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Here Comes the Judge



September 21, 2010 – Comments (3)

 Apparently it is considered dishonest, generally wrong and still frowned upon to steal a home by filing documents in Court that you know are false. So the Judge dismissed this case with prejudice. The entire Court Order is here - 

11. The court finds by clear and convincing evidence that WAMU, Chase and Shapiro and Fishman committed fraud on this court.

12. The Court finds that WAMU and Chase made representations to this Court during the course of insyant action that are known to be false. The Court also finds that Shapiro and Fishman had actual knowledge of the falsity of any averments and representations made on behalf of the current servicer of the Mortgage. Throughout the litigation, WAMU and Chase and Shapiro and Fishman have rrepresented to this Court that plaintiff owns and holds the note and mortgage. It did so in its original complaint on March 27, 2008; in its First Amended Complaint filed on January 29, 2009 and in its Exparte Motion to Substitute Party Plaintiff on February 5, 2009. Moreover WAMU and Shapiro and Fishman created a flase Assignment of Mortgage dated April 11, 2008 as evidence of these assertions.

13. The Court finds by clear and convincing evidence that these acts committed by WAMU, Chase and Shapiro and Fishman amount to a "knowing deception intended to prevent the defendants from discovery essential to defending the claim" and are therefore fraud.

With this ruling by the Fourth Judicial Circuit in Duval County, Florida, it would lend credence to other widespread claims of fraud being committed in mortgage foreclosure cases. So before any more homes are stolen by the financial industry; In steps the Politician.

September 20, 2010

Chief Justice Charles T. Canady
Florida Supreme Court
500 South Duval Street
Tallahassee, FL 32399-1900

Dear Chief Justice Canady,

I am disturbed by the increasing reports of predatory ‘foreclosure mills’ in Florida. The New York Times and Mother Jones have both recently reported on the rampant and widespread practices of document fraud and forgery involved in mortgage assignments. My staff has spoken with multiple foreclosure specialists and attorneys in Florida who confirm these reports.

Three foreclosure mills – the Law Offices of Marshall C. Watson, Shapiro & Fishman, and the Law Offices of David J. Stern – constitute roughly 80% of all foreclosure proceedings in the state of Florida. All are under investigation by Attorney General Bill McCollum. If the reports I am hearing are true, the illegal foreclosures taking place represent the largest seizure of private property ever attempted by banks and government entities. This is lawlessness.

I respectfully request that you abate all foreclosures involving these firms until the Attorney General of the state of Florida has finished his investigations of those firms for document fraud.

I have included a court order, in which Chase, WAMU, and Shapiro and Fishman are excoriated by a judge for document fraud on the court. In this case, Chase attempted to foreclose on a home, when the mortgage note was actually owned by Fannie Mae.

Taking someone’s home should not be done lightly. And it should certainly be done in accordance with the law.

Thank you for your consideration of this request.


Alan Grayson
Member of Congress

It makes sense to me that in order to take someones property, you should have to prove you have a legal claim to that property. Knowing that someone is owed mortgage payments should not be enough to award you that property. So WAMU went to the pretty extreme - and hopefully involving jail time and huge financial penaltys - length of committing fraud in Court because they could not establish ownership of this one single mortgage.

So this is just one mortgage, a small loss to Chase. There is however a second issue that may have contributed to Chase's willingness to lie in Court; the Mortgage Electronic Registration System. 

Over 62 million mortgages are now held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles—and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure-proof.

From the article;

California Precedent

The latest of these court decisions came down in California on May 20, 2010, in a bankruptcy case called In re Walker, Case no. 10-21656-E–11. The court held that MERS could not foreclose because it was a mere nominee; and that as a result, plaintiff Citibank could not collect on its claim. The judge opined:

Since no evidence of MERS’ ownership of the underlying note has been offered, and other courts have concluded that MERS does not own the underlying notes, this court is convinced that MERS had no interest it could transfer to Citibank. Since MERS did not own the underlying note, it could not transfer the beneficial interest of the Deed of Trust to another. Any attempt to transfer the beneficial interest of a trust deed without ownership of the underlying note is void under California law.

So does this matter? Lost in the scheduling column of our new TV Guide, Alex Dumortier aka TMFMarathonMan recently asked the question; "Which Banks Will Raise Their Dividend First?".

My guess is not too many, and not until they can prove what they own.




3 Comments – Post Your Own

#1) On September 21, 2010 at 11:13 AM, chk999 (99.96) wrote:

You might not believe it, but I agree with you here. If the financial institutions knowingly filed false court papers, then that is fraud and criminal charges need to be filed. 

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#2) On September 21, 2010 at 3:46 PM, devoish (70.13) wrote:


Thanks for replying. It is nice to be able to offer the denizens of the underworld some relief from the heat.

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#3) On September 21, 2010 at 9:31 PM, devoish (70.13) wrote:

But wait - there's more from the AP wire.

GMAC, which is owned by Detroit-based Ally Financial Inc., did not identify the specific internal issue that prompted the moratorium in its statement, but it has been linked to lawsuits this year surrounding the alleged falsification of a key foreclosure document.

The Florida attorney general is investigating three law firms for allegedly providing fraudulent affidavits that identify who holds the original mortgage note in foreclosure cases. In Florida and in other states, this document allows lenders to bypass a costly trial and proceed with a foreclosure.

Two of the three firms being investigated — the Law Office of Marshall C. Watson and the Law Offices of David J. Stern PA — have represented GMAC in foreclosure proceedings. And the person who signed many of these allegedly false affidavits was an employee of GMAC

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