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  • Goldman seen paying $30 million British fine
    Financial Services Authority began in April after the U S Securities and Exchange Commission filed civil fraud charges against Goldman Sachs for allegedly misleading buyers of complex mortgage related investments in 2007 Goldman settled the charges in mid July by agreeing to pay 550 million the largest penalty against a Wall Street firm in the SEC s history Goldman s agreement to pay the British fine could be announced on Thursday The Wall Street Journal and The Financial Times reported online Wednesday Goldman spokesman Michael DuVally in New York declined to comment to The Associated Press on Wednesday The FSA was not immediately available to comment The Journal said that Goldman will acknowledge an error in its registration as a trader with the British authorities of Fabrice Tourre a London based executive accused by the SEC of orchestrating the mortgage linked securities deal Tourre was promoted and moved to the company s London office to become executive director of Goldman Sachs International in late 2008 Tourre has denied any wrongdoing and has asked a federal court to throw out the SEC case The British regulator announced its investigation in April following pressure from then Prime Minister Gordon Brown who expressed

    Original URL path: http://www.911omissionreport.com/goldman_30mln_fine.html (2016-02-14)
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  • SEC Surrender Continues With Bear Bankers Deal
    made 22 million in 2005 and 2006 at Bear Stearns will pay just 800 000 and agree to a three year ban from the securities industry Tannin who was paid 4 4 million in his last two years at Bear will pay 250 000 and agree to a two year ban Neither has to admit to wrongdoing The agreement will deter absolutely no one from trying to pull off a similar stunt In combination with their November 2009 jury acquittal on criminal charges in federal court the SEC civil settlement provides a major victory for the defendants attorneys Hughes Hubbard Reed LLP for Cioffi and Brune Richard LLP for Tannin The American public on the other hand is left with the trillion dollar bill for Wall Street s financial crisis caused by the Wall Street bankers and traders who walked off with billions in bonuses This outcome is beyond outrageous In its complaint the SEC flat out stated that Cioffi and Tannin mislead their investors Particularly during the first five months of 2007 as the funds suffered increasing losses to the value of their portfolios and faced growing margin calls and redemptions senior portfolio manager Cioffi and portfolio manager Tannin deceived their own investors as well as the funds institutional counterparties by fraudulently concealing from them the full extent of the funds deepening troubles One of the ways Cioffi and Tannin did this was by displaying graphically on the monthly account statements the percentage of the funds invested in subprime mortgages For instance according to an investor s statement from March 2007 the amount of the funds invested in subprime mortgages was stated clearly as 6 percent But when the funds blew up Bear Stearns created internal talking points memos for how to deal with investor complaints A memo from June 2007 pointed out that one of the questions deemed likely to be asked was I thought the fund was diversified and now it turns out it seems to have had a fair amount of exposure to the subprime mortgage market What exactly was the exposure The answer 60 percent In other words Cioffi and Tannin told their investors the funds were diversified and raised billions of dollars based on that representation but in reality they were highly concentrated in subprime mortgages And now thanks to the SEC s settlement the two men may never even be held remotely accountable Even Frederick Block the judge who was to preside at the trial but instead has been asked to bless the settlement openly questioned whether the terms fit the crime He not only called the monetary settlement chump change but also said the SEC s injunctive provision was silly and asked Am I just a rubber stamp here or is there some inquiry I ought to be making about these provisions In this he was echoing the well known views of the outspoken federal Judge Jed Rakoff who last year rejected an agreement between the SEC and Citigroup Inc where the

    Original URL path: http://www.911omissionreport.com/sec_surrender.html (2016-02-14)
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  • Responding to Critics, S.E.C. Defends ‘No Wrongdoing’ Settlements
    cases and avoids court costs by allowing a Wall Street firm to pay a fine often in the millions or hundreds of millions of dollars while also agreeing that it will not deny that the fraudulent actions took place The settlements usually do not require the defendants to admit any wrongful conduct People won t settle with us if they have to admit wrongdoing Ms Schapiro said because it opens them to liability in civil damages lawsuits But because the settlements often carry terms that require a Wall Street firm to overhaul their compliance departments she said there is a deterrent effect The settlements serve the purpose of putting the rest of the industry on notice she said about conduct we believe violates the law and can lead to hundreds of millions of dollars in fines which I don t think any firm enjoys paying or seeing their name highlighted as somebody who s violated the law Some people have questioned that deterrent effect and the value of relying on the neither admit nor deny clause Judge Jed S Rakoff of the Federal District Court in Manhattan rejected the commission s proposed settlement with Citigroup last year saying that the lack of agreed upon facts left him with no way to determine whether the settlement was fair adequate and in the public interest The commission has appealed that ruling to the United States Court of Appeals for the Second Circuit in New York which has yet to render a decision Ms Schapiro said that she believed recidivism among Wall Street firms was so common in part because these firms are enormous Most Wall Street firms are part of large financial services companies that usually include a commercial bank an investment bank a brokerage firm an insurance company and other types

    Original URL path: http://www.911omissionreport.com/no_wrongdoing.html (2016-02-14)
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  • Mortgage Fraud Epidemic: How the FBI Blew It and Why There's No 'Perp Walks'
    of Economics and Law at the University of Missouri Kansas City Black who was counsel to the Federal Home Loan Bank Board during the S L crisis of the 1980s and blew the whistle on the Keating Five in 1989 reiterated what he told us in November Though the FBI warned of an epidemic of mortgage fraud in 2004 they subsequently made a strategic alliance with the Mortgage Bankers Association which Black calls the trade association of perps Indeed as much as 80 of the fraud during the boom was induced by the lenders who either encouraged people to lie on loan applications or actively altered documents to make them more likely to be approved says Black How extensive was the fraud There was the appearance of fraud or misrepresentation in almost every file Fitch Investors declared in late 2007 after reviewing nonperforming subprime MBS the same stuff they S P and Moody s rated triple A Black estimates there are as many as 500 000 cases of mortgage fraud that need to be investigated Furthermore such extensive mortgage fraud led to accounting fraud which led to securities fraud at any all publicly traded mortgage lenders As with the FBI

    Original URL path: http://www.911omissionreport.com/mortgage_fraud_epidemic.html (2016-02-14)
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  • Foreclosure fraud investigators forced out at attorney general's office
    p m and told by Robert Julian then the South Florida bureau chief for the Economic Crimes Section of the attorney general s office that they had the opportunity to resign or would be let go immediately They turned in nearly identical resignation letters that day We had absolutely no idea it was coming said Edwards who in an April 22 performance review she provided to The Palm Beach Post was praised by Julian During this interim period Ms Edwards has along with another attorney achieved what is believed to be the first settlement in the United States relating to law firm foreclosure mills the review says Her work has been instrumental in triggering a nationwide review of such practices The Fort Lauderdale based Law Offices of Marshall C Watson agreed to pay 2 million in March to settle the attorney general s investigation Clarkson who is on vacation and could not be reached Tuesday also received high marks from Julian on a performance evaluation in September which was obtained through a public records request She was given above expectation or exceptional rankings in 14 of 15 categories Edwards said Julian has since been placed in another position A message left at his office Tuesday was not returned In sworn statements taken by Edwards and Clarkson as part of their investigation of the Law Offices of David J Stern former employees described conditions where signatures were regularly forged on foreclosure documents paperwork was notarized by non notaries and flawed files were hidden from auditors of federal mortgage backers Fannie Mae and Freddie Mac Fannie and Freddie subsequently fired Stern s Plantation based firm and would eventually stop sending business to two other South Florida firms facing state inquiry I know those two ladies did a yeoman s job and it

    Original URL path: http://www.911omissionreport.com/foreclosure_investigators.html (2016-02-14)
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  • Chase Accused of Brazen Bankruptcy Fraud
    for relief from automatic stay in bankruptcy cases in the Central District of California wherein they falsely claim to be the party entitled to monies due under the terms of MLNs Chase rewards attorneys based on how quickly they can secure the stays and uses fabricated documents to establish chain of title on loans according to the complaint Rather than incur the cost of proving up its own standing or the standing of its principal Mortgage Backed Security Trust Chase systemically misrepresents Chase or a designated MBST to be a creditor in tens of thousands of bankruptcy cases by utilizing manufactured documents the complaint states Bakenie claims That said practice is utilized for all mortgage loans originated by Chase and other loan originators including insolvent Washington Mutual Bank whose assets were purchased by Chase That said manufactured documents are fabrications intended to create the illusion of a valid transfers MLNs and support the assertion of standing in tens of thousands of bankruptcy cases That the aforementioned fabricated evidence is photo shopped and is highly persuasive and authentic in appearance so as to ensure legal victory in the bankruptcy courts That said manufactured evidence is systemically utilized to deceive bankruptcy players and increase the profits of Chase its agents and its principals through massive cost savings and the imposition of attorney fees upon class borrowers As a direct result of this practice over 95 percent of Chase s motions for relief of stay and proofs of claim are granted without objection That the use of the fabricated evidence has a chilling effect on class debtors and their attorneys Said business practices discourages bankruptcy players from offering objections or from questioning the validity of Chase s false claims based on standing Bakenie adds That said practice allows Chase to dump defaulted loans

    Original URL path: http://www.911omissionreport.com/chase_bankruptcy_fraud.html (2016-02-14)
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  • Jury convicts exec in $3 billion mortgage fraud case
    one of the largest bank frauds in history and that his misconduct poured fuel on the fire of the financial crisis TBW was a major major player in this industry perhaps the second largest in the country depending on how it is measured Breuer said Farkas testified in his own defense at the trial and claimed he did nothing wrong He claimed he was unfamiliar with details or knowledge of many aspects of the various fraud schemes testimony prosecutors derided as incredible in their closing arguments Farkas lawyer Bruce Rogow said the six executives at Colonial and Taylor Bean who struck plea deals skewed their testimony to bolster the government s case in the hope of receiving lighter prison sentences for their cooperation Rogow said Farkas and everyone else at Taylor Bean was working honestly and ethically to get control of its finances and perhaps could have done the job if the government hadn t essentially shut the company down when it raided company headquarters in 2009 Rogow said late Tuesday he was disappointed in the verdict and plans to appeal I had hoped the jury would have accepted our argument that the six people who pled guilty did so not because they felt they were guilty but because they wanted to minimize the sentences that the government threatened them with Rogow said U S District Judge Leonie Brinkema ordered marshals to take Farkas into custody immediately following the verdict a relatively unusual step since most defendants are allowed to remain free until they are formally sentenced Farkas will be sentenced July 1 and potentially could spend the rest of his life in prison According to prosecutors the fraud began in 2002 when Taylor Bean overdrew its main account with Colonial by several million dollars Mid level executives at Colonial

    Original URL path: http://www.911omissionreport.com/3bln_mortgage_fraud.html (2016-02-14)
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  • Hundreds swept up in mortgage fraud arrests
    threat to our economy to the stability of our nation s housing market and to the peace of mind to millions of Americans Deputy Attorney General Mark Filip said in a statement Thursday The Justice Department and FBI planed to announce the cases at an afternoon news conference in Washington Since March 1 406 people have been arrested in the sting dubbed Operation Malicious Mortgage that saw 144 cases across the country Sixty people were arrested on Wednesday alone including in Chicago Miami Houston and a dozen other regions policed by the FBI In a separate sweep two former Bear Stearns managers in New York were indicted Thursday becoming the first executives to face criminal charges related to the collapse of the subprime mortgage market Across the country reports of mortgage fraud have soared over the past year as the subprime mortgage market collapsed and defaults and foreclosures soared Banks reported nearly 53 000 cases of suspected mortgage fraud last year up from more than 37 000 a year earlier and about 10 times the level of reports in 2001 and 2002 according to the Treasury Department s Financial Crimes Enforcement Network The most common type of mortgage fraud was

    Original URL path: http://www.911omissionreport.com/mortgage_fraud_arrests.html (2016-02-14)
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