Attorney Susan Chana Lask filed a Federal class action lawsuiton on behalf of thousands of New York homeowners who lost their homes to an alleged foreclosure fraud orchestrated for many years by “foreclosure mill” attorney Steven J. Baum and major mortgage companies that they do business with. The case is filed in the United States District Court, Eastern District of New York, captioned Campbell and Miller vs. Steven J. Baum, Esq., Steven J. Baum, P.C., Merscorp., Inc., et al., case number 10-3800. It alleges among other things, Racketeer Influenced and Corrupt Organizations Act (RICO) civil racketeering violations, wire fraud, fraud and deceipt, false oaths, unjust enrichment, RESPA violations, Fair Debt Collection Practices Act (FDCPA) violations and that homeowners paid inflated foreclosure and other fees fictionalized by Steven J. Baum and/or his agents and/or employees who profited from the scheme since about 2005. The complaint seeks punitive damages.
The lead attorney, Susan Chana Lask, discovered the alleged scheme after a foreclosure suit was filed by attorney Steven J. Baum, P.C., representing the lender HSBC, against her clients Caroll Gardens home located in Brooklyn, New York.
The court filings in the case were allegedly false as filed in HSBC v. Concepcion Campbell, New York Supreme Court, Kings County, index number 20393/07. Baum’s complaint was HSBC against Campbell. However, it admited the loan was never assigned to HSBC, yet Baum sued representing HSBC anyway. A satisfaction of mortgage was not filed for HSBC but for Mortgage Electronic Registrations Systems, Inc. (MERS) thus admitting HSBC never owned the loan- meaning the foreclosure lawsuit should have never been filed in the first place. The original mortgage was in MERS’s name and never assigned as required in a foreclosure lawsuit in New York. Potenitally thousands of homeoowners were foreclosed upon in New York in similar fashion, specifically those homeowers who were not represented by a lawyer in their case. The class action complaint alleges that Baum did this knowlingly and intentionally.
Wait there more. The documents filed in court are signed by attorneys working for Steven Baum’s law office under penalty of perjury that the filings are with knowledge of the transaction and/or documents. In reality though, they had no knowledge as they admit they do not have the documents in their possession that they attest to in the court filings.
In the underlying foreclosure case, Susan Chana Lask subpoenaed Baum’s firm for the original note, to wit, Baum’s office responded in an email that the original note is not required in the State of New York and “we do not have the original note” implying they never had it, yet they swore they reviewed it in their court filings under penalty of perjury. Moreover, Baum filed documents signed by an alleged officer of MERS named Rebecca A. Cosgrove and witnessed by a notary public from Erie County, New York. MERS is located in Virginia and Erie County is in Buffalo, New York where Steven Baum’s office is located. It’s thus suspicious that Cosgrove is even an officer of MERS, no less that she flew all the way to Buffalo New York that day just to sign a document before a notary public in Erie county, new York. The class action alleges that Cosgrove is not an officer of MERS and that the notary is a fraud.
The false foreclosure filings potentially affect thousands of New Yorkers who were foreclosed upon by Baum’ office and those like it. The Manhattan U.S. Trustees office started an investigation of Steven Baum months ago.
People are being victimized by the economic crisis who do not know how to defend themselves nor have the means to hire a qualified attorney. People are losing their properties although these filings are false and known to be false by those instituting the foreclosure process.
The MERS system basically allows banks to avoid recording loans in the proper owners name, which saves the banks recording fees and allows them to resell the mortgage under different names that are harded to trace if not recorded in the county where the property is located. Banks profit at every turn through the mortgage maze, starting with fees charged at a closing (origination), then reselling the mortgage on the secondary market to investors, then foreclosing to take the property and selling it at fair market value.
The borrowing public must be informed of developments in the foreclosure crisis in New York and elsewhere. Do not let banks walk all over you during the foreclosure lawsuit. Make sure you speak to a qualified lawyer so that your rights are fully protected.
By: Eran D. Grossman, Esq.
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