Attorney General Charlie Christ was personally warned about Florida's Massive Foreclosure Fraud, why did he act shocked as Governor?
September 2004 Attorney General Charlie Christ appeared at Tampa Florida's Rusty Pelican to discuss mortgage fraud with the Florida Association of Mortgage Brokers. It was at that meeting when William Trudelle warned Crist of vast mortgage frauds that were being accomplished in Florida's Association of Mortgage Brokers. Trudelle a long time mortgage industry insider wrote a detailed brief at the request of Christ's office to Florida's Department of Financial Regulation. The report explained how ranking members associated with the Florida Association of Mortgage Brokers and Lawyers were defrauding the public using; attorneys, CPA's, and other licensed professionals. The report also disclosed FAMB's main CPA, Morris Berch who was providing bogus financial reports for FAMB members to qualify as Mortgage Lenders. CPA Berch was employed by ranking officers of the FAMB as well as a high percent of the association's members. One year after Trudelle's report The Herald Tribune Reported:
Brasota Mortgage investors lost nearly $40 million when the company, which authorities have described as a Ponzi scheme, failed:
"The audits performed by Berch were deficient," bankruptcy trustee Gerard McHale told reporters. "Any regular audit would have found the problems here."
Morris Berch was the Main CPA for the Florida Association of Mortgage Brokers (FAMB). Berch lost his CPA license in 2003 for bogus financial audits performed for mortgage brokers, yet continued to do audits under Simone Accounting using someone else CPA license and Berch kept his Mortgage Broker License through to 2009 without issue. Berch was the CPA used by several of the ranking members of the FAMB like FAMB President Didier Malagies who also hired convicted drug traffickers as loan officers, committed fraud, perjury.
HOW FLORIDA BECAME WORST IN THE NATION FOR MORTGAGE FRAUD
The 2004 Department of Finance complaint filed by Trudelle proving RICO and Racketeering in the Mortgage Industry could have reduced if not prevented Florida from ranking worst in the nation for mortgage and foreclosure fraud. Unfortunately Erin Collins Cullaro of the Attorney General Office was assigned to investigate Trudelle's complaint of her ex-employer.
The Department of Finance and Attorney General did nothing despite well documented proof of perjury, doctored appraisals, mortgage fraud, and hiring drug traffickers as loan officers by then FAMB President Didier Malagies (now has 2 million in judgments), FAMB CPA Morris Berch(lost his CPA license but kept his mortgage broker license) and FAMB Lawyer Anthony Woodward (suspend for only two months for filing tens of thousands of false affidavits).
Florida's Department of Finance now called Florida Department of Financial Regulation had the Florida Association of Mortgage Brokers investigate itself and then used the FAMB's one-sided report to dismiss Trudelle's documented allegations after Erin Collins Cullaro of the Attorney General Office was assigned to the investigation by Jay Burmer, Cullaro stated she was going to see what the Department of Financial Regulation determined, two weeks later the Department closed the case.
Where the Department of Financial Regulation, Attorney General and State Attorney did nothing, other official government agencies did the following:
Florida's Department of Business and Professional Regulation forced Morris Berch to surrender his license for his unprofessional behavior yet the Department of Financial Regulation allows this defrocked CPA to keep his Florida Mortgage Brokers license.
When several of the same allegations in Trudelle's report regarding the lawyers were tried in civil court under a deceptive trade practices suit styled; Brady Cole V Echevarria, Echevarria only defended his actions under the legal theory of "litigation immunity". Echevarria's case went to the Supreme Court, Echevarria had to settle the class action lawsuit for some 1.5 million dollars. Unfortunately only the lawyers made money, the injured got next to nothing, actual damages have been estimated at some 40 million dollars plus the damage to Florida's economy.
August and September 2008 the Miami Herald broke the story that Florida's Department of Finance routinely ignored substantive complaints about mortgage industry crimes that should have been referred for prosecution while allowing some TEN THOUSAND felons to become Mortgage Brokers a governors cabinet report confirmed much of the Herald's story.
Didier Malagies and Anthony Woodward's ability to do FHA loans was revoked by HUD due to improper lending practices, Malagies shut down his Diversified Mortgage business and reopened as DDA Mortgage, Didier Malagies has some 2 million in judgments levied against him because of Diversified Mortgage yet he still has a Florida Mortgage Broker license.
Florida's Supreme court created a task force in 2009 addressing many of the concerns William Trudelle disclosed in 2004. The report affirms Trudelle's allegations plaguing in the industry, yet it fails to remedy the problems instead just creating another layer of judicial hurdles for the citizens to pay ineffective lawyers to leap through.
Florida's Greatest Mortgage Rip Off of All Time was done with full knowledge of the State Government who did nothing until it was too late!