Schack Slams "Fat Cat Bankers On Wall Street" In Failed Court Cost Ripoff; Calls CEO Dimon The "Fattest Cat" At JPMorgan Chase

In Brooklyn, New York, the New York Law Journal reports:

• A Brooklyn judge has rejected a bank's request for $9,112 in costs for producing subpoenaed documents, calling the claim an example of the excess and greed among "fat cat bankers on Wall Street." JPMorgan Chase, a non-party in an action to confirm an arbitration award, sought 25 cents per page and $25 per hour for producing 18,248 pages of subpoenaed documents demanded by the petitioner. In a blistering 11-page decision, Brooklyn Supreme Court Justice Arthur Schack granted JPMorgan Chase only $1,250.27, or about one-seventh of the amount the bank requested.(1)

***

• "Clearly, Chase's arbitrary $25.00 per hour ... fee for the unsubstantiated 182 hours of research by person or persons unknown only helps to unjustly enrich 'a bunch of fat cat bankers on Wall Street,'" Justice Schack wrote in Matter of Arbitration of Klein v. Persaud, 8007/09. "This Court is not a collection vehicle to further enrich already rich bankers."

• Schack called the bank's CEO, James S. Dimon, the "fattest cat" at JPMorgan Chase, citing Dimon's compensation of nearly $20 million in 2008.

For more, see Judge Slashes 'Fat Cat' Bank's Bill for Subpoenaed Documents.

(1) According to the story, the judge reduced the bank's hourly fee from $25 to $6.55 -- the minimum wage in Indiana, where the judge believed the work may have been done, at the time the documents were produced. "[T]he Court ... is guided by the principal that '[o]rdinarily, the retrieval and evaluation of documents should be done by the lowest-level person consistent with accurate and reliable identification of the material called for,'" Schack wrote. The 182 hours worked by JPMorgan Chase employees therefore came to $1,192, not $4,550, the judge concluded.

Schack then awarded JPMorgan Chase an additional one cent per page for the estimated cost of the paper, plus an additional two cents for "toner, copier maintenance and electricity." At three cents per page for only 1,939 pages, instead of 25 cents per page for 18,248, the bank deserved $58.17, not $4,562, Schack concluded. The judge ordered Klein to pay JPMorgan Chase a total of $1,250.27. (In chiseling down the cost reimbursement request for reproducing the documents, Schack noted that of the 18,248 pages that JPMorgan Chase produced, the bank placed 16,317 pages online, as opposed to printing them. For those pages, the bank only deserved compensation for labor and not supplies, Schack wrote, calling the bank's claim "disingenuous." Accordingly, he understandably refused to grant alleged multi-billion dollar "fat cat" JPMorgan Chase the three cent reimbursement for each of those pages it placed online.)

Reportedly, Simmons, Jannace & Stagg, the law firm that represented Chase, did not return calls for comment.

Fla. Supremes Order F'closing Banks To "Produce The Note" In Establishing Statewide Mediation Program; Open To Both Homestead & Tenant-Occupied Homes

In Tallahassee, Florida, the Orlando Business Journal reports:

• Plagued by an ever-increasing number of foreclosure cases, Florida judges now have guidance on how to deal with them through a statewide mediation program. Florida’s Chief Justice Peggy Quince signed an order designed to alleviate the backlog. Click here to read the order. It adopts recommendations by the court’s Task Force on Residential Mortgage Foreclosure Cases that was created earlier this year.(1)

***

• [Foreclosure defense attorney Roy Oppenheim] noted that mediation “forces banks to bring someone who has the ability to make a decision to the table.” Another significant part of the order requires lenders to prove they hold the note.(2) “Plaintiff’s counsel is not permitted to respond to the certification with ‘unknown,’ ‘unsure,’ ‘not applicable,’ or similar nonresponsive statements,” the order states.

• Oppenheim said [...] that the recommendation is significant because the task force found it to be a form of unfair practice. “It’s what we call legal fiction. Legal fiction is a nice way of saying a lie,” he said.

For more, see Fla. Supreme Court requires mediation in foreclosures.

(1) With respect to owner-occupied, homestead properties in foreclosure, the Florida Supreme Court order provides:

• Under this program, all foreclosure cases in the state courts that involve residential homestead property will be referred to mediation, unless the plaintiff and borrower agree otherwise or unless effective pre-suit mediation that substantially complies with the managed mediation program requirements has been conducted.

See Order, page 2-3.

With respect to residential properties in foreclosure that are occupied by individuals other than the borrower, the Florida Supreme Court order provides:

• The Court further approves the Task Force recommendation that cases involving properties that are occupied by individuals other than the borrower may opt into the managed mediation program, at equal cost to the parties, and that structural improvements, such as open calendars, be employed by courts to allow cases to move as quickly and smoothly as possible.

See Order, page 9-10. According to the Task Force recommendation, "These cases may be either tenant-occupied or occupied by other members of the family but not the borrower, or have unspecified occupants. [...] The Task Force recommends that these properties be given the choice to opt into managed mediation at equal cost to the parties." See Task Force recommendation, page 41.

(2) According to the Task Force recommendation, page 21.:

• Judges should also recognize their responsibility to ensure that in uncontested cases, the necessary evidentiary basis has been laid for the entry of summary judgment. In particular, judges should take every step to insure that the original note is produced, that the note is held in due course by the plaintiff with a right under the note to foreclose, and that the note is cancelled upon entry of the final judgment.

According to the Task Force recommendation, page 20:

• Complaints alleging lost note should only be filed upon a good faith investigation. These problems have caused the Task Force to recommend a requirement that pleadings be verified.

Editor's Note: In the event the foreclosing lender fails to produce the note and the presiding judge is inclined to allowing the foreclosure proceeding to continue, the homeowner (or his/her counsel) might consider filing a motion to require the lender to post a "lost note / lost instrument bond" in the face amount of the promissory note, plus 5 years of interest to protect the homeowner against loss that might occur in the event the purportedly lost note magically reappears in the future in the hands of another seeking enforcement thereof (in Florida, five years is the statute of limitations for the enforcement of a promissory note in Florida). For example, a lender wanting to foreclose a $500,000 mortgage should be required to to put up a five year bond for $500,000 plus five years of interest at the statutory interest rate (ie. if statutory rate is 10%, the amount of the bond should also cover $250,000 of interest - $50K/ year x 5 years - for a total of $750,000). In Florida, a court is prohibited from entering a judgment against a debtor based on a lost, destroyed or stolen note unless the creditor adequately protects the debtor against thepossibility of such a loss. Sec. 673.3091(2), Florida Statutes states:

• [T]he court may not enter judgment in favor of the person seeking enforcement [of a lost, destroyed, or stolen instrument] unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.

It appears that this statute also applies in the event the foreclosure is uncontested and the homeowner fails to appear in the action.

Ex-Philly Title Recording Dept. Employee Charged With Preparing Bogus Deeds For Pay; Some Unwitting Owners Had Property Sold Out From Under Them: Feds

In Philadelphia, Pennsylvania, The Philadelphia Inquirer reports:

• A former worker in the Philadelphia Records Department was charged [...] with taking fees to prepare about 100 unauthorized deeds, teaching one person how to prepare fake deeds, and helping that person file the phony documents. Ramon Pabon, 62, allegedly used his home computer to facilitate the scheme. "Some owners of the property were victimized as they were unaware that their properties had been sold," according to the charges in federal court.

• Investigators said Pabon had admitted he helped prospective buyers find owners of properties they were interested in, helped people wanting to sell their homes find buyers, and prepared deeds. He was paid $200 to $250 above the $156.50 fee paid to the city by the property owner, according to authorities.

• City Inspector General Amy Kurland said in a statement that Records Commissioner Joan Decker was beefing up security standards in the Recorder of Deeds Office, where Pabon worked as a title registration aide. She declined to say whether other arrests were planned, but said the investigation was continuing.

Source: Former deeds worker charged with real estate fraud. DeedContraTheft deed theft

Quality Control Employee Canned By Lender After Cooperating With Feds In Loan Probe, Suit Alleges

In Denver, Colorado, the Denver Business Journal reports:

• A former employee [reportedly an ex-“high-risk specialist” in quality control] of Aurora Loan Services LLC alleges in a lawsuit filed [last week] that the company fired him in retaliation for helping federal investigators who were looking into one of its loans. [...] One person in the legal department “lamented” that providing the information could mean Aurora Loan Services would have to buy back the loan, costing the company money, the suit says. On Sept. 4, 2008, the company’s human resources office told [ex-employee Michael] Walker he was fired, the lawsuit says.

• “Instead of commending Mr. Walker for his honest and diligent work, (Aurora Loan Services) claimed that Mr. Walker’s provision of this information had violated ALS’ so-called “zero-tolerance policy for privacy violations” and fired him, the lawsuit says.

For more, see Fired loan-firm employee sues, alleging retaliation for helping feds.

Miami Feds Announce New Fraud Cases; Organizers, Real Estate Brokers, Straw Buyers, Recruiters, Title Agents Bagged In Alleged Double HUD-1 Scams

From the Office of the U.S. Attorney (Miami, Florida):

• Jeffrey H. Sloman, Acting United States Attorney for the Southern District of Florida [and other law enforcement authorities] announced two new multi-million dollar mortgage fraud prosecutions.

***

• On December 15, 2009, a federal grand jury returned a six-count Indictment charging ten defendants in a mortgage fraud scheme, which resulted in the approval and disbursement of approximately $7.9 million in mortgage loans.(1) [...] On December 15, 2009, a federal grand jury returned a five count Indictment charging five defendants for their participation in [another] mortgage fraud scheme.(2)

For the U.S. Attorney press release, see 15 Defendants Charged In Two Separate Mortgage Fraud Cases Involving Almost $10 Million In Fraudulent Loans.

(1) The Indictment named the following defendants:

• Greta Medina, the alleged organizer of the scheme,
• Margaret Roberts, a real estate broker,
• Dania Arguelles, alleged straw buyer recruiter,
• Martin Mere, alleged straw buyer recruiter,
• Melissa Ann Scher, Alfonso Velasco, Adan Vasquez, Yohamel Caballero, and Alberto Lopera, alleged straw buyers,
• Karim Goding, title agent.

Medina and Goding allegedly caused the lender to loan more money than it otherwise would have loaned by preparing and submitting to the lender a false HUD-1 Settlement Statement with an inflated purchase price. The defendants then concealed the fraudulent scheme by creating a second version of the HUD-1 Settlement Statement to be provided to the seller reflecting the actual purchase price of the property. At closing, the defendants diverted millions in loan proceeds by skimming the difference between the inflated purchase price and the price actually paid to the seller for the property.

(2) The Indictment named the following defendants:

• Julio Llanessa and Laura Fernandez a/k/a “Laura Llanessa, the alleged organizers of the scheme,
• Fausto Guzman, alleged straw buyer accused of receiving $30,000 for obtaining for two loans – one in the amount of $1.5 million and the other in the amount of $100,000,
• Ryan T. Dosen, title agent, and Emma Betancourt, title agent employee.

Title agents Dosen and Betancourt allegedly participated in the preparation of a false HUD-1 Settlement Statement for the property, which reflected a fraudulently inflated sale price of $2 million. A second HUD-1 Settlement Statement, which the defendants did not disclose to Countrywide, revealed a sales price of $1.68 million. It was based on the represented $2 million sale price that Countrywide approved the $1.6 million in loans.

Alleged Arizona-Based Upfront Fee Loan Modification Racket Violated State Law, Says Illinois Homeowner In Lawsuit Seeking Class Action Status

In Chicago, Illinois, Mortgage Relief Group dba Mortgage Assistance Group, an outfit alleged to be headquartered in Glendale, Arizona, cheated people in mortgage rescue scams, a class action claims. The lawsuit, filed in state court in Cook County, alleges violations of the Illinois Mortgage Rescue Fraud Act (765 ILCS 940/1. et seq.), and the Illinois Consumer Fraud And Deceptive Practices Act (815 ILCS 505/1. et seq.).

For the lawsuit, see Von Essen v. Mortgage Relief Group LLC, dba Mortgage Assistance Group (lawsuit available online courtesy of Courthouse News Service).

Some Raise Questions On Judges' Role In Foreclosure Actions In Light Of Rulings Favoring Homeowners

The Wall Street Journal reports:

• A group of state and federal judges presiding over foreclosures are wiping away borrowers' mortgage debt, invalidating foreclosure sales and even barring some foreclosures outright. The decisions in recent months by a handful of judges in states including Massachusetts, New York and Texas mark a new phase in the judiciary's battle to stem the rising tide of foreclosures by punishing mortgage companies for paperwork mistakes and alleged mistreatment of borrowers.(1)

• The number of judges taking such action remains small, and most foreclosures go through without a challenge. But the growing number of rulings against lenders' claims is raising questions among some legal experts about judges' impartiality.

For more, see Foreclosure Challenges Raise Questions About Judicial Role.

(1) For two recent examples, see:

• New York Law Journal: Judge Blasts Bank's Foreclosure Conduct and Cancels Mortgage (A lender's "unconscionable, vexatious and opprobrious" conduct in attempting to foreclose on a Long Island home has prompted a state judge to cancel the mortgage on the property);
• Judge Slams Sloppy Lender Unable To Prove Note Ownership; Voids Debtor's $461K Home Loan; Docs Signed By Multiple Hat-Wearing VP Sinks Servicer, MERS.

Mass. AG Charges Attorney With Recording Forged Mortgage Assignments In Attempt To Hijack $1M+ In Loan Payoff Proceeds From Pending Real Estate Sales

From the Office of the Massachusetts Attorney General:

• [A] Marblehead attorney was arraigned in Cambridge District Court in Medford for his role in a million dollar mortgage hijacking scheme. Leon Gelfgatt, age 49, is charged with Attempted Larceny, and Uttering (2 counts).

• Massachusetts State Police assigned to Massachusetts Attorney General Martha Coakley’s Office arrested Gelfgatt [...] as he allegedly attempted to retrieve over $1.3 million dollars in mortgage funds in connection with a sophisticated mortgage fraud scheme.

***

• According to authorities, Gelfgatt allegedly identified properties which were under agreement and scheduled for an imminent sale. He then allegedly recorded false documents at the Registry of Deeds indicating that his fake company was the new holder of any mortgages on those properties. He allegedly sought through this scheme to cause mortgage payoff funds to be delivered to the fake company, rather than to the rightful mortgage holders.

For the Massachusetts AG press release, see Marblehead Attorney Arraigned in Connection with Million Dollar Mortgage Hijacking Scheme.

(1) According to the press release, Gelfgatt entered a plea of not guilty and was ordered held on $1 million cash bail by Judge Roanne Sragow. In the event that Gelfgatt posts bail, he has to surrender his Russian passport and wear an electronic monitoring bracelet, the press release states.

Massachusetts Closing Attorney Gets 2 To 3 In Mortgage Stacking Racket; Pocketed $2M+ In Scam; Title Insurance Underwriter Left Holding The Bag

From the Office of the Massachusetts Attorney General:

• Attorney General Martha Coakley’s Office announced the sentence of [...] former Somerville real estate attorney [Kevin Carey, age 49, of Middleboro] in connection with making false statements on mortgage applications and associated documents and using the funds secured from the loans for his own purposes, rather than paying off existing loans as directed by the new lenders. [... S]uperior Court Judge D. Lloyd MacDonald sentenced Carey to two to three years in State Prison, followed by 10 years probation. Carey is also ordered to pay $2.6 million in restitution.(1)

***

• While practicing as a real estate lawyer in Somerville and Medford, Carey engaged in a scheme called “mortgage stacking” on four residential properties he or his family members owned. The scheme involved serially refinancing the loans on these properties, without paying off the existing loans. Carey was also the agent for a New England title insurance company which allowed him to issue title insurance policies on mortgage transactions he processed.

***

• Carey “stacked” three mortgages on a home in Medford, two mortgages each on two different properties in Everett, and one mortgage on his personal residence in Medford. [...] When he received the proceeds of the loans, Carey did not pay off the existing mortgages on these properties, but rather used the funds for his own benefit. Carey issued title insurance policies or commitments in connection with the transactions, and the lenders were therefore protected, but ultimately the title insurance company suffered the financial loss. As a result of this scheme Carey stole over $2 million. The lenders remained unaware of the problem because Carey continued to make monthly payments on all of the loans.(2)

For the Massachusetts AG press release, see Former Somerville Lawyer is Sentenced to 2 – 3 Years in State Prison in Connection with Mortgage Stacking Scheme.

(1) Carey pled guilty to the charges of Larceny Over $250 (8 counts) and Willfully Making a False Statement Regarding Financial Condition or Assets (7 counts), according to the press release.

(2) According to the press release, a database search by Fannie Mae flagged the multiple mortgages on one of the properties, triggering a notification to one of the lenders. The lender then notified the title insurance company of the problem. Lawyers for the title insurance company then referred the matter to the Attorney General’s Office, according to the press release.

Georgia Man Used Stolen IDs In Failed Attempt To Buy His Own Properties Facing Foreclosure Using Short Sales, Say Atlanta Feds

In Atlanta, Georgia, the Atlanta Journal Constitution reports:

• A 37-year-old Atlanta man is accused of stealing people's identities, and then using those identities to attempt to purchase his own foreclosed property. Brent Merriell was arrested Tuesday, according to the U.S. Attorney's Office. He faces two counts of making a false statement to the FDIC and four counts of aggravated identity theft.

• Merriell apparently obtained several million dollars worth of loans in his name, and in the names of family and friends, from Omni National Bank. On March 27, Omni was taken over by the FDIC. By October, Merriell was delinquent on loan repayments and faced foreclosure on 14 properties, according to Patrick Crosby with the U.S. Attorney's Office. Merriell then asked the FDIC to allow him to "short sale" two properties each to seven new purchasers at greatly reduced amounts.

• But the new purchases were being made in the names of people whose identities had been stolen, and the sales contracts were forged and counterfeited, Crosby said. Merriell was arrested before any of the sales could be completed. If convicted, Merriell could face up to 30 years in prison, and fine of up to $1,000 for each false statement charge.

Source: Man accused of attempting to buy homes with stolen identities.

Title Agent Gets Five Years For $1.3M+ Escrow Swindle; Pocketed Cash While Failing To Pay Off Existing Loans In Homeowner Refinancing Transactions

In Fort Lauderdale, Florida, the South Florida Business Journal reports:

• Stephen Lalonde, 43, of Fort Lauderdale, was sentenced [last week] to five years in prison in connection with a $1.3 million mortgage fraud scheme. According to court records and statements made in court, Lalonde stole more than $1.3 million at real estate closings as part of a scheme to defraud legitimate borrowers, lenders and Spectrum Title, an Oakland Park title insurance company in connection with six real estate closings.

• The legitimate borrowers were trying to re-finance and payoff existing mortgages. However, Lalonde kept the loan proceeds and did not use the money to payoff the borrowers’ pre-existing loans. He was charged with mail fraud and making false statements.(1)

Source: Broward man sentenced in $1.3M mortgage fraud.

For the U.S. Attorney (Fort Lauderdale) press release, see Fort Lauderdale Operator Of Title Agency And Mortgage Companies Sentenced To 60 Months On Mortgage Fraud Scheme.

Go here for Ripoff Report on Stephen Lalonde.

(1) According to the Federal prosecutor's press release, Lalonde was also ordered to pay restitution in the amount of $1,897,268.05 to the victims in this case, which included Stewart Title Guaranty Corporation, the insurance company that underwrote the title policies issued in connection with the subject transactions, and that ultimately wound up holding the bag as it had to cover the substantial losses suffered in this matter. EscrowRipOffKappa

Title Agent Accused Of Swiping $2.7M+ In Escrow Funds Due To Lienholders In Home Refinancing Scam; Local Chief Deputy Prosecutor Among 12+ Victims

In Allen County, Indiana, The Journal Gazette reports:

• Just over a month after the state suspended his license, a Fort Wayne title insurance broker faces criminal charges accusing him of misappropriating more than $2.7 million in title funds. Joseph A. Garretson, 36, [...] is charged in Allen Superior Court with conversion or misappropriation of title insurance escrow funds, corrupt business influence and unlawful loan origination activities, all felonies. Garretson is accused of arranging mortgage refinancing loans for a number of area clients and then not using the money to pay off the initial loans, causing mortgage holders to default, according to court documents.

• In October, Allen County Chief Deputy Prosecutor Michael McAlexander took a call from a man expressing concern about the length of time it was taking for his previous mortgage to be paid off after he refinanced using title insurance, settlement and escrow services from Garretson and Fort Wayne Title [...].

• McAlexander realized he also had used the services of Fort Wayne Title and, after contacting his original mortgage holder, found his loan also had not been paid off using the proceeds of the refinancing, according to court documents.

For more, see Mortgage refinancing scheme alleged (Broker accused of arranging new loans, not paying off old).

(1) According to the story, the criminal filing details more than a dozen other instances occurring from January 2006 to November 2009 in which Garretson allegedly failed to pay off mortgage loans in refinancing transactions and regular mortgage transactions, leaving customers on the hook for the remaining original loan amounts. EscrowRipOffKappa

NH Woman To Stand Trial In $550K Vegas Escrow Scam; Blames Now-Convicted Employee For Swindle That Left Existing Mortgage Unpaid In Real Estate Sale

In Hudson, New Hampshire, the Nashua Telegraph reports:

• A Hudson woman is set to stand trial in Las Vegas next month on charges that she stole $550,000 from a lending company while working as an escrow officer several years ago. Sheila K. Jones, 46, of [...] Hudson, has pleaded not guilty to charges of felony theft and insurance fraud and is free on $10,000 bond pending the Jan. 19 trial. Conditions of the bond agreement did not prevent her from leaving Nevada, where she lived before moving to Hudson this past summer.

***

• Jones is accused of stealing the $550,000 from an escrow account that she opened to hold proceeds from the sale of a $650,000 Las Vegas home. She’s also accused of lying to an insurance company by telling them the [trust] deed [ie. mortgage] had or would be paid off, according to an indictment handed down by the Clark County District Attorney in Las Vegas. [...] Reached Tuesday, Jones and her lawyer said it wasn’t Jones who committed the thefts, but employees who were working for her. [...] Jones’ lawyer, T. Augustas Claus of Las Vegas-based Legal Resource Group, said one of Jones’ employees has already pleaded guilty to stealing and is in jail.

Source: Police say Hudson woman stole $550k.

(1) According to the story, Jones currently goes by the name Sheila Mitchell. At the time of the alleged swindle, she reportedly went by the name Sheila K. Williams. EscrowRipOffKappa

Failure To Properly Serve Junior Lienholder Not Fatal To Foreclosure Sale Where 1st Mtg Balance Exceeded Home Value; Court Says "No Harm, No Foul"

The Wisconsin Law Journal reports:

• Last year, the Wisconsin Court of Appeals addressed what remedies were available to a junior lienholder who failed to participate in a foreclosure action. Effectively, the court limited the bank to purchasing the mortgagor’s right of redemption. (JP Morgan Chase Bank, N.A., v. Green, 2008 WI App 78, 753 N.W.2d 536)

• On Dec. 17, it addressed a corollary to that issue – what happens when a junior lienholder did not participate because it was not properly served. Effectively, the court adopted a “no harm, no foul” rule: because the value of the house was insufficient to cover the first mortgage, the junior lienholder suffered no harm from not being served. The court concluded, “the only reasonable inference from the record is that the value of the property at the time of the sheriff’s sale was no more than the amount of the first mortgage. It follows that there is no reason to believe that [the bank] would have benefited from exercising any of the rights of a junior lienholder.”(1)

For more, including the highlights from the case, see Remedy vacated in foreclosure action (Lienholder’s position can’t be improved).

For the court ruling, see Federal National Mortgage Association v. Lewis, No. 2008AP2, 2009 Wisc. App. LEXIS 959 (December 17, 2009).

(1) The issue of whether the first mortgage holder had legal standing to bring the foreclosure action in the first place was not raised by the junior lienholder in this case. If it had, and if it was then determined that the first mortgage holder's legal standing was questionable or lacking, the outcome in this matter may have been different. SewerServiceAlpha sewer service

Florida Bar Puts Heat On Attorney Affiliations With Upfont Fee Loan Modification Outfits; Opens 195 Foreclosure Rescue Probes This Year

In Broward County, Florida, the South Florida Sun Sentinel reports:

• A Coral Springs lawyer is being investigated by the Florida Bar Association for her involvement with a South Florida foreclosure rescue company, as trade regulators continue to file actions against attorneys involved in similar operations. Bar officials confirmed they are investigating Karen Grun and her ties to Housing Assistance Law Center, of Deerfield Beach.(1) The Florida Attorney General's Office filed legal action against the company and three afilliates in July, claiming they illegally took payments in advance and, in some cases, guaranteed a mortgage could be modified in 30 to 60 days.

• The bar has increasingly scrutinized partnerships between lawyers and foreclosure rescue firms, concerned the relationships were forged to skirt state laws barring upfront fees for loan modification work. The professional association, which monitors and disciplines lawyers, opened 195 cases regarding foreclosure rescue practices this year.

For more, see Bar investigating Coral Springs attorney (Lawyers, modification companies may have formed partnerships to bypass upfront fee laws).

(1) According to the story, Grun's name and the phrase "a private law firm" were on Housing Assistance Law Center documents, and state corporate records listed her as the center's director/president from April through June. Housing Assistance since has been dissolved and it's telephone number has been disconnected, the story states.

S. Florida Feds Announce Sentencing Of Four Brothers In Multi-Property, Family-Run Indoor Pot Farm Operation Financed By Mortgage Fraud

From the Office of the U.S. Attorney (Miami, Florida):

• Jeffrey H. Sloman, Acting United States Attorney for the Southern District of Florida, [and other law enforcement authorities], announced [last week's] sentencings of defendants Manuel Pupo, a/k/a Tata [sentenced to 87 months], Elieser Pupo, Serguey Pupo, Elmer Pupo, a/k/a Elmes, [each sentenced to 87 months] all formerly of Miami.

***

• According to the Stipulated Factual Basis, the Pupos and their associates purchased real estate in St. Lucie, Miami-Dade, Lee, Columbia, and Marion Counties, FL, and caused mortgage companies to issue a total of 18 mortgages for the purchase of these houses, by making false representations as to material facts in the mortgage applications.

• With regards to the money laundering charges, the Pupos conspired with each other and others to conduct financial transactions involving the proceeds from the manufacturing and dealing in marijuana and mail fraud. The relevant value of the laundered funds was between $200,000 and $400,000. The Pupos used the proceeds to promote the growing of marijuana by paying the mortgages of the marijuana grow houses.

• In addition, the Pupos would give money to the[ir recruited] marijuana grow farmers and request that the farmers return the money in the form of rent checks, which would be deposited into their accounts under the guise of rental income, for the purpose of concealing and disguising the nature, location, source, ownership, and control of the proceeds.

For the U.S. Attorney press release, see Miami Residents Sentenced In Marijuana Grow House, Mortgage, And Money Laundering Scheme.

Mix Up In Securing Foreclosed Property Results In Missing Items, Says Another Homeowner

In Henderson, Nevada, KLAS-TV Channel 8 reports:

• Imagine coming home and finding out your key no longer works and some of the things in your house are gone. That's what one Henderson man says happen to him, and like other reports in recent days, the homeowner says it's because of a mix up by a real estate agent securing a foreclosed home.

• Vincent Marrero called 8 News Now after watching reports of a foreclosure mix-up. He says the very same thing happened to him, but the good news in his case is not everything was taken. "It was violating because they broke into the unit illegally and took things that they claim they didn't," he said.

For more, see Another Person Claims Theft in Foreclosure Mistake. ForeclosureLockOuts

More On Trouble Facing South Florida Landlord Now In Foreclosure After Being Duped Into Renting High-Priced Condo To Porn Flick Operator

On Fisher Island, Florida, Miami New Times reports:

• Raul Quintana skids his silver Mercedes C550 to a stop in the dirt parking lot outside the trailer housing the management offices of Fisher Island, one of the nation's most expensive residential enclaves. Quintana's salt-and-pepper hair is a mess, his green eyes flicker wildly, and spittle foams from the sides of his mouth. The real estate speculator has just been officially informed he is banned from entering the Fisher Island Club — the lynchpin of society here. He is charged with allowing a hard-core porno flick to be filmed in his condo and on the club's golf links, and then threatening the life of the island executive whose office he now barges into unannounced.

***

• After unwittingly renting a condo to a porn crew, the longtime property owner has gone from island hero to pariah. He claims he is now unable to rent his three multimillion-dollar luxury condos, which are in foreclosure. He's even contemplating bankruptcy.(1)

For more, see Golf porn on ritzy Fisher Island.

(1) According to the story, a woman who claimed to be a representative of a "modeling agency" and wanted to hold a "photo shoot" in the 3,600-square-foot, three-bedroom, furnished condo with a balcony overlooking Biscayne Bay offered $600 for a six-hour shoot. It turns out Quintana had been duped into renting his apartment to Bangbros.com, an online porn giant based in Miami. The incident reportedly earned him a new nickname: "The Porn King of Fisher Island."

On October 8, Quintana filed suit in Miami-Dade Civil Court against Bangbros.com, claiming the porn outfit "knowingly made false and deceptive representations," "caused [Quintana] ridicule," and hurt his business. Bangbros.com has not yet responded to the suit, the story states.

For the lawsuit, see Quintana v. Bangbros.com, Inc. (available online courtesy of Courthouse News Service).

Wells Fargo Violated Veterans Administration Rules, Says Ex-Servicemember Facing Foreclosure In Court Papers; Seeks Dismissal Of Legal Action

In Jacksonville, Florida, First Coast News reports on local homeowner Nancy Gemmill, a retired U.S. armed services veteran, and her experience with Wells Fargo after she fell behind on her house payments on, reportedly, a $49,000 mortgage and asked for a loan modification:

• "When I contacted them, they said send me this paperwork, paperwork, paperwork. Never heard anything back." That is until Wells Fargo sent her a letter a couple of months ago. It was a notice it was foreclosing on her home, with only $49,000 left for her to pay on it. "It was a shock because I thought they were working with me on it."

• The bigger shock for her and her attorney is how they say the company went about it. "I just don't understand it. This company has been given $45 billion by the federal government because it needed assistance. She's looking just for a modification, not looking for a hand out and rather than trying to help, they try to foreclose and take her home," says her attorney, Sean Cronin.

• Cronin says there is another problem. He says Wells Fargo did not follow the rules in dealing with a veteran. Gemmill is retired from the Navy. "There are certain things supposed to be done to try and keep the vet in the home. And rather than do that, they immediately try to foreclose her, and did not follow the required policies and procedures of the vet administration." For now, Gemmill is still in the home. Her attorney has filed a motion to dismiss based on the claims the company did not follow all the veteran procedures.

For the story, see Navy Veteran Asked Mortgage Company For Help, Wells Fargo Answered With Foreclosure.

Wells Fargo Eviction Efforts Against Michigan Animal Sanctuary Expected To Proceed After Holidays

In White Lake Township, Michigan, The Detroit News reports:

• Homeless is not how Joan Tucker envisioned spending the new year with her 24 rescue horses. Her 70-acre farm, tucked inside a grove of trees off of a main road, is in foreclosure. Wells Fargo Bank plans to begin eviction proceedings after Jan. 3, but it will take at least another 45 days before she will have to vacate the premises.(1) Tucker refuses to clean out the horse stalls just yet.

• "I won't feel defeated until the very end," said Tucker, who works part time at Kmart, and full time at the farm. She purchased the farm in 2003 for $850,000, with an inheritance from her parents, to create the Equine Star Foundation, a nonprofit rescue farm for mistreated, unwanted or retired horses.

For more, see Equine Star Foundation horse rescue farm struggles with foreclosure.

(1) Wells Fargo made the news earlier this month with its eviction efforts in connection with another rescue operation for abused, unwanted, and otherwise discarded animals in Glocester, Rhode Island. See:

• Wells Fargo Farm Foreclosure Leaves 100+ Thirsty, Unfed Animals In Limbo After Owner Gets Boot,
• Wells Fargo To Ante Up $25K To Help Fund Care For Animals In Recently Foreclosed Farm.

Storm Clouds Hover Over NYC Tenants In Predatory Equity-Owned Apt Buildings; Deteriorating Conditions, Looming Foreclosures Spell Trouble For Renters

In New York City, local media stories continue to report on, what could be, a looming disaster facing thousands tenants in rent-regulated apartment buildings in need of renovation bought by predatory equity real estate operators shortly before the market tanked. These investors banked on their now-failed plan to "ease out its mainly lower-income residents, rehabilitate the apartments and charge a new generation of younger, more affluent tenants substantially steeper rents," as one report put it. Unable to carry out their plans, the investors are now walking away, leaving the quickly-deteriorating buildings in foreclosure. Once intoxicated by their sophisticated financial projections of great profits, the investors have sobered up from their binge and are leaving the buildings' residents - and the mortgage lenders who financed these fiascos - holding the bag.

For the stories, see:

• Times Online: Rats and bedbugs take over where Dawnay, Day left off in Harlem,
• The New York Times: Tenants Struggle as a British Landlord Goes Bust,
• New York Magazine: As More Landlords Stagger Under Debts, Thousands of Tenants Face Abandonment,
• WNYC Radio 93.9 FM: Speculative Real Estate Deals Put Buildings at Risk,
• New York Daily News: A Christmas carol from an East Harlem group to keep their homes.

Assisted Living Facility Administrator Ordered To Pay Back Elderly Resident In $46K Ripoff; Allegedly Dipped Into Unwitting Victim's Bank Account

In Ebensburg, Pennsylvania, The Tribune Democrat reports:

• A former administrator of a Johnstown assisted-living facility was put on probation for five years and ordered to pay $46,000 restitution for the money she stole from an elderly resident’s bank account by forging his name on checks. Debra Zilch, 44, of [...] Johnstown, also was ordered to pay $1,600 in fines and fees on her guilty pleas to four felony counts of forgery. County detectives had accused her of writing checks drawn on the account of a resident, then 91 years old, and cashing the checks between May 21 and Aug. 6, 2008.

***

• At the time, Zilch was administrator and part owner of Speciality LifeCare Service, 429 Napoleon St. in Johnstown’s Kernville section. The facility later was closed by the state Department of Welfare for a series of deficiencies.

For more, see Ex-administrator sentenced.

Ex-Undertaker Faces Charges In Trust Fund Ripoff; Allegedly Failed To Escrow Cash Received For Prepaid Funeral Services, Used Money For Personal Needs

In Fredericksburg, Virginia, The Free Lance Star reports:

• [Funeral director Ambrose] Bailey is [...] facing 81 charges, including 27 counts each of grand larceny, embezzlement and violating the Pre-need Burial/Funeral Services Act. He is accused of taking money paid in advance for funerals and using it for personal purchases. The money was supposed to be put into escrow accounts. Those 81 cases are scheduled to be resolved on March 12, the same day Bailey will be sentenced on [last week's] convictions [involving the forgery of doctors' signatures on death and cremation certificates].

• As part of an agreement worked out by [special prosecutor Matt] Britton and defense attorney Mark Gardner, Bailey was allowed to remain free on bond at least until his March hearing. Britton said he agreed to allow Bailey time to repay people who gave him money in advance for funerals. Britton said Bailey has already repaid two of the 27 victims. He said it is his understanding that Bailey’s father has gotten a reverse mortgage to help cover the rest of the debt.

For the story, see Ambrose Bailey pleads guilty to 15 felonies. EscrowRipOffKappa

Idaho AG Settles Claims Against Loan Modification Outfit; Firm To Refund $12K+ To Homeowners

In Boise, Idaho, KIVI-TV Channel 6 reports:

• Twelve Idaho homeowners who paid a Meridian man, Paul Clarence Aughtry, IV, for mortgage loan modifications will receive refunds totaling $12,400 as a result of settlement agreements with State Attorney General Lawrence Wasden and the Idaho Department of Finance. As a result, Aughtry is prohibited from engaging in loan modification activities in Idaho. According to Attorney's General spokesman Bob Cooper, "Aughtry operated International Co-Op LLC and accepted money from several consumers, offering to negotiate mortgage modifications with their loan servicers. Aughtry was not licensed to perform such modifications. He allegedly failed to contact many of the consumers' servicers as promised, and failed to effect the mortgage modifications his clients paid for."

For the story, see Refunds Coming for Idaho Mortgage Modification Victims.

Current Cardinal, Ex-Sox Shortstop Among Those Swindled In Major Dominican Deed Theft Operation; Forged Docs Allegedly Used In Land Scam

In Santo Domingo, Dominican Republic, Dominican Today reports:

• An alleged ring which forged property titles, involving a suspect of conning the baseball player Julio Lugo out of RD$50 million, Judicial Branch employees, a Supreme Court auditor among them, and a Police colonel, was uncovered, with four people arrested and two others being sought. [...] In press conference accompanied by Titles Registry director Wilson Gomez, National District prosecutor Alejandro Moscoso said it was a powerful ring which forged property titles, formed by recognized forgers, military, employees of the Supreme Court and of the Real Estate Jurisdiction.(1)

• [Among those] arrested was Edwin Baquero, who has a pending process together with another person for the forgery of a deed to a lot in the upscale sector Las Praderas, with which Julio Lugo was swindled.

For more, see Authorities bust a major deed forgery ring. DeedContraTheft

NH Pair Accuse Local Real Estate Agent Of Pocketing Upfront Cash In Owner-Finance, Lease-Option Deals, Then Failing to Pay Now-Foreclosed Mortgages

In Hudson, New Hampshire, The Telegraph reports:

• [Sheila K.] Jones, who is currently going by the name Sheila Mitchell, called The Telegraph last week to complain about the Hudson real estate agent who provided owner financing for her unit in a duplex. Her husband, Garlan Troy Mitchell, has since filed a lawsuit in Nashua District Court against the agent, Matthew Trudel, for $14,000 in real estate earnest money.

• Garlan Troy Mitchell signed a purchase and sales agreement with Trudel in May to buy the newly-constructed three bedroom unit. Trudel, who owned the property, agreed to carry the mortgage for one year while Mitchell made payments. The deal called for Mitchell to secure his own financing by July 30, 2010, and transfer the deed. In an interview with The Telegraph in her home last week, Jones claimed she and Mitchell lost their $4,800 deposit when the property was sold at a foreclosure auction in October.

• Debra Garman, 41, a teacher who lives with her family in [the same complex], claims Trudel owes her $3,900 for the security deposit and first month’s rent. She also said he hasn’t finished all of the construction on the property as promised. The unit was new last spring when Garman moved in, signing a lease agreement with an option to buy.

For the story, see Police say Hudson woman stole $550k. rent to own lease purchase option scams yellowstone

Mass. AG Indicts Six In Alleged Mortgage Fraud Flipping Scam; $12M+ In Fraudulently Obtained Loan Proceeds Used In Purchase & Sale Of 26 Homes

In Boston, Massachusetts, The Patriot Ledger reports:

• Six people, including a 29-year-old Brockton resident and a Walpole man who used to have a law practice in Quincy, were charged in a $2 million mortgage fraud scheme. They offered to buy long-unsold properties for below the listing prices, and recruited others to buy the properties as an investment with a promise to renovate them, Attorney General Martha Coakley said. Instead, they allegedly failed to upgrade the units, obtained inflated appraisals, and pocketed the difference.

***

• [Boston Equity Investments (“BEI”)] asked homeowners to give them an option to [buy] the properties at below-list price, prosecutors said, and recruited out-of-state buyers willing to buy the properties as investments. BEI obtained false purchase-and-sale agreements on the properties, so investors received far less money than banks had offered in financing, Coakley said.(2) BEI allegedly garnered a windfall of $50,000 to $100,000 at the closings of each property.

• The attorney general’s office began an investigation after complaints from buyers who were facing foreclosure. [...] The alleged scheme involved 26 properties in Greater Boston, Coakley said.

For the story, see Six charged in mortgage fraud scheme (Brockton man, disbarred Quincy attorney among those indicted in Ponzi-like scam).

For the Massachusetts AG press release, see AGO Announces Indictments in Elaborate Mortgage Fraud Scheme.

(1) According to the story, a Suffolk County grand jury indicted three principals in a Boston real estate company, two mortgage brokers and a disbarred lawyer from Walpole. Joshua Brown, 29, of Brockton, Brian Frank, 32, of New Hartford, N.Y., and John Sweetland, 28, of Yorba Linda, Calif., were charged with multiple counts of larceny over $250 and making false statements. Brown operated Boston Equity Investment in Boston, and Frank ran a real estate company in New Jersey, prosecutors said. Sweetland operated Boston Investment Marketing, which was based in Canton and allegedly recruited potential investors, the story states. Mortgage brokers Brian Arrington, 39, of Boston and Linda Defeo, 28, of Springfield were charged with larceny over $250 and making false statements. Bruce Namenson, 47, of Walpole, was charged with larceny over $250 and making false statements. Namenson had worked as a lawyer in Quincy, but he was recently disbarred, Coakley said.

(2) According to the press release issued by the Massachusetts Attorney General's Office, authorities allege that after the home sellers gave the option to buy to BEI, BEI obtained purchase and sale agreements between the homebuyers and sellers. They ultimately fraudulently obtained approximately $12.5 million in loans from more than a dozen financial lending institutions to purchase multi-family homes, from which they made approximately $2 million dollars in proceeds, the Massachusetts Attorney General alleges.

Florida AG Tags Loan Modification Company & Affiliated Attorneys With Civil Suit Alleging Illegal Upfront Fee Racket

From the Office of the Florida Attorney General:

• Attorney General Bill McCollum [...] announced he has filed a lawsuit against three businesses operating in Miami-Dade County, their principles and affiliated attorneys on allegations of deceptive and unfair trade practices regarding their involvement in a foreclosure rescue scam affecting homeowners nationwide.

• The Attorney General’s Economic Crimes Division began investigating Kirkland Young LLC, in July after receiving numerous consumer complaints against the company. During the course of the investigation it was discovered that Attorney Aid LLC and ABK Consultants were affiliated with Kirkland Young LLC.(1)

• The companies allegedly charged up-front fees for loan modification services, and misrepresented to consumers that lenders required “qualifying payments” in order to qualify for modifications. The companies also charged “back end” fees upwards of $1,299 for the first mortgage modification and approximately $499 to $699 for a second mortgage modification. To facilitate the collection of additional fees, consumers were required to set up escrow accounts with the attorneys affiliated with the companies, misleading consumers into believing they were retaining attorney representation for their loan modification. The funds fraudulently collected in the attorney escrow accounts were used for the benefit of all the defendants.(2)

For the Florida AG press release, see Attorney General Sues Three Companies for Loan Modification Scam.

For the lawsuit, see State of Florida v. Kirkland Young LLC, et al.

(1) Other named defendants are:

• David Botton, owner, manager, member and/or officer of Kirkland Young LLC,
• Bridget Grant, owner, manager, member and/or officer of Attorney Aid LLC
• April Botton Krawiecki, owner, manager, member and/or officer of Kirkland Young LLC, and owner, officer and/or director of ABK Consultants Incorporated,
• Samy Botton, owner, manager, member and/or officer of Kirkland Young LLC
• Michael Botton, attorney - licensed in New Jersey,
• Ryan Matthew Grant, attorney - licensed in Texas,
• Brian Michael Rokaw, attorney - licensed in Florida.

(2) The alleged racket involved an attorney licensed in New Jersey, one licensed in Texas, and one licensed in Florida. To the extent the Florida AG can prove damages that can be attributed to one or more of these three attorneys, the client protection fund for the state in which the attorney(s) causing the provable damage is licensed could have liability for a portion of the losses.

• The Florida Bar's Clients' Security Fund,
• New Jersey Lawyers' Fund for Client Protection,
• The Client Security Fund of The State Bar of Texas (try here for Client Security Fund Newsletter).

To locate the client security funds for other states, see Directory Of Lawyers' Funds For Client Protection (American Bar Association); in Canada, check the Canada Client Protection Funds Map.

Foreclosure Rescue Operator Accused Of Misappropriating $25K+ From Escrow Account Set Up In Connection With Sale Leaseback Of Home

In Chisago County, Minnesota, the Isanti-Chisago County Star reports:

• An Anoka man was charged with felony theft by swindle for allegedly stealing $25,425 from an escrow account his business was handling while acting as a middleman. Chris Alan Caliguire, 39, was charged in Chisago County Court on Wednesday, Dec. 16.

***

• According to the complainant, in March 2006, a Shafer couple was experiencing financial difficulties, and their residence had gone into foreclosure and had been sold to another couple for $223,000.00. After the mortgage had been finalized on the property, the couples had an agreement to rent the property back to the original buyer. The original buyer, now renter, took the proceeds from the sale and their subsequent mortgage on the property and placed it into what they understood to be an escrow account with a business called Minnesota Home Mortgage, aka CAC Enterprises, Inc., based out of North Branch. CAC Enterprises was owned by Caliguire.

***

• An investigator received [...] subpoenaed bank records, along with [...] information provided by the owner and renter, and provided them to Jason Olson from Eide Bailly Forensic Accounting and Investigation Services. Olson conducted a forensic audit of the records and determined that from March 2006 through December 2007, Caliguire had misappropriated $25,425.73 from the escrow account without authorization. Caliguire had allegedly misappropriated the funds by paying expenses not related to the mortgage, by failing to deposit funds into the account, and transferring monies paid into a personal account that he used for personal expenses.

For the story, see Man in charge of escrow allegedly steals $25,425.

Florida Judge's Writ Of Bodily Attachment Sends Wake-Up Call To Rent Skimming Condo Owners Delinquent On Maintenance Fees - Jail Time Could Await Them

In Fort Lauderdale, Florida, The Miami Herald reports:

• Condo investors delinquent on association fees could face jail time for thumbing their noses at court-ordered blanket receiverships. In a new first for distressed condo associations, a Broward circuit court judge last week commanded the sheriff, via a writ of bodily attachment, to physically bring owner Timothy Mohn to court to explain why he should not be found in contempt for failing to fork over rent to a receiver on two units he owns in the Villas de Venezia in Sunrise.

***

• [A]ttorneys for Villas de Venezia condo association claim the writ demonstrates [...] the sharp teeth of blanket receiverships and just how serious judges are taking their enforcement. [...] Ben Solomon, a partner with Association Law Group and the attorney for the Villas, said the writ would have represented the first time that "a foreclosure debtor may be put in jail for a foreclosure-related issue.''

***

• Judge Lynch's order should be a wake-up call, since judges rarely resort to sending the sheriff out in real estate-related civil cases, he said. "Hopefully, this will send another signal, at least symbolically, to the real estate market that owners and their tenants are going to have to comply with these court orders or face being held in contempt and put in jail,'' Solomon said.(1)

For more, see Sheriff sent to pick up delinquent condo investor (A Broward circuit court judge sent the sheriff out to get a condo investor because he failed to appear in court to explain why he wasn't turning over rent to cover his past due association fees).

(1) According to the story, a writ of bodily attachment is not an arrest in the typical sense, but the sheriff does go to collect the person and forceably take them to court. They are handcuffed and placed in a patrol car, Solomon said. If the judge is unable to see them, the person waits in jail, where they could spend the night.

Philly Feds Probe Alleged Rogue Paralegal For Fraud, Theft; Six-Figure Sums Stolen From Law Clients; Bad Acts Lead To Boss' Disbarment: Attorney

In Bucks County, Pennsylvania, the Philadelphia Inquirer reports:

• [O]netime paralegal [Bonnie Sweeten] is accused of getting her former boss' law license suspended, masquerading as a lawyer, stealing six-figure sums from clients, defrauding a lender, and using forgery and a fake passport to pose as her employer at a mortgage closing, according to documents filed in civil lawsuits and state disciplinary proceedings.

• Sweeten, 38, was even listed as a lawyer in the 2008 and 2009 editions of the Philadelphia Bar Association's legal directory. Lawyers for Sweeten and her accusers have said the FBI is probing allegations of fraud and massive thefts involving Sweeten and the Feasterville law office of attorney Debbie Carlitz, where Sweeten worked. No federal charges have been filed.

***

• Carlitz, 48, whose Pennsylvania law license had been suspended since 2008, was disbarred Dec. 1 by the state Supreme Court. Because Carlitz consented to the punishment, the underlying allegations against her were not made public.(1) But her attorney blamed Carlitz's fall largely on misplaced faith in Sweeten, her friend and assistant since 1995. Lawyer Ellen Brotman said, "Ms. Carlitz has lost more than just money as a result of her trust in Bonnie Sweeten."

For the story, see Kidnap hoaxer seeking reprieve (Bonnie Sweeten, a former paralegal imprisoned for faking her abduction, is alleged to have posed as a lawyer and stolen money from clients).

(1) Pennsylvania Lawyers Fund for Client Security, which, according to is website, was established by the Supreme Court of Pennsylvania in 1982 to reimburse clients who have suffered a loss as a result of a misappropriation of funds by their Pennsylvania attorney, could potentially find itself on the hook for the losses suffered by Carlitz' screwed-over clients. According to its website, The Fund does not have jurisdiction over claims alleging malpractice or ineffective representation. An appropriate claim:

• Is based upon an attorney/client relationship or fiduciary relationship customary to the practice of law, and
• Is seeking the return of money or property that was received by the attorney on behalf of the client, which money or property was then converted by the attorney.

Awards are discretionary. No one has an entitlement to an award from the Fund. The Fund has a $75,000 maximum award per claimant, according to its website.

-----------------

For those clients ripped off of their money and property by reason of the dishonest conduct of their attorneys in other states and Canada, see:

• United States: Directory Of Lawyers' Funds For Client Protection (American Bar Association);
• United States: Check the USA Client Protection Funds Map;
• Canada: Check the Canada Client Protection Funds Map.

Maps available courtesy of The National Client Protection Organization, Inc.

Pair From New York Bench Hailed For Meritorious Service In Home Foreclosure Cases

POPULAR(1) announced the year-end recipients of its bi-annual "Restore Integrity Award." Among the recipients are two New York judges who have received past mention here:

• Judge Arthur M. Schack for his appropriately strict scrutiny of foreclosure cases before him and corresponding mantra, “(i)f you are going to take away someone’s house, everything should be legal and correct.”

• Judge Arlen Spinner for his bold step of preempting $525,000 in mortgage payments demanded by a California bank “so as to deter it from imposing further mortifying abuse” on a Long Island couple appearing before him in the underlying foreclosure dispute.

POPULAR notes that these judges "[r]esisted powerful private interests without waiting for a groundswell of public support for their actions.”

Source: Judges Dominate Group’s Year-end “Restore Integrity Award”.

(1) According to its website, Power Over Poverty Under Laws of America Restored (POPULAR) is an association of public interest attorneys and law school graduates committed to helping poor and other disadvantaged people access affordable and competent legal representation, important civil and criminal justice system reforms, as well as appropriate judicial oversight.