Foreclosure Abuses Against Any Wall Street Giant
Photo by Matze_ott
The Federal law is there but enforcement? It does not exist, even in those area worst hit by the foreclosure crisis like Las Vegas. Last year in 2010 the FBI downed shutters on the office of its task force dealing with mortgage fraud. It had been focusing on petty swindlers.
Tim Gallagher of the financial crimes division of FBI (chief) said that the agents have been transferred to attend to other operations. Many states like Massachusetts, Delaware, California and New York have become frustrated and impatient with the absence of prosecution by federal agents. It has started to investigate the lapses of the banks on its own.
Last November Nevada was the first among the states to file criminal lawsuit against a financial entity. The attorney general indicted two executives of Lender Processing Services (606-count). They were charged with paying notaries of Nevada for forging their signatures and falsely notarizing these on default notices and documents that are mandatory as per Nevada State laws. The officials of the state informed that more indictments are expected.
John Kelleher, the chief deputy A.G. of Nevada said that the investigations were kicked off following complaints by citizens. He said they became concerned and then later shocked at the sheer volume of these forged documents filed with the recorder of the county.
Investigations dug up “tens of thousands’ of dubitable records that had been filed on the behalf of mega mortgage servicers. The two executives are contending that they are not guilty. LPS in a press release admitted to flaws in some of the documents but “these documents were properly authorized and their recording did not result in any wrongful foreclosure”.
Traditionally the office of the U.S. Attorney has filed the majority of cases against the big brass in the financial world. But it has failed to bring any criminal cases relating to foreclosures abuses involving any Wall Street giant. Till now the only step that it has publicly taken was last October when it reached a settlement (civil) with the biggest law firm of the state – that of Steven J. Baum of Buffalo.
It had handled 40% of all the foreclosure cases in New York recently representing the bankers and servicers. The records of the court show that the judges were angry with the firm for submitting false statements and posting dubitable documents.
Find more New York Foreclosures
