Is there any greater example of the nearly complete abdication by white collar crime prosecutors of their responsibilities in the foreclosure fraud crisis than the fact that the ACLU has felt the need to step in and fill the vacuum left by them?
Housing Wire has an article up about ACLU challenging the famous Lee County, Florida “rocket docket” on constitutional, due process, grounds. You may recall that a while back I referred to this as a system of “robo judges” to go along with the robo signers. The petition alleges that the rocket docket was set up in a way that treats foreclosure cases differently from all other cases and in those cases strips defendants of many procedural rights that all other cases have under Florida Civil Procedure Law.
I had no idea how right I was when I called them robo judges. Just like the law firm of David J. Stern set up its own company to forge robo signed documents, it appears that that law firm and other bankster law firms colluded to set up their own robo court system.
The petition alleges that the Lee County mass foreclosure special court was set up in consultation with the Stern law firm and other foreclosure plaintiff’s firms; and that after the special court was up and running, it continued to take it’s instructions from those firms. The petition cites to all sorts of emails where the court sets up ex parte meetings with the plaintiff’s firms to discuss how to tweak the procedures of that special court to make it faster and easier to foreclose.
The petition also lays out a wholesale deviation from normal procedural practices in the special court and describes a system where if a bank defaulted on a court appearance, the judge would temporarily appoint a lawyer who did not have an attorney client relationship with that case to “cover” for the absent plaintiff firm, so the banks could never be found in default if they didn’t show up. But if a homeowner failed to show up, default judgment would be entered against them. Oh, and these covering lawyers were not required to file a Notice of Appearance which is evidently required by Florida law (and the law of every other state that I’m aware of).
These, and other procedural violations too numerous for a single blog post, were all in direct violation of an order issued by Florida’s chief judge which requires that foreclosure cases be decided on their individual merits.
The petition is chock a block with specific examples taken from court transcripts and really crazy sounding orders actually issued by these judges. Any lawyer, and most lay people, reading these will clearly see that something is VERY VERY wrong here. I don’t mean just morally wrong, I mean legally and logically wrong. Nobody is going to do something that deviates this significantly from the norm without there being an underlying bad reason.
Maybe I’m just suspicious because a County Executive here on Long Island just entered into a plea deal with the DA over raising campaign cash in a way that looks like there were a bunch of payoffs, but the official actions he took were MUCH less eyebrow-raising than the seemingly impossible actions taken in Lee County. So, I’m thinking that somebody somewhere would be interested in seeing if maybe there were some payoffs of some kind? People don’t do such patently illegal things without a motivating factor, do they?
So what is the Department of Justice doing? US Attorneys Offices have public corruption units for a reason, you know. Yet, it’s the ACLU that has conducted a “months-long investigation,” not DOJ. Hello! How topsy-turvey has the law enforcement world become?
All is not lost; the ACLU has conveniently packaged up a whole busload of evidence into one big juicy appendix, so any ambitious prosecutor out there could still make himself a hero without actually having to do the legwork.
What a world have we come to where the ACLU has to step in to do white collar crime investigations so the DOJ can waste its time doing more pornography cases. Gah!



23 Comments




At least we have them! Dog bless the ACLU.
Good for the ACLU!
Cynthia, you have done amazing work on this issue. We all thank you and have supported you with what we know and have experienced. Our DOJ will not investigate or prosecute because this entire collapse of our economy thru mortgage swaps was an intended robbery by those at the top. Everyone is starting to see this now because every single entity that has been created to guard against this, even the SEC looked the other way while it was happening.
I personally wish we could place a cloud on the title of every bank foreclosed home to keep them from making more and more money off the people they robbed!
In the last century, the systemic pattern of depriving civil rights suggested by the ACLU allegations would be enough for the US Attorney General to initiate a federal investigation. This century, it gets an embarrassed yawn from the gelded Mr. Holder and his civil rights [sic] division, and a quiet whisper from Wall Street to Mr. Geithner to move along and pay no attention.
What will the Florida courts and county prosecutor do? What will the state’s attorney general do if the county prosecutor sits on her hands?
What will the state’s bar admission authorities do in response to widespread allegations of corrupt practices among so many attorneys and judges? What will the state’s chief judicial authorities do to investigate and sanction judges whose failure to comply with their oaths of office have been established?
This is what happens when the rule of law is dismissed by presidents, Attorneys General, Congresscritters, State Departments and Pentagons. The failings and corruption don’t stay within a few elite federal institutions. They creep like antibiotic resistant strains of bacteria into local towns and courthouses, which reach into every backyard, porch stoop, bank book and pocketbook.
Right now DOJ and th state AG’s seem more interested in working out some “admit no wrongdoing and promise to do better in future” deal than they are uncovering all the fraud going on.
The ACLU is the only game in town other than individual homeowners and that yummy multidistrict litigation just starting up in Massechusettes.
I have to say, that some good investigative work appears to have been done the the Fla. state AG. Some of the smoking gun depositions in the ACLU appendix I linked to above, came from the Fla AG’s investigation.
One of my fears is that this 50 state deal will somehow nueter what he has been doing.
I love the cloud of title idea. I wish I could figure out how to make that work proceduraly. It has such poetic justice.
Thanks for that info. I hope the state supreme court takes this seriously.
Cynthia,
I just thought of something else. I’m not sure if a homeowner’s attorney can do it, but here it is:
I have to update “search” records for any judgements or liens on the property at closing before it is recorded. This search is to cover the period of time between the title search was completed and the property sale transaction actually took place. The two states I work or have worked in both are Deed and race to the courthouse recordings. With that in mind, could the homeowner’s attny not place a consideration lien against the bank that throws them out into the street?
I’ve got to say this again, the bankers are really screwing themselves and the future of contract law!
I see from Yves Smith that the “joint” federal/state AG’s mortgage settlement effort is now officially defunct. Given where it was headed, a full whitewash for the banks, that’s a good thing.
What’s not so good is that it demonstrates once again that Mr. Obama wants to hide problems, not fix them, and that he’d rather face a town hall full of DFH’s than risk the wrath of a single banker.
Ahhhhhhhh! Maybe that’s why Sheila Bair looked so depressed about the litigations spinning out of control during her “60 Minutes” interview. Maybe she already knew the deal was falling through?
This is actually good news from a homeowner’s point of view. That deal was horrible.
“So what is the Department of Justice doing?”
Why stalking and arresting anti-war protesters, seizing websites and smashing in the doors of of downloaders, of course.
And don’t forget enticing vulnerable brown people into setting off fake bombs while right-wingers set out the real ones.
Goodness, anything but holding corporate criminals accountable.
There is a paralegal, Dave Kreiger, who has authored “Clouded Titles.” He works with attorneys defending homeowners. I do not know much about him. He could be an opportunist, but it couldn’t hurt to check him out.
http://www.cloudedtitles.com/
Yves Smith posted a related article today.
http://www.nakedcapitalism.com/2011/04/its-now-official-no-more-joint-federalstate-attorney-mortgage-settlement-effort.html
Eric Holder is a length and a half ahead of Robert Gates as the worst member of the Obama Cabinet.
There are roughly 250,000 Americans who are members of some state bar who are more qualified to be AG than Empty Suit Holder.
By contrast, nearly every member of every state bar–along with thousands who are disbarred, suspended, or forgot to pay their dues–is more qualified to sit on the Supreme Court than Clarence “I don’t need no steenkin’ oral arguments” Thomas.
Those titles ARE clouded – if we ever restore the rule of law.
And I know (sry, no links) there have been cases affirming that.
Wow, what a read. I am speechless but just wanted to say thank you Cynthia and thank you ACLU.
Well, I’m wondering how many of those developer cookie robo-subdivision lots are not platted. Seems there might be quite a few. Plats are part of the land records, and if they didn’t record the mortgage, I think, given that the builders all got into the mortgage business (i.e., sign for the mortgage with Centex, and get the free hardwood floor scam), there is a reasonable chance that the office staff just didn’t get around to recording the plat. Which would make the building permit invalid. Because, good god, the lot lines would not be verified. And that’s a clouded title.
In CA the official document is a “record of survey” for the subdivision. Due to the Subdivided Lands and Map acts in CA, I believe all CA subdivisions are correctly recorded.
Both the local government (City or County if not incorporated) and the CA Dept of Real Estate at the state level have to approved subdivisions.
If the title companies lost a large lawsuit over clouded title, that would put a halt to the process very quickly.
I got an interview with the ACLU attrney handling this case. Will have a follow up post for Monday
This is a great, great piece – and the only place I’ve seen anything about it. Of course, much craziness hogging headlines.
I read this at my measly little temp assignment yesterday, but didn’t want to log in to say thank you. So, now, thank you for staying on top of this.
(I’m actually waiting to see if I get an interview with some organization “representing homeowners in foreclosure”. Don’t really know who bc it’s through a recruiter. Hope they’re legit. I’d love to learn what I’ve learned through your posts and links about helping people who have been and are being screwed)
“This is what happens when the rule of law is dismissed by presidents, Attorneys General, Congresscritters, State Departments and Pentagons. The failings and corruption don’t stay within a few elite federal institutions. They creep like antibiotic resistant strains of bacteria into local towns and courthouses, which reach into every backyard, porch stoop, bank book and pocketbook.”
Bears repeating – on many issues.
Cynthia, I probably would not have read the petition if I hadn’t seen your post. Took me four hours and I couldn’t find a ‘stopping’ point to get back to my real life work on the first sunny day we have had in 40+ days in my town. I had just come in from doing yard work to sit for a minute! I really couldn’t even talk when I was finished but I think it is important that the people involved know that people are taking the time to read this amazing piece of work. I learned so much and was continually shock and awed by the actions of the ‘court’. I wonder how all of the people at the Lee County courthouse feel now that this has been exposed. Private emails high fiving each other for doing hundred of foreclosures a day. These people have no shame, no morals and now that fact is on display for all of us. I look forward to reading about your interview on Monday.
Right, what if the survey is demonstrably wrong? They couldn’t see trees even though the EIR and major use permit protected them:
http://www.youtube.com/watch?v=GP03JhFEoGQ
Not sure if that’s the survey you’re talking about, but the story San Diego County DPLU told is that the trees got left off the map, oops. Darn those invisible trees.
Plus I have another question — when an HOA board election is held and fails because of not enough votes cast, is that a legal way to dissolve an HOA? IS there a legal way to dissolve an HOA? I see them as more corporate privatization of public government. Virtual private government. They can’t see trees either. Once this development was passed off to the HOA, the DPLU says it can’t fix anything any more. They are off the hook. Sweet.