Financial Gurus Sell Out Of The First American Corporation – NYSE symbol: FAF

http://www.gurufocus.com/StockBuy.php?symbol=FAF

Marty Whitman, Charles Brandes, Mason Hawkins, Seth Klarman, Third Avenue Management (Marty), Arnold Schneider and Steve Mandel to name but a few, all sold out of The First American Corporation since the beginning of 2008!

Not surprisingly even Marty Whitman, one of the initial largest holders of FAF stock and one of its most loyal supporters through thick and thin over the past 12 years has finally bailed out, big time!

Smart Marty Whitman is a wise man!

Marty invested in FAF when FAF was still a fledgling in 1996. IMHO, Marty taught the FAF senior execs how to add value to the company and how to manipulate the company’s stock and increase its market cap!

Indeed I suspect that around 1996, Marty worked his way into some 900,000 shares in exchange for his staunch support.

I further believe that Marty was present at the company’s April 22, 1999 meeting when Kennedy guaranteed a dividend increase before year end. That guarantee that never materialized and other false statements blurted out by senior execs at that meeting sent the stock sky rocketing momentarily. Soon after, the stock imploded when actual earnings and true business conditions were revealed.

But, in 1999, Marty faced the outcry of his investors demanding that he dump FAF. Marty faithfully held on!

Now, Marty must be smelling the burning rag or he must have feel the water level getting neck high in that burning or sinking ship for him to jump.

Marty must be comforted not to be the only deserter. Even The First American, blue eyed boy, James J. Dufficy, the one who claims that First American has “no duty vis-à-vis the public to do the correct thing” has defected and has run for cover!

First American Corporation - Class Actions - Galore!

Numerous class action lawsuits in various States across the US have been filed this month against The First American Corporation – NYSE: FAF.

One of the latest suits was filed by Grant & Eisenhofer, P.A., ) in the United States District Court for the Southern District of New York, on behalf of shareholders who purchased the common stock of the Company between April 26, 2006 and November 6, 2007, inclusive ("Class Period").

The Complaint alleges that, during the Class Period, First American and certain of the Company's officers and directors engaged in an illegal scheme. During the Class Period, in quarterly earnings reports, the Company's management reported increased earnings and reassured investors that internal controls were adequate.

The Complaint further claims that First American overstated its gross profit margins and net income during the Class Period and that throughout the Class Period the defendants made false and misleading statements regarding the Company's internal controls and financial performance.

The defendants are First American, Parker S. Kennedy, the Company's Chief Executive Office and Chairman of the Board, and Fred F. McMahon, the Company's Vice Chairman and Chief Financial Officer. That case is captioned Berks County Employees' Retirement Fund v. First American Corporation.

This is nothing new! It is only one more example of a well established, long enduring systemic approach by senior executives of First American to deliberately deceive investors. How often has First American resorted to creative accounting to overstate figures, inflate stock value and defraud investors in the past? How often has Parker S. Kennedy pumped up the stock through outrageous false and misleading statements in the past?

As an example, a quick review of history reveals that at a shareholders’ meeting held in Santa Ana, California on April 22, 1999, Parker S. Kennedy conceded that the recently, Fed ordered, accounting change had affected the stock price negatively. (Note: After investigation, the Fed had concluded that First American had used creative accounting to overstate its earnings and thus inflate its stock price. As a result of its findings, The Fed forced First American to restate its earnings.)

Unfortunately, no class action suit was filed then!

In the absence of meaningful fines or suits, Parker S. Kennedy was emboldened to blurt out a most deceitful statement at that same meeting on April 22, 1999. Without any authorization from the board, Parker S. Kennedy guaranteed to investors that the corporation would increase its dividend before 1999 year end. Foreseeing an improved return on capital, investors sent the stock momentarily skyrocketing days after Kennedy made that unauthorized and most misleading statement! Sadly the ‘GUARANTEED’ dividend increase for year 1999 never materialized and the stock plummeted!

Unfortunately, once again, no class action was filed!

IMHO, the series of class actions being filed lately against First American and its senior execs are long overdue!

I wish well to all attorney firms who have filed class actions against The First American Corporation. I stand ready to voluntarily assist them with any critical info that I am privy to. I can be contacted at: leclezio@hotmail.com or a comment can be left on my blog: www.lleclezio.blogspot.com

Note: I have an irrefutable audio tape of numerous past statements made by Kennedy. IMHO those statements establish deep rooted intent concerning the deliberate manipulation of the First American stock price by Kennedy and his gang.

Furthermore, it is noteworthy that my book ‘First American Title To Injustice’ has been made an exhibit in The Massachusetts Federal Court. Many revealing statements can be found in my book.

IMHO, the key to understanding the First American overt deplorable modus operandi over the years rests in the statement made in a letter addressed to me by ex First American senior executive, James J. Dufficy: “The company has no duty vis-à-vis the public to do the correct thing”.

That says it all!

Louis Leclezio Jr. - Warren Buffet

Dear Dad,

Remember that success is not measured by the hardships a corporation like First American or its henchman, James Dufficy inflicted upon you.

Your resounding success is written in Mommy’s and your book of life according to what you have led your children & grand children to be in the eyes of the world and above all in the heart of God!

You should be most proud to see me in the company of the richest man in the world. He is confidently handing his wallet over to me!

I am proud of who Mommy & you have taught us to be. You have prepared us well enough to meet with the wealthiest man on earth. At the same time we know how to remain focused on the greatest wealth of all – The faith of our fathers and our heavenly eternal rewards!

From heaven, may Mommy continue to smile on us all on earth and may God continue to bless you and all yours abundantly my dearest dad!

James J. Dufficy

I picked up the following comment concerning James J. Dufficy aka Jim Dufficy on the net.

I consider it to be so pertinent that I could not resist publishing it!

"Louie – Remember – When the water level gets too high – Rats jump ship.

Jim Dufficy is a brilliant lawyer. He was privy to most of the horrendous legal issues confronting First American!

From his vantage position, Jim could best weigh all the legal issues plaguing those morons.

IMHO, Jim probably left because he feels that the First American market cap will soon drop below $500M.

Arrogant & greedy as he is, Jim is probably further convinced that under his leadership the market cap of Stewart could very well rise over $3.3 billion.

Filled with blinding ambition, Jim must have secured a significant stock option package from STC. That would explain Jim’s move from FAF to STC.

That’s loyalty for you!"

James J. Dufficy - First American Corporation - Stewart Title

James J. Dufficy leaves the First American Corporation, a NYSE trading company with a current market cap of $3.3 billion to join Stewart Title Guaranty Company. STG is a fully owned subsidiary of Stewart Title Company. STC’s market cap is presently less that $500 million!

IMHO, while The First American Corporation has grounds to rejoice, Stewart Title should have major cause for concern.

Mr. James J. Dufficy’s business philosophy is that ‘his’ company has no duty vis-à-vis the public to do the ‘correct’ thing.

Note that Mr. James J. Dufficy made that statement on a First American letterhead he addressed to me on March 24th 1998.

The Stewart Title board of directors and Stewart Title clients better be wary of this ‘new blood’ and his dubious policies pervading its ranks! Time will tell!

First American Corporation - Goldman Sachs - Reuters Report

NEW YORK (Reuters) –

“Goldman Sachs forecasts global credit losses stemming from the current market turmoil will reach $1.2 trillion, with Wall Street accounting for nearly 40 percent of the losses.

Of the cumulative losses expected by these leveraged players, bad residential home loans will represent about half…”

No thanks to The First American Corporation for allegedly triggering this financial meltdown according to a number of lawsuits filed.

The suits charge a First American subsidiary with fraud. They accuse The First American Corporation and its subsidiary of irresponsibly delivering inflated appraisals for business reasons of its own!!!

Incidentally, what is First American’s market cap?

Are chances in favor of it being wiped out when and if confirmed guilty?

What a Good Riddance!

The First American Corporation - Forbes Follow Through...

Link: http://www.forbes.com/free_forbes/2008/0407/032a.html?partner=yahoomag

Forbes – Scott Woolley: “Title insurance firms rake in $18 billion a year for a product that is outdated, largely unneeded and protected by law, we wrote. Now New York home buyers are leveling the same charges in an antitrust suit against the insurers, including First American (nyse: FAF) …”

Over the years, The First American Corporation figured that fines imposed against it in multiple States & lawsuits were just part of the cost of doing business in an environment that allowed First American to ruthlessly bleed the public.

However with ever increasing lawsuits alleging fraud, profiteering and racketeering against The First American Corporation, how much more will the First American Corporation be required to set aside in reserves in order to face the mounting multi million dollar claims piling up against it?

Can Attorney Generals from multiple States, the public and the lawyers be forever wrong?

First American Corporation makes Xinhua News

It is interesting that the First American Corporation should make news in Xinhua Province, China, http://news.xinhuanet.com/english/2007-11/02/content_6997622.htm Editor Gareth Dodd of Xinhuanet, www.chinaview.cn chose strong words to report on the fraudulent and scandalous behavior of First American Corporation that helped trigger the mortgage market international meltdown.

Is the Xinhua news attempting to warn the Chinese population about the high risk and low reward of doing business with First American?

Should Xinhuanet further investigate and expose First American? How long does it take for The First American Corporation to settle substantial claims on average? How much could an insured be forced to spend over the years in pursuit of justice? How often does First American win by default by driving legal costs out of the reach of the average claimant? Does that explain why The First American Corporation has only paid as little as 3% of its billion dollar revenues in claims?

Of further interest it is to be noted that AP Singapore reports that in a recent e-mail, Southeast Asia's largest bank instructed traders in an e-mail not to do business with Lehman Brothers. In a subsequent e-mail DBS Group Holdings Ltd. advised traders to review new transactions (with Lehman Brothers) case by case.

On a case by case basis, should officials from South East Asia’s largest bank be made aware that Frank McMahon was a past senior exec of Lehman before joining The First American Corporation and that Frank may well some day attempt to dump FAF (NYSE trading symbol for The First American Corporation) stock onto the Asian markets just as he did on European markets through Lehman London offices shortly before the stock imploded!

Will The First American Corporation Split in time...

OR Will it be driven into bankruptcy beforehand?

Source: International Oxford Analytica 03.12.08, 6:00 AM ET

A Think tank group reported on NY’s Attorney General: “Cuomo's investigations … tend to target conflicts of interest whereby companies have allegedly exploited consumers … and reflect a more proactive approach to the subprime crisis.”

“Last November, Cuomo filed a lawsuit against mortgage lender First American (nyse: FAF - news - people ) for allegedly conspiring with Washington Mutual (nyse: WM - news - people ) to inflate its real estate appraisals.”

“Cuomo believed fraudulent real estate appraisals were a key factor in artificially inflating real estate values and contributed to the subprime crisis.”

Obviously this case, with international implications, has potential crippling financial consequences for FAF.

If Cuomo and his helpers who are pursuing this case aggressively prove to be right,
The First American Corporation could well face claims running into hundreds of millions of dollars from defrauded parties.

Because Cuomo's office lacks the resources to mount intensive investigations of subprime legal violations, much of the heavy lifting in multiple ongoing probes is now being done by the Securities and Exchange Commission, The U.S. attorney's offices in Manhattan and Brooklyn and the FBI. Cuomo and other state attorneys general--in Connecticut, Maine, Massachusetts and Ohio--are playing an unofficial watchdog role, informally overseeing the activities of federal officials.

If Cuomo prevails in time, First American may well be stopped from splitting and find itself driven into bankruptcy instead.

Note that in my personal case, The First American Corporation did not hesitate to engage into fraud and to accept an overly inflated appraisal from my crooked partner. Like in the WAMU case The First American Corporation did so, solely in the hope of future business! See Jerome Lasky’s opinion (Moses & Singer, NY.) as disclosed previously on www.lleclezio.blogspot.com

In the light of the above it would appear that fraud spanning many years is systemic at The First American Corporation. Hopefully, this time, James J. Dufficy will not succeed to corrupt his old work pals at the FBI and get them to squash the case!

In any event, those touting Jan ’09 calls at $50 are nothing but paid FAF shills wearing a variety of hats to best serve the corporation and further defraud the public. Their orchestrated punch and counter punch tactic is a well thought out psychological strategy. It emanates from a common boiler room and it is solely designed to influence buy and sell modes of the public in order to suit the corporation’s long term ambitions.

Oxford Analytica is an independent strategic-consulting firm drawing on a network of more than 1,000 scholar experts at Oxford and other leading universities and research institutions around the world.

First Advantage Corporation to present at Deutsche Bank.

Beware!!!

My previous post on February 6, 2008 on Yahoo and on my blog has attracted so much interest that some further comments are appropriate.

Press Release: Tuesday January 15, 7:30 am ET – Source: The First American Corporation - NYSE Trading symbol: FAF
The First American Corporation Announces Plan to Separate Its Financial Services and Information Solutions CompaniesCreates Two Pure Play Companies-

“…The Information Solutions company, which will consist primarily of the current Property Information and Mortgage Information segments, as well as First American's 75 percent interest !!! in First Advantage Corporation (Nasdaq: FADV - News), will remain at the existing holding company, which will be renamed prior to the separation.”

“…Parker S. Kennedy will become executive chairman of BOTH companies.”

What is so difficult to comprehend about that?

I have followed and watched these gangsters for over 12 years.

I know, I understand and I comprehend these slick scam artists better than most!

In fact I know them so well that I have written a book citing their wild blurts. The book has been made an important exhibit in a multi million dollar Federal Court case.

Furthermore I have taped and still possess a recording of Kennedy ‘GUARANTEEING’ a dividend increase that never materialized. The sole purpose of Kennedy’s false guarantee at the time was to give a much needed boost to the FAF stock price!

I understand their moves so well that I know that every time the most senior execs find themselves in deep shit, they use the shit to muddy the waters and create a much needed distraction.

Check out my recent post: ‘FAF splits – Interesting Timing’! You might also comprehend why FAF needs to split NOW!

Note that FAF presented at Lehman Bothers in London, UK on May 17, 2007.

Reminder: Review FAF’s historic prices over the period May 2007 to October 2007. A mere six months!

Yahoo link:

http://finance.yahoo.com/q/hp?s=FAF&a=04&b=11&c=2007&d=05&e=6&f=2007&g=d

Five months later:

http://finance.yahoo.com/q/hp?s=FAF&a=09&b=11&c=2007&d=09&e=31&f=2007&g=d

Do you think investors at Lehman were ripped off or not?

Try to comprehend how slick those boys are and how they cunningly manipulate the FAF stock price making it explode and implode at will like clock work!

Try to comprehend how important it is for these scam artists to arrive with an already rising stock price on presentation day. (Deutsce Bank – Naples, Florida - Wednesday, February 13, 2008, at 4:40 p.m. EST.) That is how those slick operators create the buying frenzy that follows the presentation.

Parker Kennedy, the executive chairman of BOTH ‘FAF’ and ‘FADV’ has played that trick over and over again!

Under the new FADV flag, Kennedy is setting the stage for an ‘encore’. Only this time, Kennedy is using Lamson as a puppet and FADV as a different $$$$ conduit! But it all boils down to yet another rip off, yet another abuse of investor confidence!

As the ‘FAF’ & ‘FADV’ senior execs are setting the stage for an encore, I wonder if the Deutsche Bank exec who decided to host this conference in Naples Florida got clearance from the Deutsche Bank highest hierarchy. They have been warned about these Yankee doodles and their dog and phony show in the past!

A company is only as good or as rotten as its head is!

Deutsche Bank - First Advantage Corporation - 'FADV' Nasdaq

The ‘FAF’ NYSE symbol has become so overly synonymous with frauds, rip offs and scandals in the US that the original flagship is seeking a new identity under a new flag: ‘FADV’ NASDAQ!

Do not be fooled! The same skippers at the helm will play the same tricks with this new ‘pure’ play company.

Indeed that white collar gang has become so notorious at home that they have to target investors abroad now!

Check out what happened to the FAF stock price after the Yankee doodles Kennedy & McMahon presented at Lehman Brothers in London in May 2007 and how the stock price imploded shortly thereafter!

http://finance.yahoo.com/q/hp?s=FAF&a=05&b=01&c=2007&d=09&e=31&f=2007&g=d

John Lamson will deliver a presentation at the Deutsche Bank 2008 Small and Mid Cap Growth Conference in Naples, Fla. on Wednesday, February 13, 2008, at 4:40 p.m. EST.
John is none other than the puppet on a string of parent company FAF & Kennedy & McMahon!

Will Deutsche Bank expose their investors to be the next victims of these white collar scam artists?

We do not have to hide behind anonymous handles. We have posted the same message on our blog at: www.lleclezio.blogspot.com so that there can be no doubt as to our identity.

First American Corporation Splits - Interesting Timing

Copy of a message I posted on the Yahoo/Finance/FAF/Message board/012708

First American Corporation has dropped from a recent high of $ 55.11 to a recent low of $27.97.

A lawsuit with worldwide implications was filed recently by attorney general Cuomo of New York State alleging that a First American subsidiary committed major fraud with staggering financial consequences!

Two law firms with most impressive track records, Milberg Weiss and Keller Rorhback are investigating the First American Corporation for alleged fraud under ERISA laws. First American fiduciaries are believed to have intentionally mismanaged the First American employees’ retirement fund.

So what does the First American Corporation decide to do?

Spin off its 100 year old flagship! It decides to cast off its title operations, the very goose that laid its golden eggs for so long!

Retire its New York State president!

Interesting timing indeed to say the least!

Is such strategic timing in keeping with First American’s renowned ability to muddy the waters and complicate the outcome of legal filings?

How often has First American spun off incriminating business in the past?

How often has First American retired key personnel when faced with major lawsuits in the past?

Does the name of Bill Heslington ring a bell?

How often in the past has First American asserted that since a witness was no longer in their employ they could not be held bound to locate and to produce such a witness for depositions?

What a bunch of slick, slick, slick guys run this outfit!

A future close examination of past statements by Kennedy will reveal to what extent Kennedy places the emphasis on possible stock price manipulation as opposed to steering the company with integrity and letting the stock find its own level!

Should an injunction be sought against the First American Corporation restraining it from splitting the company until the courts have ruled over the cases filed against it?

Note that some of those cases have potential international implications.

Reminder: A subsidiary of the First American Corporation was accused of being at the root of and setting off the present international financial turmoil!

First American Corporation

Copy of message posted on Yahoo/Finance/FAF/ Message Board

On 12/21/07 Laurie Kulikowski, TheStreet.com Staff Reporter wrote:

Cuomo's suit alleged that executives at eAppraiseIT "knew their behavior was illegal, but intentionally broke the law to secure future business with WaMu."

WaMu said last month that it had suspended its business with the First American unit.

What’s new?

On June 2, 1998, Mr. Jerome Lasky of Moses & Singer, New York quoted a memo written by First American:

“An internal document of the title company, obtained through discovery shows that the title company, although fully aware of the risk they were assuming, decided to issue the policy to the lender in order to get this piece of business, and specifically with a view to obtaining future business”!!!

Can First American ever stop getting its nose bloodied being involved in one fraudulent scandal after another?

Can First American and its shill hiding behind multiple identities ever regain their credibility?

Wall Street Journal reports: SEC probes WAMU on appraisals

The SEC is investigating WAMU in connection with alleged inflated appraisals coerced from a First American Corporation subsidiary.

What’s new? Is involvement in fraud a systemic a long lasting way of life at the First American Corporation?

The SEC better be advised that the First American Corporation, WAMU’s partner in alleged crime, has never hesitated to conceal material facts from investors in the past.

We hold tangible proof on hand that, in order to entice investors to participate in a fraudulent loan, the First American Corporation failed to disclose hard facts of record discovered by First American examiners long before the loan was made.

First American Corporation went even further. In that instance, First American did not reveal to investors that in order to entice the lenders to participate in a fraudulent mortgage scheme, First American had secretly obtained a worthless indemnity agreement from the borrower.

As in the alleged case with WAMU, at the time, the First American Corporation was eager to accept a grossly inflated appraisal. The First American Corporation obviously did so then, just as it is reported to have done now. It stays motivated by uncontrolled greed and the lure of future business at any cost.Note that in my case, I have paid leading attorneys to discover the above and reach those damning conclusions. Their opinions are on hand! Sadly, most of the senior First American Corporation senior executives involved then are still at the helm and probably just as involved now!

Can a leopard ever change its spots?

First American Corporation (FAF) - Millberg Weiss

Status of Millberg Weiss investigation should be made public soon. In the meantime I am offering them all the help I possibly can. The following is just one example:

To: Millberg Weiss, New York:

Further to my e-mail of November 22, 2007, I dug up some more ‘tell tale’ damning comments by Kennedy, Kermot and Klemens.

Could your firm develop a line of questioning that would demonstrate that senior execs at FAF have a long history of misleading the public and they have never hesitated over the years to abuse the confidence of FAF investors and employees alike?

In depositions, could you quote verbatim (with back up audio if need be) the misleading and utterly false statements blurted out by most senior FAF execs? The parallels and repeat behavioral pattern between 1999/2000 and 2007 are indeed most revealing.

Could such a line of questioning not set the scene and help establish FAF’s entrenched ‘modus operandi’?

Even in the face of gloomy company news, they have never blinked at lying in an effort to turn the red ink not even pink but to actually make it look black if not green through their wishful glasses?

IMHO the Judges should be left with no doubt that if FAF could take their loyal shareholders and employees for a ride over the years; they could likewise abuse the confidence of those trusting and faithful employees who put their blind trust and fate in the sticky hands of FAF senior execs/fiduciaries.

Furthermore I found the following message on the Yahoo/Finance/FAF/Message board interesting:

“Re: id be selling into any strength (Not rated) 29-Nov-07 03:38 pm
lol, go FAF. thanks for the cheap shares! the 15% employee discount makes it even sweeter! still adding...

I question whether FAF fiduciaries benefited of the same 15% discount when they loaded the employees’ retirement fund with FAF stock?

Regardless the 15% discount policy to employees seems to confirm that when Wall Street shuns FAF stock for good cause, FAF management/fiduciaries look to employees to artificially shore up the price!

There is a saying in French: “Qui vole un oeuf vole aussi un boeuf!”

If in 1999, FAF execs could blatantly urge people to invest in the face of undisclosed disastrous news, why would they hesitate in 2007 to compromise their employees’ retirement fund?

Incidentally Note the critical dates between 1999 and 2007: April 21, 1999 stock closes at $16. April 22, 1999, Kennedy blurts his dividend increase remark. April 23, 1999, FAF stock closes at $20.69!

A mere six months later FAF closes at $11.50 on October 21, 1999.

Thereafter FAF declares losses and FAF stock tumbles to a low of $10.69 on March 13, 2000. A 50% loss in value over six months!

In 1999 did FAF execs and or fiduciaries also tap into their employees’ retirement fund just like they are doing now in 2007? Is it all a repeat systemic performance?

In 2007, do we have a rewind of the same strategy?

In May 2007 FAF presents at Lehman Brothers Investors Conference in London UK.
On June 1, 2007 FAF stock reaches an all time high of $55.11

Thereafter FAF announces losses, Lehman downgrades FAF and a mere six months after the May conference, on November 7, 2007 FAF closes at a low of $30.07! A little less than a 50% loss within six months so far!

Is it a virtual mirror image of the 1999 FAF performance or not?
In 1999, a trustworthy Chicago Title employee assured me that certain FAF employees were being paid to hawk FAF stock among fellow employees and real estate agents and clients. He further assured me that FAF had embraced the policy to: ‘Insure anything, litigate everything’ in their quest for industry supremacy. It is all catching up to them at long last.

Some misleading statements blurted out by FAF most senior execs in 1999:

Stock will come back so we can use it again:
http://www.geocities.com/listentokennedy/kennedy2.html?969640185570

Crazy world right now, valuations really aren’t entirely fair:
(Can Kennedy outsmart Wall Street?)

FAF culture get everyone to sell everything:
(Including company stock?)

Stock down but we are going to work on that:
(How? By digging in employees retirement fund for one?)
http://www.geocities.com/listentoklemens/klemens3.html?969992503500

Accounting change effect:
http://www.geocities.com/listentokennedy/kennedy3.html?970096420290

I guarantee you some time this year we will increase our dividend:
http://www.geocities.com/listentoparkerkennedy/fafdivincreaseguar.html?978064228

Those web based audios do not appear to be still available for playback through Geocities. But I could make the original tape available to you.

While I realize that audios are not always admissible as evidence in court, I believe that in depositions, playing back their own statements to the KKK clan could be worth its weight in gold!

Furthermore you could well find a way to introduce it as evidence. Even if it were to be struck out the mind frame of the court could be favorably influenced.

Please do not hesitate to contact me if I can be of any further help.

Good luck! Go for it!

Yours most sincerely,

Louis Leclezio.

Millberg Weiss Investigates First American Corporation

I note with interest that your firm is investigating possible illegal conduct relating to The First American Corporation 401(k) Savings Plan. Specifically, whether certain fiduciaries of the plan may have violated the Employee Retirement Income Security Act of 1974 ("ERISA") in at least two ways: (1) by allowing employee participants to invest in First American common stock when it was not prudent to do so, and (2) by failing to disclose First American’s problems.

Would your firm further consider investigating what did Parker Kennedy and Frank McMahon of the First American Corporation disclose or failed to disclose to investors when they held a conference at Lehman’s Brothers' Tenth Annual London Financial Services Conference on May 17, 2007, at 11:40 a.m. EDT.
I hereto attach a post on the Yahoo/Finance/FAF/Message board. It is rather revealing!

At the time some other posts forewarned that Lehman in conjunction with FAF was setting up a scenario to make millions of dollars by shorting the stock. Shortly after the stock reached an all time high following the FAF presentation at Lehman, Lehman downgraded the stock and FAF announced losses for the quarter! Of course the stock imploded on unprecedented volumes. It would be interesting to find out who cashed in the most on ‘short’ positions then?

Note that although they have consistently gotten away with it up to now, senior executives at FAF are not novices at manipulating the FAF stock.

On April 22, 1999 at a stock holders’ meeting Parker Kennedy guaranteed that FAF would increase its dividend some time before year end. That remark sent the stock up some $4 the next day when trading volumes increased significantly.

By the end of 1999, FAF had not increased its dividend and had been forced to review the creative accounting practices that had caused its stock to trade at inflated values. That ‘dividend increase guarantee’ remark by Kennedy and other false statements by FAF senior executives at the time were all recorded on tape and are still available to date. At the time, the audio had also been published on the web but FAF saw to it that it got removed just like some of the messages forewarning the ‘short’ strategy allegedly set up by FAF/Lehman were recently removed from the Yahoo message board!

Incidentally, a transcript of the remarks can be read in my book: ‘First American Title To Injustice’.

As a FAF stockholder I would be glad to be a signatory to any class action you may decide to bring against those rogues! They deserve to be put out of business for ever!

First American Corporation - Fraud & Plunder...

Fraud & Plunder! An enduring way of doing business at First American for far too long!

I suppose First American views law suits, fines and penalties as part of the cost of doing business!

How about the lives that have been marred by First American along the way? How do those people view First American?

In February 1996 First American engaged in a fraudulent deal. To quote the First American lawyer: “The considerable risk First American took for reasons of its own…” ended up costing me and my family millions of dollars.

When I sued First American, Bill Heslington, the First American national accounts manager at the time told me: “Mr. Leclezio if you were to prevail in your suit, we could lose our license. We could never let that happen.”

At the time Jim Hopkins, of the Washington State Insurance department told me: “Mr. Leclezio, John P. Dahl (FAF WA. Manager) made a special trip from Seattle to Olympia to come and try and explain away your case against them. He knew that you had given me Mr. Lasky’s letter from Moses Singer New York. Dahl had ‘guilt’ written all across his forehead.”

I said to Mr. Hopkins: “Why don’t you sue First American and yank away their license?” Sadly Mr. Hopkins replied: “That is the problem with white collar crime. These people can steal millions from you and simply get away with it because they will have a battery of lawyers to defend them. We do not have the necessary funds to assign to going after them!”

I pray and hope that at long last Mr. Andrew Cuomo will have the staying power, the will it takes and the necessary funds to put First American out of business once and for all the good of the nation. Indeed the whole international financial world will be a much healthier place.

But just in case Mr. Cuomo does not have the muscle by himself to put First American out of business, I am actively and earnestly seeking a large enough reliable law firm to launch a major class action suit against First American. I pray and hope that justice will finally prevail.

Had First American lost its license back in 1996 how many American home owners and investors would have been a lot better off today?

I for one would not have been forced to live in poverty away from my dearly loved family and friends just because First American decided to engage in a fraudulent case they could not afford to lose and paying fines, penalties and law suits are just part of the cost of doing business at First American!

But! After all First American is a multi armed bandit machine, a soulless corporation without a face or feelings. Why should they care about the endless sufferings they inflict upon those they plunder, disfigure and damage for life!

New York Attorney General vs. First American Corporation

What has changed in the systemic fraudulent nature of FAF’s senior management?

It has predictably gone from bad to worse.

On June 2, 1998 Mr. Jerome Lasky of Moses & Singer, New York wrote:

“On analysis, we regard the recordation of the Deed of Trust by First American as particularly egregious conduct and, indeed a breach of its responsibilities as a licensed title company.

“Indeed we view First American’s conduct as so outrageous as to justify seeking the imposition of punitive damages as against it in any action based on its conduct.”

“In fact despite having been actively involved in title claims litigation for some thirty-five years, and having represented numerous title companies in claims litigation, the undersigned has never been presented with a comparable situation.”

“While we are addressing our letter of opinion to you personally, please be advised that we have no objection to your furnishing a copy of this letter to other counsel who are representing you in this matter or to First American, nor do we have any objection to your furnishing a copy of this letter to appropriate State Insurance Departments.

On November 1, 2007, nine years later Reuters reports that in yet another case alleging fraud by First American Corporation, New York’s Attorney General, Mr. Andrew Cuomo said: “Through this, First American helped set the current mortgage crisis in motion.”

"The independence of the appraiser is essential to maintaining the integrity of the mortgage industry," Cuomo said. "First American and eAppraiseIT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike."

Should Mr. Cuomo seek help from Mr. Lasky or the offices of Moses & Singer? IMHO, a drastic meaningful action against those FAF rogues is long overdue!

Profile of Jerome Lasky, Esquire.

Mr. Lasky, joined Moses & Singer in 1948. In the course of his brilliant career, Mr. Lasky served as a Judge for the Nassau County District Court and has been an Adjunct Professor at the New York Univeristy Real Estate Institute. Mr. J. M. Lasky has also been a member of the Committee to Prepare a Code of Ethics for Nassau County.

In 1998, Mr. Lasky was a member of the American Bar Association, the New York State Bar Association, and the New York County Lawyers Association. Mr. J. M. Lasky has been a Harlan Fiske Stone Scholar at the Columbia University School of Law from where he graduated in 1948. During his College years Mr. Lasky has been the Articles Editor of the Columbia Law Review.

More recently Mr. Lasky has published articles in the New York Law Journal. In 1998 Mr. Lasky was affiliated to various legal entities such as the Association of the Bar of the City of New York (Faculty, City Bar Center Continuing Legal Education Program), The New York County Lawyers Association, The New York State Bar Association and The American Bar Association.

First American Corporation Sued For Fraud...

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/

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_F/threadview?m=tm&bn=6573&tid=9780&mid=10036&tof=4&rt=2&frt=2&off=1

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!!!

Open Letter To James Dufficy of First American Corporation

October 9, 2007.

To: James J. Dufficy et al,

FYI: ‘First American Title To Injustice’ has recently been used as an important exhibit in a major case in Federal Court on the east coast!

Lawyers from Massachusetts to Seattle have been requesting copies of my book!

In the light of the above, what am I to think of your recent comment, that you, your family and friends found my book to be comical? Does that comment underscore your greed, your misplaced ambition and typical arrogance? Are those facets of your personality at the root of your consistent poor judgment in this case?

For my part I wish to thank you for your greed factor, your misplaced ambition and your arrogance. They caused you initially to refuse to settle for fair value when we met in Bellevue and Santa Ana and subsequently with your head stuck in the mud, you disregarded the opprtunity to edit my book and to purchase the publishing rights from Keystar Publications!

Had you acted humbly and fairly during our negotiations, my book would not have seen the light of day. Numerous individuals across the US would not be benefiting from my book and I would not be feeling so vindicated today!

Incidentally do you have any idea how much money your consistent parochial attitude and poor judgment in this case has cost First American directly and indirectly to date?

Considering the present flow of demand for my book, should I be inclined to believe that the party has just begun?

Before ending, you may enjoy reading my blog ‘www.lleclezio.blogspot.com’ concerning the First American, Lehman Brothers and Frank McMahon connection.

Would you believe it if I were to tell you how sorry I am to note that the market cap of First American has dropped by hundreds of millions of dollars over the last few months!

What a blow to your greed and misplaced ambition James!

Good Luck, Duff duff the ‘tuff’ puff puff guy! Keep puffing and blowing hot air boy…