Liable For Fraud: In Florida & New York, Bank Lawyers Now Responsible For Accuracy Of Foreclosure Documents
Judge Arthur Schack, left, of New York State Supreme Court, and Jonathan Lippman, the state's chief judge have both come down hard on bank lawyers in disputed foreclosures.
I wonder if they've seen this operation...
Full story inside.
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Judges Berate Bank Lawyers in Foreclosures
With judges looking ever more critically at home foreclosures, they are reaching beyond the bankers to heap some of their most scorching criticism on the lawyers.
In numerous opinions, judges have accused lawyers of processing shoddy or even fabricated paperwork in foreclosure actions when representing the banks.
Judge Arthur M. Schack of New York State Supreme Court in Brooklyn has taken aim at an upstate lawyer, Steven J. Baum, referring to one filing as “incredible, outrageous, ludicrous and disingenuous.”
But New York judges are also trying to take the lead in fixing the mortgage mess by leaning on the lawyers. In November, a judge ordered Mr. Baum’s firm to pay nearly $20,000 in fines and costs related to papers that he said contained numerous “falsities.” The judge, Scott Fairgrieve of Nassau County District Court, wrote that “swearing to false statements reflects poorly on the profession as a whole.”
More broadly, the courts in New York State, along with Florida, have begun requiring that lawyers in foreclosure cases vouch for the accuracy of the documents they present, which prompted a protest from the New York bar. The requirement, which is being considered by courts in other states, could open lawyers to disciplinary actions that could harm or even end careers.
The role of lawyers is under scrutiny in the 23 states where foreclosures must be reviewed by a court. The situation has become especially heated for high-volume firms whose practices mirror the so-called robo-signing of some financial institutions; in these cases, documents were signed without sufficient examination or proper notarization.
In the most publicized example, David J. Stern, a lawyer whose Florida firm has been part of an estimated 20 percent of the foreclosure actions in the state, has been accused of filing sloppy and even fraudulent mortgage paperwork. Major institutions have dropped the firm, which has been the subject of several lawsuits, and 1,200 of the 1,400 people once at the firm are out of work.
Continue reading at the NYT...
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Banks are foreclosure fraud factories...
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Jan 12, 2011 at 1:47 AM
Reader Comments (7)
source for story...
http://www.wired.com/magazine/2010/12/ff_ai_flashtrading/all/1
http://www.activistpost.com/2011/01/author-brad-meltzer-was-recruited-in.html
SAN FRANCISCO (MarketWatch) -- Former House Majority Leader Tom DeLay was sentenced to three years in prison on Monday by a Texas judge for conspiracy in a money-laundering scheme during the 2002 election cycle, according to media reports. DeLay, a Republican, was also sentenced to five years in prison for money laundering charges but the judge converted the sentence to 10 years probation, the Austin American-Statesman reported on its website.
http://www.youtube.com/watch?v=kqMoXGu1vZ8
DB with all your/ commenters post & links, I'm building a bunker a great distance from the field. When this thing explodes it might take out the stands & your sky box.
Trying to keep laughing.