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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Sunday, April 14, 2013

You, too, Goldman Sachs, Have Committed Frauds

Mr. Nye Lavalle is a consumer advocate who has written a paper entitled "You Can't Trust the Mortgage Paper Trail" that carefully looks at all the frauds committed by mortgage servicers (such as Goldman's Litton), banks and others that committed fraud leading directly to The Great Recession we are now in.

It is difficult to be empathic and honest when the banks, the justice system and the government conspire together to cover up fraud in the mortgage servicing and securitization systems.  Lavalle is one of those persons who insists on pursuing the truth to the best of his ability as shown in his report gong back to frauds beginning in the 1990s. 

Goldman Sachs committed accounting control fraud and forgery through robo-signing and only ever had to pay a small fine for its gigantic frauds.

Below are some excerpts from his report:

You Can't Trust the Mortgage Paper Trail (TM)
By Nye Lavalle -
. . . .
As such, to protect our nation, taxpayers, borrowers, and investors each alleged lender must be required to prove their note ownership with their accounting and financial books and records, not fabricated and forged paperwork and dubious servicing records that only allege accounting for a borrower’s payments. 

Due to the Sarbanes-Oxley Act that was created after the ENRON debacle, this should be a relatively simple process. Journal entries in the lender’s financial, accounting, and general ledger systems showing a borrower’s note as an asset and the asset being recognized and de-recognized from the alleged lender’s books should be able to be produced with the push of a few keys and clicks of a mouse. (page 4)

 . . . .
 Issues such as who has really suffered a loss and what is the amount of that actual loss must be addressed in each proceeding? Is there really a holder in due course or can a borrower sue the current alleged lender for the torts of the originators and securitizers. By now, the questions for judges and lawyers should not be whether frauds, bad, and unlawful acts were committed for we all know they were. The questions that should be posed to each court is how was the borrower damaged; who was responsible for the damages; who are or were the ultimate lenders that actually suffered any loss; how much is their actual loss; and how do we adjust the equities for the borrower and the true and rightful owner of the debt? Simply, who can a borrower sue and settle with?  (page 4 and 5)
. . . .
On pages 27–28 of this report, I described several robo-signing practices including the:

•“filing of fraudulent and false affidavits by predatory lenders claiming that theyown the note when in fact they are only the servicer;”
•“filing of fraudulent and false affidavits by predatory lenders claiming that theylost the note when in fact they never had control of the document;”
• “filing of fraudulent and false affidavits by predatory lenders claiming anindebtedness that is not owed;”
 • “filing of fraudulent and false affidavits by predatory lenders claiming amountsowed that are non-recoverable from the borrower;”
• “filing of fraudulent and false affidavits by predatory lenders claiming control and custody of documents that are not in their control and custody;”
• “filing of fraudulent and false affidavits that claim to support knowledge of  facts not known by the affiant;”
• “supporting motions for summary judgment with fraudulent and false affidavits;”
• “using corporate dummies as corporate reps that are trained to avoid questioning and obstruct justice;” and “witness tampering.” (page 9 and 10)

. . . .
 I also provided Merrill Lynch, Ocwen, Fairbanks Capital, Citigroup, and Litton LoanServicing with my reports. As for Ocwen, I attended an annual meeting where I was theonly outside shareholder in attendance in a conference room with the entire board andCEO and chairman present where I presented questions and noticed the board of myfindings. Years later, the general counsel for Ocwen would write me to inform me that there was nothing wrong with Ocwen’s practice of “surrogate signing” in front of notaries attesting to the signature of Scott Anderson. (page 15)
. . . .
My investigation and research over the last 20-years into the servicing, securitization, document custody, and foreclosure practices of both commercial and residential mortgage servicers reveals a variety of motives designed to confuse borrowers, lawyers,courts, and regulators about note ownership. These motives include:
• Concealing that the current and/or prior bank/lender is/was cooking their books;
• Concealing accounting schemes, frauds, and abuses from borrowers, shareholders,and regulators;
• Concealing that the securitizations were shams and were in reality not true sales, but financing of receivables subjecting the notes to the reach of federal bankruptcy trustees;
• Concealing real owners of foreclosed properties in downtrodden neighborhoods to prevent payment of property taxes and fines to local and state municipalities;
• Avoiding local transfer and state intangibles taxes and recording fees on transfers and assignments of mortgages and notes;
• Concealing double and multiple pledges of the same promissory note;
• Concealing broken chains of title;
• Concealing pledges of the note to other banks, private lenders, and even Federal Home Loan Banks and the Federal Reserve for other borrowings and advances; (etc., on page 42 ff.)

 . . . .
 Robo-signing is a merely a “symptom” of a much larger cancer (fraud). Since the cancer (i.e. foreclosure, securitization and accounting fraud) is so widespread, mere “testing” via a “temperature” is not sufficient to diagnose the extent of the disease and determine the appropriate treatment. If you find cancer in one part of the body or system, you must conduct additional tests and scans to see if the cancer has spread and if successfully treated, conduct continual testing to insure it has not returned.  (page 44)

Read the whole report here


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