Deutsch and other Banks Under Investigation by DOJ for Filing False Documents

see https://findsenlaw.wordpress.com/2015/02/04/department-of-justice-investigates-deutsche-bank-for-false-documents-presented-to-court-in-bankruptcy-foreclosure-case/

Beth Findsen, Esq. in Scottsdale, Az posted an article on her blog back in February revealing that after 10 years+ the Department of Justice is finally examining the validity of the papers filed by the banks in support of purported foreclosures on behalf of ghosts. Beth is a realist as well as an idealist. And her skills as an attorney are second to none.

While the DOJ is always slow, they frequently get to the bottom of things when they put their minds to it. The prosecution of individuals working for the Banks may just be around the corner. Apparently there has been a serious on-going investigation since 2014. If an indictment follows, it will shake the entire foreclosure process to its core. If there is a settlement, then it will probably stay business as usual.

This is not the first case where a US Trustee in Bankruptcy has questioned the authenticity and validity of documents supplied by the banks. But it seems to be a more serious issue now as they continue to piece together whether the claims filed by banks as Trustees, servicers or agents are real. If they are not they are committing fraud on US Bankruptcy court which is a federal crime for which plenty of people have gone to jail.

The importance in bankruptcy cannot be overstated. The size of the bankruptcy estate is affected. On the asset side you have the house and its fair market value at the time of filing or the time of appraisal. On the liability side you have a party who claims to be a creditor but isn’t a creditor. Then you have John Does whose money was used without their knowledge in connection with the origination or acquisition of the alleged loan. And finally you have a prospective liability that either is secured or is not secured. This could affect everything from motions to lift stay to adversary actions.

Interesting parts of the article include

Although the investigation involves the case of only one homeowner in Connecticut, a court document filed on Jan. 26 by the United States Trustee’s Office said it wants to elicit information about Deutsche Bank’s practices in general in foreclosure cases.

In recent months, the office has stepped up efforts around the United States to block banks and law firms from using false or fabricated documents in home foreclosure actions. The effort follows disclosures in October 2010 of large-scale “robo-signing”, the mass signing of foreclosure affidavits containing “facts” that had never been checked, and wide production of false mortgage assignments.

The Jan. 26 court motion stated that “The United States Trustee has reviewed the documents filed by Deutsche in this case and has concerns about the integrity of those documents and the process utilized by Deutsche in” filing to foreclose.”

From Reuters:

April Charney, a Florida legal aid attorney who represents homeowners in foreclosure cases and who is an expert on mortgage securitizations, said that aside from possible sanctions against Deutsche Bank in this foreclosure case, the results could have significant effect on Deutsche Bank’s practices in general, and on its ability to foreclose on large numbers of homeowners in default.

Lawyers for homeowners in foreclosure have alleged similar practices by Deutsche Bank in cases around the country.

Tags: affidavits • attesting • Daniel Edstrom • DTC-Systems • fabricating • false information • false sworn documents • foreclose • illicit business practices • improper statements • imp, April Charney, bankruptcy court, Beth Findsen, Department of Justice, Deutsch Bank, trustee
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