The Resolution Law Group: Rust Consulting sent out checks that bounced for insufficient funds to homeowners as settlement

Three weeks after Rust Consulting sent out checks that bounced for insufficient funds to homeowners as settlement proceeds from the massive settlement reached between the banks and Attorneys General, Rust issued nearly 100,000 checks for less than the homeowners were owed.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “At least the second round of checks cleared. However, there is no excuse for Rust Consulting to issue bounced checks or for paying incorrect amounts of money. There should be sufficient funds out of the multi-billion settlement to ensure that the payments are made timely and in the proper amounts. “

Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature. Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners. Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, visit its website at www.TheResolutionLawGroup.com

If you feel you are the victim of Mortgage Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

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The Resolution Law Group: A Judge in Palm Beach, Florida has ordered a bank to modify a homeowner’s mortgage instead of foreclosing on it.

A Judge in Palm Beach, Florida has ordered a bank to modify a homeowner’s mortgage instead of foreclosing on it. The order has created a panic in the lending and servicing community.

Judge Howard Harrison ruled that the lender provisionally modified the loan, and the trial modification was intended to motivate the homeowner to continue making payments, despite the evidence that the lender never intended to allow a permanent modification. Judge Harrison ordered the lender to reduce the interest rate to 3.15 percent and to extend the loan to be paid over 40 years.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “while the Court’s ruling is a step in the right direction, Judge Harrison may have exceeded his authority, and the matter will certainly be reviewed by the Court of Appeals. We will be closely following the case through the appellate process. “

Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature. Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners. Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, visit its website at www.TheResolutionLawGroup.com

If you feel you are the victim of Mortgage Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: The housing market will continue to suffer until it is fixed by the Courts or the Legislature.

When lawyers for the City of Los Angeles filed a lawsuit against Deutsche Bank two years ago, they criticized the world’s fourth-largest bank as among the city’s worst slumlord and sought hundreds of millions of dollars in penalties and restitution.

Despite the fanfare and rhetoric when the case was brought, the city of Los Angeles just announced that it settled with Deutsche Bank for only ten million dollars and that the settlement money was not going to be paid by the bank.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “Deutsche Bank foreclosed on more than 2,000 homes in metropolitan Los Angeles between 2007 and 2011. Many homes fell into disrepair and crime increased in the neighborhoods where the foreclosures took place. “

Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature. Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners. Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, visit its website at www.TheResolutionLawGroup.com

If you feel you are the victim of Mortgage Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: DOJ’s $5B Securities Lawsuit Against Standard & Poor’s Can Proceed, Says Judge

U.S. District Judge David O. Carter for the Central District of California has turned down Standard & Poor’s bid to have the Justice Department’s $5 billion securities lawsuit against it dismissed. This affirms Carter’s recent tentative ruling earlier on the matter.

S & P is the largest credit rating agency in the world. It is a McGraw Hill Financial Inc. unit.

According to the US government, the credit rater fraudulently misrepresented its ratings process as objective and independent when it was, in fact, stymied from issuing ratings because of its desire to please banks and other clients. Instead, between 2004 and 2007, S & P purportedly issued AAA ratings to certain poor quality mortgage packages, including residential mortgage-backed securities, collateralized debt obligations, and subprime mortgage-backed securities. Now, prosecutors want to recover the losses that credit unions and federally insured banks allegedly suffered because of these inaccurate ratings that it contends upped investor demand for the instruments until the prices soared and the market collapsed, contributing to the global economic meltdown that followed.

S & P contends that it did not cause the financial crisis. It claims that just like the Federal Reserve, the US Treasury, and other market participants, the credit rater could not have foreseen the market events that went on to happen in 2008.

Seeking to have the securities case dismissed, S & P argued that its public statements about its objectivity and autonomy that prosecutors identified as purportedly fraudulent misrepresentations, including official policy statements about rating deals and employee conduct codes, are in actuality “puffery” statements that investors were not supposed to take at face value. S & P lawyers said that because of this, the government couldn’t use these statements as grounds for its securities fraud case.

Now, Judge Carter is saying that he finds S & P’s “puffery” defense “deeply… troubling,” especially in light of the implications. He observed that with this defense, S & P is implying that investors, legislators, and regulators shouldn’t have taken seriously any of the public statements the credit rater made about either supposed data-based, unbiased credit ratings or its agency procedures.

As in his earlier, tentative ruling, Carter said that contrary to defendants’ protestations, his court cannot see how all the “must nots” and “shalls” used by S & P in its statements was merely the company’s way to aspire about vague objectives. Rather, he sees these statements as “specific assertions” about polices and they contrast conduct the government is accusing S & P of committing.

Meantime, S & P is battling more than a dozen CDO lawsuits filed by state prosecutors who are accusing the credit rating agency of the same alleged fraud.

If you feel you are the victim of Bank Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: Major financial crisis trial kicks off in New York

Trial of Ex-Goldman Sachs trader Fabrice Tourre begins

Fabrice Tourre, a former Goldman Sachs mortgage trader, leaves federal court after the first day of a lawsuit being brought against him by the Securities and Exchange Commission.

NEW YORK — He’s either a duplicitous Wall Streeter, or just a scapegoat who never lied to investors.

A jury of four men and five women will decide whether Fabrice Tourre, the ex-Goldman Sachs trader dubbed “Fabulous Fab,” defrauded investors in the lead-up to the financial crisis.

Tourre’s civil securities fraud trial — considered the highest-profile case stemming from the crisis — got underway in a federal court New York on Monday.

The U.S. Securities and Exchange Commission claims Tourre secretly worked with a powerful hedge fund to engineer a mortgage investment doomed to fail.

“It was a billion-dollar fraud to feed Wall Street greed,” said Matthew Martens, a top SEC attorney, in his opening statement.

Tourre’s former employer, the giant investment bank Goldman Sachs, settled parallel claims against the firm for $550 million in 2010.

Pamela Chepiga, Tourre’s lawyer, said her client was merely a scapegoat.

The other large sophisticated, institutional investors involved in the deal knew the hedge fund’s role, and that it was shorting, or betting against, the investment, Chepiga said.

“Fabrice Tourre never lied to anyone,” Chepiga said.

The SEC says hedge fund Paulson & Co. made $1 billion when the investment — tied to subprime residential mortgages — tumbled at the expense of other investors.

The SEC again highlighted Tourre’s colorful emails, one of which infamously described Goldman clients buying the investment as “widows and orphans.”

But Chepiga questioned one email’s role in the case, saying it was merely a late-night personal email taken out of context.

“It’s an old-fashioned love letter to his girlfriend,” she said.

Martens said Goldman actually lost money in the ill-fated deal — but not on purpose. The New York-based bank could not find enough investors to buy the complex investment, known as a collateralized debt obligation, or CDO.

“Sometimes you get tripped up on your own fraud,” Martens said.

The trial is expected to last three weeks and include testimony from Tourre himself.

If you feel you are the victim of Securities Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: FINRA Reports Losses After Squandering Profit From NYSE Payment

Last month, the Financial Industry Regulatory Authority put out its yearly report for 2012. According to the results, the self-regulatory organization is hurting. Its operating losses are huge—nearing $90 million for the second year straight. Meantime, its staff has grown 13%, with benefits and compensation rising 41% in the last five years to hit $628.9 million last year. That’s a significant jump from 2007 when the SRO’s compensation and benefits was $446.1 million. Retirement and pension expenses have risen 89% in the last five years.

While observers say that FINRA’s operating losses are not an immediate danger, no one can say for sure. Some are even asking how could a regulator facing potential financial trouble do its job and protect investors? Unlike its last five yearly reports, FINRA’s 2012 report pointedly says that the will keep observing the changing economy and assessing any effect on the organization. If there were to be a huge market collapse, however, FINRA’s equity would take a beating.

The private SRO is the National Association of Securities Dealer’s successor. NASD’s merger with the New York Stock Exchange (NYSE) Regulatory Division is one reason for the increase in FINRA’s compensation. After its merger with the NYSE Regulatory Division, NASD soon changed its name to the Financial Industry Regulatory Authority (FINRA).

““In order to divest itself of its non-market making regulatory responsibilities the NYSE exchange actually paid the NASD over $150 million, approximately $35,000 per NASD member firm, “ said FINRA arbitration attorney William Shepherd.

Like others in the securities’ industry, FINRA’s portfolio also was hit by the financial crisis.

Meantime, as broker-dealers continue to close shop, with middle and small sized firms upping costs to keep up with compliance and regulation costs, FINRA’s brokerage firm membership has gone down.

“FINRA remains an association of securities dealers, not a government regulator as many may believe.,” said Securities Attorney Shepherd. “FINRA still derives some of ts income from its members through dues, fees and fines. As a self-regulatory organization (SRO) FINRA must answer to the Securities Exchange Commission (SEC) regarding rule changes, etc. Some therefore call FINRA and other self-regulatory financial SRO’s ‘quasi-governmental’ regulators. “

To “balance the books,” Stockbroker fraud lawyer Shepherd offers some simple suggestions:
• First, stop paying your head regulators 7 figure incomes – yes, over a million per year. Real regulators on government pay make a fraction of that!

• Next, fine your members ‘til it hurts. Strike some real fear into would-be wrongdoers to clean up their acts.

• Moreover, strike fear into bosses who either ignore what’s happening or do not want to kill any gold laying geese. The fear of getting caught is not severe if the penalty does not fit the crime.

“Beyond some flashy exceptions, too many fines remain mere wrist slaps. Too many times smaller firms and ‘rogue’ brokers are crushed, while large firms and those charged with supervision and/or ‘control person liability’ even go unscathed,” said Shepherd. “When firms and supervisors have no real worries, bad actors simply become expendable – but only when their costs outweigh their contributions to firm revenue.”

If you feel you are the victim of FINRA Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: SEC Charges SAC Capital Hedge Fund Adviser Stephen Cohen Faces With Failure to Stop Insider Trading

The Securities and Exchange Commission is charging Stephen A. Cohen with failure to supervise two portfolio managers and stop them from insider trading. Cohen is the SAC Capital. The SEC wants to ban the hedge fund mogul from supervising investor funds. A spokesperson for SAC says the securities case is meritless and Cohen always behaved appropriately.

According to SEC Division of Enforcement Co-Director Andrew Ceresny, even though it is the job of a hedge fund manager to properly supervise his/her employees and make sure that everyone is in compliance with securities laws, Cohen failed to act after finding out about red flags indicating that portfolio managers Michael Steinberg and Mathew Martoma may have been engaged in insider trading. The agency says that Cohen received “highly suspicious information” that should have compelled any reasonable hedge fund manager to look into the basis for trades made by Steinberg and Martoma. Instead, he purportedly let them execute the trades and even gave Martoma a $9 million bonus. Because of the illegal trades, the SEC contends, Cohen’s hedge funds made profits while avoiding $275 million in losses.

Already, SAC Capital affiliates have agreed to pay the SEC more than $615 million over the insider trading charges. The Commission says that, Martoma, affiliate CR Intrinsic Investors’ portfolio manager, received confidential data about an Alzheimer’s drug from a doctor who told him about clinical test results before they became public. Martoma and the affiliate then sold over $960 million in securities of Wyeth and Elan Corp., the two pharmaceutical companies that developed the drug, in the span of the week.

To settle the SEC’s case, CR Intrisinc said it would pay $275 million penalty, $275 million in disgorgement, and $52 million in prejudgment interest. Another SAC Affiliate, Sigma Capital, said it would pay $14 million over insider trading allegations to the SEC.

As for Steinberg, he is accused of insider trading in Dell securities. The SEC says that rather than find out whether Steinberg had material non-public information and was insider trading, Cohen followed Steinberg’s recommendation and sold his own shares in Dell. Meantime, Steinberg allegedly used that insider information as the basis for short-selling of Dell shares in his portfolio with Sigma Capital. Shortly after. Dell made its earnings announcement on August 28, 2008, its stock prices dropped. Funds overseen by Cohen’s firms, however, either made money or avoided losing at least $1.7 million.

The SEC is accusing Cohen of violating the Exchange Act’s Section 10(b) and Rule 10b-5 thereunder. He could be ordered to pay financial penalties and be barred from the industry.

If you feel you are the victim of Securities Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud