Skip to comments.Foreclosure lawyer Stern hid files - called Fannie/Freddie his “babies"
Posted on 10/19/2010 6:52:25 AM PDT by Fred
Foreclosure attorney David Stern, who is being investigated for fabricating legal documents, purposefully hid files from inspectors with Fannie Mae and Freddie Mac, a former employee said in recently released deposition.
Stern had a tight-knit relationship with the two mortgage giants, and referred to them as his babies, former employee Kelly Scott said.
Scott also said office managers and key staff members got gifts, including new cars.
Sterns law firm is one of the largest foreclosure law firms in Florida, handling thousands of cases per month. Attorney General Bill McCollum is investigating the firm for allegedly creating phony documents. McCollums office released three more depositions in the case Monday.
Jeffrey Tew, an attorney for Stern, has already discounted the states depositions, which so far have been of former employees who may be disgruntled, and said he was not allowed to cross-examine them.
Scott said Stern would get tipped off that Freddie Mac and Fannie Mae were coming to visit.
If certain files werent updated correctly and there was lack of process, they would change the client code in the file. If it was Countrywide, they would change it into a different client name with a sticker and print it out, and then these files were transferred into a room where they would hide them and keep them behind closed doors until the client would leave, Scott said.
Scott said Stern would take care of the expense of bringing them to the office: hotel, food, rental cars whatever the client needed.
Fannie and Freddie werent happy with progress at one point, and told Sterns firm to pick up the speed to meet quotas, Scott said.
When Freddie Mac officials would leave the office, the staff would change the file codes back again. She said she personally did this on five or six occasions, involving more than 500 files.
Scott said some managers would look the other way when process servers billed for service on three or more people at one address, even though the case only involved one person.
If they found files without the proper notice of service documents, they gave them to office manager Cheryl Samons, and the files would reflect the proper paperwork within an hour or two, Scott said.
Stern wasn’t doing anything that the ‘dead beats’ didn’t deserve! (sarc)
The plot thickens...
This criminal just voided every single one of the foreclosures he's touched and the appeals are going to go on for a decade.
Could it be that’s what they wanted all along?
Nationalized Housing Market
I read the deposition.
This whistle blower’s boss was a lawyer. Sometimes files would be missing paperwork needed for foreclosure.
She would leave the file with the boss. Two to three hours later she would pick up the file and the legally necessary form would “magically appear” in the file.... complete with notarized signatures on correct dates.
Yup, the south side of Chicago goes national, makes a community organizer proud.
So, the OFFICIAL scapegoat for the entire housing collapse has been named.
This reminds me of the scene in Meet the Parents.
The fam is standing on the patio, and Gregs fiances x boyfriend brings a hoopa for her sis wedding.
The septic tank is overflowing and he backs over it. as he leaves he sprays S*** all over the fam.
Looks like we are about to get sprayed.
This isn’t over until these two are in jail, broke and their progressive poodle Podesta is married to the guy on the cell block with the most cigarettes:
Focusing on foreclosures to the exclusion of the deficient lending standards— which precipitated the systemic crisis, is the biggest attempt at a bait and switch in human history. Keep your eye on the ball.
3,000 cases times $5,000 fee per case = $15,000,000 a month!
$180,000,000 a YEAR !!!!!!!!!!!!!!
for this liar, cheat, creep, thief ...
Do you wonder why some are so rich and some not?
(and then they get themselves elected to Congress...)
“So, the OFFICIAL scapegoat for the entire housing collapse has been named.”
Tip of the Iceberg
No, They Didn’t Sell The Same Thing Twice....
Oh wait.... they did!
It appears as though many loans and other mortgage-related assets have been double and even triple-pledged to various constituencies.
There’s only one profession where that takes place on a routine basis and doesn’t involve ripping someone off - prostitution - where you can sell something and still have it.
In banking and finance, however, selling the same thing to two people is rank fraud. And yet this very event is being alleged by one of the banks that claims Foreclosuregate is just a “technicality” - Bank of America - in the below filing.
Boa Answer to Freddie Objection in Re Taylor Bean & Whitaker Mortgage Corp.
That's not entirely true. There are professions where you do the same thing. You sell an idea, but the idea belongs to you and you retain copyright or patent over it. The arts, architecture, inventions, etc.
Any service business is the same. You don't sell a product, you sell your time and expertise at something, over and over.
But you're right. It's very much like prostitution (which, when you get right down to it, is a service business).
One never knows, if it is not too rigged, Stern may roll- over on others to save his own worthless behind. A dirtbag like this guy makes sure he has the goods on others.
Stern would get tipped off that Freddie Mac and Fannie Mae were coming to visit.
It’s good to be in the good old boy club.