The United States filed a fraud lawsuit against Bank of America Corp, accusing it of causing taxpayers more than $1 billion of losses by selling thousands of toxic mortgage loans to Fannie Mae and Freddie Mac.
Wednesday’s case, originally brought by a whistleblower, is the U.S. Department of Justice’s first civil fraud lawsuit over mortgage loans sold to the big mortgage financiers, which were bailed out in 2008.
It also compounds the legal problems that Bank of America Chief Executive Brian Moynihan faces over the second-largest U.S. bank’s disastrous 2008 purchase of Countrywide Financial Corp, once the nation’s largest mortgage lender.
According to a complaint filed in Manhattan federal court, Countrywide in 2007 invented a scheme known as the “Hustle” to speed up processing of residential home loans.
Operating under the motto “Loans Move Forward, Never Backward,” mortgage executives tried to eliminate “toll gates” designed to ensure that loans were sound and not tainted by fraud, the government said. Please continue @: http://www.reuters.com/article/2012/10/24/us-bankofamerica-fraud-lawsuit-idUS…
A former partner of Los Angeles-based Bushmaster Nemer — who California Governor Jerry Brown appointed to the Los Angeles County Superior Court bench under questionable circumstances involving his cousin, former California Public Utility Commissioner Geoff Brown — is accused in federal court of committing myriad financial crimes and acts of fraud.
Documents filed in the United States District Court for the District of Columbia reveal that Holly Fujie of Los Angeles allegedly engaged in predicate acts of racketeering through and by means of money laundering, mail and bank fraud, as well as conversion of funds.
The lawsuit, filed as a civil-racketeering action by Marina Del Rey-based community activist Daniel Dydzak, also names as a defendant Bet Tzedek Legal Services of Los Angeles and Eric George — the son of the controversial former chief justice of California, Ronald George.
Both Holly Fujie and Eric George were directors of Bet Tzedek, an entity which obtained millions of dollars from the various trusts funds maintained and operated by the State Bar of California, as well as funds from the California Bar Foundation, where Holly Fujie presently serves as the vice-president.
Both the State Bar of California and the California Bar Foundation are under the direct control of the California Supreme Court.
The various legal trust funds maintained by the State Bar of California are overseen by the Legal Services Trust Fund Commission where, coincidentally, Holly Fujie also served as director.
Heading the commission is David Lash of O’Melveny & Myers, another lawyer who is a director of Bet Tzedek, and Bonnie Rubin of 1st Century Bank — a bank owned by former president of the State Bar of California Alan Rothenberg. Coincidentally, Eric George is part owner of 1st Century Bank.
Dydzak alleges in his lawsuits that part of the millions originated from the State Bar of California and its foundation headed to Bet Tzedek were embezzled by the various actors and were siphoned to off shore bank accounts.
Bet Tzedek is headed by CEO Sandor “Sandy” Samuels — former Chief Trial Counsel at embattled Countywide Financial Services — who according to Dydzak was appointed President and CEO of Bet Tzedek largely due to his working knowledge of how to operate an enterprise which engages in myriad financial crimes.
According to confidential sources familiar with the situation, Dydzak filed the suit in Washington DC, because he is extremely concerned that given the caliber of the defendants and the fact that they are in control of the justice system in California, they will seek to injure him in various ways, including in seeking to somehow derail the suit.
According to these sources, Tom Layton, investigator from the State Bar of California who is well connected with Los Angeles Sheriff Lee Baca, in the past paid a visit to Dydzak’s neighborhood, and sought to convince his neighbors to falsely accuse Dydzak of various acts of misconduct, including providing improper and unlawful legal counsel.
EXTORTION BY ERIC GEORGE
As was reported earlier, Det. Rodney Wagner of the Sheriff’s Department stated his view that the department’s six-month investigation turned up evidence of “implied threats” against the actor by Oksana Grigorieva and her lawyers.
He wrote that he found support for three separate extortion charges in Grigorieva’s e-mails to Gibson and in a March 2010 meeting in which her lawyers, Eric George and Sonia Y. Lee, talked with Gibson’s representatives about how disclosure of the tapes and photos would “ruin” his career.
“By discussing the potential damage to Mr. Gibson’s career if the ‘evidence’ were to be released to the public … it was my opinion, that constituted an implied threat,” Wagner wrote.
George, who was Grigorieva’s lead attorney in the negotiations, is the son of the state’s former chief justice and a campaign fundraiser for Dist. Atty. Steve Cooley. He hosted a $500-per-person cocktail party at his Beverly Hills home in August for Cooley’s unsuccessful race for attorney general and donated $6,500 to his campaign. He declined to comment.
Grigorieva’s current attorney, Daniel Horowitz, said Wagner had mistaken bare-knuckles legal negotiations for a crime.
“Lawyering is a very tough business,” he said.