"Forensic Audit" Scam Attracts California AG

Discussion of various forms of Advance Fee Fraud, including application fees for loans that never materialize, self-liquidating loan scams, as well as mortgage elimination scams and related debt elimination scams [Nigerian-type scams should go in the Nigerian 4-1-9 forum]
Judge Roy Bean
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"Forensic Audit" Scam Attracts California AG

Post by Judge Roy Bean » Thu Oct 07, 2010 12:58 am

You can tell Brown is running for Governor.


This is the same Jerry Brown that was "Shocked!" at Countrywide (more than once) - all the while his sister was on the Board of Directors and he dragged that investigation out for years and years.

And now, here comes a high-profile suit. These people were more than just clever - this one is outright diabolical but unlike the slow approach with Countrywide, this one just started back in early 2009.

US LOAN AUDITORS, INC., a California .
corporation; MY US LEGAL SERVICES,
INC., a California corporation; JAMES
DONALD SANDISON, an individual;
SHANE BARKER, an individual; JEFFREY
ALLEN PULVINO, an individual; SHARON .L. LAPIN, an individual; JONATHAN GREGG STEIN, an individual;. and DOES 1 through 100, inclusive,

When homeowners contact Defendant US LOAN AUDITORS by phone or in person, they speak with sales agents who identify themselves as "fraud investigators" and/or "licensed fraud investigators." These sales agents are not attorneys or experts in fraud investigations, and are not licensed to conduct investigations' of any kind. Consistent with the claims and representations made on US LOAN AUDITORS' websites, mailers, marketing materials, and other advertisements, clients are told that a forensic loan audit will provide them with "legal leverage" to stop foreclosure and obtain a loan modification.

Homeowners who agree to purchase a forensic audit from Defendant-US LOAN AUDITORS 'are required to sign a contract called a "Service Provider Agreement." The contract requires consumers to pay an up front fee equal to one percent of the homeowner's original mortgage balance for the forensic audit. The cost of a forensic audit can typically range between $2,000 and $6,000, but some clients have paid Defendant US LOAN AUDITORS as much as $20,025 for just the forensic audit. There is no correlation between the price of the audit and the amount of work required to complete the audit. Non-Attorney Defendants' "fraud investigators" are paid on a commission basis only, and typically collect up to 50 percent ofthe amount charged less administrative expenses, but only when they are able to sell clients both the audit and "legal , services" provided by Defendant US LEGAL SERVICES, as alleged below. This arrangement provides Non-Attorney Defendants' "fraud investigators" with an incentive to do everything possible to sell "legal services" to clients who have already purchased forensic audits.

The Non-Attorney Defendants and their sales agents also routinely tell clients that their attorneys "specialize in debt negotiation, debt settlement, predatory lending, loan modification, litigation, and consumer injury." In fact, the attorneys recruited for these cases frequently have little or no relevant experience, and Defendant LAPIN, who received over 130 referrals from Defendant US LEGAL SERVICES, was previously sanctioned by the State Bar for failing to competently perform legal services on behalf of her clients.

Non-Attorney Defendants and their sales agents have also claimed to achieve a high rate of success because of Defendant SANDISON's background as an attorney, real estate broker, and former deputy sheriff, and have told clients that they can trust him, that he will personally represent them, and that he is personally acquainted with federal judges.

After clients start making monthly payments to Defendant US LEGAL
SERVICES, their audit files are "sent" to the "legal" department for processing the lawsuit. The US LEGAL SERVICES "legal" department is staffed and supervised by non-attorney "legal processors," and at least two former California attorneys who are no longer eligible to practice law in California. One former attorney who supervises non-legal staff resigned from the practice
oflaw with State Bar disciplinary charges pending in 2007, and was subsequently convicted of grand theft in connection with his representation of clients in 2008. Another former attorney employed by Defendant US LEGAL SERVICES resigned from the practice of law with State Bar disciplinary charges pending on July 8, 2009.

When clients are being evicted from their homes by the lender or new owner following a trustee sale, they are routinely told that US LEGAL SERVICES does not provide legal services for unlawful detainer cases, and that they must seek outside counsel on their own.

:twisted: :roll: :twisted: :roll: :twisted:
The Honorable Judge Roy Bean
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Re: "Forensic Audit" Scam Attracts California AG

Post by quasimodo » Mon Feb 07, 2011 4:17 am

First: US LOAN AUDITORS, INC is a modification company. My first question is, how does one lawfully modify fraud? Second question, is that not a fraud in and of itself?

Loan mods are a scam all together. They are an attempt to cover up the fraud perpetuated in the loan origination, and keep a homeowner hooked into a fraudulent loan.

Second: A computer generated audit is NOT "forensic". These things only look at the numbers on 3 documents in the mortgage; GFE, TILA disclosure, and the note. Non-disclosure, and predatory lending are never considered.

Third: What homeowners do not understand about mortgage modifications is this.

Real Estate Mortgage Investment Conduit (REMIC). This is an IRS “pass through” tax-exempt status for the investors. In the Internal Revenue Code (IRC) 26 USC § 860 et seq the statutes dictate that the company managing the Mortgage Backed Securities (MBS) pools “CANNOT” modify more than 5% of the 10,000 (=500) MBS’s in the pool without destroying the pass through status of the investor. The only way the servicer can modify a mortgage in the pool where your mortgage is, is to foreclose on a mortgage, pull it from the pool, replace it with another MBS of equal value, and then they can modify another mortgage.

As an analogy, one would have to look at the homeowner in hopes of modification in the same way one would view a hopeful recipient of a donor heart for transplant. In other words, like the heart recipient of is waiting for someone to die so he can have their heart, the homeowner is waiting for someone else to be kicked out in the street so they can get a modification all the while hoping that it’s not them getting kicked out so someone else can get their loan modified.

The mod companies know this so what they are actually doing is trying to leverage their client to be next in line for a mod.

It is typical for the mortgage servicer to string the homeowner along and squeeze as much out of them before they foreclose. “We lost your paperwork”, “we never received your paperwork”, your paperwork was not filled out correctly”… They will tell a homeowner that they have to be 3 months behind before the servicer can modify. As soon as the homeowner gets 3 months behind, the servicer will foreclose.

The servicer gets paid for every mod application they submit, so they don't care if you get a mod or not. They still get paid.

First post here so please forgive the ignorance when I ask, how does one attach files in here? Some of you may know me from another place on the web that does not seem to be any too popular here. I am sitting on a mother load of information if anyone is interested. If not, let me know and I will go away and leave you guys to it.


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Re: "Forensic Audit" Scam Attracts California AG

Post by webhick » Mon Feb 07, 2011 6:12 am

quasimodo wrote:First post here so please forgive the ignorance when I ask, how does one attach files in here?
The forum doesn't allow attached files. You'll have to upload the files to a file sharing service and link to them to show us what you've got.
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Re: "Forensic Audit" Scam Attracts California AG

Post by quasimodo » Mon Feb 07, 2011 8:22 am

Thank you webhick. I'll see what I can do. I will start another thread so this one is not hijacked.

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Re: "Forensic Audit" Scam Attracts California AG

Post by wserra » Mon Feb 07, 2011 5:29 pm

(1) For limited use, there are several free file sharing sites. Search Google.

(2) You won't find any argument here about how many (most? all?) mortgage servicers are scum.

(3) Welcome to Quatloos.
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Re: "Forensic Audit" Scam Attracts California AG

Post by Prof » Mon Feb 07, 2011 6:14 pm

wserra wrote:(1) For limited use, there are several free file sharing sites. Search Google.

(2) You won't find any argument here about how many (most? all?) mortgage servicers are scum.

(3) Welcome to Quatloos.
Wes is correct; these are scams. However, the servicing industry is, for example, routinely sanactioned in bankruptcy courts for various accounting and other failures. As Wes said, mortgage services are scum.

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