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Foreclosure Fraud: Every Affidavit a Fraud?

The scope of foreclosure fraud may not be limited to GMAC and not just to JPMorgan Chase; it may be every bank you can think of, including mortgages held by government-sponsored enterprises Fannie Mae and Freddie Mac. Any bank whose foreclosures have been handled by a law firm specializing in foreclosure services — a "foreclosure mill" — may be affected.

A paralegal at the foreclosure mill of David Stern gave a deposition to Florida’s Attorney General Bill McCollum’s office indicating that virtually every affidavit, assignment or other sworn document coming out of that firm is faked.

It’s over 100 pages, and it will curl your hair. Two thousand foreclosure files were processed each day by just this one firm and the entire lot appears to have been a sham. Go read the transcript for yourself. If this happened at one foreclosure mill, it’s hard to believe this wasn’t happening at all the other foreclosure mills.

Ohio’s attorney general is suing for $25,000 in fines for each fraudulent affidavit; at this rate, he could solve his state’s budget gap.

By the way, Florida’s assistant attorneys general conducted a very nice line of questioning; Mr. McCollum owes them a pat on the back. The states of Ohio and Florida are showing how it’s done, the rest of you states’ attorneys general and U.S. Attorneys need to get on the stick.

[F for Fraud – photo: ivers via Flickr]

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Cynthia Kouril

Cynthia Kouril

Cynthia Kouril is a former Special Assistant United States Attorney in the Southern District of New York under several different U.S. Attorneys, former counsel to the Inspector General for the N.Y.C. Department of Environmental Protection where she investigated threats to the New York City water supply and other environmental crimes, as well as public corruption and fraud against the government, former Examining Attorney at the N.Y.C. Department of Investigation and former Capital Construction Counsel at New York City Parks and Recreation.
She is now in private practice with a colleague whom she met while at the USA Attorney's Office. Ms. Kouril is a member of the Steering Committee, National Committeewoman and Regional Coordinator for the New York Democratic Lawyers Council, a member of the Program Committee of the Federal Bar Council and a member of the Election Law Committee at the Association of the Bar of the City of New York. She is active in several other Bar Associations.
Most important of all, she is a soccer mom.