RICHARD GEORGE; STEVEN LEAVITT and SANDRA LEAVITT, and all others similarly situated Plaintiffs, v. URBAN SETTLEMENT SERVICES d/b/a URBAN LENDING SOLUTIONS; BANK OF AMERICA, N.A.

CLASS ACTION COMPLAINT Re: Bank of America & Urban Lending Sued for Racketeering (RICO) on Fraudulent “Modification” Program

by Barry Fagan
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In a case that may have far-reaching consequences, a lawsuit was filed in federal court in Colorado accusing Bank of America of racketeering (RICO).

It was a game to the bank. They intentionally lured people into what they thought was a good faith modification program, encouraged people to get deeper and deeper into "debt", and then foreclosed when they were sure that the person could not reinstate nor exercise a right of redemption.

A key player in this scheme was Urban Lending Solution.

In a Massachusetts case depositions were taken and it is quite clear that this affiliate of Bank of America had their employees working off of Scripts and that anyone who went off the reservation would be disciplined or fired. Going off the reservation merely meant that they actually tried to help a borrower achieve a modification.

There are at least six whistleblowers who have executed sworn affidavits stating that the modification program was a sham.

Those employees of Bank of America or their affiliates who were successful in throwing homeowners into foreclosure were rewarded with $500 gift certificates to Target and other stores.

The claims against Bank of America are using laws that were designed to target organized crime. For years experts and laymen have been claiming that the banks were engaged in organized crime in the the sale of mortgages, origination of loans, the assignment of loans, the recording of unperfected mortgage liens, wrongful foreclosures, illegal foreclosure sales in which the property was sold without any cash being paid, interference in the right of the borrower to reinstate, modify, or redeem.

The Colorado lawsuit paints a picture of Bank of America and Urban Lending Solutions working “in concert” to prevent “as many homeowners as possible from obtaining permanent loan modifications that complied with HAMP while allowing BOA to maintain the appearance to regulators and the public of trying to comply with its HAMP obligations.”

Bank of America and Urban Lending Solutions had a “scheme to defraud,” the suit says.

“To accomplish its objectives, BOA created a widespread RICO enterprise to defraud homeowners who sought modifications and then acted as the kingpin of that enterprise,” the suit says.

Bank of America enlisted Urban Lending Solutions “to act as a member of the RICO enterprise,” the suit says.

The suit also says that homeowners seeking HAMP trial plans were told by Bank of America to send financial information to Urban.

“Consumers were led to believe that they were dealing with BOA, when secretly they were communicating with Urban,” the lawsuit says. “As part of the loan-modification scheme and enterprise, Urban became a ‘black hole’ for documents sent by homeowners.”

As a result of bank of America's and Urban’s scheme, hundreds of thousands of homeowners were wrongfully denied a modification, the suit says.

We are just around the corner from the key question, to wit:

Why would the banks engage in organized crime to create foreclosures when it is painfully obvious to homeowners and local government officials across the country that the banks have no interest in acquiring the property but only causing the sale of the property at a foreclosure auction?

Why would the banks delay the prosecution of their cases for years?

Why would the banks argue against expediting discovery against them and against the borrower?

Why would the banks argue for less money in foreclosure rather than more money in modification?

The answer to all of those questions is simply that there is more money in this scheme than has been divulged. The money the banks made selling the mortgage bonds was dwarfed by the amount they made when they received insurance, credit default swap proceeds, and taxpayer money on investments owned by the investors and not by the banks.

Recent estimates suggest that another 5 million foreclosures will be added to the list of the 5 million homes that have already been foreclosed upon.

That is unless our national banks are finally required to conform with the regulations and laws of the federal and state government.

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Barry Fagan
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