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Judge Dismisses Mortgage Fraud-related Class Action Lawsuit
A federal judge in Philadelphia, Pennsylvania, has thrown out a lawsuit against lenders who supplied funds to a mortgage broker who previously pled guilty to charges of mortgage fraud, finding that lenders are not obliged to monitor mortgage broker actions. The decision is a major setback for 842 victims of Wesley A. Snyder‘s company, Personal Financial Management, who could have used the strategy to recover some of their losses, had it succeeded. The victims are said to have approximately $30 million in the scam.
The claim rejected by U.S. District Judge James Giles started in the fall of 2007, when a Fleetwood, Pennsylvania, couple–Douglas and Andrea Jones–filed a lawsuit, hoping to have it certified as a class action suit. According to paperwork filed with the court, defendants in the complaint included:
- ABN AMRO Mortgage Group, Inc.
- Chase Home Mortgage Corporation
- Citimortgage, Inc.
- Citicorp Home Mortgage Services, Inc.
- Countrywide Home Loans, Inc.
- Fifth Third Mortgage Company
- Florida Capital Bank Mortgages
- GMAC Mortgage Corporation
- GMAC Mortgage Asset Management, Inc.
- GMAC Mortgage Group, Inc.
- HSBC Mortgage Corporation (USA)
- Indymac Financial Services Corporation
- Moorequity, Inc.
- National City Mortgage, Inc.
- nBank, N.A.
- Provident Funding Group, Inc.
- Saxon Home Mortgage
- Saxon Mortgage, Inc.
- Sovereign Bank
- SunTrust Mortgage, Inc.
- U.S. Bank, N.A.
- Wachovia Mortgage Corporation
- Washington Mutual Home Loans, Inc.
- Wells Fargo
- Home Mortgage, Inc.
- John Doe Mortgage Companies
In their suit, Douglas and Andrea Jones alleged that several Pennsylvania companies, owned or controlled by Wesley Snyder, offered them Equity Slide Down Mortgages as part of what they say was a mortgage servicing Ponzi scheme. The Joneses said Snyder failed to monitor and supervise his companies, which did not credit them properly for payments and pre-payments of interest and principal on their mortgages. They further alleged that, following the bankruptcy of Snyder’s companies, the defendants in the case–the companies listed above–failed to notify them properly that they had taken over as servicing agents on the mortgage loans and demanded payments from them in amounts substantially higher than owed on the loans serviced by Snyder’s companies. The Joneses also claimed that each defendant was guilty of having committed numerous RESPA violations.
Specifically,the Joneses alleged that they applied for and closed on two separate Equity Slide Down mortgages through Snyder’s companies–one for each of their two properties–in 2002 and 2005, respectively. They alleged that at all times after closing they remitted their monthly mortgage payments to Snyder’s company and that they were current on all payments owed and had pre-paid a large portion of the principal balance by way of a large principal reduction payment made soon after closing.
They further alleged that in September 2007, after the bankruptcy filing of the Snyder’s company, they learned for the first time that SunTrust and Countrywide claimed to hold their respective mortgages and notes. According to the Joneses, SunTrust and Countrywide demanded payment for amounts that were duplicative and excessive and that failed to credit properly the payments and pre-payments they had made to the Snyder. The Joneses say that the Snyder’s companies were the “servicing agents” of each Defendant, as defined by the Real Estate Settlement Procedures Act (RESPA), and that Snyder’s companies were otherwise the Defendants’ agents under Pennsylvania agency law.
More specifically, the Joneses alleged that:
- Each defendant employed one or more of the Snyder’s companies to originate, close, and service all the mortgage loans at issue.
- Each Defendant knew the Joneses were making all mortgage payments to the Snyder Entities.
- Each Defendant knew it was sending all mortgage statements and federal tax forms to Snyder rather than to the Joneses.
In dismissing the suit, U.S. District Judge Giles said the Joneses’ recollections were trumped by documents they signed stating payments would be made to mortgage bank ABN Amro Mortgage Group, meaning, Snyder was not ABN’s agent and ABN had no duty to oversee him.
Filed under: Countrywide,Mortgage Fraud,Pennsylvania,Ponzi Scheme,Real Estate Fraud,Trial
A Ralph Roberts Site, Copyright 2005-2008 |
Just another case of Big Corporate America protected by our government.
I do not know all the details of the case so I can’t judge. What I do know is that if these large corporations “hired” Snyder as the servicing agent, then they most certainly did have a respnsibility.
Many of the banks charged were complicit in “bad” underwriting and funding loans not only with broker submitted deals but with their in house retail loans as well.
ABN AMRO for one had a huge phone room operation. Most of the loans they did were through this telemarketing activity. Were they just funding, funding, funding with no regard to qualifications?
Saxon Mortgage is owned by Morgan Stanley, the Wall Street investment house. They were leaders in the sub prime movement.
HSBC for a time owned Option One mortgage, another pioneer of sub prime.
National City Bank owned First Franklin Financial who specialized in 100% financing. National City several months ago sold First Franklin to Merrill Lynch who has recently shut down their wholesale.
GMAC not only operated the mortgage companies listed above but also owned Di-Tech. Remember them from tv ads?
Wahsington Mutual after acquiring Great Western Bank some years ago (the creation of the WAMU we now have) acquired their primary mortgage product the Pay Option Arm and continued that product as their primary offering.
Wachovia recently bought World Savings who for years offered nothing but the Pay Option Arm.
What I’m saying is that many of these banks had a hand in the mortgage meltdown but transferred the blame to the broker community. To emphasize their blame, many have ceased doing business with brokers. In effect, destroying the entire industry. Yet they will go forward unscathed by all this, their top executives will continue to receive their huge compensations and golden parachutes while the “work force” of the industry, brokers, go broke.
Wake up America and SPEAK OUT!
Comment by Larry Rubinoff — April 22, 2008 @ 3:22 pm
:: Wake up America and SPEAK OUT! :::
We are, Larry. The problem is – nobody is listening, and those who might aren’t really interested in hearing both sides of the story.
Money and power talk – and everyone wants a little piece of it.
Comment by Dawn — April 23, 2008 @ 7:02 am
A 76 year old friend of mine is homeless, due to judges assisting a lawyer to take possession of his home, even though, the old man continues to pay his mortgage.
The lawyer Keith Oliver used a two pronged approach to steal the property from my friend.
He first advised his client, who happened to be the wife of my friend, to declare bankruptcy, that way her ½ interest would be transferred to the trustee in bankruptcy. The lawyer and Trustee figured that since my friend makes less money then his wife in pensions that he would not have continued his monthly mortgage payments and as such within three months from the assignment into bankruptcy, my friend would have been pushed out of his home due to foreclosure. This scenario did not happen since my friend continued to pay his mortgage.
However since the trustee transferred the wife’s ½ of the title to his name, he severed the joint tenancy and this allowed the lawyer to proceed with the second phase of his scam, by petitioning the court under the Partition of Property Act on behalf of his client to have the property sold, after his client was discharged from a fraudulent assignment into bankruptcy.
One of the last judges on the case, who happened to be a classmate of the lawyer in 1980 at the law faculty at UBC, assisted his friend by approving the sale of my friends property for less than what was offered and further without the knowledge as to whether the lawyer for the alleged purchasers had raised the funds to buy the property.
My friend continues to pay his mortgage every month even though he is now homeless at 76 however CIBC recently has returned the certified cheques un-cashed to my friend’s pro bono lawyer’s address of delivery and the cheques were returned back to CIBC on the basis that the bank has not provided proof that his mortgage has been paid out.
In the event the mortgage was paid out, than I believe that Keith Oliver paid the outstanding mortgage himself to keep CIBC from making any reports. And the lawyer for the alleged purchasers filed electronic documents without signatures at the Land Title Office, making it appear as though the alleged first time owners of a property obtained a loan from TD Bank for $2220,000, which TD Bank has to date not confirmed.
In effect, TD Bank would not have risked, after having been alerted of the scam, loaning 98% of the amount of the purchased price at regular interest rates, when by law, chartered banks are limited to 75% of the appraised value, which in this case, Eric Linquist, hired by Mr. Keith Oliver, appraised the property at $225,000, on the basis of a foreclosure, when it was a judicial Order and further the tax assessment of July 2007 was $234,100.
The new tyranny is no longer fought outside with guns, rather citizens are being terrorized by those placed in position of trust wherein judges assist lawyers to confiscate property.
We are indeed in a very serious crisis and people are no longer safe since laws do not apply to certain groups of people.
You never know when one of us will need the court to apply the laws and when many judges are whoring for banks, than what we have seen thus far is only the beginning.
Tina Zanetti
Comment by tina Zanetti — April 23, 2008 @ 11:21 am
Amen Tina
Comment by Bob McNeilly — April 23, 2008 @ 12:15 pm
I’ll say it again, Wake up America and SPEAK OUT!
Who do we trust, who can we trust? Who should we trust? Major questions!
Going to court has always been a 50/50 win proposition. I believe we should have more corporate patriotism along with corporate responsibility to the public to prevent situations from going to court.
If corporate America becomes satisfied with a FAIR profit and working with their customers on any level we could avoid many situations like the one above. Litigation and courts cannot resolve many of the problems we have today. The courts are overworked and understaffed and often judges do not have adequate time to fully review a case. They get snippets of information to make decisions on. As humans they do have relationships, casual or otherwise with attorneys whose words they are prone to remember.
Are the courts “just” in dispensing justice? 50/50, sometimes they are and somethimes they are not. They are also part of the system, a system that is failing all of us.
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Comment by XRumerFinder — February 27, 2009 @ 5:05 am
I have seen for myself the lawyers and JUDGES working together and taking peoples properties right out from under them without them even knowing this has been done till they get a sheriff notice to move out in 5 days placed on there doors. This is why the country is not bouncing back yet because the lawyers and JUDGES are not done yet with what they have started. You would think that seeing many go to jail for this frauding america and stealing from us that the lawyers and JUDGES would be more careful with there rulings these days but NO there NOT. They feel that every little dirty penny they can get they will get till till the well is dry. And obviously the well for them is not near dry yet!.
This is absolutely TREASON against our COUNTRY and the American’s are doing it!. No one in Washington wants to believe that this is what is going on now because it has never been broufht to there attention as it needs to be done ASAP> But tell me what I can do to in steps to help get this stopped and I will do each step given. I am not alone with wanting to know exactly what we can do and we all need to know HOW to do it then. Americans need to stand up together because all these stimulous money will not stop these court officials and lawyers from draining out every penny possible. They are targeting those with fixed incomes meaning elder and disabled and then those who are NOW unemployed and can not get any kind of HELP from NOWHERE as we are suppose to have some kind of help being in these situations from our states at least but NOT ANYWHERE IN CALIFORNIA have anty one of 4 of us been able to get any help at all and we are all searching daily still for some help by contingency. But these lawyers wont take these cases unless you have a retainer and then have away to pay them all that they want. They are affraid that what ever may be awarded to us as homeowners that this will come off of the loans with these lenders but the lender we all have in common has been in trouble with the FTC already for some of the same issues we are having with him now. Also there are false documents and loans made that the owners did not make so once these are all sdaid and done there will be no (ibelieve ) loans to take the money won in court because they were false loans in the first place once it is all said and done. So please if there is anyone out there who will help us there will be money from the lender when he hopefully has to pay restution and what we will be suing for from him. This is at this time being investigated by government agencies but we still need an attorney to help us make sure we do everything correctly in filing. PLEASE HELP US STOP THESE CROOKS.
Comment by Donna Cox — March 7, 2009 @ 12:17 am
THANK YOU SO MUCH DONNA COX…we need more people with the Diligence, Integrity, Fortitude and Courage which we 4 have, to stand up to the multitudes of CA Legal Professionals, Lawyers, and Judges, etc. as the 4 of us have been forced to humble ourselves, 24/7, spending thousands of hours of investigation, court filings/procedures, and wherein we have pursued throughout/within ALL the CA state and governmental agencies inclusive of the FTC, D.A., DRE., FBI, Attorney General, Secretary of State…the list goes on and on.
For all Californians whom are still concerned about the culprits whom are”Raping” our judicial regulatory system referencing “The California Legal Greed Tragedy,” please go to websites: Ripoffreport.com; OR BoardsComplaint.com; OR BBB Complaints; OR Ca st bar (JOHN M. EDWARD BOUZANE, SBN 079804): Probations/Suspensions, 1985-1988 & 2008. PUT INTO THE WEBSITES ADVANCED SEARCH ENGINES ONE OF THE FOLLOWING: (1) BARRY COOPER PREDATORY LENDING; (2) JOHN MARK EDWARD BOUZANE, “ESQ,” SBN 079804; (3) DMI LENDING, DENISE ITTENBACH, UNLICENSED BROKER; (4) FEATHERSTON TRUST, ET AL.
Donna Cox (Northern CA area) and I, Helena Jett (Southern CA area), as well as personally known, documented countless defrauded Real Estate victims… need help in finding a ProBono Attorney to represent us in a current, Pending Multi-Million Dollar Civil Class Action Lawsuit filed in Riverside Superior Court. We have the Multi-Documented Real Estate Proofs of Trust Deeds’ Titles’ Frauds, Process Service Frauds, Notary Frauds, Forgeries, ID Thefts, IRS/State Frauds, etc., etc. Please Contact us at (951) 846-6301. CALIFORNIA WAKE UP PLEASE!
Comment by Helena Jett — March 7, 2009 @ 3:01 pm
ALERT, ALERT, ALERT…MARCH 7, 2009
CALIFORNIA WAKE UP PLEASE!
JOHN BOUZANE ALERT…RETAINED ATTORNEY FOR BARRY COOPER PREDATORY LENDING, FEATHERSTON TRUST, ET AL., DMI LENDING, DENISE ITTENBACH, UNLICENSED BROKER!
CALIFORNIANS PLEASE PUT THE NAME: “JOHN BOUZANE CROOKED ATTORNEY” (SBN 079804) IN YOUR SEARCH ENGINES…BOUZANE MADE THE FRONT PAGE OF RIPOFFREPORT.COM, ON MARCH 7, 2009. RIPOFF REPORT.COM HAS CONNECTIONS TO ALL NEWS MEDIAS AS WELL AS 20/20 AND 60 MINUTES.
Comment by Helena Jett — March 7, 2009 @ 4:01 pm
Spam blogging.
Advertisers seem to have found this blog. I would not use their service. This has always been a pretty “on topic” blog where people like those here can tell their stories and perhaps get some help and knowledge. I hope we can keep it that way.
If I needed a web design I would call the editor of this blog and get a referral. He seems to do a nice job.
Comment by Larry Rubinoff — March 11, 2009 @ 1:07 am
Well Guys…..welcome to our world for the past 6 years! No lawyer is going to represent PRO BONO OR CONTINGENT, WHY SHOULD THEY WHEN THE LENDERS ARE THROWING MONEY AT THEM TO MISHANDLE OUR CASES AND PAYING OUR RETAINED LAWYERS TO WORK BOTH SIDES OF THE CASE! We are now working on our 4th lawyer AND WERE NEVER, EVER LATE ON OUR MORTGAGE, BY THE WAY WE LIVE IN CORRUPT MARYLAND, ANOTHER STATE WROUGHT WITH CORRUPT JUDGES, LAWYERS AND GOVERNMENT! We were defrauded by CitiMortgage who is really Capitol Fairbanks; these bastards foreclosed our home and we were never, ever late! The scummy bastards, their employees and lawyers are stealing innocent peoples homes devoid of any delinquency! If you refinanced your home, and were defrauded, you have a right of rescission and then when the bastards do not cancel the loan in 20 days as they have to under law, and they attempt to foreclose on your home, defend the foreclosure and go to the courts and bring the certified return receipt and letter of rescission and assert sham collection, fraud, file complaints against the scummy bastard Citi Lawyers and get your loan set aside! Stay away from those corrupt BK courts as a lot of these courts are running a scam on the American public AND ARE PART OF THE CORRUPT ORGANIZATION KNOWN AS THE BK CLUB! THIS IS REAL FACTS, the Judges often being appointed by this scummy banks representing law firm or, your banks law firm and, the judge in the bk along with our US DOJ trustee is there to assist these bastards, we know, it happened to us! We read countless hours of law and realized what was going on and thankfully dismissed our case and rescinded the order of relief as, how the plan works, what they do after the relief is issued, is they move for appointment of special counsel and partition of property and then foreclose the property with the help of our US DOJ, Judges and our own retained lawyer!
We were never late on our mortgage and were paid in advance at all times as our lawyer has plead in our 2nd Amended lawsuit. We are now working our 3rd. Amended lawsuit and the scummy lawyer we have retained, a supposed expert, framed the first two suits with failure in mind! But, we know the laws and are making him amend again and forcing him to file under Lender Strict Liability, TILA Enforcement Action wherein NO JUDGE, HAS ANY RIGHT TO CHANGE ANYTHING AND MUST ENTER SUMMARY JUDGMENT WHEN THE BANK FAILS TO RESCIND AS THEY ARE REQUIRED BY LAW!, Our scummy bank, CitiMortgage, their scum sucking employees and scummier lawyers, have committed bank fraud and treason upon the courts when they filed fraudulent foreclosure actions against us devoid of any delinquency! We are suing the bastards and hope to own CitiMortgage one day for what they have done to us and many other defrauded, innocent Americans!
We are upset at best with Obama as he is giving these pigs a get out of jail card on our taxes! He is more of the same and has made no change at all and is just another Bush and we are sorry we voted for him too! MC Cane Scum would never do either or Sarah Puss Palin, so…..we settled for Obama!
DO YOU REALLY THINK CITI, THESE BASTARDS ARE GOING TO HELP YOU ON YOUR MORTGAGE FOR 3 MONTHS? THEY ARE NOT AND IF YOU ARE A REFINANCE TRANSACTION, YOU HAVE RIGHTS UNDER TRUTH IN LENDING ACT AND RIGHT OF RESCISSION, SO EXERCISE IT AND DO NOT DO A LOAN MODIFICATION WITH THESE SCUMMY BASTARDS AS THEY FORCE YOU TO WAIVE YOUR LEGAL CONSUMER RIGHTS AND, THEY CHARGE ILLEGAL COLLECTION AND LAWYER FEES TO WHICH THE TILA AND REG. Z SPECIFICALLY SAY THEY MAY NOT CHARGE! WE HATE THESE BASTARDS AND WILL WORK EVERYDAY UNTIL THEY FALL TO THE GROUND AND ALL THEIR EMPLOYEES ARE LAID OFF AND THEIR SCUMMY LAWYERS ARE DISBARRED! TO HELL WITH CITIMORTGAGE AND SHAME ON OUR GOVERNMENT FOR GIVING THEM OUR TAX DOLLARS TO CONTINUE THIS SCAM AGAINST HONEST AMERICANS! THESE BASTARDS ARE CRIMINALS, PLAIN AND SIMPLE, DO SOME RESEARCH ON THE WEB AND YOU WILL SEE STORY AFTER STORY WHERE THESE BASTARDS DESTROYED INNOCENT CONSUMERS CREDIT, AND FRAUDULENTLY FORECLOSED ON THEIR PROPERTIES DEVOID OF THEIR EVER BEING DELINQUENTS AND, WHY……IS OBAMA SUPPORTING THESE SCUM SUCKING BASTARDS AND DOING SO WITH OUR…….TAX DOLLARS! AND, TO ALL YOU LITTLE GOODY TWO SHOE TIGHT ASSES OUT THERE, THIS REALLY HAPPENED TO US AND HAS HAPPENED TO MANY AS THIS IS A STANDARD BUSINESS PRACTICE OF THIS SCUM BAG BANK, CITIMORTGAGE AND, OUR GOVERNMENT KNOWS ABOUT IT AS WE ARE SUING THE BASTARDS, FILED COMPLAINTS WITH EVERY REGULATORY AGENCY SO, WE CONCLUDE OUR GOVERNMENT IS IN ON THE SCAM! WE ARE LEAVING THIS COUNTRY AS SOON AS OUR CASE GOES TO TRIAL AND, IF YOU ARE WITH CITI NOW, IT IS JUST A MATTER OF TIME BEFORE THEY SCREW YOU OVER TOO! THE BASTARDS FORGED LOAN DOCUMENTS CHANGING OUR 30 YEAR, FIXED RATE LOAN TO A PAYMENT OPTION 5/1, NEGATIVE AMORIT. LOAN AND THEN HELD ALL OF OUR IN ADVANCE AND MORE THAN ON TIME PAYMENTS IN A SUSPENSE ACCOUNT AND FILED FRAUDULENT FORECLOSURE AGAINST OUR CREDIT, THAT WAS GOOD BEFORE THESE PIGS GOT A HOLD OF IT!
GOD BLESS YOU ALL AND CALL US AS WE ARE HAPPY TO SHARE WHAT HAS WORKED FOR US OVER THE PAST 6 YEARS, 410-257-5283 TIM AND KAT
Comment by tim — March 13, 2009 @ 4:29 am
Tim, let me see if I get this straight, you hate, no, really hate Citimortgage. You know what, canceled checks for your mortgage payment would certainly prove you paid your mortgage on time…
Good luck with your fight.
Comment by former underwriter — March 20, 2009 @ 9:53 pm
Tim is an angry American. Many Americans are angry but his points – some valid – are lost in the spew of hate.
Are the banks at fault? Yes for some things. Are the servicers at fault? Yes, for some things. Were Wall Street firms running a ponzi scheme? I believe so. Is there and was there fraud from Wall Street down to Main Street. Yes.
Tim, if you are still viewing this blog perhaps more detail and less hatred, anger and cursing would tell us more of your story. I for one would like to hear more of the details and facts. You may have been wronged so tell us how you were. Maybe you can get some good advice based on some good information. Remember, there are millions upon millions of Americans affected by all of this and the meltdown was created by our financial institutions not by the mortgage industry alone – as was initially blamed.
Citi is not the only “bad” guy out there so your facts may help others avoid what you have sufferred.
Comment by Larry Rubinoff — April 2, 2009 @ 2:56 pm
I found the best thing to my friend’s birthday… It’s really hard to find cool and still unique.
So today I saw this thing from ZTARLET on facebook where you can name a real star in the sky and have the certificate and a teddy bear sent to you and pay it by a single SMS. So awesome
Comment by AnnaNoble — June 5, 2009 @ 5:08 am
I saw that Casey Fronczek is offering fishing trips now down in south Florida. Does anybody have any input on these trips or has anyone been on one of these trips before?
Comment by CaseyFronczek — June 21, 2009 @ 12:03 pm
Hey, writer, call me as we have a criminal complaint you can file, god bless tim, 410-257-5283
Comment by tim — November 3, 2009 @ 4:53 pm
Your welcome everyone,
My PC worked slowly, too much errors. Help me, please to fix errors on my PC.
I used Windows7.
Thanks,
incefidgelf
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