First American involved in fraud…
This is nothing new!!!
In 1996 First American engaged in fraud and defrauded our family of millions of dollars.
At the time, FAF’s senior exec, Ad Zetz was deposed. He was asked why had First American engaged in fraud and violated its company manuals. Under oath, Zetz callously answered: “We had a chance to make a couple of thousand bucks!”
Highly respected attorney. Jerry Lasky Esquire of Moses & Singer, New York, sifted through documents and found a memo stating that the company was prepared to take a “considerable risk for future business.”
Has anything changed at FAF over the last 11 years? Why does FAF senior execs systematically condone at best shady if not fraudulent transactions?
In her post on 11/02/07 on the Yahoo/Finance/FAF/Message board/
This is nothing new!!!
In 1996 First American engaged in fraud and defrauded our family of millions of dollars.
At the time, FAF’s senior exec, Ad Zetz was deposed. He was asked why had First American engaged in fraud and violated its company manuals. Under oath, Zetz callously answered: “We had a chance to make a couple of thousand bucks!”
Highly respected attorney. Jerry Lasky Esquire of Moses & Singer, New York, sifted through documents and found a memo stating that the company was prepared to take a “considerable risk for future business.”
Has anything changed at FAF over the last 11 years? Why does FAF senior execs systematically condone at best shady if not fraudulent transactions?
In her post on 11/02/07 on the Yahoo/Finance/FAF/Message board/
janekane12 writes: “First American continues to prove that its leadership is ethically challenged.” Speaking from personal experience I confirm that ‘ethics’ is not a priority at FAF!
Janekane12 goes on to explain why ethics is of concern: “Most of the fines levied against title insurance companies are insufficient to deter improper behavior. Obviously, these types of arrangements are profitable. But this case, however, may be different. This one has the potential to be huge!
Now let us review the huge scope of the present case.
Could it generate a few class action suits in addition to civil and criminal proceedings by New York State?
Could investors who attended the Lehman Brothers conferences and invested heavily in FAF file suit? What did they hear from ex Lehman insider Frank McMahon that caused the FAF stock to reach an all time high shortly before it imploded? Did Frank and Parker Kennedy warn investors that FAF was about to turn in a loss for the quarter or was about to face major suits?
Could home buyers file a class action seeking refunds for all the extra payments they had to fork out as a result of their homes being overvalued?
On 10/31/07 nysemarketmaker wrote on this board:
“$12 in cash Hey! Should we be impressed? Please advise how much will be left after FAF settles claims? How much more needs to be set aside for upcoming major claims? Is FAF not also exposed to class actions that could allege that FAF and its execs have defrauded stock holders?”
And how about buyers of overvalued homes?
On 11/01/07 Forbes.com reported Cuomo’s statement: “Cuomo said eAppraiseIT and the parent company, ‘First American’ knew its actions were illegal, citing an April 17, 2007 e-mail from eAppraiseIT's president to First American that said: "We view this as a violation of the Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Deposit Insurance Corporation and Uniform Standards of Professional Appraisal Practice influencing regulation."
On 11/02/07 janekane12 also wrote:
This case has been described as "one of the highest-profile government actions yet to assign blame for the mortgage crisis that is causing havoc in the financial markets." People are looking for someone to blame for the mortgage crisis - here is an excellent opportunity to send a message.”
A few on this board have attempted to opine that neither FAF nor WaMu had much to gain from overvalued real estate!!!
How asinine!
Remember we ‘were’ in a rising market. Remember FAF does not blink an eyelid before screwing a family out of millions of dollars for “to make a couple of thousand bucks” and pursuing the lure of future business!!!
How much more did FAF earn for every $10,000 a house was knowingly overvalued by?
How much more did WaMu get to collect monthly for every $10,000 a house was knowingly overvalued by? Did help WaMu inflate its paper?
Furthermore what was the perceived risk?
In a rising market, a higher valued home could increase the risk of the borrower defaulting through higher monthly payments. So what? So much more for FAF and WaMu! WaMu ends up with higher assets on its books, FAF ends up insuring and closing more deals through WaMu!!!
Janekane12 goes on to explain why ethics is of concern: “Most of the fines levied against title insurance companies are insufficient to deter improper behavior. Obviously, these types of arrangements are profitable. But this case, however, may be different. This one has the potential to be huge!
Now let us review the huge scope of the present case.
Could it generate a few class action suits in addition to civil and criminal proceedings by New York State?
Could investors who attended the Lehman Brothers conferences and invested heavily in FAF file suit? What did they hear from ex Lehman insider Frank McMahon that caused the FAF stock to reach an all time high shortly before it imploded? Did Frank and Parker Kennedy warn investors that FAF was about to turn in a loss for the quarter or was about to face major suits?
Could home buyers file a class action seeking refunds for all the extra payments they had to fork out as a result of their homes being overvalued?
On 10/31/07 nysemarketmaker wrote on this board:
“$12 in cash Hey! Should we be impressed? Please advise how much will be left after FAF settles claims? How much more needs to be set aside for upcoming major claims? Is FAF not also exposed to class actions that could allege that FAF and its execs have defrauded stock holders?”
And how about buyers of overvalued homes?
On 11/01/07 Forbes.com reported Cuomo’s statement: “Cuomo said eAppraiseIT and the parent company, ‘First American’ knew its actions were illegal, citing an April 17, 2007 e-mail from eAppraiseIT's president to First American that said: "We view this as a violation of the Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Deposit Insurance Corporation and Uniform Standards of Professional Appraisal Practice influencing regulation."
On 11/02/07 janekane12 also wrote:
This case has been described as "one of the highest-profile government actions yet to assign blame for the mortgage crisis that is causing havoc in the financial markets." People are looking for someone to blame for the mortgage crisis - here is an excellent opportunity to send a message.”
A few on this board have attempted to opine that neither FAF nor WaMu had much to gain from overvalued real estate!!!
How asinine!
Remember we ‘were’ in a rising market. Remember FAF does not blink an eyelid before screwing a family out of millions of dollars for “to make a couple of thousand bucks” and pursuing the lure of future business!!!
How much more did FAF earn for every $10,000 a house was knowingly overvalued by?
How much more did WaMu get to collect monthly for every $10,000 a house was knowingly overvalued by? Did help WaMu inflate its paper?
Furthermore what was the perceived risk?
In a rising market, a higher valued home could increase the risk of the borrower defaulting through higher monthly payments. So what? So much more for FAF and WaMu! WaMu ends up with higher assets on its books, FAF ends up insuring and closing more deals through WaMu!!!
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