The request for compensation follows repeat notices, which were given to the Board of Directors of Bet Tzedek since early 2007 -- even before the onset of the financial crisis, and a full year before Countrywide's collapse, of housing fraud being perpetrated by Mr Samuels and other Bet Tzedek senior officers, even on the premises of Bet Tzedek. Notices were also repeatedly given to many of the rabbis in the greater Los Angeles area. Regardless, Jewish institutions, including some that are among the most visible, continued to honor Mr Samuels on their board of directors, e.g., the American Jewish University and its Ziegler School of Rabbinic Studies, Shalhevet high school, Adat Ari El synagogue, and more. Needless to say, many of the same institutions extol "Jewish ethics", and Bet Tzedek itself runs under the motto "Justice for all", and its Values Statement calls for "Addressing Injustice".
The request for compensation pertains to conduct of current and former officers of Bet Tzedek, the Los Angeles "House of Justice", an affiliate of the Jewish Federation of Greater Los Angeles, including current Board Member and former President David Pasternak, former President and CEO Sandor Samuels, and current Board Member and former Executive Director Terry Friedman.
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General insights
The case, which is the basis for the request for compensation, is meticulously documented, and it provides unique documentation of fundamental issues related to the origins of the current financial, to the justice system in Los Angeles County and beyond. The most interesting part of the records pertains to the period prior to Countrywide's collapse in January 2008:
The basic scheme of straw-buyer, purchase failed, combined with simulated real-estate litigation for "Specific Performance" in the Los Angeles Superior Court, [v] was employed already in the late 1990s in Los Angeles, with some of the same key figures, including former Los Angeles Bar Association President, former Bet Tzedek President, current Bet Tzedek Board Member David Pasternak.
The scheme of straw-buyer, combined with fraudulent sub-prime loans from Countrywide Home Loans was already in place in 2004. The records of Ms Nivie Samaan's Uniform Residential Loan Applications (1003) (a total of 4) to Countrywide Home Loans, together with the respective Countrywide underwriting records, which were obtained through discovery, documented the fraudulent underwriting process in Countrywide, identified those involved in the San Rafael branch, in the Corporate Underwriting office, and also documented the direct involvement of Countrywide President Angelo Mozilo and Chief Legal Officer Sandor Samuels.
The highest ranking officers in Federal Trade Commission, Thrift Supervision, SEC, FBI, US Department of Justice were colluding with Countrywide in covering up such large-scale fraudulent underwriting practices years before Countrywide's collapse. The first complaint, including detailed evidence of large-scale sub-prime mortgage fraud in Countrywide Home Loans and racketeering by California judges and law-firms was filed with FBI Los Angeles already in January 2007. But Steve Goldman, Supervisory Special Agent at FBI Los Angeles, explained why he would not investigate the case already then: "If what you are saying is true, it is widespread public corruption, and well above my head".
Judge (now retired) Jacqueline Connor, was a key figure in the Rampart scandal (1998-2000), which was described as the largest court corruption scandal in the history of the United States. The scandal involved the framing of innocent people, torture and maiming to extract confessions, false prosecutions, false convictions, and long-term false imprisonment of thousands of innocent people. Even after the scandal was exposed, the vast majority of the innocent victims were never released. Prof Erwin Chemerinsky wrote: "This is conduct associated with the most repressive dictators and police states... and judges must share responsibility when innocent people are convicted." [ va ] Former LAPD undercover narcotics officer Rafael Perez was another key figure in the scandal, and a close associate of Judge Connor until he signed a plea bargain deal, which she opposed. Government and independent reports point out that judges of the Los Angeles Superior Court should have been held accountable for the Rampart scandal, but no attempt for reform of the court has ever been attempted. By 2005, the evidence shows Judge Connor leading a pack of Los Angeles Superior Court judges in collusion with Countrywide's Sandor Samuels in real estate fraud on Dr Zernik. Countrywide was not a party to the case as filed at all. But in the electronic Register of Actions (California civil docket) of the case, Judge Jacqueline Connor secretly and wrongfully listed Countrywide - "Real Parties in Interest".
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More than a dozen judges of the Los Angeles Superior Court and large number of Los Angeles attorneys, including leading law-firms , were tightly involved in Countrywide's mortgage and real-estate schemes. Key figure in the Los Angeles Superior Court in this matter was Judge (since retired) Jacqueline Connor. Judge Connor was also a key figure in the Rampart scandal (1998-2000) described as the largest court corruption in the history of the United States. Government and independent Rampart scandal reports point out that judges of the Los Angeles Superior Court should have been held accountable for conduct of the LAPD uncovered in the scandal. However, no significant effort has ever been made to reform the Court. The records in instant matter provide evidence that figures like Judge Connor, who a decade or two earlier were deeply involved in the Rampart scandal, originating in wholesale cocaine trading by LAPD undercover narcotics officers, were deeply involved in banking and real-estate fraud by Countrywide and others by the early 2000s. Of note, Alejandro Mayorkas, who as US Attorney for the Central District of California and a key figure in covering up the Rampart scandal, later served on the Bet Tzedek Board of Directors... [vi]
The records from the period after Countrywide's January 2008 collapse also provide important insights:
Following the 2008 merger of Countywide and Bank of America, Mr Samuels was appointed Associate General Counsel of Bank of America. Following the merger, and as long as General Counsel Timothy Mayopoulos was in office, all harassment, intimidation and retaliation actions ceased. However, within 24 hours of the much investigated dismissal of Mr Mayopoulos and his replacement by General Counsel Brian Moynihan (today Bank of America President and CEO) such conduct resumed.
Straw-buyer and mortgage fraud matures into racketeering by judges
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