Monday, November 30, 2009

Real Estate Scam Follow-Up


Daryl Moore, the disgraced former real estate agent, who lost his license in 1998, and is now a defendant in a theft of property case has hired Memphis attorney Javier Bailey. On Friday, Moore waived his right to a preliminary hearing and had his case bound over to a Shelby County Grand Jury.
After the FOX13 News I-Team aired a story on November 16th about Moore's questionable real estate deals, dating from the mid 1990s through August of this year, others are speaking out, saying Moore duped them out of thousands of dollars.
In the earlier story Shantia Baldwin and Precious Holloway, sisters, described how Moore entered into lease purchase deals with them on houses in the same neighborhood. They would later learn Moore never owned the houses, and was not authorized to sell, or rent them. Baldwin and Holloway each say they lost more than $2,000 on those deals.
Now there are allegations from Idaho and Oregon, that Moore has been doing questionable real estate deals in those states, with folks left holding almost worthless properties in Memphis, and Moore depositing big checks into his bank account.
Cody Stone, of Nampa, Idaho, took out a Home Equity Line of Credit for $48,000 in January of 2008. He applied for the credit line based on the value of a property Moore quit claimed to him a few days earlier. Shelby County property tax records show Moore bought the house, 5315 Clinchport Circle, in the Frayser area of Memphis for $19,900 on January 16, 2008, and quit claimed it to Stone a few days later.
Stone says Moore gained access to the Home Equity Line, and was supposed to use the money to fix up the house and re-sell it for a quick profit. Stone says Moore kept the money, but never made the improvements to the house, and never sold it.
"From what I can tell, he bought the property for nineteen nine, Bank of America sent him $48,000 and the difference he pocketed and took off," Stone said.

"I was to get the loan for the property, the money was to go to him to fix it up and then the property was going to go into a HUD shaped program and take the profit off the back end, it was going to take two to three months."

But it's been almost two years since Stone says Moore directed him to get the Home Equity Line. Shelby County property records show others in Idaho may have done similar deals with Moore.
Moore, through his now dissolved company, USI Enterprises, quit claimed the house at 749 Tampa, to Patricia J. Basey, of Caldwell Idaho on January 29, 2008. Three days later, according to Shelby County property records, Moore quit claimed the house at 1643 Locust to Charles Oliver of Idaho.

Asked at his recent court hearing about Stone's allegations, Moore, who clients say has "gift of gab", was as quiet as a mouse.
"I'll refer all questions to my attorney to handle all questions from this point," Moore said. "It's an ongoing investigation; I'll let my attorney handle this."

"As a result of the story that you all did, we've gone back and reviewed all past complaints and those that are pending," Bailey said. "We have made contact with the authorities, and any complaint that is out there pending, we've agreed to fully cooperate in those, okay."
Over the years, Moore has admitted to mishandling earnest money and down payments, been sanctioned by the Tennessee Real Estate Commission, and has been forced to make refunds to some clients who've accused him of wrong doing. But Bailey says that might not happen this time.
"I'm not willing to say anybody will get any money back," Bailey said. "I'm not willing to say anybody has actually lost any money. What I am willing to say is that Mr. Moore has agreed to be fully cooperative, fully cooperate, nothing to hide, he's going to ask any questions asked of him."
Those questions could be coming from, the F.B.I., and the Memphis Police Department, both reportedly investigating Moore's business dealings.
As to what answers Moore will give, Stone says it will probably be more of the same; a lot of empty promises.

"...if his mouth is moving, he's definitely lying."
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ASSET BACKED SECURITIZATION MEANS NO NOTE

Asset backed securitization is magic come to life. It is the transformation of a note into pieces. The pieces act like a waterfall of cash flow. Its distributed as investment, structured finance, accrual, accretion and cash flows set forth into many classes of offerings.

Take a dollar bill and slice it up and distribute it to your friends. Piece by piece. Then ask your friends to go cash it. The US Treasury will accept only greater than 51% of any legal tender to make the payer (government) honor the bill. Get it...no?

Try this- The bill you cut up...that bill was a promissory note that went bad. Now if you’re a (GE) stock holder and lose on the stock you purchased you won’t get far attacking General Electric. You cannot seize company assets now can you? The assets are still GE assets and you lose.

What’s your point? The note you gave the lender, the lender did own. But lender sliced it up and it was distributed amongst many investors. The investors lose as the certificates they hold are only valuable as the whole and not the pieces. It’s worthless. They (investors) have an abundance of insurance they can attack related to the security and that's it.

Hey investor - are you really going to foreclosure on a 17.8% share of a borrower’s home?

Stops it! Maher, Nooooo! - You’re talking out both sides of your mouth. You said in the above example GE owns the assets and you cannot attack a public company because of a bad stock deal. So the lender owns the note after all and they can foreclose... Correct? Yes mischief makers I did say that “about the GE stock example”, correct! But these registrants offer pass through certificates. They are portioned out and "passed through" from the lenders beneficial interest to the investors. You want me to be any clearer here. Then join me and let's scream from the highest mountain”

"....HEY INVESTORS....GET IT TOGETHER AND GO COLLECT ALL YOU’RE CERTIFICATES AND PIECE THEM TOGETHER . . . And NOW you can foreclose on me!” You lender tore the LEGAL "TENDER' into pieces and the note is lost forever to the securitization they created.

I walked away from structured finance and private placement fees because of this argument. No attorney; accountant or lewd Cop could ever overcome this argument for denying you your home on a securitization gone badly?

So who wants to call me for an audit? Need a modification? I cannot and never will do an audit or modification! If others do, then kiss them for me. What are you auditing . . . Something the lender does not own? Want to file bankruptcy - careful. Are you bringing a lender into court and re-establishing them as a creditor?

They are not a creditor and that's why BK Trustees want no part of the bankruptcy rip-off report. Where’s the modification that California said no more attorneys or consultants can help out on? THERE ARE NO MODIFICATIONS. THERE IS NO MODIFICATION OR SHORT SALE IF YOU’RE WAITING FOR! GOT IT.

You note is gone and that is that. Fight the security as they cannot evidence the note. What if the “The lender came to court with the note...! So.....what? The lender was not a security player or they left the loan out of a securities offering. No problems counsel, you win.

Oh wait a minute! What’s that? You booked the transaction as a sale under FAS 140-3 instead of debt on your balance sheet. That is what we call securities fraud even under FAS revisions 140-3 and for servicing arrangements under FAS115.Its your home and an impostor, Realtor, Recovery firm, Attorney . . . Someone is trying to steal it from you.


M.Soliman

Expert.witness@live.com

According to the treasury department

By Maher Soliman

According to the treasury department, millions of additional homeowners did make a big mistake: they took advantage of “liar loans” and other too-good-to-be-true deals to buy homes they couldn’t afford. Many are still in those homes, hanging on for dear life. Many others have already faced foreclosure proceedings.

What the treasury is figuring out is what we told you as a client over the years. Asset backed securitization is magic come to life. It is the transformation of a note into pieces. The pieces act like a waterfall of cash flow. The fractionalized cash proceeds are derived from the obligation whereby you are the maker of the note. Cash proceeds are distributed as independent performing investments borne of, structured finance including accrual, zero based accretion and cash flows set forth into many rated classes of offerings.

Asset backed securitizations means no note as it was marked “paid in full”. Take this example for a better illustration. Take a dollar bill and slice it up into even pieces and then distribute it to your friends. Now ask your friends to go cash each individual portion of the dollar. The US Treasury will accept only greater than 51% of any legal tender as the payer (government) and therefore has no obligation to honor the bill. Seen in another light, the bill your lender cut up is the promissory note in a high stakes game that went wrong.

I’ve seen estimates suggesting as many as one out of every six homeowners has a troubled mortgage. This is an enormous social problem. It is also a continuing economic problem. In the year since the crisis began, the world’s financial institutions have written down around $500 billion worth of mortgage-backed securities. These financial institutions have written down the securities used to replace the notes, they did not write down the notes whereby the notes are the securities. Unless something is done to stem the rapid decline of housing values, these institutions are likely to write down an additional $1 trillion to $1.5 trillion.

If you’re a GE stock holder stock holder and lose on the stock trade you purchased in 2005 and wrote down in 2009, you won’t get far attacking General Electric and suing them

You cannot seize company assets with equity stock. The assets are still GE assets and you lose. The note you gave the lender is not whole and now is in pieces. The investors lose as the certificates they hold are only valuable as the whole and not the pieces. It’s worthless. They (investors) have an abundance of over collateralization insurance they can attack related to the security and that's it. So ask yourself, are you really going to foreclosure on a 17.8% share of a borrower’s home?

Politicians are talking out both sides of your mouth. Another way to look at this is as follows. You said in the above example GE owns the assets and you cannot attack a public company because of a bad stock deal. So the lender owns the note after all and they can foreclose?

Yes I did say that “about the GE stock example”, correct! But these registrants offer pass through certificates. They are portioned out and "passed through" from the lenders beneficial interest to the investors. Hey investors get it together and go collect all you’re certificates and piece them together. And now you can foreclose on the collateral, maybe. But by tearing the legal "tender' into pieces and the note is lost forever to the securitization they created. I walked away from structured finance and private placement fees because of this argument.

So how many people paid for an audit and what is it they were to have audited. There is no loan modification either. NLS never agreed to do an audit or modification! What are you auditing anyway, something the lender does not own? Want to file bankruptcy – be careful. Are you bringing a lender into court and re-establishing them as a creditor! They are not a creditor and that's why BK Trustees want no part of the bankruptcy rip-off report. Where’s the modification that California said no more attorneys or consultants can help out on? There are no modifications. There is no modification or short sale if you’re waiting for!

You note is gone and that is that. Fight the offensive for the security (mortgage or deed) as they cannot evidence the note. What if the “lender came to court with the note.” Where a mortgage or asset backed securitizers left the loan out of an offering you establish for the lender a new set of issues.

If the lender booked the transaction as a sale under FAS 140-3 instead of debt on your balance sheet you make a claim of securities fraud. It’s a fact even under FAS revisions 140-3 and for servicing arrangements under FAS115.It’s your home and an impostor Realtor, Recovery firm or Attorney is trying to steal it from you. This is why we immediately shifted this case over to attorneys early last year and through 2009.

If you’re not listening to the immoral minority then you’re still with us and chances are you have not lost that home and never will.

M.Soliman

Expert.witness@live.com

SEC Where are you?

REFORM
The market crisis and the repeated calls to rewrite
the regulatory landscape make projecting the future
direction of SEC enforcement hazardous. Some of
the calls for reform are rooted in the current market crisis.
Others stem from scandals that have tarnished the
reputation of the SEC. An agency that until recently
was largely unknown on Main Street U.S.A. is now unfortunatelybeing recognized, not for its past successes,
but for its failure to protect investors — its fundamental
mission.
Examination of the enforcement program begins
with a brief look at recent statistics. Last year, the SEC
filed 671 cases, a record number.

1 This is the first increasein recent years. While this is significant, manycritics note that the number is inflated by defaults andsimilar actions. Other critics point to recently publishedNERA statistics which demonstrate that the number ofcases settled in 2008 declined to one of the lowest levels
in years

2 In the first quarter of 2009, however, settlements
have increased compared to the prior quarter
and to the same quarter one year earlier.

3 Other statistics further cloud the view. A recent studypublished by Syracuse University based on Departmentof Justice (‘‘DOJ’’ or ‘‘the Department’’) data found thatthe number of securities fraud prosecutions declined
significantly in 2008.

4 At the same time, the FBI reportsthat it is overburdened, with 530 corporate fraud investigationsunderway. These cases focus on financialfraud and insider trading.

5 While the vitality of SEC enforcementis not measured by the number of criminalcases brought, since those are exclusively in the purviewof the Department of Justice, the numbers raise
significant questions. This is particularly true since the
SEC and the Department closely coordinate and often
conduct parallel investigations and actions.Collectively, these statistics raise more questionsthan they answer.

No clear trend emerges from them.On the one hand, they clearly do not depict a vibrant enforcementprogram. At the same time, they also do notsuggest one that is dysfunctional. The lack of a clear
trend, however, might suggest a program in search of
direction, supporting calls for reform.

Beyond the statistics, the current market crisis has
spawned repeated calls for the reform of securities
regulation as well as banking and other financial regulators.

6 Many have criticized the SEC’s performance
during the current crisis as lackluster, at best. A report
from the SEC’s Inspector General, for instance, is
highly critical of the agency’s performance during the
demise of Bear Stearns.

7 That same report also criticizedthe agency’s now-defunct program of voluntarysupervision over investment bak holding companies.

8When the SEC did react to the market crisis, not only
was it criticized, but perhaps worse, the agency secondguessed
itself. In September 2008, the Commission initiated
a ban on short trading in the shares of certain financial
institutions

9 Regulators around the globe institutedsimilar bans which lasted far longer than themodest few week embargo imposed by the SEC.

10 Yetafter the SEC’s ban ended, then-Chairman Cox claimed
it was the biggest mistake of his tenure, undertaken
only because of pressure from the Secretary of the
Treasury and the Chairman of the Federal Reserve.

11Attempting to shift blame for controversial actions suggests
a rudderless agency, not a strong regulator.Scandals in the enforcement division belie any notionthat difficulties at the agency stem solely from a temporarylack of leadership. The Pequot Capital debacle isthe scandal that will not die.

California real property law provides for extra-judicial foreclosure

A claim brought by the borrowers stems from plaintiff allegations made in a wrongful foreclosure claim under California’s Non-Judicial Deed of Trust Foreclosure Process.

The matter will point out the necessity for a lender to pay attention. Maintaining timeliness is not just a smart idea but it ensures both appropriate and spontaneous intelligent approaches to managing delinquency. Where the courts have made known their tendencies to not see the lender as a fiduciary the servicing agent none the less maintains a higher level of responsibility to the borrower. The current administration in Washington has made it very clear through the office of the Secretary of the treasury the same is not true for the servicing agent.

Whats up with Foreclosures

The Treasury Department pumped $125 billion into the country’s largest financial institutions, and it promised another $125 billion — more, if necessary — to recapitalize regional and community banks.They are vital steps and the global recapitalization of the banking system is the reason. But the job isn’t done and nothing seems to have trickled down to the homeowners....why?Wake up America -


Modifications do not exist. And the capital advances are to supplement the value for the assets these banks are stealing back for securitization deals gone wrong....very very wrong.California said no more modification help . . . maybe they could have been a little more honest?


They do not exist.Portraying foreclosure consultants as Crooks Thieves and Shakespearean web sites are a little bit of an obstruction of justice. Even the bad ones made phone calls and talked to parties who "were not authorized to discuss the loan." FAS 140-3 friends. THAT IS THE VIOLATION NEEDED TO ARGUE RELIEF IN COURT MORE THAN ANY OTHER ARGUMENT. That's testimony to an "expert witness” to provide counsel AND I will go out, interview and collect the information.We need to realize - there is no other solutions to a securities deal gone bad. We played by the rules and lost in better times. Now are faced with this?


M.Soliman

expert.witness@live.com