If Nevada AG Says It’s Doc Fraud Why Doesn’t Florida Barbie?

Is signing foreclosure documents for others forgery?

Kimberly Miller, Palm Beach Post

Florida Barbie

Florida Attorney General Pam Bondi

The Nevada attorney general calls signing another person’s name on documents used to repossess a home “forgery” and a “scheme.”

Michigan’s attorney general launched a criminal investigation that includes whether “falsified signatures” were used in foreclosure cases.

But Theresa Edwards and June Clarkson were forced to resign their jobs as foreclosure fraud investigators for the Florida Attorney General’s Office, in part, for referring to so-called “surrogate signing” as forgery.

According to a Florida Inspector General report that cleared Attorney General Pam Bondi’s office of wrongdoing in the firings, the duo repeatedly used the word “forgery” in a 2010 presentation that included documents from the Jacksonville-based Lender Processing Services. The company complained and drew the attention of economic crimes boss Richard Lawson.

Lawson says in the inspector general’s Jan. 6 report that surrogate signing as it relates to Lender Processing Services, also called LPS, is not forgery, which requires an intent to defraud. The practice was authorized by the company, more evidence, Lawson said, that no forgery occurred.

Homeowner advocates who support Edwards and Clarkson are now questioning portions of the 83-page report. They point to the LPS signature issue as an example of what they say is Florida’s resistance to go after foreclosure fraud.

Big paperwork processor

“Theresa Edwards and June Clarkson were fired for aggressively investigating these practices,” said Palm Beach County home­owner Lynn Szymoniak, who is in foreclosure. ” Are these practices really OK in the opinion of the chief financial officer and the attorney general?”

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Inspector General Clears Florida Barbie’s Office In Lawyers’ Firing

Investigation clears attorney general’s office in lawyers’ firing

Kimberly Miller, Palm Beach Beach

Florida Barbie Pam Bondi
Florida Attorney General Pam Bondi’s office has been cleared of wrongdoing in the May ouster of two employees widely lauded for their foreclosure fraud investigations.

The state inspector general released an 84-page report Friday detailing its findings during a five-month review of the forced resignations of former Assistant Attorneys General Theresa Edwards and June Clarkson.

The report concludes that no laws or policies were violated in terminating Edwards and Clarkson, and that they were dismissed because of their “poor judgment and lack of independent investigation on high-profile foreclosure mill cases.”

The duo was responsible for a $2 million settlement reached last year with the foreclosure law firm of Marshall C. Watson in Fort Lauderdale and received high marks in evaluations from their direct supervisor.

But others in the attorney general’s office, including Deputy Attorney General and Chief of Staff Carlos Muniz, and Director of Economic Crimes Richard Lawson felt differently. Both were hired last year when Bondi took office and said Edwards and Clarkson were given the option to resign or be fired because of a “failure to improve after multiple warnings.”

The uproar that followed the dismissals, which included concerns that they were politically motivated, pushed Bondi in August to request the independent query by the inspector general of the Florida Department of Financial Services.

At least 10 people were interviewed and dozens of others named in the report, including Palm Beach County homeowner advocates Lisa Epstein and Lynn Szymoniak. Szymoniak was featured last year in a 60 Minutes report on foreclosure fraud.

In a Friday press release, Bondi emphasized other areas of the report that raised concerns about “disorganization,” “non-responsiveness” to public records requests, “factual errors” in public presentations, “incorrect legal theories” and “sloppy” work.

“The report confirms the terminations had nothing to do with politics or outside influence,” Bondi said. “Rather, it was about doing the right thing in defense of the people of Florida.”

Edwards said Friday she was not surprised by the report’s conclusion and questioned how impartial it could be when conducted by the inspector general of the Republican-led Department of Financial Services. The department is headed by Chief Financial Officer Jeff Atwater.

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Fannie Knew David Stern Was Filing Faulty Court Docs In 2006

Kim Miller, Palm Beach Post

Federal mortgage giant Fannie Mae was told in 2006 about faulty court documents filed by Florida foreclosure attorneys acting on its behalf, but did nothing to correct the practices, an inspector general found.

A report issued Friday by the Federal Housing Finance Agency Office of Inspector General said an outside law firm hired by Fannie Mae to investigate allegations of wrongdoing confirmed “unlawful” practices and stated that foreclosure attorneys were sacrificing accuracy for speed by filing false documents.

After learning of the attorney misconduct in 2006, Fannie Mae failed to make any improvements in its oversight of the firms.

“Strengthened law firm oversight by Fannie Mae could have detected – if not prevented – these abuses by attorneys,” the report states.

Florida foreclosure defense attorneys agreed, pointing to the morass that followed last fall’s revelation of robo-signed documents and other faulty paperwork, some of which was produced by Florida’s so-called “foreclosure mills.”

“If action were taken sooner we would have avoided a lot of this instead of muddying up the public land records in tens of thousands of cases,” said attorney Tom Ice, of Ice Legal in Royal Palm Beach. “It goes without saying that if someone did something to stop the fraud, it would have benefited everyone.”

Fannie and Freddie Mac buy loans from banks and sell them to investors, providing guarantees to cover losses when loans default. They were taken over by the government in 2008.

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Embattled Former Foreclosure King Now Faces Potential Class Action by Ex-Employees

Martha Neill, ABA Journal

The dust hasn’t yet settled in the ongoing breakup of a former Florida foreclosure king’s empire.

But in the latest blow to attorney David J. Stern, a federal magistrate judge in Miami is recommending a green light for a class-action case. It would be brought by ex-employees of a legal processing business associated with his Plantation law firm concerning alleged labor law violations, the South Florida Sun-Sentinel reports.

The case could involve more than 700 former workers for DJSP Enterprises.

Stern, who oversaw a massive and once highly profitable mortgage foreclosure practice representing lenders, is currently being investigated by the state attorney general’s office. Meanwhile, the Florida Bar has filed a complaint with the state supreme court seeking disciplinary action.

Among other issues, he reportedly abandoned thousands of cases, due to a lack of staff to handle them, by simply writing letters to chief judges throughout the state listing the matters, rather than filing motions in individual cases as ordinarily is expected.

DJSP Enterprises voluntarily delisted its stock earlier this year.

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