Kentucky files RICO suit against .....everybody...in mortgage fiasco

[dixiegrrrrl]

RICO is Federal.

And I mean everybody.
The 5 big Banks, Mortgage trusts, mortgage brokers, the DOCX company that retroactively makes the "overdue"
legal filings,...everybody.

This is HUGE.
It instantly will affect every single MBS Trust in the country, if not the world,
because entities all over the world are shareholders in these Mortgage Bond Trusts,
this is where TONS of money was invested in the last 5-9 years.

And now it has been revealed that these trusts are acting illegally, wwhich means they now owe HUGE amounts of taxes to the state and Fed governments, governments which would have a hard time resisting the need to collect.

I have 2 links here.
The first is to Denninger's report in which he just outlines the problem, and the significance of the problem.
( It will affect EVERY home sold in the last 5 or more years, and every home on the market now, for one thing)
On his page, he links to the full lawsuit, a delicious read chock-full of details).

http://market-ticker.org/akcs-www?post=168144


The 2nd link is to a very nice read on how and why Mortgage Bond Trusts were created, which created the housing bubble, and why the collapse of the funds ( esp. at this point in time) is going to severely damage the economy.
Those of us who are going to be affected by the oncoming fallout ( anyone who owns/wants to buy a home)
really should understand the issue.
http://www.scribd.com/doc/23757019/The-Giant-Pool-of-Money-How-They-Transfered-the-Wealth

[Roland99]

1. Very interesting....

57. Additionally, and important to the issues presented with this particular action, is the fact that in order to keep its tax status and to fund the "Trust" and legally collect money from investors, who bought into the REMIC, the "Trustee" or the more properly named, Custodian of the REMIC, had to have possession of ALL the original blue ink Promissory Notes and original allonges and assignments of the Notes, showing a complete paper chain of title.

58. Most importantly for this action, the "Trustee"/Custodian MUST have the mortgages recorded in the investors name as the beneficiaries of a MBS in the year the MBS "closed." Every mortgage in the MBS should have been publicly recorded in the Kentucky County where the property was located with a mortgage in the name similar to "2006 ABC REMIC Trust on behalf of the beneficiaries of the 2006 ABC REMIC Trust." The mortgages in the referenced example would all have had to been publicly recorded in the year 2006.

59. As previously pointed out, the ¡°Trusts¡± were never set up or registered as Trusts. The Promissory Notes were never obtained and the mortgages never obtained or recorded.

60. The "Trust" engaged in a plethora of "prohibited activities" and sold the investors certificates and Bonds with phantom mortgage backed assets. There are now nationwide, numerous Class actions filed by the beneficiaries (the owners/investors) of the "Trusts" against the entities who sold the investments as REMICS based on a bogus prospectus.

But, when they lose that tax-exempt status, I'm not going to hold my breath that the IRS and the State of KY will collect all those back taxes...at least not in the next 100 years.

[Roland99]

2. BTW, you should post this in GD for better visibility

[dixiegrrrrl]

3. GD threads sink fast, but I will indeed cross post. Thanks.

[dixiegrrrrl]

4. the headline should read "RICO suit filed..."

The State of Kentucky is not involved, this is a class action suit filed by a private attorney.
My bad.

[AnneD]

5. The Stock Market Watch Thread ...

is a good spot too.

[Po_d Mainiac]

6. KY ...still just known for their pony runs and jelly n/t

[femrap]

7. When I was living

in Lexington, KY, I responded to a Financial Want Ad. I was called to come in for an interview. It turned out to be a mortgage broker who marketed only to those with bad credit. The boss dude had a plush office but all of the worker bees were down in the basement working in the boiler room.

I told him that I wasn't interested in feeding off people who couldn't afford mortgages. This was back in 2002, maybe. Then I saw all those vinyl-coated homes springing up that had horrible A/C systems....not big enough for the home so they ran day and night and never really cooled the house.

My daily exercise was walking....I'd walk in various neighborhoods. Whenever I saw new construction, the laborers were all Mexican or Central American.

It was very sad to see our nation lose all respect for itself...I could literally smell the Greed.

I hope they indict the big bosses and not a bunch of little VPs. In the financial arena, everyone is a VP.