Schack bangs HSBC for False Paperwork

EDITOR’S NOTE: Plausible deniability went out the window as HSBC tried to get out of the consequences for submitting false, fabricated papers to the court in support of a fraudulent foreclosure. They tried to say they didn’t know. Schack didn’t buy it and slapped them with a $10,000 fine.

But the real story is yet to be told. We are getting closer to the real question, yet the inquiry into WHY false papers are being submitted on such a widespread basis has not occurred. This is the industry that practically invented dotted i’s and crossed t’s. They processed tens of millions of mortgages just the way they wanted them without error. Now they are claiming that they messed up the paperwork because of the same volume that they processed without a problem. And they are layering the responsibility by outsourcing the fabrication, forgery and fraud.

THE REAL ANSWER: When we get to the point where the question is asked and answered, it will unravel the entire securitization scam and it will be obvious that although the MONEY was treated as though the loans were securitized, the DOCUMENTS were not. Why would they do that? To cover up the money they were skimming from the investor dollars that were advanced for funding mortgages but instead were used to pay fees to the investment bankers and their cohorts.

In order to give the appearance of selling the loan over and over again, and in order to create “trading” activity that would  justify the profits and fees they were taking without the knowledge of either the investor or the borrower, they needed a gap — a vacuum that they would fill with bogus transactions which gave them the lions share of the pot created by the sale of bogus mortgage backed securities that were in fact, not backed by mortgages and were in fact not transferred into the pools.

But none of those extra transactions fit in with the documentary scheme required by law for mortgages and none of them conform to the documentary requirements in the pooling and servicing agreement. So they filled the gap, for purposes of foreclosure with fabricated, forged, fraudulent documents that refer to transactions and payments that never occurred.

A FULL accounting will easily show that the alleged transfers of the loan obligation were never the basis for payment between the transferor and transferee. A FULL accounting will show that the most of the loans have been paid down further than any required principal reduction. It will show that the past foreclosures were fraudulent, the sale of bonds to investors were fraudulent, and that the new ones coming up are equally baseless and without merit.

HSBC like ‘know nothing’ Sgt. Schultz from ‘Hogan’s Heroes,’ Brooklyn judge says Blames bank in foreclosure errors

Blames bank for foreclosure errors

BY John Marzulli
NEW YORK DAILY NEWS

Originally Published: Wednesday, December 28 2011, 3:12 PM
Updated: Wednesday, December 28 2011, 7:16 PM

A Brooklyn judge ridiculed HSBC’s “know nothing” defense for filing a false document in a foreclosure case and slapped the bank with the maximum $10,000 penalty.

“HSBC sounds like … Sgt. Schultz in the classic 1960s television comedy, ‘Hogan’s Heroes,'” Supreme Court Justice Arthur Schack wrote in a Dec. 22 decision made public Wednesday.

“The inept Sgt. Hans Schultz … would feign ignorance about the escapades of his Allied prisoners by telling his commandant, Col. Klink, ‘I know nothing! Nothing!'”

HSBC had incurred Schack’s wrath earlier this year when he caught its lawyers submitting documents filed by “robo-signers” purporting to work for the bank who were were actually employed by a loan servicing firm.

Bank officials and their lawyers are required to review and verify the accuracy of filings in foreclosure cases under regulations issued by state Chief Judge Jonathan Lippman.

Later, a bank senior vice president submitted a sworn affidavit claiming HSBC had no knowledge of the mortgage in question and blamed the fiasco on the loan servicer.

But Schack, whose blistering and colorful opinions from the bench have made him a folk hero for financially troubled homeowners — said HSBC is responsible for the actions of its agents.

The ticked-off judge also docked the bank’s Rochester-based law firm $5,000 for its conduct in the matter, according to court papers.

The judge had ordered HSBC President and CEO Irene Dorner to appear at a hearing last July, but she blew it off.

“She was missing in action, demonstrating her personal contempt for the Supreme Court of the State of New York,” Schack fumed.

A representative for the law firm Shapiro DiCaro & Barak said it is appealing Schack’s decision.

Bank spokesman Neil Brazil said HSBC neither serviced the loan nor “prepared nor filed any of the underlying legal documents presented to the court.”

The tumult stemmed from homeowner Ellen Taher‘s delinquent mortgage on her Bedford-Stuyvesant, Brooklyn, residence.

jmarzulli@nydailynews.com