The Resolution Law Group: Regulatory Reform – Delay or Destruction?

10 Democrats in the US Senate are calling on the Obama Administration to delay a proposal by the Department of Labor involving retirement plan-related investment advice until after the SEC makes a decision over whether to put out its own proposal about retail investment advice. The Commission is looking at whether it should propose a rule that would up the standard for brokers who give this type of advice. The lawmakers are worried that the two rules might conflict and obligate investment advisers and brokers to satisfy two standards.

Meantime, the Labor Department is getting ready to once more propose a rule that would broaden what “fiduciary” means for anyone that gives investment advice about retirement plans. Its previous proposal in 2010 met with resistance from the industry and some members of Congress. Even now there are also Republican lawmakers that want the DOL to wait until after the SEC makes a decision.

Commission Chairman Mary Jo White says she would like the agency to make this decision as “as quickly as we can.” Also, earlier this month she said it would be “premature” to talk about whether the regulator will change or withdraw a recent proposal to amend Regulation D to improve requirement for companies wanting a more relaxed general solicitation arena.

In a letter to House Financial Services Capital Markets Subcommittee Chairman/Rep. Scott Garrett (R-N.J.), White said the proposal is still subject to comment and it was too early to talk about what the SEC might do. Garrett and Financial Services Oversight Subcommittee Chairman Patrick White had written her following the Commission’s proposal to up Reg D requirements for companies wanting to employ general solicitation in private offerings.

The SEC put out the proposal on the same day that it adopted rules regarding private placement and general solicitation, per the Jumpstart Our Business Startups Act. Contending that the proposed amendments violate the JOBS Act, Reps. White and Garrett want them withdrawn. For example, the proposed changes would mandate that issuers submit notice, via Form D, 15 days before advertising offerings.

The two men say that imposing this type of waiting period on solicitation violates the Act. In response, Commission Chairman White said their concerns would be noted in the SEC’s comment file.

Earlier this week US President Barack Obama met with Federal Reserve Chairman Ben Bernanke and other senior regulators and called for the full implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. According to officials, while Mr. Obama praised the regulators for all the work they’ve done up to now to implement the act’s reforms and consumer protections, he made it clear that they need to complete implementing all the reforms that have yet to be set in place. Regulators have been challenged with finishing up the rules needed to fully implement the law, touted as the most important reform of the country’s financial sector since the 1930’s.

The Resolution Law Group is a securities law firm that represents institutional clients and high net worth individuals with financial fraud claims. Contact our securities fraud attorneys today.

Ex-JPMorgan Traders Get Criminal Charges Over the Allegedly Fraudulently Inflating Investments’ Value to Hide Massive Trading Losses

Earlier this month our securities law firm reported that the US Department of Justice was planning to bring criminal charges against Julien Grout and Javier Martin-Artajo, two ex-JPMorgan Chase & Co. (JPM) trading specialties. The charges, including conspiracy, wire fraud, falsification of books and records, and falsification of SEC records, now have been filed. The government contends that they conspired to conceal huge trading losses and made false statements to regulators.

According to U.S. Attorney Preet Bharara, the men purposely lied about the “fair value of billions of dollars in assets” on the firm’s books to conceal massive losses that continued to grow each month. He says that the trading losses would eventually total over $6 billion and involved credit default swaps and other synthetic derivative products.

The portfolio had tripled in worth to about $157 billion in net national positions between 2011 and 2012, and JPMorgan made about $2 billion in profits from 2006 through 2012. But when traders began to take large derivative positions, there were big financial losses and the portfolio began to lose money—over $185 million between January and February of 2012 alone.

The defendants are accused of inflating and manipulating the position marks’ value in the portfolio to reach profit and loss objectives. They allegedly sought to conceal the actual extent of the losses. Meantime, the SEC is also naming Martin-Artajo and Grout in a securities lawsuit over related alleged misconduct.

E-mails, texts, phone call records, chat transcripts, accounting records, and other documents were used in the investigation. While JPMorgan is not a defendant in either case, it is accused of compliance deficiencies over this matter.

If you suspect that your losses are due to securities fraud, do not hesitate to contact The Resolution Law Group today.

Declining employment and unaffordable housing has led to this alarming statistic. Economists are aware of the trend, but there is no consensus on how it can be reversed.

A new study from Pew Research finds that 36% of Milennials – young adults aged between 18 to 31 – are living at their parents’ homes, the highest number in over four decades. A record 21.6 million young adults were still living in their parents’ home last year.

Declining employment and unaffordable housing has led to this alarming statistic. Economists are aware of the trend, but there is no consensus on how it can be reversed.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “Obviously, the job market is a contributing factor to this trend, but the key component is the price of housing. In a perfect economic system, the housing prices would fall to meet the available spending. However, as Banks continue to hoard ‘shadow inventory’ and housing resale prices are being manipulated, the problems inflicted on our society continue to expand.“

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

JP Morgan Chase Bank, tried to introduce the original “wet ink” promissory note in a foreclosure trial pending in Boca Raton, Florida.

JP Morgan Chase Bank, tried to introduce the original “wet ink” promissory note in a foreclosure trial pending in Boca Raton, Florida. The Bank previously said that the original note had been lost before the foreclosure filing. Because the Bank did not seek to amend its pleadings before the trial or notify the borrower or the Court that the note had been located, and because the homeowner was not provided with an advance opportunity to inspect and evaluate the note, the Court found that the Bank violated the rules of civil procedure, and the case was dismissed in favor of the homeowner.

JP Morgan Chase Bank may not be able to reinstitute a foreclosure action in this case because of Statute of Limitation issues. Lawyers for JP Morgan Chase Bank have declined the opportunity to comment.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “JP Morgan Chase Bank did not follow established rules. They tried to gain an advantage by withholding the document until the time of trial. Judges do not tolerate ‘trials by ambush,’ and the Bank was therefore unable to avoid complying with the rules of civil procedure.“

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

A Florida Court of Appeals has reversed a trial court’s ruling and undone a wrongful foreclosure.

A Florida Court of Appeals has reversed a trial court’s ruling and undone a wrongful foreclosure. The lender, JP Morgan Chase Bank, was found to have wrongfully foreclosed and the Court of Appeal has reversed the lower court’s decision and had thus ruled in favor of the homeowner.

Despite the fact that JP Morgan Chase Bank submitted a sworn affidavit that stated it was the proper and legal holder of the promissory note, the Court of Appeal found that JP Morgan Chase Bank had failed to establish that it had the right to enforce the note when the foreclosure action was filed. Additionally, the Court of Appeal even found that JP Morgan Chase Bank had failed to establish that it had legal standing to initiate the foreclosure action in the first place.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “There are so many instances where lenders and servicers simply assert that they are the lawful Holders in Due Course, when they cannot establish a proper chain of title. It is rare for a homeowner to have the means to be able to go to the Court of Appeal in order to void a wrongful foreclosure. In this instance, the homeowner lost at the trial court level; therefore, we actually had that a Judge that approved the foreclosure, despite the fact that the lender was unable to establish that it was entitled to foreclose.“

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

The Resolution Law Group: A Federal Judge has dismissed a substantial portion of the LIBOR manipulation cases.

A Federal Judge has dismissed a substantial portion of the LIBOR manipulation cases. Judge Naomi Reice Buchwald ruled in favor of Bank of America, JP Morgan Chase, Citigroup, and others in connection with their motions to dismiss the federal antitrust claims and the claims of commodities manipulation. The Court also dismissed racketeering and state-law claims. Other causes of action survived, and the lawsuit continues to be prosecuted.

In her 161 page opinion, Buchwald recognized that her ruling might be “unexpected” since several of the defendants paid billions of dollars in penalties to governmental regulatory agencies, but she distinguished the burdens of a governmental prosecution from that of private parties and emphasized that voluntary settlements were different from the procedural requirements of litigation.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “There is no question that these banks manipulated the London Interbank Offered Rate (LIBOR) and millions of borrowers suffered as a direct result. The settlements paid to the government have not filtered down to compensate the victims of the manipulation.“

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

EverBank, based in Jacksonville, Florida has agreed to pay over $43 Million for foreclosure fraud

EverBank, based in Jacksonville, Florida has agreed to pay over $43 Million for foreclosure wrongdoing, which occurred in 2009 and 2010. $37 Million will be paid to wronged borrowers and over $6 Million will be paid to organizations that assist low and moderate income individuals and families.

EverBank was subject to a cease and desist order for unsafe and unsound practices in mortgage servicing and foreclosure processing. More than 32,000 borrowers are eligible for a portion of the settlement proceeds, which will range from $1,050 to $125,000 per person.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “These settlements are long overdue and insufficient to solve the problems that exist. EverBank made unsafe and unsound loans. This settlement allows EverBank to retain most of the profits it made from the bad loans. Meanwhile, a settlement payment of $1,050 does nothing to compensate a victim of a wrongful foreclosure.“

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