FRAUD: ONCE UPON A TIME YOU COULD NOT KEEP THE BENEFITS AND YOU WENT TO JAIL
Posted on August 14, 2011 by Neil Garfield
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Submitted BY JOAN on 2011/08/11 at 12:43 am
As I read this blog, I was reminded of the centuries old legal principal, Fraus omnia vitiate, or “Fraud vitiates everything it touches.”
Here is more food for thought:
• Boyce’s Executors v. Grundy, 3 Pet. (28 US) 210 (1830), “Fraud vitiates everything”
http://www.courts.state.va.us/opinions/opncavwp/0824002.doc
http://www.courts.state.va.us/opinions/opncavwp/0824002.doc
• United States v. Throckmorton, 98 US 61, 70 (1878) “Fraud vitiates the most solemn contracts, documents and even judgments.”
• Ellett v Ellett Virginia 0824-00-2 (March 13, 2001) — a property settlement overturned and specifically cites Throckmorton.
• In Re Jose Alejandro Penafiel, Relator, No. 05-021316 Texas Supreme Court (2001) “Texas law holds that fraud vitiates every transaction tainted by the fraud”
http://www.supreme.courts.state.tx.us/ebriefs/05/05021303.pdf (Page 24)
http://www.supreme.courts.state.tx.us/ebriefs/05/05021303.pdf (Page 24)
• Nudd v. Burrows, 91 US 426 (1875), “Fraud destroys the validity of everything into which it enters”
• Dakota Partners v. Glopak, Inc, 2001 ND 168 North Dakota Supreme Court.
http://www.court.state.nd.us/court/opinions/20010092.htm
http://www.court.state.nd.us/court/opinions/20010092.htm
And one more a bit far removed; nevertheless relevant:
• Lazarus Estates Ltd -v- Beasley [1956] 1 QB 702 from the UK.
“No court in this land will allow a person to keep an advantage which he has obtained by fraud. No judgement of a court, no order of a Minister, can be allowed to stand if it has been obtained by fraud. Fraud unravels everything. The court is careful not to find fraud unless it is distinctly pleaded and proved; but once it is proved, it vitiates judgements, contracts and all transactions whatsoever; see as to deeds……. So, here, I am of opinion that if this declaration is proved to have been false and fraudulent, it is a nullity and void……”
(case excerpt from John Washburn, VoteTrustUSA, Voting Technology Task Force August 09, 2006)
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Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor,Mortgage, securities fraud Tagged: | bankruptcy, borrower, countrywide, disclosure,foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee,WEISBAND
3 Responses
- Christine, on August 14, 2011 at 8:04 am said:To liesThe problem is that it isn’t as simple as that. Case in point: when I refinanced my house, I provided a signed tax form authorizing the lender to obtain my taxes for the previous 3 years. I also gave him specific amounts as to my monthly average incomes and I was completely honest, since I know taht the information was readily available.When I signed the ton of papers on my kitchen table, I initialed without realizing it at the time (after a while, you can’t see straight any longer) a document showing that I earned $96,000/year (which I never did). Because that refinancing was a variable interest, ARM with balloon disaster I hadn’t understood, I was able to rescind it when if became patently obvious that I had been conned, after weeks of a nasty fight against the lender, and refinance for fix interest rate, no balloon, no ARM, putting me almost back where I would have been, had I never refinanced at all. However, the second ton of papers I signed, undoing the first refinancing, contained (once again) that tax authorization and… a doc I initialed unbeknownst to me, showing my earnings at $120,000/year!!! Needless to say, my actual taxes were never requiested by the lender from the IRS but it doesn’t matter: I signed a doc with fraudulent declarations, unbeknownst to me and the argument will be made until the cows come home. Luckily for me, the same lender completed both stacks of documents within a few weeks of each other and a solid argument can be made that the lender intentionally fudged the numbers to get commissions and what not.Banks have told the judges: “Your honor, that borrower lied about his/her income in order to obtain a mortgage he/she wasn’t entitled to and couldn’t afford”. And because those docs held by the lender do contain your initials or signature, regardless what the bank subsequently did, a judge can feel taht he has a legal obligation to find that fraud was committed… by you, in the first place! No one in the transaction has clean hands and the judge may rule for the party he believes to have cleaner hands than the other or dismiss the case with or without prejudice. For right now, judges still believe that 2 rational sides were negotiating a mortage, both with the same level of sophistication, good faith, expertise, etc. They haven’t caught up yet on the extent of the deceipt and the fact that homeowners were completely unprepared to deal with that monumental, evil machine. And it appears more and more that some of those were… themselves judges. Now they have something and someone to relate to…Judges’ hands are tied by the heap of existing laws, many of them contradicting each other, and each attorney’s job is nothing more than pulling out the of the books those laws which will better demonstrate the validity of arguments and position. So, when it appears that a judge ruled in favor of the wrong party, do not automatically assume that he/she was bought by banks, biased against honeowners, crooked, etc. Judges are as flabbergasted by the gall banks display and cannot, in their wildest imagination, believe that anyone would have the nerve to flaunt so blatantly its bad faith, dishonesty and lack of consideration for the law. I would vouch to predict that, in the next 6 to 12 months, we’ll see a radical shift in judges decisions and it will no longer be at the advantage of banks to seek cover of the courts, anywhere in the country, in state or federal courts. The rulings of the past 2 years tend to prove that judges have slowly wised up. Give them the time to get over the shock of having been so completely irrelevant and completely played by the banks! And if, indeed, many of them are crooked and were on banks bankroll, give them the opportunity the lose it all and they will find religion in no time.Judges are as human as homeowners. The only non-human thing in that whole mess is banks. They can’t prevail. Impossible. Question of time. So, rather than antagonizing judges by lending them motives thay probably don’t have, we need to see that they were as duped by the system than we were. As I said, question of time. And to speed up the process, I keep advocating that everyone stop paying anything he/she owns to any big bank and turn to credit unions. Even if your credit get ruins, big deal! A common ill no longer carries any stigma. The way I see it, a good credit rating is only good to the extent that you want to get something on credit.
- lies is all they tell, on August 14, 2011 at 6:42 am said:so why are judges not following their own law??? that they all endocrined?? dont hey daily use case law to validate their ruling??? where are these rules when a bank shows up with fraud. FRAUD INVALIDATES THE TRANSACTION.. ok so the courts ar not following their own law? how do we recall our entire justice system in every state?????\
- marilyn lane, on August 14, 2011 at 3:21 am said:But wait, You forgot about a company like Fidelity and its subsidarie Lender Processing Service that can fabricate False Representations with the greatest of skill making the true facts disappear .There is no such word like Fraud in Fidelity’s vocabulary as they keep reinventing ways to profit from false and forged documents.Fraud is good for Fidelity it keeps making them money.
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