Bill Paatalo Explains His Findings in Common "Rent-A-Charter" Scheme Employed by Banks

The Core of the “Rent-A-Charter” Scheme

Anyone familiar with organized crime knows its survival depends on paying people to “take the heat.” Investment banks institutionalized this concept through illegal Rent-A-Charter schemes, which appear legitimate but collapse under scrutiny.

Researcher Bill Paatalo has shown how Rent-A-Charter is used in two distinct ways:

1. Securitization schemes

2. Foreclosure schemes

Though often conflated, these are not the same thing.

👉 See Bill Paatalo’s full analysis here.

Everyday Analogies

To understand the concept, imagine:

• Practicing law without a license: You pay an attorney to let you use his name and bar number.

• Performing surgery after a hotel stay: You pay a doctor to let you impersonate him in the operating room.

• Acting as a police officer: You rent a uniform and badge, arrest people, and testify—despite having no legal authority.

Each scenario looks real on the surface, but the authority is fraudulent. Once exposed, both the impersonator and the one who “rented” the license face legal and criminal consequences.

How Banks Use Rent-A-Charter

For over 20 years, investment banks have relied on this illegal practice to profit from securitization and foreclosures under false pretenses.

Here are the players most often involved:

• Mortgage brokers

• Trustees under deeds of trust

• “Servicers”

• Trustees of alleged REMIC trusts

• Foreclosure mill lawyers

• Professional witnesses

• Technology platforms

In each case, these entities appear to perform legitimate roles but never execute the key functions required by law. Behind the curtain, the investment bank controls everything while hiding from liability.

Practice Tip: Spot the Lie

If their lips are moving, they’re lying.

Example: When a lawyer says, “I represent U.S. Bank,” it is usually false. With discovery and cross-examination, you often find:

• No retainer agreement between the attorney and U.S. Bank.

• Servicers don’t collect or disburse funds—they’re just paid to use their name on paperwork.

• Investment banks pull the strings, while servicers serve as fronts.

Winning Through Discovery

The key is aggressive, timely discovery and objections.

1. Demand proof of retainer agreements and servicing authority.

2. Use the absence of discovery responses to seek an order to compel.

3. Escalate to monetary sanctions and then evidentiary sanctions.

Once their false evidence is struck from the record, the case collapses:

No evidence in, no judgment out. Homeowner wins.

Final Thoughts

The Rent-A-Charter scheme shows how deeply flawed foreclosure practices really are. Understanding this tactic—and challenging it effectively in court—is vital to protecting homeowners.

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• But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more.
• Yes you DO need a lawyer.
• If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.

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Posted in Corruption, foreclosure defenses, Uncategorized |