Tag Archives: fraud

Something interesting this way comes

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Something interesting this way came on Dec. 17, 2018.

By Doug Boggs         July 3, 2019

 

Some say that there have been minute movements toward a seemingly truer justice found in foreclosure courtrooms that are taking place as of late. Are we seeing glimmers of hope from an otherwise wasteland of inaction by the courts against the myriad of institutional fraud and corruption from not only our judicial system but also the financial and real estate sectors? Can we find optimism and perhaps see a shift moving from corporate authoritarianism to more socially democratic results? Is the corporate socialism paradigm ebbing?

In one of the newer cases that are making some waves in how future foreclosure arguments are going to be constructed is the CA Supreme Court decision in the case of Dr. Leevil, LLC vs. Westlake Health Care Center. This December 17, 2018, decision begins to shed light on the timing and legal clarity of who holds power and standing to foreclose?  This basic foreclosure question in contract law is now being challenged in nearly every foreclosure case with valid evidence to show cause exposing just how corrupt, unlawful and unconscionable the results can be of courts continuing to ignore and gloss over this legal point of fact.

CA Supreme Court decision: Dr. Leevil, LLC vs Westlake Health Care Center

The property owners defaulted on a loan secured by a deed of trust on commercial property. The lender instituted foreclosure proceedings, and Dr. Leevil, LLC purchased the property at a trustee’s sale. The day after it purchased the facility, Dr. Leevil served the tenant Westlake Health Care Center with a three-day notice to quit. Dr. Leevil recorded title to the property five days later. When Westlake failed to vacate, Dr. Leevil sued for unlawful detainer.

If the property is foreclosed, and the tenant in possession does not vacate, which is often the case, the new owner of the property (purchaser at trustee’s sale) will likely want to evict the tenant. That requires service of a 3-day written “notice to quit” upon the tenant, followed by an unlawful detainer (eviction) lawsuit.

Westlake opposed the lawsuit, arguing the notice to quit was invalid because it was served before Dr. Leevil recorded title to the property. The trial court disagreed, finding the notice to quit was valid. Westlake agreed to surrender possession and pay damages. The court of appeal affirmed, holding that Code Civ. Proc. §1161a(b)(3) does not require a new owner to record title prior to serving a notice to quit.

In this case, the Supreme court overturned the Court of Appeal ruling stating:

“We conclude that an owner that acquires title to a property
under a power of sale contained in a deed of trust must perfect
title before serving the three-day written notice to quit required
by Code of Civil Procedure section 1161a(b). Accordingly, the
judgment of the Court of Appeal is reversed.”

The main issue was the timing of the notice and perfect of title. The court concluded that it must precede an unlawful detainer action where the action is not brought by a landlord but by a new owner who has acquired title to the property under a power of sale contained in a deed of trust. Dr. Leevil filed the 3 Day Notice, as a necessary code compliance action to follow in the beginning process of a power of sale clause. He filed this the first day after purchasing the property at a Trustee Sale, yet five days before he filed to perfect his title.

In a unanimous decision, the California Supreme Court overturned the Court of Appeal, ruling the purchaser at a foreclosure sale, in this case, Dr. Leevil, must perfect his title and be the legal owner following recordation of a trustee’s deed, then serve the 3-day notice of eviction. The Supreme Court held that perfection of title, which includes recording the trustee’s deed, is necessary before the new owner serves a three-day written notice to quit on the possessor of the property. This means that there must be the proper filings and legal postings of the court prior to an unlawful detainer action. The Court thus reversed the judgment of the Court of Appeal, which had concluded that perfection of title need only precede the filing of the unlawful detainer action and that the new owner may serve the notice to quit immediately after acquiring ownership.

I feel that an arguable defense that one can take from this ruling might be that the foreclosing party to a foreclosure sale must be able to prove that their ability to foreclose.  This ruling should show a more stringent find for standing before a party can begin the foreclosure proceedings in a power of sale clause.  The possible prima facia evidence of this is only merely assumed in a non-judicial foreclosure proceeding.  This is due to the fact that there is no independent party between the lender and the borrower to keep this type of thing from getting out of hand.  Despite that, the CA Supreme Court ruled in 1978 that this is to be the case.  There is no independent trustee in a deed of trust, and there has not been since Jan.1, 1998.  Thus, creating the fabrication of documents and filing forged or fraudulent paperwork.  The same levity to the perfected title must be applied to a foreclosure case as to an unlawful detainer as the same depth of damages could occur. This could have some very large implications in the cases to come.

With the millions of cases of fraud, forgery, robosigning or other means of fabrication of documents that have been uncovered, and continue to be largely ignored by the courts, there might be some light at the end of the proverbial rabbit hole, or rather a tunnel.  Perhaps we are finally whittling away at the necessity by the courts to actually follow the rules of contract law.

Through more definitive case law such as this, we will now begin to see arguments to further refine that definition and how it might change the foreclosure process. If it is now a precedent that the perfection of the title is required to file an unlawful detainer action, will it now be an argument that perfection of the title is to be required before the property can be auctioned at a Trustee sale through the power of sale clause? if so, this ruling could have major implications in the foreclosure litigation world.

As a nationally certified Bloomberg Forensic Loan Securitization Auditor, I have found fraud in every single client’s documents.  Whether it is through an audit completed by a third party which I reviewed and analyzed or one that my office completed.  The results of illegalities, improprieties, fraud and/or forgery are quite staggering.  Despite this, courts across the country still to this day rarely rule for the foreclosing party the need to present the original title prior to the ability to foreclose.  The courts are fully aware that the deeds of trust and mortgage notes have been shredded making the contract void.

I am hopeful that this case will bring a breath of fresh air to the arguments of standing and the need to further support this claim in the future.   

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

 

©2014-2019 Doug Boggs All Rights Reserved

 

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Is Fraud a Silent Sword?

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By Doug Boggs

Is Fraud a silent sword? The Dausi was a poem of the history of the Soninke people and the rise and fall of their eternal city. African legend says, the city of Wagadu, was protected by a great serpent named Bida. Every year Bida rained down gold on the city of Wagadu in exchange he required sacrifice of a young woman chosen by lottery. This agreement was how the kings of Ghana attained their wealth and power. This custom continued for many generations until one day fate had chosen the beautiful Sai Tu Bara to become a wife and sacrifice to Bida. Her fiancé Mamadi, a warrior whose praise name was Sefe Dekote (the ‘silent sword’) due to his taciturn nature and relentlessness towards his goals discovered that Sia was chosen to be sacrificed. Determined to save her life, Mamadi killed the serpent thus making him an outcast. Soon after the death of the serpent Bida, the city of Wagadu was destroyed and the Soninke people scattered. 

Lawyers don’t ask the right questions in order to get the answers that could serve the people most in need. I have found that lawyers ask questions to what they already know the answers to. This practice might help them formulate a response to a specific line of questioning in order to fine tune their making their point. However, this kind of practice will never shed light on any new ideas or evidence.

I have recently come across an article online written by a lawyer, named Abe Salen, of The Wolf Firm. It was posted on February 1, 2018, on a financial services website USFN. The Wolf Firm is a 30 year old legal corporation, based out of Irvine, CA, that claims to do business in California, Washington, Oregon and Idaho. Their website states that they are attorneys to the financial services industry. The byline claims that The Wolf Firm is a member of an organization named, USFN (American Mortgage Banking Attorney’s). USFN, is an organization filled with attorneys from the mortgage banking business. They were recently recruiting new members at the 2019 MBA Servicing Conference. It would be fair to say that they are not attorneys that I would hire or for any homeowner needing assistance with their home foreclosure.

The article begins with “Fraud has consistently been a silent sword used by borrowers and their agents to stall the foreclosure process and keep the non-paying borrower in the property.” This is far from the truth. Fraud is not a silent sword used to stall a foreclosure. Fraud is a cause of action against a company who is illegally foreclosing on a homeowner. Their quip of “…keep the non-paying borrower in the property” is a bit presumptuous. I say that because Wells Fargo Bank began their foreclosure proceedings on me while I was current on my mortgage. Yes, you heard that right. I am also familiar with countless people who have been foreclosed on throughout the country that paid cash for their home and never had a mortgage to which they were “non paying” to. So, that begs the question of just what the word fraud means in a foreclosure procedure.

The next paragraph of the article continues with “Over the last 18 months, a grand scheme has been uncovered by both federal and state law enforcement in which the borrower is generally a non-participant. Rather, the perpetrating entity conducts a public or semi-private search for properties with loans in foreclosure — often properties that have been in foreclosure for some time (several months to multiple years), but with no record of a sale having occurred. The scheme has reached significant levels in California.” This makes the claim that the borrower is generally a non-participant. This is very true to a homeowner with a Deed of Trust attached to their mortgage. In my legal case against Wells Fargo, I showed the court, just how much a homeowner is as a non-participant borrower. I showed the court how the state legislature made a deed of trust in the state of CA void through their passing of SB1638 in 1996, which became law in January 1, 1998. Due to my exposure of that silent sword the courts then silenced my court files and removed them from public view. The fact that a Deed of Trust is void exemplifies just how much a borrower is a non-participant.

“The process is this: once the property is identified, the perpetrating entity begins its fraudulent scheme by recording a bogus assignment. That same day, this entity substitutes in a subsidiary as the foreclosing trustee. Thereafter the “new” trustee immediately (often within 1-3 days) records a Trustee’s Deed Upon Sale, transferring the property to the fraudulent beneficiary. With a recorded transfer in hand, the perpetrating entity sends out private invitations to known REO investors seeking bids for the purchase (at pennies on the dollar) of the subject property. This scheme is “grand” because it encompasses several hundred properties throughout California, with many more suspected — including properties throughout the West Coast and neighboring states, and eastward.” Let’s paraphrase this a little bit: Once the property is identified, means that there is a computer algorithm that spits out information to a law group, such as The Wolf Firm. This information will show properties that are in some part of the foreclosure process. So, as we have already learned, this means that the home is in some part of the foreclosure process, but it does NOT specifically mean that the homeowner has not paid their mortgage. The article goes on to state that a perpetrating entity begins a fraudulent scheme by recording a bogus assignment. Through that bogus assignment, this perpetrating entity substitutes themselves as a substituted trustee in a deed of trust. This action makes this perpetrating entity a fraudulent trustee. Only through the passing of SB1638 can this action occur.

Let’s look into this further. A Non-Judicial foreclosure was designed to take the process of foreclosure out of the encumbered court system. In order to do this, an independent third party, the Trustee, was added to the transaction in order to act as the independence of the court system that was now usurped. The CA Supreme Court ruled in a 1978 landmark ruling that the trustee is to be an independent party in a deed of trust. The trustee is to be held at arms length to the other parties within the transaction so as to be impartial to the needs of the transaction and the non-judicial foreclosure procedure. In a non-judicial foreclosure it is the trustee that acts as and on behalf of the court. The trustee is to make sure that the borrower, as well as the lender, all abide within the rules of the Power of Sale clause, CA Civil Code 2924, in a non-judicial foreclosure procedure. Through the independence of the trustee the courts are then bypassed and considered less encumbered by having less foreclosures on the court docket.

So, The Wolf Firm, freely admits that the system allows for a perpetrating entity to make itself become the substituted trustee. This new fraudulent substitute trustee then files fraudulent documents to the court recording a Trustee Deed Upon Sale. This fraudulent paperwork created the transferring of the property to a fraudulent beneficiary. If all of this fraudulent paperwork can be filed to the court, it is only safe to assume that other fraudulent paperwork can be filed to the court. Such as documents that the borrower has defaulted on a loan when in fact they did not. And in numerous cases there was never a loan against the property for a borrower to default from. However, these documents get filed. Due to this process, I have also seen documents to which one or more of the borrowers listed in the foreclosure procedure signed documents when they were dead and buried.

If the Trustee is independent in the transaction, how could all of this fraud be able to take place? It is their job specifically to make sure that does not happen, as they are acting as the court. That certainly shows a breakdown of the non-judicial foreclosure process. This stems from SB1638 which allowed the beneficiary to name a new trustee at will. So, if the acting trustee would not allow a bank or legal beneficiary to file fraudulent documents or perhaps slide by some of the rule of CA Civil Code 2924 in the Power of Sale clause in order to expedite a fraudulent foreclosure proceeding, that bank or legal beneficiary could substitute a new trustee into the transaction that will act on the beneficiary’s behalf. It is for this reason that the Power of Sale clause becomes moot and therefore the deed of trust becomes void. If the ruling of the legislature no longer adheres to the ruling of the CA Supreme Court and the need for an independent trustee is deemed necessary, than the entire non-judicial foreclosure system is fraudulent and all deeds of trust are fraudulent and therefore void.

“The problems are clear. With the fraudulent recordings occurring so quickly, it may be difficult for servicers and trustees to become aware of the fraudulent cloud on title until a bona fide purchaser is in the mix. Several title companies are now aware of this particular scheme. Further, at least one county has filed criminal charges against the perpetrating entities, with several more jurisdictions conducting in-depth investigations. The FBI is also investigating, and this scheme has gained the attention of numerous media outlets throughout the country.” The Wolf Firm skirts around the real issue here as they discuss the problems being clear. It isn’t that fraudulent recordings occur so quickly, it is that they are allowed to occur at all. It is easy for them to occur when there is no independent trustee in order to oversee the fraudulent documents being filed to the court. The Wolf Firm author discusses the difficulty for the servicer and trustees to become aware of the fraudulent cloud on the title. The trustee is never NOT aware, as it is the acting perpetrating entity which has now clouded the title with fraudulent papers.

“This situation provides a serious reminder that servicers/trustees must stay vigilant in their due diligence as they begin the foreclosure process, and ensure that the title searches remain current throughout the process. Updating title reports at regular intervals during the process is recommended, especially when files are placed on hold, in order to confirm that title remains unaffected — not just from borrower conduct but also from possible third-party perpetrators.” How is it that a trustee is able to remain vigilant when it was put in place by the beneficiary in order to do its bidding. The trustee is in place to make sure that no matter what, the beneficiary is able to foreclose on any home, any time, any where, despite anything. PERIOD. To state that they must stay vigilant to ensure that the title searches remain current is simply a joke. And this joke was authored by The Wolf Firm who is a law firm which acts on behalf of financial services companies. So, they know full well of the lack of independence of the trustee in a deed of trust transaction. They are fully aware and have freely admitted that a trustee does not protect the deed of trust for the borrower whatsoever.

Who are the third party perpetrators that affect the title? Law firms such as The Wolf Firm; Anglin Flewellen Rasmussen Campbell & Trytten LLP, and many other legal firms acting on behalf of financial institutions. These firms know full well that there is no independent trustee and therefore fraudulent documents filed by the trustee are on behalf of the beneficiary, to which these legal firms represent on a daily basis. There are time that these firms take on the role of the substituted trustee or as the legal team for the beneficiary. Usually the beneficiary has a subsidiary firm which is signed on as trustee at the onset of the deed of trust transaction.

The article discusses how a perpetrating entity can become a fraudulent substituted trustee. The article does not discuss how a fraudulent trustee is able to circumvent the ruling of the CA Supreme Court for the independence of the trustee in the Power of Sale clause. The fact that there is no independence of a trustee in a deed of trust transaction based on the fact that a bank or beneficiary can substituted a new trustee at will, simply means that the bank or beneficiary has power over the trustee. So, the trustee ergo works for the beneficiary. Ergo the trustee is not independent. Since the lender does not stipulate this fact to the borrower during the negotiations of the contract and the borrower is never privy to the fact that the trustee is working on the beneficiary’s behalf and has no vested interest in protecting the borrower from any wrongdoing from the beneficiary or servicer, there is no real meeting of the minds in the deed of trust transaction. In contract law, one of the single most used arguments against the validity of the contract is the fact that there was not a meeting of the minds. If there is not a meeting of the minds in a contract, there is no contract. If one party leaves out pertinent information to the contract that is crucial to the decision making of the other party in the contract it is construed as deceptive fraud.

The original article, coming from a law firm that litigates for the financial industry, it is certainly deceptive.

Is fraud a silent sword? Is Sefe Dekote the tool for homeowners to battle against Bida, the big bad banks and law firms acting fraudulently and illegally foreclosing on people throughout the United States? Sharpen your blades foreclosure warriors.

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

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©2014-2019 Doug Boggs All Rights Reserved

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I’ve reached a milestone! It’s time for a call for action!

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Thank you to all of you who have joined my blog project that I began nearly four years ago, as today I celebrate that I’ve reached a milestone of over 2500 subscribers so it’s time for a call for action!

This project began as a catharsis for me to get out my story regarding my lawsuit I filed against Wells Fargo for fraud while using it as a platform to inform others around the United States and the world of what I have learned of the fraud and corruption in the foreclosure industry, the financial industry, and our judicial system here in the United States  That lawsuit was the the hardest thing I have ever had to do and it came at the hardest time in my life.

I received my first fraudulent foreclosure documents from the defendants on Dec. 31, 2010,  while being current on my mortgage, despite the fact that I had not worked as a builder and real estate developer for nearly two and a half years at that time due to the collapse of the economy created by the defendant and other Wall Street financial behemoths, I was confused at the entire situation.  With no money to hire a lawyer, I had to act as my own attorney.  I quickly began researching and collecting information in order to formulate a lawsuit which was filed in February 2011.   Learning the legal language, rules and procedures in order to understand fraud and contracts and the laws of the foreclosure industry in the state of California was a very daunting task.  Learning the procedural intricacies of the rules of how to write and submit a lawsuit was also a very daunting task.  Doing both of these tasks at the same time while running against the timeline of losing my home was extremely challenging and very hard on my marriage.

I was able to stop the impending foreclosure action while the litigation took us through California Superior Court where I had filed the lawsuit originally.  Shortly after filing in the state, the defendants remanded the lawsuit to the federal court level to where I then needed to learn the new set of rules dealing with that court system as well, all the while, maintaining the timelines and filing deadlines of all of the motions, responses, and other moving documents that are part of a lawsuit in our judicial system.

Over these past years of writing this blog I have come in contact with thousands of people who have had to deal with their own foreclosure stories.  Each story is unique to every family and their own battles.  Some have had to deal with financial troubles or health issues or both while at the same time attempting to save their home.  There is one thing that I have noticed talking with every person and helping many go through hundreds or thousands of documents is that they have had to learn and come to realize the depth of fraud that is involved.  I have found that there is fraud in every case I have ever come across.  The level of deception by the financial industry is astounding.

Not only have I been working on this blog to help expose some of the fraud in the financial and foreclosure industries, I have also been authoring two books that I am releasing.  One is titled, “The Unlawful Unlawful Detainer” which details my own unlawful detainer case, and the other is titled “A Quantum of Justice” which follows my lawsuit against Wells Fargo Bank and goes in depth of the financial and foreclosure industries, and how it affects you at home without you even knowing.

A CALL TO ACTION

As I reach this milestone of 2500 subscribers I have decided to begin the production on the documentary film that will follow up the two books I am releasing.  I will be interviewing Senators, Congresspersons, judges, lawyers, lobbyists, and many homeowners throughout the country to help me consolidate and expose the level of fraud that is involved in every home across the United States.

Now, you may have noticed that I stated in “every home” and not “in every home loan transaction” across the United States.  This is because I will show how there are people who have been foreclosed on by a bank who paid cash for their home and have never acquired a loan.  I will show that there are people who have been foreclosed on who have acquired a loan while they were dead and buried.  I will show that there are people who have been foreclosed on by banks that they have never done business with.  This and much more will be exposed giving all pause as to their level of trust in our corrupt systems.

I am currently working with a couple of CA state Senators to help change some of the rules of law that have allowed some of the foreclosure atrocities to manifest.  I am helping to shed light and to show them what legal nuances are being manipulated in order for the millions of illegal foreclosures that have taken place and continue to happen on a daily basis.

If you have not yet subscribed to this blog I urge you to do so and you will receive discounts for my books upon release.  You will also receive a discount on the DVD or download of the film when it is completed.  There will be other specials that will be offered to my blog subscribers as these projects move forward, so don’t hesitate to subscribe today!

If you have a story to tell  you can contact me through my blog.  I welcome to hear from you, my readers, who now span throughout the globe.  I look forward to hearing from you as I begin to prepare my journey across this great country of ours and sit across from you at your own kitchen table to discuss these issues that our government has done nothing to help subside.  My film project will take the information exposed in the Oscar winning films “The Inside Job” and “The Big Short” and bring it home to the living rooms of every family across the country showing how all of this corruption affects you and you don’t even know it.

Again, thank you for your continued readership.  Please tell your friends and others you may know who might benefit from this information and have them subscribe, as you have, as well.

If you would like to help be a part of this documentary, or know someone who might be in a position to assist in this project, I welcome to hear from you through my blog.  I know I have many readers from the film industry and many readers that might be in a position to help financially to be a part of the Executive Production team.  I welcome to hear from you.

 

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I welcome those reading my story. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

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©2014-2017 Doug Boggs All Rights Reserved

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