INVESTORS ADMIT CRIMINAL ENTERPRISE AT STERN LAW FIRM Posted on January 5, 2012 by Neil Garfield, ESQ.

, MBA and founder of LivingLies Weblog From NEIL -EDITORS COMMENT: This is the start of what we have been waiting for. Investors who purchased David Sterns operation a foreclosure mill that had been bank-rolled literally by the Banks. They actually have the necessary files, documentation and proof needed because they now own the company and they realize they were induced to buy a criminal enterprise. This is what I have been talking about. Investors of all shapes and sizes are starting to awaken to the fact that the entire foreclosure process has been permeated by false statements as to the amounts due, the identity of the creditor, and the documents that perfected the lien, transferred the loan and were the basis for foreclosure. None of the foreclosures are real. That is a grandiose statement, but it will prove to be true. This news is important not only because it corroborates the defenses of borrowers in tens of thousands of foreclosure cases filed by Stern. It is really important because what will emerge is a fact pattern that shows that ALL of the foreclosure mills were operating in the same way because all of them were essentially renting their law license to the Banks who were covering up the securitization scam, to wit: that the securitization that was documented was never followed, that the money trail does not conform to the documents, and that the liens were never perfected and were therefore not subject to foreclosure because they were unsecured. By: Cynthia Kouril Wednesday January 4, 2012 7:22 am SEE INVESTORS ADMIT DOCUMENTS WERE FORGED ON FIREDOGLAKE.COM In 2010, the Law Offices of David J. Stern spun off the robo signing document mill part of his business into a separate, publicly traded company. Stern pocketed some $60 million from that deal. The investors got the company and all its documents, internal procedures and everything you would need in order to find out what really happened within the Stern document mill. A little after 8 AM EST today, a filing went up on the SECs Edgar database. Its a Complaint in lawsuit, dated yesterday. The lawsuit is by the investors suing Stern for lying to them about the activities of the document mill and misleading them into believing they were buying a legitimate business instead of a criminal enterprise. Unlike a regular plaintiff or an Attorney General who is dependent on obtaining documents and information FROM the target of their ire via discovery of subpoena or search warrant, these plaintiffs

apparently have all the info they need already in hand, because they bought the company. Let me give a quote or two from the Complaint to show what they found in the books and records of the Stern foreclosure mill. 32. The Seller Defendants fraudulent and illegal foreclosure practices prior to the Transaction, and the subsequent demise of the Seller Defendants law practice, have now been well documented and reported upon in the local and national media. 33. Prior to the Transaction, the Seller Defendants were at all times well aware that DS Law and the Target Business were intentionally perpetuating a fraud on the courts by, inter alia, systematically filing forged documents, forging signatures on such documents, fraudulently backdating documents, improperly notarizing and witnessing documents, fabricating documents, signing affidavits without reviewing or verifying the information contained therein, prosecuting foreclosure cases without obtaining proper service of process, and filing foreclosures with inaccurate and/or incomplete documents. 34. Indeed, the Seller Defendants directed employees of DS Law and the Target Business to purposefully overlook glaring inaccuracies in foreclosure pleadings and to essentially rubber stamp computer generated documents without reviewing or verifying the accuracy of the documents. New attorneys at DS Law were not only encouraged, but were even ordered to sign legal filings and pleadings without reading them. As a result, false and inaccurate documents were routinely executed and filed with the courts in an effort to hasten foreclosure proceedings and illegally obtain final judgments of foreclosure for the Seller Defendants clients. This is an explosive document, because the plaintiffs here are like insider whistleblowers; they know whats in the files, because they have the files. This is a godsend for homeowners who have been victims of foreclosure fraud. It should dramatically increase the pressure for criminal prosecution. More to the point, judges with robo signed documents in front of them will be even more concerned about granting foreclosure judgments; at least they will be when the news about this gets widely reported. Huge hat tip to Florida foreclosure defense guru Lynn Szymoniak who emailed me the Edgar link early this morning while the electrons where still warm. Folks, please tweet, forward, whatever. This is a huge story that deserves to be given major coverage in MSM. Local judges need to be aware that they are being handed forged documents.