Kramer Law: Unprecedented Lawsuit Exposed Alleged Bank Fraud & Seeks Damages for Homeowners

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Lawsuit filed against Bank of America/Countrywide challenging fraudulent banking and loan practices.

Kramer & Kaslow

Philip Kramer has filed a mass joinder lawsuit against Bank of America/Countrywide (BOA) (Maxam v. Bank Of America, Superior Court of California, Orange County Superior Court, case number: 30-2011-00450819-CU-MT-CXC) in what is potentially the most significant and precedent-setting legal action taken against lenders as a result of the national foreclosure crisis, it was announced today by Philip Kramer, Esq. of Kramer & Kaslow.

The firm has filed suit on behalf of a mass joinder of plaintiffs seeking damages and injunctive relief as a result of what it alleges is the bank's fraud and multiple violations of Local, State, and Federal consumer protection laws. Mr. Kramer says that relief is being sought for fraud, to stop the illegal sale of plaintiffs’ homes, to force the bank to cease and desist from their conduct, as well as to seek compensatory damages on behalf of the plaintiffs.

Mr. Kramer says that the lawsuit alleges Bank of America (BOA) perpetrated a massive fraud, also constituting unfair competition upon borrowers that devastated the values of their residences, resulting in the loss of net worth even as Bank of America enriched itself by knowingly selling financial instruments based on a value the bank knew to be unwarranted. He also claims in the suit that BOA further intended to deprive numerous rights and remedies for the problems they caused the borrowers and believes that the harm done to the plaintiffs is exceeded only by the scale of the bank’s conduct as asserted in the plaintiffs’ suit.

According to court documents, the lawsuit claims the bank disregarded underwriting standards and implemented fraud that was concealed from borrowers and other mortgagees on an unprecedented scale. The lawsuit alleges that, as a result of the Bank’s actions, borrowers lost equity in their homes, their credit ratings and histories were destroyed and they incurred unnecessary costs and expenses.

The lawsuit also challenges the fraudulent and illegal use of MERS in connection with the loans and mortgages, as well as the defendants’ failure to perform their obligations pursuant to accepting TARP funds. The suit accuses Countrywide founder and CEO Angelo Mozilo of knowing that Countrywide could not sustain its business unless it used its size and large market share in California to systematically create false and inflated property appraisals throughout California. It further claims that Countrywide used these false property valuations to induce borrowers into ever-larger loans on increasingly risky terms and that Mozilo knew as early as 2004 that the loans were unsustainable and would result in a crash that would destroy the equity invested by borrowers and their net worth.

The lawsuit's filing coincides with a recent decision in a class action suit in Maryland that invalidated more than 10,000 foreclosure cases managed by GMAC Mortgage because affidavits in the cases were signed by a GMAC “robo-signer” who, according to court documents, attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements in the case Manson v. GMAC Mortgage LLC, 08-cv-12166, U.S. District Court, District of Massachusetts (Boston).

Philip Kramer and Kramer & Kaslow have also filed suits against JP Morgan Chase, Washington Mutual, One West/IndyMac, GMAC, Wells Fargo/Wachovia and Citibank which he claims have allegedly defrauded hundreds of thousands of homeowners. These cases are now going national. Philip Kramer and Kramer & Kaslow attorneys have invoked laws and procedures the banks were previously unaware of, and according to Mr. Kramer, recently the bank was forced to admit that it had been defrauding the government in foreclosing on mortgages nationwide. Furthermore, on October 4, 2010, the Honorable Manuel Real of the United States District Court called the bank's primary argument "absurd" and kicked the bank out of Federal Court.

“I am convinced that for the first time that aggrieved homeowners are going to get a fighting chance,” says attorney Philip Kramer. “Until now, the banks have had their way, using and abusing the system at the expense of distressed homeowners across the nation. Now, after years of abusing homeowners and the greater public, the ‘bank bullies’ are getting a good stiff legal punch in the nose.”

ABOUT PHILIP KRAMER

PHILIP A. KRAMER is the senior partner of the Law Office of Kramer & Kaslow, in Calabasas, California. Kramer & Kaslow is Martindale Hubbell “AV” rated. Mr. Kramer is a perennial recipient of the prestigious “Southern California Super Lawyer” award.

Mr. Kramer received his undergraduate degree from Ohio State University and his Juris Doctorate from the Catholic University of America, in Washington, DC. His practice emphasizes commercial litigation and trial advocacy, with a concentration on business litigation, and real property matters. He has prosecuted and defended cases for over 25 years.

For more information call 1-888-805-6120 or visit http://www.kramer-kaslow.com

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