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The American Prospect: When Pam Bondi Protected Foreclosure Fraudsters
The American Prospect - When Pam Bondi Protected Foreclosure Fraudsters
The new attorney general nominee, while serving as AG of Florida, fired the first two prosecutors to investigate the use of false evidence to kick people out of their homes.
by David Dayen
November 22, 2024
June Clarkson and Theresa Edwards were attorneys in the Economic Crimes division of the Florida attorney general’s office, based in Fort Lauderdale. They joined the government to prevent companies from ripping off their customers. In 2010, they heard from an oncology nurse named Lisa Epstein, who delivered information about how law firms across the state were using hundreds of thousands of phony documents to foreclose on homeowners. Lisa knew this because the banks tried to do it to her.
A group of foreclosure victims had found documents that were literally signed “Bogus Assignee.” They had documents dated 9/9/9999. They had documents notarized on dates before they were allegedly created. They traced these documents back to Florida’s “foreclosure mills,” law firms that churned out foreclosures the way a factory churns out sweaters. The false documents were necessary because banks and lenders, striving during the housing bubble to sell mortgages and deliver them to investors, securitized the loans without maintaining chain of title, botching the true ownership records. Instead of rectifying the situation, the banks had the foreclosure mills concoct false evidence and present it in courts to dispossess people.
Within months, the attorney general’s office had opened investigations into Lender Processing Services, Florida Default Law Group, the Law Office of David J. Stern, Marshall C. Watson, Shapiro & Fishman, and other components of Florida’s great foreclosure machine. In the course of the investigation, Clarkson and Edwards deposed Tammie Lou Kapusta, a former paralegal with David J. Stern, who testified that the firm employed offshore foreclosure document shops in Guam and the Philippines, receiving fake documents that the paralegals would sign. Notary stamps were sitting around the office, and anyone on the team would use them and forge the signatures of the notaries.
By October 2010, all of the leading banks stopped pursuing foreclosures in Florida and across the country, because they could no longer do it legally. It was an incredible example of citizen activism making a real difference, aided by Clarkson and Edwards, the first two law enforcement officials who were actually willing to investigate the fraud.
The system was working, until Pam Bondi came to town.
/snip
The new attorney general nominee, while serving as AG of Florida, fired the first two prosecutors to investigate the use of false evidence to kick people out of their homes.
by David Dayen
November 22, 2024
June Clarkson and Theresa Edwards were attorneys in the Economic Crimes division of the Florida attorney general’s office, based in Fort Lauderdale. They joined the government to prevent companies from ripping off their customers. In 2010, they heard from an oncology nurse named Lisa Epstein, who delivered information about how law firms across the state were using hundreds of thousands of phony documents to foreclose on homeowners. Lisa knew this because the banks tried to do it to her.
A group of foreclosure victims had found documents that were literally signed “Bogus Assignee.” They had documents dated 9/9/9999. They had documents notarized on dates before they were allegedly created. They traced these documents back to Florida’s “foreclosure mills,” law firms that churned out foreclosures the way a factory churns out sweaters. The false documents were necessary because banks and lenders, striving during the housing bubble to sell mortgages and deliver them to investors, securitized the loans without maintaining chain of title, botching the true ownership records. Instead of rectifying the situation, the banks had the foreclosure mills concoct false evidence and present it in courts to dispossess people.
Within months, the attorney general’s office had opened investigations into Lender Processing Services, Florida Default Law Group, the Law Office of David J. Stern, Marshall C. Watson, Shapiro & Fishman, and other components of Florida’s great foreclosure machine. In the course of the investigation, Clarkson and Edwards deposed Tammie Lou Kapusta, a former paralegal with David J. Stern, who testified that the firm employed offshore foreclosure document shops in Guam and the Philippines, receiving fake documents that the paralegals would sign. Notary stamps were sitting around the office, and anyone on the team would use them and forge the signatures of the notaries.
By October 2010, all of the leading banks stopped pursuing foreclosures in Florida and across the country, because they could no longer do it legally. It was an incredible example of citizen activism making a real difference, aided by Clarkson and Edwards, the first two law enforcement officials who were actually willing to investigate the fraud.
The system was working, until Pam Bondi came to town.
/snip
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