Most of you
have probably heard by now about the family that was foreclosed
on in California, their home was resold, refurbished, and they then
effectively "stole it back" with their attorney and a
locksmith breaking in and re-taking possession.
Capital Partners has published "the other side of the story",
and it makes several good points – some of which I believe
deserve exposition and discussion:
28, 2010 the property was sold thru a public auction at the trustee
sale held at the Ventura County Court House. Each month this same
process occurs thousands of times across the nation as a method
for banks to take back or dispose of the property that is not
being paid for. Conejo Capital was the u201Csuccessfulu201D bidder. Shortly
thereafter the former bank issued the title and it was legally
recorded with Conejo Capital Partners LLC as the new owner of
the property. At the time all we knew about the property was that
the former homeowners purchased it in 2001 for $539,000, and that
they later refinanced it, pulling equity out, resulting in debt
of roughly $1,000,000.
We start here.
How do we wind up with someone who purchased a home
for $500,000 then pulling another $500,000 in what amounts to phantom
simple: We had Wall Street banks that were more than happy
to trade on this phantom, false, and maliciously-inflated "equity",
driven by a central bank and cronies in Washington DC that were
all too happy to look the other way at rampant lawlessness for
nearly a decade.
of this problem came there, but nobody – and I do mean nobody
– wants to talk about that or take responsibility for it. Why
There are hundred
of billions of reasons why, and they’re paid to Wall Street "talent"
October 9th the Earls and their attorney followed thru
with their previous threats and took the law into their own hands.
They hired a locksmith to break into the Mustang home. They had
arranged to have t.v. news cameras filming their actions, and
then proceeded to hold a press conference stating that they were
within their rights and that we (Conejo Capital Partners) had
somehow violated the law. All along the Simi Valley Police Department
sat idle and refused to get involved no matter how much proof
was offered supporting our legal rights and position. We were
told that we needed to resolve it in front of a judge even though
it had already been decided.
Why are you
surprised? More to the point, why is anyone surprised?
is what happens when you sit idly by and countenance rampant and
outrageous lawbreaking: The people decide they’ll do it
As for the
police telling you that they won’t get involved, cry me
a river. There’s a lady here in Florida who was not
in foreclosure, the bank did not have a judgment
of possession, and they hired a company to break into her
home and change the locks – with her inside. That’s
breaking and entering anywhere, it’s a serious
felony, and in Florida at least a homeowner confronted with
this is within his rights to shoot the people doing it.
Yet when the Sheriff responded he refused to arrest the perpetrators.
It sounds like
Conejo ran into the same problem. I’d be sympathetic, but I can’t
be so long as they do not demand that the same sanction
attach to all the illegal bank activities in regard to these repossessions
Conejo didn’t do that.
don’t make a right – just more wrongs. But the lesson here
isn’t that a couple and their kids "re-took" possession
and claim their original foreclosure was "illegal." I
don’t know if it was or wasn’t – what I know is that the
chain of lawlessness didn’t start with them, and it is impossible
to condemn their actions standing alone.
If the foreclosure
was unlawful and initiated with "robosigned" and bogus
documents then it was. The Earls apparently attempted
to demand a jury trial on the facts (including these facts) and
were told to go to hell. Someone hasn’t read their Constitution
lately – it says that for all controversies exceeding $20,
you have a right to a trial by jury (7th Amendment). It
doesn’t say that if it’s inconvenient for a bank and might expose
criminal fraud for which bank officers could be imprisoned the judge
can tell you to pound sand. That, standing alone, broke
the chain of lawful behavior in the instant case.
This is where
lawlessness leads us – to more lawlessness. Once you commit
a lawless act against someone and are not punished for it
you have invited them to retaliate with complete disregard
for the law in their response. You are only required to
deal ethically and morally with an ethical and moral entity across
the table – one who ignores the law loses their
right to demand that respect in return.
This mess begins
with the securitization and sale of these mortgages in the first
instance. It begins with whether or not the original banks actually
transferred the notes at all (there’s plenty of
evidence they did not) and whether the representations and warranties
were complied with when these securities were sold to investors
(we know in many cases – if not all –
they were not, from FCIC sworn testimony.)
have turned a blind eye to these lawless acts for the better part
of a decade – not one indictment has issued for securities
fraud over these matters. And it’s not just mortgages – we
know banks were involved in ripping off communities such as Jefferson
County, we know they are alleged to have been involved in rigging
municipal debt offerings (which raised the cost of living for everyone
through higher taxes) and yet not one bank officer or bank
itself has been placed under indictment for any of it. Further,
the FBI warned in 2004 of an "epidemic" (their words)
of mortgage fraud, and instead of it being prosecuted the agents
were pulled and reassigned.
We have had
two sequential administrations – Bush and
now Obama – that have intentionally refused
to prosecute any of this lawless behavior. This refusal continues
to this very day with admissions in depositions under oath
of the commission of literal tens of thousands
of felonies per month (each instance of
falsely swearing before a court is a separate count of fraud upon
the court and, in the case of "robosigning", forgery –
affixing a notary’s signature by other than the actual notary.)
Yet despite this having been confirmed in multiple depositions
going back several months not one indictment has issued thus
far and Attorneys General talk about not wanting to "upset"
the banks or the "economy."
could not be more clear: So long as you make lots of tax
revenue (and money for yourself), it’s ok to rip people off, subvert
justice and mislead courts and we won’t send you to prison even
though your conduct is felonious.
The media and
others wish to spin this as "technical errors." Nonsense.
These are serious crimes. They do not become
"technical errors" because some large financial institution
committed them. Breaking and entering is a felony irrespective of
who does it – the offense does not suddenly disappear if a
monster bank is the perpetrator who directs an agent of theirs to
commit the offense.
Until and unless
all of these lawless acts receive indictments
in response I will not condemn anyone who chooses to act in
exactly the same form and fashion as is done to them,
and in my opinion neither should anyone else. It’s that simple –
either the law applies to all or it applies to none. There is no
I cannot countenance
what the Earls’ have done. But at the same time, a trial
by jury is a civil right respected in the US Constitution.
The moment they were denied their civil rights they were
left with no recourse through lawful behavior and thus had only
the choice of a stick in the teeth or to act with the same lawlessness
that was served upon them.
upon the latter course and I argue that was their right
to do in the instant case. The government can change my
opinion on that any time they’d like – it can remove the Judge
who refused their right to a trial by jury, restoring same, and
it can indict and place in the dock the robosigners who forged documents
in their original foreclosure. Due process of law and Constitutional
Rights are not suggestions, and until they apply to all I refuse
to selectively endorse their application against only "little
fraud are not complicated offenses, nor is breaking and entering.
The lawless behavior began with the financial institutions
involved and if lawless acts resulted in an alleged conveyance of
a title from a standpoint of justice – whether a gavel banged
or not – from an ethical and moral standpoint it simply
No person should
be buying Real Estate or proceeding with foreclosures until (1)
the lawlessness stops and (2) those who violated the law all the
way back to the origination of these securities are indicted
and put in the dock for their offenses. The conveyance
of real property interest is both a state matter and subject to
strict scrutiny – so says 200+ years of jurisprudence in The
United States. Those who buy allegedly in good faith but
have received nothing due to these "robo" enterprises
have no gripe with the people who did not get their fair day in
court – their gripe is with the firm(s) that contracted with
the robosigning outfits along with the quite-possibly bogus title
chains they were trying to cover up.
We are not
far away from a complete and total breakdown of lawful behavior
among the population of this nation. If it happens, it will not
be because of people like the Earls. While I cannot recommend a
lawless response to any insult suffered by people like them I will
understand what has happened and why – and who’s to blame.
has and will in the future occur because the government has refused
to enforce long-standing laws against "favored people",
allowing the general public to be asset-stripped mercilessly through
various connivances and frauds, even though such conduct is blatantly
unlawful – and the people have simply had enough of being treated
like a turkey drumstick at an amusement park.
The blame for
this incident and those like it rests squarely with Mr. Holder,
President Obama, Tim Geithner, Ben Bernanke, President Bush, Hank
Paulson and the 50 States Attorneys General who have all refused,
collectively, to prosecute the rampant lawlessness in our financial
system for the previous two decades – and are still refusing
from Market Ticker.