Bank of New York.

Such rank incompetence at doctoring legal paperwork is typical of foreclosure actions, where the fraud is laid out in ink in ways that make it impossible for anyone but an overburdened, half-asleep judge to miss.

“That’s my point about all of this,”

Kowalski tells me later.

“If you’re going to lie to me, at least lie well.”

The dates aren’t the only thing screwy about the new documents submitted by Bank of New York.

Having failed in its earlier attempt to claim that it actually had the mortgage note, the bank now tries an all-of-the-above tactic.

“Plaintiff owns and holds the note,” it claims, “or is a person entitled to enforce the note.”

Soud sighs. For Kessler, the plaintiff’s lawyer, to come before him with such sloppy documents and make this preposterous argument — that his client either is or is not the note-holder — well, that puts His Honor in a tough spot.

The entire concept is a legal absurdity, and he can’t sign off on it.

With an expression of something very like regret, the judge tells Kessler,

“I’m going to have to go ahead and accept [Kowalski’s] argument.”

Now, one might think that after a bank makes multiple attempts to push phony documents through a courtroom, a judge might be pissed off enough to simply rule against that plaintiff for good.

As I witness in court all morning, the defense never gets more than one chance to screw up. But the banks get to keep filing their foreclosures over and over again, no matter how atrocious and deceitful their paperwork is.

Thus, when Soud tells Kessler that he’s dismissing the case, he hastens to add:

“Of course, I’m not going to dismiss with prejudice.” With an emphasis on the words “of course.”

Instead, Soud gives Kessler 25 days to come up with better paperwork.

Kowalski fully expects the bank to come back with new documents telling a whole new story of the note’s ownership.

“What they’re going to do, I would predict, is produce a note and say Bank of New York is not the original note-holder, but merely the servicer,” he says.

This is the dirty secret of the rocket docket

The whole system is set up to enable lenders to commit fraud over and over again, until they figure out a way to reduce the stink enough so some judge like Soud can sign off on the scam.

“If the court finds for the defendant, the plaintiffs just refile,” says Parker, the local attorney.

“The only way for the caseload to get reduced is to give it to the plaintiff. The entire process is designed with that result in mind.”

Now all of this — the obviously cooked-up documents, the magically appearing stamp and the rest of it — may just seem like nothing more than sloppy paperwork. After all, what does it matter if the bank has lost a few forms or mixed up the dates?

The homeowners still owe what they owe, and the deadbeats have no right to keep living in a house they haven’t paid for.

But what’s going on at the Jacksonville rocket docket, and in foreclosure courts all across the country, has nothing to do with sloppiness.

All this phony paperwork was actually an essential part of the mortgage bubble, an integral element of what has enabled the nation’s biggest lenders to pass off all that subprime lead as AAA gold.

In the old days, when you took out a mortgage, it was probably through a local bank or a credit union, and whoever gave you your loan held on to it for life.

If you lost your job or got too sick to work and suddenly had trouble making your payments, you could call a human being and work things out.

It was in the banker’s interest, as well as yours, to make a modified payment schedule.

From his point of view, it was better that you pay something than nothing at all.

But that all changed about a decade ago, thanks to the invention of new financial instruments that magically turned all these mortgages into high-grade investments.

Now when you took out a mortgage, your original lender — which might well have been a big mortgage mill like Countrywide or New Century — immediately sold off your loan to big banks like Deutsche and Goldman and JP Morgan.

The banks then dumped hundreds or thousands of home loans at a time into tax-exempt real estate trusts, where the loans were diced up into securities, examined and graded by the ratings agencies, and sold off to big pension funds and other institutional suckers.

Even at this stage of the game, the banks generally knew that the loans they were buying and reselling to investors were shady.

A company called Clayton Holdings, which analyzed nearly 1 million loans being prepared for sale in 2006 and 2007 by 23 banks, found that nearly half of the mortgages failed to meet the underwriting standards being promised to investors.

Citi­group, for instance, had 29 percent of its loans come up short, but it still sold a third of those mortgages to investors.

Goldman Sachs had 19 percent of its mortgages flunk the test, yet it knowingly hawked 34 percent of the risky deals to investors.

D. Keith Johnson, the head of Clayton Holdings, was so alarmed by the findings that he went to officials at three of the main ratings agencies — Moody’s, Standard and Poor’s, and Fitch’s — and tried to get them to properly evaluate the loans.

“Wouldn’t this information be great for you to have as you assign risk levels?” he asked them.

(Translation: Don’t you ratings agencies want to know that half these loans are crap before you give them a thumbs-up?)

But all three agencies rejected his advice, fearing they would lose business if they adopted tougher standards. In the end, the agencies gave large chunks of these mortgage-backed securities AAA ratings — which means “credit risk almost zero.”

Since these mortgage-backed securities paid much higher returns than other AAA investments like treasury notes or corporate bonds, the banks had no trouble attracting investors, foreign and domestic, from pension funds to insurance companies to trade unions.

The demand was so great, in fact, that they often sold mortgages they didn’t even have yet, prompting big warehouse lenders like Countrywide and New Century to rush out into the world to find more warm bodies to lend to.

In their extreme haste to get thousands and thousands of mortgages they could resell to the banks, the lenders committed an astonishing variety of fraud,

from falsifying income statements to making grossly inflated appraisals to misrepresenting properties to home buyers.

Most crucially, they gave tons and tons of credit to people who probably didn’t deserve it, and why not?

These fly-by-night mortgage companies weren’t going to hold on to these loans, not even for 10 minutes.

They were issuing this credit specifically to sell the loans off to the big banks right away, in furtherance of the larger scheme to dump fraudulent AAA-rated mortgage-backed securities on investors.

If you had a pulse, they had a house to sell you.

As bad as Countrywide and all those lenders were, the banks that had sent them out to collect these crap loans were a hundred times worse.

To sell the loans, the banks often dumped them into big tax-exempt buckets called REMICs, or Real Estate Mortgage Investment Conduits. Each one of these Enron-ish, offshore-like real estate trusts spelled out exactly what kinds of loans were supposed to be in the pool, when they were to be collected, and how they were to be managed.

In order to both preserve their tax-exempt status and deserve their AAA ratings, each of the loans in the pool had to have certain characteristics. The loans couldn’t already be in default or foreclosure at the time they were sold to investors.

If they were advertised as nice, safe, fixed-rate mortgages, they couldn’t turn out to be high-interest junk loans. And, on the most basic level, the loans had to actually exist.

In other words, if the trust stipulated that all the loans had to be collected by August 2005, the bank couldn’t still be sticking in mortgages months later.

Yet that’s exactly what the banks did. In one case handled by Jacksonville Area Legal Aid, a homeowner refinanced her house in 2005 but almost immediately got into trouble, going into default in December of that year.

Yet somehow, this woman’s loan was placed into a trust called Home Equity Loan Trust Series AE 2005-HE5 in January 2006 — five months after the deadline for that particular trust.

The loan was not only late, it was already in foreclosure — which means that, by definition, whoever the investors were in AE 2005-HE5 were getting shafted.

Why does stuff like this matter?

Because when the banks put these pools together, they were telling their investors that they were putting their money into tidy collections of real, performing home loans.

But frequently, the loans in the trust were complete shit. Or sometimes, the banks didn’t even have all the loans they said they had. But the banks sold the securities based on these pools of mortgages as AAA-rated gold anyway.

In short, all of this was a scam — and that’s why so many of these mortgages lack a true paper trail.

Had these transfers been done legally, the actual mortgage note and detailed information about all of these transactions would have been passed from entity to entity each time the mortgage was sold.

But in actual practice, the banks were often committing securities fraud (because many of the mortgages did not match the information in the prospectuses given to investors) and tax fraud (because the way the mortgages were collected and serviced often violated the strict procedures governing such investments).

Having unloaded this diseased cargo onto their unsuspecting customers, the banks had no incentive to waste money keeping “proper” documentation of all these dubious transactions.

“You’ve already committed fraud once,” says April Charney, an attorney with Jacksonville Area Legal Aid. “What do you have to lose?”

Sitting in the rocket docket, James Kowalski considers himself lucky to have won his first motion of the morning.

To get the usually intractable Judge Soud to forestall a foreclosure is considered a real victory, and I later hear Kowalski getting props and attaboys from other foreclosure lawyers.

In a great deal of these cases, in fact, the homeowners would have a pretty good chance of beating the rap, at least temporarily, if only they had lawyers fighting for them in court.

But most of them don’t.

In fact, more than 90 percent of the cases that go through Florida foreclosure courts are unopposed.

Either homeowners don’t know they can fight their foreclosures, or they simply can’t afford an attorney.

These unopposed cases are the ones the banks know they’ll win — which is why they don’t sweat it if they take the occasional whipping.

That’s why all these colorful descriptions of cases where foreclosure lawyers like Kowalski score in court are really just that — a little color.

The meat of the foreclosure crisis is the unopposed cases; that’s where the banks make their money. They almost always win those cases, no matter what’s in the files.

This becomes evident after Kowalski leaves the room.

“Who’s next?” Judge Soud says. He turns to Mark Kessler, the counsel for the big foreclosure mills. “Mark, you still got some?”

“I’ve got about three more, Judge,” says Kessler.

Kessler then drops three greenish-brown files in front of Judge Soud, who spends no more than a minute or two glancing through each one.

Then he closes the files and puts an end to the process by putting his official stamp on each foreclosure with an authoritative finality:

Kerchunk!
Kerchunk!
Kerchunk!

Each one of those kerchunks means another family on the street.

There are no faces involved here, just beat-the-clock legal machinery.

Watching Judge Soud plow through each foreclosure reminds me of the scene in Fargo where the villain played by Swedish character actor Peter Stormare pushes his victim’s leg through a wood chipper with that trademark bored look on his face.

Mechanized misery and brainless bureaucracy on the one hand, cash for the banks on the other.

What’s sad is that most Americans who have an opinion about the foreclosure crisis don’t give a shit about all the fraud involved. They don’t care that these mortgages wouldn’t have been available in the first place if the banks hadn’t found a way to sell oregano as weed to pension funds and insurance companies.

They don’t care that the Countrywides’ of the world pushed borrowers who qualified for safer fixed-­income loans into far more dangerous adjustable-rate loans, because their brokers got bigger commissions for doing so.

They don’t care that in the rush to produce loans, people were sold houses that turned out to have flood damage or worse, and they certainly don’t care that people were sold houses with inflated appraisals, which left them almost immediately underwater once housing prices started falling.

The way the banks tell it, it doesn’t matter if they defrauded homeowners and investors and taxpayers alike to get these loans.

All that matters is that a bunch of deadbeats aren’t paying their fucking bills.

“If you didn’t pay your mortgage, you shouldn’t be in your house — period,” is how Walter Todd, portfolio manager at Greenwood Capital Associates, puts it.

“People are getting upset about something that’s just procedural.”

Jamie Dimon, the CEO of JP Morgan, is even more succinct in dismissing the struggling homeowners that he and the other megabanks scammed before tossing out into the street.

“We’re not evicting people who deserve to stay in their house,” Dimon says.

There are two things wrong with this argument. (Well, more than two, actually, but let’s just stick to the two big ones.)

The first reason is: It simply isn’t true.

Many people who are being foreclosed on have actually paid their bills and followed all the instructions laid down by their banks. In some cases, a homeowner contacts the bank to say that he’s having trouble paying his bill, and the bank offers him loan modification. But the bank tells him that in order to qualify for modification, he must first be delinquent on his mortgage.

“They actually tell people to stop paying their bills for three months,” says Parker.

The authorization gets recorded in what’s known as the bank’s “contact data­base,” which records every phone call or other communication with a home­owner. But no mention of it is entered into the bank’s “number history,” which records only the payment record.

When the number history notes that the home­owner has missed three payments in a row, it has no way of knowing that the homeowner was given permission to stop making payments. “One computer generates a default letter,” says Kowalski. “Another computer contacts the credit bureaus.”

At no time is there a human being looking at the entire picture.

Which means that homeowners can be foreclosed on for all sorts of faulty reasons: misplaced checks, address errors, you name it. This inability of one limb of the foreclosure beast to know what the other limb is doing is responsible for many of the horrific stories befalling homeowners across the country.

Patti Parker, a local attorney in Jacksonville, tells of a woman whose home was seized by Deutsche Bank two days before Christmas. Months later, Deutsche came back and admitted that they had made a mistake: They had repossessed the wrong property.

In another case that made headlines in Orlando, an agent for JP Morgan mistakenly broke into a woman’s house that wasn’t even in foreclosure and tried to change the locks.

Terrified, the woman locked herself in her bathroom and called 911. But in a profound expression of the state’s reflexive willingness to side with the bad guys, the police made no arrest in the case. Breaking and entering is not a crime, apparently, when it’s authorized by a bank.

The second reason the whole they still owe the fucking money thing is bogus has to do with the changed incentives in the mortgage game.

In many cases, banks like JP Morgan are merely the servicers of all these home loans, charged with collecting your money every month and paying every penny of it into the trust, which is the real owner of your mortgage.

If you pay less than the whole amount, JP Morgan is now obligated to pay the trust the remainder out of its own pocket. When you fall behind, your bank falls behind, too. The only way it gets off the hook is if the house is foreclosed on and sold.

That’s what this foreclosure crisis is all about: fleeing the scene of the crime.

Add into the equation the fact that some of these big banks were simultaneously betting big money against these mortgages — Goldman Sachs being the prime example — and you can see that there were heavy incentives across the board to push anyone in trouble over the cliff.

Things used to be different.

Asked what percentage of struggling homeowners she used to be able to save from foreclosure in the days before securitization,

Charney is quick to answer.

“Most of them,” she says. “I seldom came across a mortgage I couldn’t work out.”

In Judge Soud’s court, I come across a shining example of this mindless rush to foreclosure when I meet Natasha Leonard, a single mother who bought a house in 2004 for $97,500.

Right after closing on the home, Leonard lost her job. But when she tried to get a modification on the loan, the bank’s offer was not helpful.

“They wanted me to pay $1,000,” she says. Which wasn’t exactly the kind of modification she was hoping for, given that her original monthly payment was $840.

“You’re paying $840, you ask for a break, and they ask you to pay $1,000?” I ask.

“Right,” she says.

Leonard now has a job and could make some kind of reduced payment. But instead of offering loan modification, the bank’s lawyers are in their fourth year of doggedly beating her brains out over minor technicalities in the foreclosure process.

That’s fine by the lawyers, who are collecting big fees.

And there appears to be no human being at the bank who’s involved enough to issue a sane decision to end the costly battle.

“If there was a real client on the other side, maybe they could work something out,” says Charney, who is representing Leonard.

In this lunatic bureaucratic jungle of securitized home loans issued by trans­national behemoths, the borrower-lender relationship can only go one of two ways: full payment, or total war.

The extreme randomness of the system is exemplified by the last case I see in the rocket docket.

While most foreclosures are unopposed, with homeowners not even bothering to show up in court to defend themselves, a few pro se defendants — people representing themselves — occasionally trickle in.

At one point during Judge Soud’s proceeding, a tallish blond woman named Shawnetta Cooper walks in with a confused look on her face.

A recent divorcee delinquent in her payments, she has come to court today fully expecting to be foreclosed on by Wells Fargo. She sits down and takes a quick look around at the lawyers who are here to kick her out of her home.

“The land has been in my family for four generations,” she tells me later. “I don’t want to be the one to lose it.”

Judge Soud pipes up and inquires if there’s a plaintiff lawyer present; someone has to lop off this woman’s head so the court can move on to the next case.

But then something unexpected happens: It turns out that Kessler is supposed to be foreclosing on her today, but he doesn’t have her folder.

The plaintiff, technically, has forgotten to show up to court.

Just minutes before, I had watched what happens when defendants don’t show up in court: kerchunk! The judge more or less automatically rules for the plaintiffs when the homeowner is a no-show.

But when the plaintiff doesn’t show, the judge is suddenly all mercy and forgiveness. Soud simply continues Cooper’s case, telling Kessler to get his shit together and come back for another whack at her in a few weeks.

Having done this, he dismisses everyone.

Stunned, Cooper wanders out of the courtroom looking like a person who has stepped up to the gallows expecting to be hanged, but has instead been handed a fruit basket and a new set of golf clubs.

I follow her out of the court, hoping to ask her about her case. But the sight of a journalist getting up to talk to a defendant in his kangaroo court clearly puts a charge into His Honor, and he immediately calls Cooper back into the conference room.

Then, to the amazement of everyone present, he issues the following speech:

“This young man,” he says, pointing at me, “is a reporter for Rolling Stone. It is your privilege to talk to him if you want.” He pauses. “It is also your privilege to not talk to him if you want.”

I stare at the judge, open-mouthed. Here’s a woman who still has to come back to this guy’s court to find out if she can keep her home, and the judge’s admonition suggests that she may run the risk of pissing him off if she talks to a reporter.

Worse, about an hour later, April Charney, the lawyer who accompanied me to court, receives an e-mail from the judge actually threatening her with contempt for bringing a stranger to his court.

Noting that “we ask that anyone other than a lawyer remain in the lobby,” Judge Soud admonishes Charney that “your unprofessional conduct and apparent authorization that the reporter could pursue a property owner immediately out of Chambers into the hallway for an interview, may very well be sited [sic] for possible contempt in the future.”

Let’s leave aside for a moment that Charney never said a word to me about speaking to Cooper.

And let’s overlook entirely the fact that the judge can’t spell the word cited.

The key here isn’t this individual judge — it’s the notion that these hearings are not and should not be entirely public. Quite clearly, foreclosure is meant to be neither seen nor heard.

After Soud’s outburst, Cooper quietly leaves the court.

Once out of sight of the judge, she shows me her file. It’s not hard to find the fraud in the case.

For starters, the assignment of mortgage is autographed by a notorious robo-signer — John Kennerty, who gave a deposition this summer admitting that he signed as many as 150 documents a day for Wells Fargo.

In Cooper’s case, the document with Kennerty’s signature on it places the date on which Wells Fargo obtained the mortgage as May 5th, 2010. The trouble is, the bank bought the loan from Wachovia — a bank that went out of business in 2008.

All of which is interesting, because in her file, it states that Wells Fargo sued Cooper for foreclosure on February 22nd, 2010.

In other words, the bank foreclosed on Cooper three months before it obtained her mortgage from a nonexistent company.

There are other types of grift and outright theft in the file.

As is typical in many foreclosure cases, Cooper is being charged by the bank for numerous attempts to serve her with papers.

But a booming industry has grown up around fraudulent process servers; companies will claim they made dozens of attempts to serve homeowners, when in fact they made just one or none at all. Who’s going to check?

The process servers cover up the crime using the same tactic as the lenders, saying they lost the original summons.

From 2000 to 2006, there was a total of 1,031 “affidavits of lost summons” here in Duval County; in the past two years, by contrast, more than 4,000 have been filed.

Cooper’s file contains a total of $371 in fees for process service, including one charge of $55 for an attempt to serve process on an “unknown tenant.”

But Cooper’s house is owner-occupied — she doesn’t even have a tenant, she tells me with a shrug.

If Mark Kessler had had his shit together in court today, Coop­er would not only be out on the street, she’d be paying for that attempt to serve papers to her nonexistent tenant.

Cooper’s case perfectly summarizes what the foreclosure crisis is all about.

Her original loan was made by Wachovia, a bank that blew itself up in 2008 speculating in the mortgage market. It was then transferred to Wells Fargo, a megabank that was handed some $50 billion in public assistance to help it acquire the corpse of Wachovia.

And who else benefited from that $50 billion in bailout money?

Billionaire Warren Buffett and his Berkshire Hathaway fund, which happens to be a major shareholder in Wells Fargo.

It was Buffett’s vice chairman, Charles Munger, who recently told America that it should “thank God” that the government bailed out banks like the one he invests in, while people who have fallen on hard times — that is, homeowners like Shawnetta Cooper — should “suck it in and cope.”

Look: It’s undeniable that many of the people facing foreclosure bear some responsibility for the crisis. Some borrowed beyond their means. Some even borrowed knowing they would never be able to pay off their debt, either hoping to flip their houses right away or taking on mortgages with low initial teaser rates without bothering to think of the future.

The culture of take-for-yourself-now, let-someone-else-pay-later wasn’t completely restricted to Wall Street. It penetrated all the way down to the individual consumer, who in some cases was a knowing accomplice in the bubble mess.

But many of these homeowners are just ordinary Joes who had no idea what they were getting into. Some were pushed into dangerous loans when they qualified for safe ones.

Others were told not to worry about future jumps in interest rates because they could just refinance down the road, or discovered that the value of their homes had been overinflated by brokers looking to pad their commissions.

And that’s not even accounting for the fact that most of this credit wouldn’t have been available in the first place without the Ponzi-like bubble scheme cooked up by Wall Street, about which the average home­owner knew nothing — hell, even the average U.S. senator didn’t know about it.

At worst, these ordinary homeowners were stupid or uninformed — while the banks that lent them the money are guilty of committing a baldfaced crime on a grand scale.

These banks robbed investors and conned homeowners, blew themselves up chasing the fraud, then begged the taxpayers to bail them out.

And bail them out we did:

We ponied up billions to help Wells Fargo buy Wachovia, paid Bank of America to buy Merrill Lynch, and watched as the Fed opened up special facilities to buy up the assets in defective mortgage trusts at inflated prices.

And after all that effort by the state to buy back these phony assets so the thieves could all stay in business and keep their bonuses, what did the banks do?

They put their foot on the foreclosure gas pedal and stepped up the effort to kick people out of their homes as fast as possible, before the world caught on to how these loans were made in the first place.

Why don’t the banks want us to see the paperwork on all these mortgages?

Because the documents represent a death sentence for them.

According to the rules of the mortgage trusts, a lender like Bank of America, which controls all the Countrywide loans, is required by law to buy back from investors every faulty loan the crooks at Countrywide ever issued.

Think about what that would do to Bank of America’s bottom line the next time you wonder why they’re trying so hard to rush these loans into someone else’s hands.

When you meet people who are losing their homes in this foreclosure crisis, they almost all have the same look of deep shame and anguish.

Nowhere else on the planet is it such a crime to be down on your luck, even if you were put there by some of the world’s richest banks, which continue to rake in record profits purely because they got a big fat handout from the government.

That’s why one banker CEO after another keeps going on TV to explain that despite their own deceptive loans and fraudulent paperwork, the real problem is these deadbeat homeowners who won’t pay their fucking bills.

And that’s why most people in this country are so ready to buy that explanation.

Because in America, it’s far more shameful to owe money than it is to steal it.

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