Tag Archives: David Paul Krieger



(As exclaimed by Dan Akroyd to Jane Curtin on Saturday Night Live …)

Sorry … I had to do that because you can’t say that to opposing counsel in foreclosure court … as much as you’d like to!  Still, I’m not an attorney, I can’t render legal advice, but I have been listed on at least one attorney’s “expert witness list” for upcoming trials! 

My blood boils when I’m consulting at a foreclosure trial and I hear the bank’s attorney claim that the borrower has nothing to do with the PSA because I know damned well that the borrower (nor his counsel) has a comeback that they can waylay on the bank’s attorney in point-counterpoint fashion, which is why I went with the opener that I did.

The bank’s attorney doesn’t want the borrower opening up the subject of securitization failure, because in so doing, the REMIC finds itself without standing to foreclose.  End of story … because the last attempt is always (when Fannie Mae and Freddie Mac aren’t involved) the use of MERS (through servicer fraud) “assigning” a note a mortgage years later into a REMIC trust. Securitization failure may look obvious on paper (what’s recorded in the land records) but it cannot account for the path the note didn’t travel.

The last trial I attended, I saw the bank’s attorney “step in it”.  You could hear her tiny little heels squish in the pile of dung she just sunk into asking the expert witness (who understands securitization) about the “closing date”, then suddenly realizing that she opened Pandora’s Box.  Sadly, the foreclosure defense attorneys need to climb on board with this thought process, as elaborate as it might be.  I’m going demonstrably put it into as easy a graphic as I can, using various scenarios (“submitted for your approval”, as the Twilight Zone‘s Rod Serling would say from the grave). You have to educate the judge!  You have to!  I don’t care if the other side jumps up and down with objections, you have to keep on keeping on.


First, let me share a pdf with you, written by (in my book) one of the most brilliant attorneys on record:


The foregoing even has “affirmative defenses” included in this paper, if you know what you’re looking for.  Thanks to Charlie, I used a chunk of his explanation and diatribe in a Texas Rule 736 motion I drafted for use by counsel, which, when coupled with a Rule 12 motion by the attorney (a motion demanding to know who the law firm was representing in its Application to foreclose), the law firm “non-suited” the foreclosure case (made it go away)!

I shall further elaborate, as I do in chain of title assessments where the last party to allegedly have the note and mortgage transferred to them is the REMIC … years after the fact.  The borrowers and their attorneys focus on the Pooling and Servicing Agreement and miss the whole enchilada completely.  It’s not just the PSA we’re talking about here folks!  It’s the entire “sales pitch” … I’m talking about the 424(b)(5) prospectus (and none other than).

The PSA does NOT contain your loan number!  The prospectus contains your loan number!

The prospectus contains well more of the governing regulations than the PSA, all neatly signed under penalty of perjury under the Sarbanes-Oxley Act!   When the bank’s attorney says the Borrower has nothing to do with the Assignment, why then are you stumped?  Why can’t your attorney object?  It can’t be because of ignorance, right?

However, just because your loan number is listed within the prospectus doesn’t mean that your loan is actually in the pool (or made the pool before the cut-off date).  Look at it in the simplest of terms:

  1. Why do lenders use the MERS® System?  

The lenders use the MERS® System as a means to register and securitize mortgage notes within the secondary markets.  However, before the note (and its accompanying electronic paperwork) can be traded (transferred, sold, resold, multiple times over), it has to be digitally uploaded into the MERS® System, which was created for the purposes of electronically transferring the note!  

This is why (when you look at your loan on the MERS® Servicer ID page, the loan reads “ACTIVE”.   That means, it’s “actively” being transferred (potentially multiple times over) from one entity to another while the Servicer’s name remains constant.  When you see the word “INACTIVE”, it means the loan is no longer being traded, most likely because it is NON-PERFORMING!  Who could get away with selling non-performing loans?  Only in the securities market can you get away with that!  This goes back to the late Judge Arthur Schack in the HSBC v. Taher case, which was reversed and assigned to another judge, because the powers that be (the Appellate Department) said Schack went too far (in vetting the truth about robosigning using parties claiming to be officers of MERS). So, as long as the note doesn’t end up in its “final resting place” (as claimed by REMICs in millions of foreclosures), we have an “ACTIVE” note trading within the MERS® System.

2. The servicers who subscribe to the MERS® System purposefully abuse it!

The MERS® System, as I have previously noted in other posts, as well as in the OSCEOLA COUNTY FORENSIC EXAMINATION, allows servicers and their minions and subordinates within their default divisions or their contracted third-party document mills, to “manufacture” standing by creating assignments out of thin air, utilizing the name Mortgage Electronic Registration Systems, Inc., accompanied by what is proclaimed an “official title”, with only flimsy, non-notarized proclamations by William Hultman or his “successors” within MERSCORP Holdings, Inc. potentially attached to the pleadings as a means of “verification” of the use of the title by the “nominee” (who also thinks it’s a beneficiary, which it’s not).

Regardless of their “signing authority” or other Limited Power of Attorney proof of anything (as Limited Powers of Attorney can be falsely created to reinforce a claim by the REMIC that certain servicers are covered to do exercise certain powers under the power of attorney), there is nothing in the MERS Rules of Membership that forces the users of the MERS® System to “play by the rules”.  In fact, all of the users of the MERS® System have to “indemnify” MERS and its parent of any liability in connection with the creation of these documents, which means it’s “open season” in the fraud department in the creation of these documents.

   3. Parties outside of the MERS® System are allowed to participate with the servicers in creating the documents employing the use of the MERS® System! 

During the Osceola County Forensic Examination, my team discovered (in hundreds of assignments) the use a law firm in the creation of the assignments.  Many times, the assignment itself contained the words, “Prepared by:”, with either the name of the law firm, a law firm attorney or a non-lawyer working for the law firm.  My take here is that this is where you have RICO issues because the servicer, a law firm, a notary and multiple employees of both, are tasked with the creation of the document.  We are not just talking civil RICO issues here, but also criminal RICO, because the document is generally created under the direction of the law firm handling the foreclosure (in mortgage states), or in the alternative, a document processing company (e.g. LPS, CoreLogic, etc.) being involved in engineering the “proper parties” onto a piece of paper that is going to be relied upon in court to foreclose on the property.  The law firm handling the foreclosure will then rely on an assignment that it was involved in creating to steal the home, knowing full well that the assignment contains multiple misrepresentations which are not provable because the assignments clearly show the note and mortgage were transferred into the REMIC years after the Cut-off Date!

This is why I intend to write a follow-up paperback aptly titled, “How To Screw MERS!” (or something like that), to explain how to circumvent the MERS®System in your dealings in real estate (part of your due diligence before you buy a piece of property using a “MERS Member”, which is false, because the alleged “MERS Members” aren’t really “members”; they’re user-subscribers of the MERS® System, through the use of an executory contract with MERSCORP Holdings, Inc. (which is nowhere to be found on your note, your security instrument or the assignment).

4. The “Electronic Tracking Agreement – Warehouse Lender” clearly shows who the “players” are … and MERSCORP Holdings, Inc. is one of them!

If you look at the attached: eta_warehouse_template_v6-mers-and-borrower4, you will see what I am describing here, as to who the “electronic agent” really is. Is this disclosed to you at closing?  Hi there boys and girls, can you say “Truth-in-Lending Act violations right out of the gate?” … sure you can!  (playing on Mr. Rogers’ voice).

Do you see where your “name” is inserted as to “Borrower”?   Didn’t think so.  That’s because you’re not the Borrower, the originating lender or mortgage broker (like that pesky “Rocket Mortgage” and other digital online services that make it so easy to “get approved in minutes” for a mortgage loan).

Notice in the third paragraph where it says, “the Borrower is obligated to pledge the Mortgage Loans to the Lender”?  Notice the term used “Loans” is in the plural?  That’s because the “Borrower” in this agreement is the originating mortgage broker/lender and the “Lender” in this agreement is the “Interim Funding Lender” (like Countrywide, WaMu, IndyMac, etc.).  Look who the “Electronic Agent” is:  MERSCORP Holdings, Inc.!   What is an agent?  (hint: a nominee)

Then why isn’t MERSCORP Holdings, Inc. (the parent of MERS, the entity with all the money) plainly stated on your loan paperwork, including your Note? Where is the Truth-in-Lending Act when you need it regarding non-disclosure of the real “truth”.  It was hidden from you at closing?  That might even bring about suspicion for a RESPA violation as well.

Notice within Paragraph 4 of this agreement where it says that the “Lender and the Borrower desire to have certain Mortgage Loans registered on the MERS® System (defined below) such that the mortgagee of record under each Mortgage (defined below) shall be identified as MERS;”   Did you ever sign a paper like this at closing?   I’ll save you the time looking for it.  You didn’t.  That’s because the “Borrower” in this agreement, involving the placement of your loan into the MERS® System IS NOT YOU!  Did you agree to that?   Didn’t think so.  But it sure the hell explains how your loan got “registered” on the MERS® System, doesn’t it?

This was all created to be part of the securitization process.  This is why the entire process is flawed … and why it needs to be eliminated … and why the parties who created it need to be in prison!  The MERS®System is the platform through which the RICO acts were committed.  Indemnification or not, the platform is there … and it’s knowingly being abused.


This begs the question: How can you NOT be involved?  The assignment is talking about your very loan and mortgage (or deed of trust) being conveyed by the employees of the mortgage loan servicer (who can’t get the originating lender to do it because it’s more than likely defunct), whose employees create the document out of thin air, under the instruction from: (a.) one of the major title companies; (b.) the foreclosure mill attorneys involved in the litigation; and (c.) a third-party document mill tasked by the servicer to keep the transaction at arms length to avoid suspicion.  In any case, the document is a fraud.  They know it. And you know it.  But the judges don’t know it because no one knows how to tell the judge a thing or two about the real aspects of securitization because they know that 99% of these assignments are fraudulent and by ruling against the bank on securitization failure, they would open up a “three-ring circus” in their courtroom while jeopardizing their political futures.

The servicer uses its own “loan number” which generally does not match yours.  But when the bogus assignment is drafted (and many times backdated for a purpose) by the servicer’s employees or that of the law firm or third-party document mill, your original loan number and name is on the assignment.  Why not simply ask the judge to take your name off that document (since you’re not involved in it) and we’ll call it a day?   You know how that will end up, right?

You first have to object to the attorney’s comment that you’re not involved in the PSA, because technically, the PSA talks in general about operations within the REMIC itself.  If you’re going to enter the PSA as evidence, you’re shortchanging yourself and your case.  What you should be entering is the entire 424(b)(5) prospectus.  It still costs $4.00 a copy from sec.gov on their forms page.  They have a contract with United Parcel Service to ship it to you at no charge.  You pay $4.00.  Get the whole prospectus.  The front end of the prospectus is what contains the cut-off and closing date, not the PSA.  Have you ever noticed that, or did you just take someone’s word for it?


Notice the foregoing “Page 8” and where it came from … the 1997 Comptroller’s Handbook issued by the Office of the Comptroller of the Currency.  This handbook was issued before MERS Version 3 came into being.  Notice how the first paragraph below the diagram talks about the Borrower being a party to the securitzation chain?   Do you understand why?  Because in simple fashion, in order to make the chain work (the whole system), the Borrower’s payments facilitate the income stream to the investors, who received non-recourse bonds on the Closing Date (or Start-up Date, according to IRS terminology) of the REMIC.

That is, unless securitization failure occurred at the Start-up Date.  This begs the use of an expert witness at trial to can testify as to the facts, followed by the use of depositions of the parties creating the document (the assignment) to reinforce the fraud being plied on the court.

Actually, securitization failure occurred BEFORE that!  It occurred at the Cut-off Date!

It couldn’t have happened because after the note and mortgage was uploaded into the MERS® System database (owned by now-MERSCORP Holdings, Inc.), I believe the original paperwork was no longer needed and was shredded.  My forensic examiners and I have heard this on more than one occasion, right out of the mouths of the bankers!  Thus, when the Borrower went into default: (a.) the servicer handling the loan dummied up an assignment, knowing already that it didn’t have the original loan; (b.) the servicer went into the MERS® System and downloaded the “uploaded electronic copy” and printed it out and took it into court (after adding a bunch of other “allonges”, “indorsements” to the note to try to tie the chain of title together with the chain of custody of the note.

Let me be clear here!  I do not believe that the allonges and the indorsements were completely added until AFTER the original note was retrieved from MERS. The latest article by Neil Garfield, which contains a statement: “I have obtained confirmation from a large bank vendor (Visionet Systems, Inc.) that it rectifies “lost notes” by reapplying the “signature images” upon stored copies. –Bill Paatalo, December 10, 2016.” goes to the core of the following scenario:

My wife and I attended a trial in Fort Myers, Florida where Bill Paatalo was admitted as an “expert witness”.  I went for two reasons.  First, I wanted to see what kind of questions the bank’s attorney and the judge were going to ask Bill about his expertise and the facts of the case; and second, we had dinner with Bill after that to further discuss the case, which ended up without a Final Judgment being issued that day (in court) because the judge wanted more education, in the form of trial briefs by the attorneys, which were due yesterday (I have not seen the brief).

This clearly also shows that the Notes were, at one time (as I suspected) electronic copies.  And riddle me this (as the Riddler said to Batman) … where do you think Visionet Systems, Inc. got the copy of the note?  Visionet is NOT a user of the MERS® System (check for yourself like I did) and therefore, they had to get the note from somewhere (more than likely the servicer, who IS a user of the MERS® System).  This now begs the deposition of someone at Visionet Systems, Inc. to verify this chicanery.

There are at least two cases supporting this conclusion! 

If you’ll simply Google a pdf of “In re Saldivar” (Texas) and “Glaski v. Bank of America” (California), you can see from these two cases that the court finally recognized that if the note and mortgage (or deed of trust) weren’t assigned until years after the Cut-off Date”, there is no verifiable evidence of WHEN or IF the note and security instrument actually “made it into the pool of loans” within the REMIC trust! This is what Bill Paatalo testified to at trial in Fort Myers.  When attacked by the bank’s attorney on the possibility that the note and mortgage made the cut-off date and that the assignment was strictly a memorialization of that fact, Paatalo responded to the “fact” that the assignment itself shows the date of the assignment being two years after the REMIC closed; thus, there is no possibility that the governing rules of the REMIC were complied with.  I am referring to the entire 424(b)(5) prospectus here, NOT just the PSA!

The OCC clearly contemplated that the Borrowers were the parties signing the notes and security instruments, which contained the provision (in paragraph 19 or 20, depending on which long form security instrument was employed at that time) that “the note, or a partial interest in the note” may be sold or transferred. It says nothing about the parties involved in that transaction, the “boss of the note” at foreclosure proceedings, or securitization of the loan.

Not only is the chain of title screwed up (because the right hand doesn’t know what the left hand is doing), certain parties came in contact with each other to “dummy up” paperwork to steal the house.  It’s that plain and simple.

That my friends, is a short-form explanation of the formula for securitization failure in roughly 3200 words, despite the fact I’m not an attorney nor do I render legal advice.  Share this with everyone because the life you save may be that of someone you don’t know that desperately needs to view this educational post!

BTW: For those of you wanting a progress report on the new FDCPA book I’m working on … I’ve about 40 pages to go!  I’m trying to get it done by the end of the year!  It contains some real damning information every “consumer” should know about, from foreclosures, to credit cards and car loans to student loans … all of which have been securitized … including relevant case law to back up the education I provide in this book! 

Dave Krieger, Clouded Titles



Filed under Chain of Title Education, Op-Ed Piece


Hollywood must be paying attention to America’s dilemma because the main stream appears to have been blinded to what happened to the certain element of America’s working poor when they were taken advantage of by corporate mega-banking interests in tandem with “government marketing”.  Dominoes did fall as the result of a series of events that began in 1995 (with the creation of the MERS business model, used to facilitate massive electronic transfers of residential mortgage loans) and came to a pinnacle of doom in 2008 (when the financial markets, in part, collapsed).  In order for this to have happen, certain catalysts had to come into fruition.  One of them was the repeal of the Glass-Steagall Act, which prohibited banks from directly participating in securities.  The means by which it was done was through the Gramm-Leach-Bliley Act.

Someone lobbied to get this Act passed.  I’ll bet you know which lobby was responsible without me even saying it!

It clearly shows that Congress can be “bought off”, yet the voting rank and file trust these legislators implicitly?  Seriously?   Have we lost touch with the truth?

A group of insiders, which Michael Lewis exposes in his book, The Big Short, found a way to “short” the stock and bond markets to make a killing off of the failure of all of those residential mortgage loans.  This group legally made money by “betting against the American economy”, after they realized what the banks did (structuring the residential mortgage loans to fail in tandem, so they could profit by collecting on insurance side bets called credit default swaps), which they considered sinister.

Now Hollywood has made a movie about it … here’s the link to the movie trailer (coming this Christmas) … a Christmas present to “wake up America”?   TRAILER

Sadly, while this group of insiders were making millions of dollars short-selling the banks’ deals, others began losing their homes when the predatory mortgages’ (adjustable-rate, negative amortization, interest-only, etc.) interest rates reset and homeowners found their monthly payments doubling in size.  This appears to have been the real cause of the housing bubble.  The banks knew this was going to happen and set about the means to shake up the American economy.

Still, those who were not affected by all of this are still in denial.  In fact, much of the real estate community (real estate agents, brokers, Realtor® Boards, etc.) is in denial that such things as described in the upcoming movie, 99 Homes, portrays. However, Salon.com’s recently-released article spells out the corroborating evidence of what is portrayed in the movie ACTUALLY HAPPENED, that attorney Lynn Szymoniak will be talking about at the upcoming Chain of Title Assessment Workshop in Fort Myers, Florida October 2-4, 2015.  America cannot be in denial any longer.  99 Homes premieres October 9th in theaters across the country: TRAILER

These two movies blatantly describe only PART OF the aftermath described in Dave Krieger’s book, Clouded Titles.

The people who continue to be in denial of all of this mess probably have homes in or near neighborhoods that were affected by all of this.  Most take on the attitude, “Well, thank God it wasn’t me!”   But yet, each county in America suffered financially because of it.   Blighted neighborhoods.   Increase in property crimes.   Massive decreases in recording fees paid to record documents in each county’s official property records.   Massive cutbacks in community services.   Depleted tax revenues.  Increased liability to those communities hardest hit.

The OSCEOLA COUNTY FORENSIC EXAMINATION clearly showed that the foreclosure actions taken against these homeowners was anything but honest.

Further, the Report showed that the majority of those properties targeted for foreclosure were located in the Latin American and Hispanic communities of Osceola County, Florida, which became “low hanging fruit”, easy pickings for foreclosure mill attorneys.  Most of these people didn’t understand what was happening to them.  Nearly 85% of these borrowers, when served with notice, just walked away from their homes and their obligations as American property owners.

In what appears to be even more sinister than the stuff the movie, The Big Short, describes, are the 17 cases of certified documents that came directly from the official property records and the court records which the Osceola County Sheriff’s Department is “allegedly” investigating.  When tied together, these documents clearly make up multiple patterns of “created standing” on the part of lenders who couldn’t find the documents they had previously shredded and instead, “re-manufactured them” out of thin air, timed in conjunction with the filing of the foreclosure case!

According to Al West, a California attorney who recently made a 2-hour presentation to the Lake County Board of Supervisors, one could look at a document on its face and not realize the fraud behind it because that person wouldn’t know what to look for.  However, the team of examiners that DK Consultants LLC (which included Mr. West), knew exactly what to look for.   Because of these systemic patterns, the Report identified seven (7) specific potential witnesses, which the Florida 9th Circuit States Attorney Jeff Ashton dismissed as part of his decision NOT to investigate the contents in the Report.  His office could have clearly recognized that the Osceola County Sheriff evicted many of the affected homeowners that were included in the Forensic Examination; however, he was too busy playing around on the Ashley Madison website on taxpayer time to pay attention to this critical issue!  Instead, he launched a witch hunt on “the messenger”.

As the result of this move, more than just the lives of those involved in the examination have been affected.  The U. S. Department of Justice has been made aware of this Report and I anticipate that the Report is going to get more than just a “look see” by the DOJ.   The Report has been endorsed by U. S. Congressman Alan Grayson, whose congressional district includes Osceola County, Florida.  Grayson is running for the U. S. Senate at present.   The Osceola County Sheriff however, has decided NOT to seek re-election this year and it is anticipated that there will be a list of eligible contenders, many of which will probably ignore the contents of this Report.  THAT would be a political mistake in my book!

Dead Witnesses Tell No Tales! 

The reason that the seven (7) witnesses were NOT specifically named in this Report, is that the examiners value the lives of each one of these potential witnesses.  It should come as no surprise that when you mount an offensive against the banks, people die.  I point specifically to the case of Tracy N. Lawrence, the Las Vegas notary public who admitted to a grand jury in Clark County, Nevada that she signed her boss’s name to over 150,000 documents which she then notarized herself. These documents were recorded in public records all over the Western United States.   She was targeted because of apparent prosecutorial misconduct, which caused all 606 counts (half of them felonies) to be tossed out against two Title Officers from Lender Processing Services in Irvine, California.  In exchange for her cooperation, Lawrence was allowed to plead guilty to one count of notary fraud, which for all intents and purposes was a “slap on the wrist” compared to what the two title officers were facing.

On the day of her sentencing, Tracy N. Lawrence was found dead in her apartment, Marilyn Monroe style.   And you tell me that was suicide?   Lawrence received this sentence because she was slated to testify against the two title officers.  Well, dead witnesses can’t testify.  And now you know WHY we didn’t put the names of the seven witnesses in the Report.  We want them alive for the federal grand jury.

Apparently, States Attorney Jeff Ashton didn’t bother to ask anyone (on the examination team) about these witnesses and what they could contribute to a criminal case. Getting a date on Ashley Madison on taxpayer time seemed more important than dealing with fraudulent document manufacturing.

Or was it something else, or another threat by someone else, NOT to prosecute.  The results of this Report are, after all, a political “hot potato” and the 2016 elections are just around the corner.

LPS is suspected to have funded Florida Attorney General Pam Bondi’s election campaign.   With “friends” like that, who on the state level is going to investigate criminal wrongdoing if LPS was involved (and they were mentioned in the Report)?   This is why the FBI and the DOJ need to “take it from here”.   Local politicians can only be effective if they have a District Attorney that is willing to risk his neck prosecuting these paper crimes and Lake County, California’s Board of Supervisors, who are in full agreement that an audit should be conducted of their land records, won’t make a move because they appear to lack confidence in their own DA.  They want any move they make to be beneficial to the property owners of their county.   When you have a DA that won’t prosecute, even though Mr. West showed the Board WHERE to get money to prosecute these document frauds with, nothing gets done and homeowners continue to suffer.

Sadly, THAT suffering is going on IN EVERY COUNTY IN AMERICA!



1 Comment

Filed under Breaking News, Chain of Title Education, Financial Education


It is a fact that DK Consultants LLC did conduct a Forensic Examination of the official real property records of Osceola County, Florida, which was an extension of the type of the audit examination conducted in the official real property records of Williamson County, Texas.  


There is no disputing the fact that a team of examiners (familiar with court cases and chain of title assessments) went into the computer databases of each Clerk after submitting a proposal of the detailed work to be conducted.

Similar types of examinations have taken place in Guilford County, North Carolina; Southern Essex County, Massachusetts; and more recently in King County, Washington (on behalf of the City of Seattle).  Some sort of “action” resulted in each case (excepting Seattle’s audit), wherein publicly-elected officials either filed suit or went after the perpetrators in civil fashion.  In Osceola County, Florida, however, the first ever criminal application of a forensic examination allegedly took place.


I say “allegedly” because the Florida 9th Circuit’s State Attorney (Jeff Ashton) refused to investigate the 736+ page report and instead turned it over to the Osceola County Sheriff to investigate.  I still understand, from veiled threats from the Sheriff’s office, that I am still a target.  I cannot understand why.  I was contacted by the Clerk.  I did not solicit the Clerk.  I entered into a contract.  I delivered on what I promised.  The results were not what law enforcement obviously wanted to investigate.   That simple.

The report took 5-1/2 months to complete.  Several of the team’s examiners actually participated in the additional research, giving of their own time and energies to ferret out the issues presented in the report.

How did they know HOW to do this?  By preparing chain of title assessments (COTAs)!

This is one of the reasons I go around the country teaching the basics of chain of title.  I personally have conducted over 100 of these examinations (not including the county real property records examinations themselves) involving homeowners’ chains of title.  It does not take great effort to rise to the occasion, just the knowledge gleaned from past experience.

The only way to get “experience” is to train for it.   When you’ve done a few COTAs, you can begin to see the given similarities and legal theories come to light.  This makes you a viable candidate for consideration when it comes to auditing and conducting forensic examinations of the real property records themselves (for the county clerks, registers of deeds and recorders).  Yes, you get paid for the work (it’s not handsome, but it is for public service and for the good of mankind) … and your work goes down in history!

The only aspects of these types of audits that hasn’t been explored as of yet is the criminal aspects of the findings.  Trying to find a district attorney to prosecute them is half the battle, if you can keep them from investigating YOU!   Yes, that is a slippery slope in this business, but remember, it’s what you believe in, right?

If you do not know how to conduct a COTA, you simply lack the expertise to audit county land records and get paid by the county as a public service.  This brings me to my next point … Chain of Title Assessment Workshops.  There is one being held in Fort Myers, Florida on October 2-4, 2015.  Check the Clouded Titles Website for details.

I am putting this information out there because more people will eventually be called upon as county officials (and clerks and recorders) call on them to audit their real property records for criminal issues.

If this wasn’t important, why do you think the State and Federal Governments all made deals with the banks to keep the major players out of prison?  Because there is evidence of wrongdoing!   The “undoing” of document manufacturing is criminal exposure … and I can assure you, when push comes to shove, there’s plenty of exposure to go around.

If you have visited the website, you also know that we are preparing an online version of the COTA Workshop; however, this is NOT a two-way street insofar as Q&A, the online version just covers the basics.  It’s great to educate property owners, but the Workshop itself is 3 days of intensive, hands-on discussion, including attorneys and guest speakers. Ask anyone who has been to this workshop and some will tell you the flash drive alone is worth the price of admission.

There will probably be another Quiet Title Workshop however, and Al West and I have tweaked it down to a 2-day presentation (Saturday and Sunday), so it won’t mess up your workweek.

In closing, I have yet to have my chance to testify before a grand jury.  Maybe you will have that opportunity in your lifetime, for all the right reasons.  Knowledge is power and this is your opportunity to be an informed American Citizen.

Just because there are stumbling blocks does not mean they cannot be overcome.  The pendulum is swinging back in favor of homeowners, provided their cases are properly plead and argued.  The COTA Workshop gets to the heart of the chain of title.  This is where it all started, way back when.   Be of part of history and get educated!  Make plans to attend now and visit the website to register!





Filed under Breaking News, Chain of Title Education, Financial Education, Quiet Title Education


The opinions expressed by the author are just that, his opinions, not legal advice. 

Two more lawsuits against MERS have gone by the wayside.

The Third U.S. Circuit Court of Appeals reversed Judge Curtis Joyner’s District Court decision that MERS and its parent, MERSCORP, are not liable to pay Montgomery County Register of Deeds Nancy Becker any fees because they: (1) were just the agent, but more importantly; (2) his Honor misinterpreted the Pennsylvania recording statute which mandates complete requirement to record all assignments.  Most in my camp saw this coming.

At the same time, the lawsuit against MERSCORP and Bank of America in Nueces County, Texas is also coming to a grinding halt, with much the same results.  In that suit, brought originally by Nueces County, but later joined in by Williamson and Travis Counties (in a motion for leave to intervene), the court’s ruling is pretty much headed in the same direction.  This suit I knew was founded on shaky ground based on the outcomes in many other states.  The law firm generating the suit on behalf of Williamson County was the same law firm that used the same implications in the suit in Dallas County, Texas, which it eventually lost as well.

Remember the definition of insanity?  Losing a lawsuit bringing the same claims today that you did before, expecting different results.  No one wins.  No one wins because the recording statutes enacted by the state legislature in both states is like a dog with dentures that have fallen out, there’s no teeth in them!  No right of enforcement.

Guilford County Register of Deeds (North Carolina) Jeff Thigpen also learned the same thing as Nancy Becker just learned in Montgomery County, Pennsylvania: The county recorder has no private right of action, not even to quiet title!

Quiet title is a private right of action bestowed upon the registered owner of a piece of real property, which should tell those of you that think the “county owns your property” (just because you pay property taxes) that this “just ain’t so”.  If the county clerk (recorder, register of deeds, what have you) has discovered from the resulting lawsuit that they have no private right of action to have all the properties affected, quieted as to title, that should show you how much of a right YOU as a property owner has to quiet title!  County recorders are limited by statute to do certain things.  But one thing is for sure, the county does maintain a first lien position to the property if you don’t pay your ad valorem property taxes.

Notice I said a lien position and not a title position.  Title only transfers by sale to someone who is willing to pay the county property taxes when you can’t (or choose not to).  The only way to avoid paying property taxes is NOT to be a property owner.  Then you have no rights whatsoever, except tenant rights (and I don’t see anyone litigating the fact they’re just a tenant when their name is clearly on some warranty deed somewhere).  So. it stands to reason that the only party with a private right of action is the property’s owner, not the clerk or the recorder or the register of deeds.

It appears that no one can sue MERS for fees because the plain and simple fact is: The MERS business model does not require that MERS pay the fees.  It is a facilitator for the users of the MERS® System, who have an executory contract with MERSCORP (it’s parent owner), to avoid paying fees simply by registering their loan transfers in the MERS’s database (if they feel like it, there’s no requirement to do so).  This in of itself is problematic, because MERSCORP disclaims any of the information on its website for accuracy.

That leaves one other option: the realm of criminal prosecution for being a RICO-style facilitator of phony document recordations. Because we know (by admission of the Florida Mortgage Bankers Association in 2009) that the notes and mortgages were “eliminated” in favor of electronic recording (into the MERS® System), that the banks gave their paper power over to MERS, which obfuscates transfers of loans so that borrowers have absolutely no idea who owns their loans until “push comes to shove” (virtual foreclosure proceedings start up).

Despite what the critics think … the OSCEOLA COUNTY FORENSIC EXAMINATION clearly shows a pattern of behavior only attributable to the behaviors of the users of the MERS® System, which has resulted in the apparent manufacture of documents later recorded into the databases of the county real property records for the purposes of the facilitation of foreclosure on the property.  The banks have not heard the last of David Paul Krieger.  Other counties are considering retaining DK Consultants LLC to conduct similar examinations, because as I said before, there is a prosecutor out there with a pair that will set an example of how you can take down a dozen document mills and scare the banks at the same time into NOT filing phony documents in the real property records with the intent to steal property.

A felony is a felony.  So if you’re going to imply, “it takes one to know one”, then understand this: one who researches what frauds are, whether based on past experiences or not, understands WHAT frauds are and how they come about. In every instance, DK Consultants LLC has had an attorney opinion letter attached to its findings.  The banks will only wake up and pay attention WHEN their minions start facing criminal charges for effectuating the documents.  This is why the document mills are kept at third-party, arms-length transaction status, because the banks don’t want to be directly tied to the “act” itself (of manufacturing a bogus document).   However, the RICO-style implications involving the MERS® System and its being a facilitator for fraud, simply by using the name “MERS” to tie an “alleged” Certifying Officer (robosigner)’s name to a document may bring down the house of cards once and for all!

Once the spate of criminal charges begins, not unlike what happened in Clark County, Nevada, the country will watch the prosecutions of the document mills, whose executives will make “deals” to avoid lesser sentences, to implicate those on top who “directed” them to manufacture the bogus assignments in the first place.  The MERSCORP executory contract links the user of the MERS® System to the database, owned by MERSCORP.  Once the “Certifying Officers” testify that: (1) they had no idea who MERS was when they signed their name to a document, attesting they had personal knowledge of something they didn’t really have; or (2) they knew what they were doing was criminal and even bragged about it, then you will see “deals cut behind the scenes” to avoid prison terms.  Alas!  The prosecutor who takes this bull by the horns had better have a sword with him because this “bull” is not going to go down lightly!

You want change?  Then get your local DA’s involved and show them this Forensic Examination and discuss the criminal implications and the types of fines, restitution and rewards that prosecution will bring to the table.  I am always willing to cooperate with the prosecutor, as long as they don’t want to “shoot the messenger”!   That my friends, is an injustice to the homeowners who have been wronged by the filing of all of these fraudulent documents!

If you are just becoming aware that there is a problem, I encourage you to read my book “Clouded Titles”.  Despite what others say about the book, there is no free house, no free lunch, and the words of others come with a price for believing some things that just aren’t so.   My next work, which I am writing at the moment in cooperation with one of the top quiet title attorneys in the United States (The Quiet Title War Manual) is nearing completion.

And no, quieting title isn’t easy, especially when MERS is involved, which is why we need to start looking at the criminal implications of this “business model” and bring me a solution, not blind-sided criticism.  No one ever said anything was easy, unless you simply intend on walking away from the “good fight”.  This is America, remember?






Filed under Breaking News


The author of this post is also the author of the book Clouded Titles and also the author of the Osceola County Forensic Examination Report.   You can also download a copy of the Report by clicking the following link: 


Please make sure to view the attorney opinion letter, which makes up the last 4 pages of the 736-page report.  The report is in two volumes in the .pdf version.  It is so controversial that attempts have been made to slander the Clerk, slander this author, regurgitate the slander, impugn the integrity of the report, impugn the integrity of the Clerk … and to dig up a 20-year-old past (where I learned some extremely valuable lessons, like how to spot fraud).   What happened in my past has shaped my perspective for the future.  It is this perspective you should probably at least consider before dismissing what is offered here.

I do not take what I post on my blog lightly.  Those of you who read these posts obviously are looking to ferret out the truth, no matter where it leads.  We all need closure after what we’ve been through, right?  Anyone who has read Clouded Titles knows that I share in your story.  Many people have written to me and stated that they thought I wrote this book especially to them.  I wrote this book because we all share a common ground.  We’ve made decisions in our lives that many of us regret having made.  Most of us however, can generally learn from our past mistakes.  I learned from mine.  I learned that you can negotiate for a decent mortgage loan.  You don’t have to take what’s put in front of you … and that includes MERS-originated mortgages and deeds of trust.

Choosing this path (and many newcomers to the residential home mortgage scenario are making this mistake today) led to the obfuscation of your loan’s owner.  Court case outcomes are indifferent depending on which State you live in.  Chains of title have been messed up because they don’t agree with the chain of custody the note has taken.  Because of all of the research I have done, I get asked to consult on cases.  I work under attorneys and with attorneys.  The bottom line is … the more options the attorney has to consider, the greater the chances of a positive outcome for their client.  Many attorneys have gone into court flying blind.  This is where bad case law comes from.  The banks and MERS knew this.  This is why they’ve had ten years to “get out in front of” the scenarios they created by framing current case law.  They knew there would be a backlash.  The Forensic Examination is the last thing the banks want floating about in the hinterland.  This is why the media is nitpicking at everything it can dig at and then extrapolating it further.  This is why you may see continued posting of misinformation on websites across the country.  They don’t want this Report going any further than on your computer screen!

Document Manufacturing still exists …

It does not matter what others have to say about this report.  What matters is what you take away from it.   In large part, the greatest pattern of exposure was the link between the foreclosure mill law firms prosecuting the foreclosure cases being involved in the timely manufacture of assignments of mortgage (and sometimes the notes) to coincide with the filing of the action.  In certain instances, the examination team found that the assignments were filed AFTER the foreclosure sale took place … and AFTER the Certificate of Title had been issued.  (U.S. Bank v. Antonio Ibanez, SJC-10694, Mass. Sup. Jud. Ct., Jan. 7, 2011)

What makes these types of assignments criminal in nature is the manner in which they were executed.  Most of us would tend to agree that there is a modicum of fraud involved.  It takes a willing investigative entity however, with unfettered access to the people that created these documents, to bring the scenario into form.  This is one of the reasons why I advocate going after the notary in a deposition FIRST in a civil case.  The notaries in these document mill plants know how the manufacturing procedures work.  Every state has different notary laws.  Many notary statutes have criminal penalties attached to them.  Notaries would rather “sing like canaries” to a grand jury rather than face the executioner.  One such notary ended up dead after testifying to a grand jury that she signed her boss’s name to over 150,000 documents and then acknowledged the very signature she affixed (surrogate signed) with her own signature and notary seal.   Once you get to the notaries, you find out how the manufacturing process works.  Then you go up the ladder of responsibility … next to the signers themselves to see what they know … then to their bosses!

Dead Notaries Tell No Tales! 

On the day of her sentencing on one count of notary fraud (a slap on the wrist for 150,000 documents produced) in exchange for her testimony, Tracy N. Lawrence was found dead (at age 42) in her Las Vegas home in an “apparent overdose of sleeping pills”. Many do not believe that her death was a “suicide”.  After all, Lawrence testified against a multi-billion-dollar company called Lender Processing Services (“LPS”).   This bunch was the same parent of the company (DOCX) whose then-President, Lorraine Brown, is now doing time in Club Fed.  And the media wants to poke at MY past?   Did I steal your home using manufactured documents?

Do you realize how widespread this document manufacturing is?   There are over 20 plants across the United States that are still cranking out and filing thousands of suspect assignments in a single day!

I remember back in February of 2012 when the banks and servicers signed an agreement with the 49 states Attorneys General NOT to crank out bogus documents anymore.   Yet, the report you will hopefully read appears to indicate that these practices never stopped.  Anyone who needs a reminder of this should watch the following video:

The Next Housing Shock

If you are going to take anything away from the Report, you will at least notice the relevance of WHEN the document appears in relation to the filing of the court case.  So far, several law firms who assisted in the alleged “manufacture” of their client’s “standing” have filed for bankruptcy.  This however, does not preclude them from be criminally charged for manufacturing documents that were allegedly used to steal people’s homes.

Minorities were especially targeted … 

It doesn’t take a rocket scientist to figure out that a majority of what the examination team sampled were minority homeowners’ chains of title and case files.  The greater part of these chains of title belonged to minority homeowners.  I liken this to “low hanging fruit” for foreclosure mills because the minorities are the least likely to defend their properties because they lack the financial resources to do so.  Those who did choose to fight were probably not aware at the time that allegedly fraudulent documents permeated their chains of title and were relied on by the courts in Osceola County (and everywhere else in Florida and the U.S.) to grant Final Judgments of Foreclosure.   The easiest way to validate what I just said here is to read the “Table of Contents” for Section Two of the Report.

Statistical Information was preyed upon like it was some sort of crime … 

Osceola County Sheriff’s Detectives wanted to know if the examination team contacted the 26 elected officials who had MERS in their chains of title.  OMG!  The nerve that our examination team would look into the public record (using a list we obtained from the Supervisor of Elections) to see who had MERS mortgages!  We were trying to show the rank and file that no one is exempted from document abuse because it appears that the electorate are asleep at the wheel; otherwise, they’d be screaming too!  The number was a statistic.  We also discovered that half of the law firm that represents Osceola County had MERS in their chains of title, as well as the 9th Circuit State’s Attorney Jeff Ashton!  They act as if this is normal and that we should be ashamed about what we did because we dared look in the public record (which they themselves could have done if they cared about it in the least).

You see … you are more educated about matters like this than they are.  This is why I teach classes on chain of title.  The detectives even found my COTA Workshops suspicious (they think I’m rendering legal advice).  This is why I have attorneys teach many of the workshops I do, because that way, the research is validated and attendees walk away with more than a one-page handout.  Those of you who have attended my workshops understand why I share the research that I do.   Yet, the detectives acted as if the Examination Team committed some sort of crime by looking at this statistic.   It is so much simpler to target a 9-person team than it is to target thousands of suspect document manufacturers, right?  This is why the Osceola County Sheriff’s office should NOT have been delegated this investigation the first place!  Already, as of yesterday (the 31st of August), one of the alleged victims went into the Sheriff’s office to amend his Complaint, was told “No!” and was reportedly told by a Department Supervisor to contact the FBI (and given the FBI’s number). Obviously, nothing is getting done and even more obvious, no charges are going to be filed because these detectives don’t know what to look for.  Would you care to give them an education?   One detective told me he thought securitization was like an annuity.

Deflecting Diatribe … 

Whatever news reports you happen to be reading, recycled or not, contain misinformation.  This is key to confusing the body politic. The more the body politic is confused and dumbed down, the more the rank and file can keep things status quo.  This is why every county in America needs to have its public records analyzed.   Many are using the term “audit” as if there was some sort of criminal intent going on.  That is NOT what this report is.  The Report is not an indictment.  It is an educational blueprint.  It was designed to point the investigative arms (who have the authority to criminally research these alleged crimes) to look into the matters described in the report.   Most county recorders and clerks think the word “audit” looks bad on them.  What they don’t realize is that the voting public will praise them for attempting to protect the integrity of the statutorily-mandated public records!  They look more suspect when they deny that anything is wrong when the voting public knows damned well that something IS WRONG!

This is why all of the negative publicity has been launched.  The whole idea is to shoot the messenger.   Deflect away from the real truth.  Bring an attorney on camera to state that “the Report is not worth the paper it’s printed on”, so the media can spin the Report in such a way as to make it look like the Osceola County Clerk wasted $34,545 (if you want the exact dollar figure) on doing a report that Congressman Alan Grayson told me in a personal email was “eminently reasonable”.  Grayson supports this Report.

It is obvious that someone has given the Sheriff’s Department “marching orders” on not finding any wrongdoing.  Instead, they’ve been told to discredit the Report.   I ask you to read the Report and examine your own documents and see if you notice any similarities.

The “Legal Spin” … 

Sadly, the attorney that Channel 9 brought on camera (Matt Weidner) makes a great living off of monthly payments paid to him by homeowners to keep them in their homes.  This makes one wonder HOW Channel 9 would sit Mr. Weidner in front of a camera with a whole set of documents … misrepresent the document count … show Weidner thumbing through the first few pages of the Report … completely missing the Attorney Opinion Letter in the back of the report … an opinion letter from an attorney (BTW) whose TV commercial aired five minutes before Channel 9’s reporter attempted to impugn the integrity of the very Report Jennifer Englert rendered an opinion on!  It’s no wonder Channel 9 had to backpedal and interview one of its own advertisers.  It’s all about the money, isn’t it?   And here I thought the FCC granted licenses to stations that served the public interest.  Does it sound like Channel 9 is serving the public interest here?   That’s what FCC complaint filings are for.   You have a pen?  Use it!   I used to be news reporter.  At least I got my facts straight before I reported them.   None of that appears to have happened here.

Besides, if you’re a foreclosure defense lawyer, why on earth would you want to disrupt your “cash cow” by bringing a finite end to document manufacturing, which would bring a finite end to all of those monthly attorney’s fees because there would be no foreclosures filed because no one would file a document without the risk of being prosecuted, which in turn would have a negative impact on your foreclosure defense business.  If I were an attorney, I could make a decent living doing quiet title actions, which are entirely client funded.  Let’s face it folks, the courts in Florida (and elsewhere) are going to have to deal with quiet title actions sooner or later … here’s why:

Defending Title is Your Contractual Right! 

If you look on or about Page 3 of the average mortgage or deed of trust (underneath Transfer of Rights in the Property), you’ll see the paragraph that begins with “BORROWER COVENANTS”.  First, as the maker of this apparent unilateral adhesion contract, you warranted that you were lawfully seised (a feudal term meaning to have, freehold, in fee simple title) of the estate (your property) with the right to convey an interest in the property (to a lien holder, like a mortgagee).  The second sentence (which neither you nor I put in the contract) says, “Borrower warrants to defend title”.  That is your contractual right.  Not even a court can impair that right!  In 1:10:1 of the U.S. Constitution, it says, “the obligation of a contract shall not be impaired”.   No judge should be able to dismiss your quiet title action because you are duty-bound to defend title to your property and no foreclosure mill attorney can strip that right out of the contract just because they want to steal your house (that the lender has probably been paid for multiple times over due to all of the insurance policies and credit default swaps) Hugh Gerald Buffington et al v. U.S. Bank, N.A. et al, No. CV-14-00615-PHX-DJH, U.S. Dist. Ct., Ariz. (amazing what a little research can do).

Defending Title is a Statutory Right! 

Most states have quiet title statutes.  These statutes dictate (and mandate) HOW quiet title actions should be filed and plead. This is one of the things that Al West and I teach in Quiet Title Workshops around the country (the next one by the way will be coming up in October in a newly-designed special segment … CHAIN OF TITLE AND QUIET TITLE ACTIONS).  This is an enhanced COTA Workshop, coupled with Quiet Title education and case law.

And here you thought because of all this bad press … I was just going to crawl back into my shell and die?   Seriously?   Didn’t you read Clouded Titles?  Despite the fact that bad press is still press, you would know where my heart is … with the victims of foreclosure and mortgage fraud!  Let all the naysayers pontificate their misinformation.  At the end of the day, the truth will win out.  You’re smart enough to sort out the truth.  I would expect nothing less.


Filed under Chain of Title Education, Breaking News, Financial Education, Quiet Title Education