Investigator Bill Paatalo: The Money Trail Dead-Ends

By J. Guggenheim, LendingLies

Following the Paper Trail That Doesn’t Exist

For nearly a decade, investigator Bill Paatalo has been digging through mountains of bank filings, SEC reports, FDIC data, OCC records, FBI dockets, Attorney General cases, and whistle-blower submissions. His obsession? Finding that elusive sliver of truth that explains how the modern mortgage system actually works.

What he’s found is disturbing: the banks have no idea who owns your loan. Instead of producing verifiable loan-level accounting, they fabricate documents to create the appearance of ownership.

The Missing Money Trail

At first, many believed foreclosure disputes could be resolved if banks were forced to provide loan-level wiring receipts — the simple money trail showing where a borrower’s payment went. That would make years of litigation over notes and assignments unnecessary.

But when pressed, servicers refused. Judges rarely demanded the data, and when they did, banks scrambled to settle cases confidentially rather than reveal the truth:

➡️ There are no individual loan-level files to produce.

The Foreclosure Playbook

Instead of transparency, banks follow a predictable pattern Paatalo calls “litigation theater”:

1. Loan goes into default.

2. Servicer produces an unendorsed note to foreclose.

3. If challenged, fabricated assignments appear.

4. Loan is transferred to a new servicer to create distance.

5. A new law firm enters, claiming “lost note” or presenting late endorsements.

6. If foreclosure stalls, the cycle repeats with more transfers.

The goal is to confuse courts, wear down homeowners, and hide the absence of a true creditor.

Case Spotlight: Proodian v. Chase

In Florida, homeowner Proodian — not in default — asked Chase to prove he was paying the right party. The judge ordered Chase to produce loan-level wiring information. Chase admitted it couldn’t. Payments were lumped into giant transfers to Wells Fargo as trustee, with no way to trace individual accounts.

This raises the obvious question: If banks cannot track where billions of dollars go, how can homeowners ever know they are paying the correct creditor?

A National Security Threat

Chase and Wells Fargo’s admission means billions flow through the system without accountability. If even the FBI can’t trace these funds, banks may have created the most sophisticated money-laundering scheme in history — one that could channel money anywhere, from offshore havens to criminal enterprises.

Through securitization and lax accounting, anti-money laundering safeguards have been bypassed. Investors don’t know it yet, but they aren’t protected either.

The Ponzi-Like Structure

• The Yvanova decision confirmed: a homeowner owes a debt to a specific creditor, not “the world at large.” Yet with securitized loans, that creditor may not exist.

• Chase and U.S. Bank are on record admitting there may be no legally defined creditor.

• Mortgage documents become little more than “pretty paper” — traded as if they represent billions, when they represent nothing.

This is how a Ponzi scheme operates: profits for insiders, losses hidden until collapse.

Global Implications

This scheme extends beyond U.S. borders:

• The IMF and global markets benefited from toxic mortgage securities.

• AAA-rated MBS weren’t backed by “bad paper” — they weren’t backed by any paper at all.

• The Fed’s Quantitative Easing and TARP bailouts allowed banks to hide losses while executives collected massive bonuses.

Taxpayers, homeowners, and investors became unwilling participants in Wall Street’s fraud.

Why It Matters for Homeowners

If your mortgage was securitized, you may never know who owns your loan. Worse, your servicer — often companies like Ocwen, SPS, PHH, or Nationstar — can leverage even minor issues into a default, leading to foreclosure.

As Paatalo warns:

“This arrangement is a national security threat where billions of dollars exchange hands without oversight.”

What You Can Do

1. Avoid the big banks. Work with local community banks or credit unions that keep loans in-house.

2. Demand accountability. In litigation, focus not on what documents exist, but on what doesn’t.

3. Seek expert help. Investigator Bill Paatalo specializes in uncovering evidence that exposes fraudulent servicing practices. Learn more at BP Investigative Agency.

The Takeaway

Any American with a securitized mortgage is at risk. The banks don’t know who owns your loan, courts often don’t care, and regulators remain complacent. Until transparency is forced, homeowners remain in a rigged system where payments disappear into the ether and foreclosure can happen without a lawful creditor.

⚖️ Disclaimer: This article is for informational purposes only and not legal advice. Consult with a licensed attorney for guidance in your case.

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