Chase Accused of Brazen Bankruptcy FraudLOS ANGELES (CN) – JPMorgan Chase routinely fabricated documents to deceive bankruptcy judges, going so far as to Photoshop documents to “create the illusion” of standing “in tens of thousands of bankruptcy cases,”according to a federal class action. Lead plaintiff Ernest Michael Bakenie claims that Chase’s “pattern and practice of playing ‘hide-and-seek’ with debtors, judges and other bankruptcy players” bore rich fruit: that Chase secured motions for relief ofstay and proofs of claim in 95 percent of its cases. “Through the use of fabricated assignments, endorsements and affidavits that purport to transfer deeds of trust, notes and the rights to all monies due under the terms of tens of thousands of non-negotiable promissory notes (the ‘MLNs’); Chase has demonstrated a pattern and practice of playing ‘hide-and-seek’ with debtors, judges and other bankruptcy players,” the complaint states. “Chase intentionally conceals the identity of the true parties in interest entitled to enforce the tens of tens of thousands of residential non- negotiable promissory notes (the ‘MLNs’) for its own financial benefit, at the expense of the class and to the detriment of the integrity of the bankruptcy system.”Bakenie says Chase used a network of attorneys to file more than 7,000 motions for relief from automatic stay in bankruptcy cases in the Central District of California, “wherein they falsely claim to be the party entitled to monies due under the terms of MLNs.”Chase rewards attorneys based on how quickly they can secure the stays, and uses fabricated documents to establish cha in of title on loans, according to the complaint. “Rather than incur the cost of ‘proving up’ its own standing or the standing of its principal Mortgage Backed Security Trust, Chase systemically misrepresents Chase or a designated MBST to be a creditor in tens ofthousands of bankruptcy cases by utilizing manufactured documents,” the complaint states. Bakenie claims: “That said practice is utilized for all mortgage loans originated by Chase, and other loan origina tors, including insolvent Washington Mutual Bank, whose assets were purchased by Chase. “That said manufactured documents are fabrications intended to create the illusion of a valid transfers MLNs and support the assertion of standing in tens of thousands of bankruptcy cases. … “That the aforementioned fabricated evidence is ‘photo-shopped’ and is highly persuasive and authentic in appearance so as to ensure legal victory in the bankruptcy courts. “That said manufactured evidence is systemically utilized to deceive bankruptcy players and increase the profits of Chase, its agents and its
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8/3/2019 READ COMPLAINT HERE==CLASS ACTION AGAINST CHASE Accused of Brazen Bankruptcy Fraud ==CHASE HOME FI…
Chase Accused of Brazen Bankruptcy Fraud LOS ANGELES (CN) – JPMorgan Chase routinely fabricated documents todeceive bankruptcy judges, going so far as to Photoshop documents to “create the illusion” of standing “in tens of thousands of bankruptcy cases,” according to a federal class action.
Lead plaintiff Ernest Michael Bakenie claims that Chase’s “pattern andpractice of playing ‘hide-and-seek’ with debtors, judges and otherbankruptcy players” bore rich fruit: that Chase secured motions for relief of stay and proofs of claim in 95 percent of its cases. “Through the use of fabricated assignments, endorsements and affidavitsthat purport to transfer deeds of trust, notes and the rights to all monies dueunder the terms of tens of thousands of non-negotiable promissory notes(the ‘MLNs’); Chase has demonstrated a pattern and practice of playing ‘hide-and-seek’ with debtors, judges and other bankruptcy players,” thecomplaint states. “Chase intentionally conceals the identity of the true parties in interestentitled to enforce the tens of tens of thousands of residential non-negotiable promissory notes (the ‘MLNs’) for its own financial benefit, at theexpense of the class and to the detriment of the integrity of the bankruptcysystem.” Bakenie says Chase used a network of attorneys to file more than 7,000motions for relief from automatic stay in bankruptcy cases in the CentralDistrict of California, “wherein they falsely claim to be the party entitled tomonies due under the terms of MLNs.” Chase rewards attorneys based on how quickly they can secure the stays,and uses fabricated documents to establish chain of title on loans, according
to the complaint. “Rather than incur the cost of ‘proving up’ its own standing or the standingof its principal Mortgage Backed Security Trust, Chase systemicallymisrepresents Chase or a designated MBST to be a creditor in tens of thousands of bankruptcy cases by utilizing manufactured documents,” thecomplaint states.Bakenie claims: “That said practice is utilized for all mortgage loansoriginated by Chase, and other loan originators, including insolventWashington Mutual Bank, whose assets were purchased by Chase. “That said manufactured documents are fabrications intended to create the
illusion of a valid transfers MLNs and support the assertion of standing intens of thousands of bankruptcy cases. … “That the aforementioned fabricated evidence is ‘photo-shopped’ and ishighly persuasive and authentic in appearance so as to ensure legal victoryin the bankruptcy courts. “That said manufactured evidence is systemically utilized to deceivebankruptcy players and increase the profits of Chase, its agents and its
8/3/2019 READ COMPLAINT HERE==CLASS ACTION AGAINST CHASE Accused of Brazen Bankruptcy Fraud ==CHASE HOME FI…
principals through massive cost savings and the imposition of attorney feesupon class borrowers. “As a direct result of this practice, over 95 percent of Chase’s motions forrelief of stay and proofs of claim are granted without objection. “That the use of the fabricated evidence has a chilling effect on class debtors
and their attorneys. Said business practices discourages bankruptcy playersfrom offering objections or from questioning the validity of Chase’s falseclaims based on standing.” Bakenie adds: “That said practice allows Chase to dump defaulted loans thatwere never properly securitized by WAMU and other originators acquired byChase into private mortgage backed security trusts by creating the illusion of a valid transfer. “Said practice shifts the liability of defaulted loans not properly securitizedby WAMU, from Chase to private mortgage backed security trusts. Thepractice allows Chase to effectively mitigate the millions of dollars in liabilityof the WAMU acquisition, where WAMU failed to transfer MLNs of its portfoliobefore its demise. Said practice shifts losses from WAMU toMBST bondinvestors. “That after a non-judicial foreclosure sale, class members remain indebted tothe true beneficiary for the unsecured note but without credit for the loss of the collateral to Chase’s designated assignee. “Most egregiously, the network attorneys utilize the inducing documents toobtain attorney fees awards from by the bankruptcy judges ranging from$600-$1,000 for each successful motion for relief of stay.” Bakenie concludes that “degradation of the integrity of our bankruptcy courtsystem cannot be justified in the name of Chase’s cost savings and unjust
enrichment.” Bakenie seeks class certification, disgorgement, compensatory, statutoryand punitive damages for unfair and deceptive trade, and “an order vacatingall bankruptcy orders, claims and awards granted based on Chase’smisrepresentation and deceptive business practices”.He is represented by Joseph Arthur Roberts of Newport Beach.Copy of the complaint attached…
8/3/2019 READ COMPLAINT HERE==CLASS ACTION AGAINST CHASE Accused of Brazen Bankruptcy Fraud ==CHASE HOME FI…
