Wells Fargo and JP Morgan Chase Fraud
Let’s not forget the widows and orphans…
Wells Fargo Bank has been ordered to pay a Dallas woman more than $8 million by a state judge who concluded the bank defrauded her in serving as a trustee for a trust established when she was orphaned at age 7.
Militello said Wells Fargo sent a trust officer to Dallas County in 1999 to discuss her trust, which was set up for her by relatives in Midland. At a Dallas restaurant, he informed her she needed to “open a new account” and produced papers for her to assign to create a revocable trust.
In 2006, following her divorce, Militello asked her trust officer how she might get $200,000 to buy a house where she and her child could live. In May of that year, he sent her a check for the $200,000 and a form asking her to approve the already completed sale of 35 percent of the trust’s assets. Within a few months, the rest of the assets would be sold as well.
She alleged that Wells Fargo conspired with a third party to sell the assets at “far below market value” and to fraudulently charge the taxes for the property to her trust account even after the assets were sold to the buyer.
Debt Collection Fraud
JPMorgan Chase & Co. has been fined for fraudulently signing documents to legally justify debt collection lawsuits. Their problem became lost paperwork. The same paperwork that is needed to support a lawsuit for collection of a debt. If you are an attorney who is familiar with debt collection and debt settlement cases, it become easy to spot the bad documents and use that to negotiate a better debt settlement.
“… the CFPB alleged the bank illegally relied on robo-signing — signing mass quantities of documents without verifying the data in those accounts — and provided inaccurate information to third-party debt collectors when it sold the accounts. The bureau also said that Chase filed misleading lawsuits using inaccurate information to obtain debt collection judgments — on accounts that were paid off, discharged in bankruptcy, or otherwise were uncollectable.
Witness Coaching Fraud
Most people have not heard of “witness coaching.” It is when witnesses are told what they are supposed to “remember” and testify to in a court of law. Of course, that is illegal, and any attorney caught coaching witnesses is in danger of having ethics complaints filed against them.
Foreclosure cases often hinge on testimony by employees of servicers and lenders about mortgage records showing payment and loan-balance histories, homeowner defaults and the ownership history of bundled and securitized loans.
Ice Legal of Royal Palm Beach posted the documents on its website when numerous attorneys requested them after reading the DBR article May 19. Plaintiffs counsel then requested the documents be sealed.
If you need help with debt settlement or debt defense, phone Axsmith Law at (202) 285-5415.