Request for compensation, filed today with Bet Tzedek, the Los Angeles "House of Justice", one of the highest visibility institutions of the Jewish Federation of Greater Los Angeles, provided evidence that the charity, priding itself as "one of the nation's premier poverty law centers" was a hub of racketeering by Countrywide's Chief Legal Officer Sandor Samuels for almost a decade.

::::::::

Request for compensation, filed today with Bet Tzedek, the Los Angeles "House of Justice", one of the highest visibility institutions of the Jewish Federation of Greater Los Angeles, provides evidence that the charity, priding itself as "one of the nation's premier poverty law centers", was for almost a decade a hub for racketeering by Countrywide's Chief Legal Officer Sandor Samuels - a key figure in the financial crisis that impoverished millions of Americans - through collusion of large law-firms, judges, and banksters. The distinction of Los Angeles County by FBI since the early 2000s as "the epicenter of the epidemic of real-estate and mortgage fraud" was no coincidence...

_____

OccupyTLV, December 22- in late October, Bet Tzedek, the Los Angeles "House of Justice" - a prominent Los Angeles Jewish charitable institution and an affiliate of the Jewish Federation of Greater Los Angeles - issued announcement of the appointment of Attorney Jessie Kornberg as its new President and CEO. [ⁱ] In that capacity, she replaced Sandor Samuels, former Countrywide Financial Corporation Chief Legal Officer, and former Bank of America Associate General Counsel. The replacement of Mr Samuels as Bet Tzedek's President comes in the wake of the record "settlement" of Bank of America, as Countrywide's successor, relative to fraud practices of Countrywide mortgage operations, [ⁱⁱ] and record sums paid to whistle-blowers in the same matter. [ⁱⁱⁱ] In past years, Mr Samuels was advertised on the Bet Tzedek web site as one who was responsible for all legal matters in Countrywide Financial Corporation. As such, Mr Samuels should be deemed one of the key figures in the financial crisis and the related rampant foreclosure fraud epidemic, which impoverished millions of Americans.

Attorney Jessie Kornberg was appointed in late October 2014 President and CEO of Bet Tzedek -- the Los Angeles "House of Justice" - one of the most visible charities of the organized Los Angeles Jewish community. Now she is asked to compensate Dr Zernik, a victim of the conduct of her predecessor, Countrywide Chief Legal Officer Sandor Samuels, from his office on Bet Tzedek premises.

_____

At the same time, Bet Tzedek advertises itself as "one of the nation's premier poverty law centers", and one that specializes in protecting the needy against housing fraud.

The absurdity apparently never registered with Bet Tzedek and the Jewish Federation of Greater Los Angeles, with whom Bet Tzedek is affiliated.

Part of the Bet Tzedek web site on June 20, 2007.

A day later, Dr Zernik hand delivered a request for help to Sandor Samuels in his capacity as President of Bet Tzedek in the Bet Tzedek office on Fairfax Avenue in Los Angeles. Mr Samuels was asked to help in stopping housing fraud, then being perpetrated by the Countrywide Legal Department under his leadership. Within 24 hours after filing of the request, the entire Bet Tzedek web site went down. When it came up again, it included neither any mention of the "Fraud Buster" campaign, nor of Mr Samuels himself.

_____

The only reference to Mr Samuels, her predecessor, in the announcement of Ms Kornberg appointment misrepresents the length of Mr Samuels tenure as Bet Tzedek's President:

"Her appointment continues a pattern of young leadership for the organization. With the exception of Kornberg's immediate predecessor, Sandor Samuels -- who resigned this past summer and was 58 years old when he was hired in 2010 -- previous leaders have been in their 30s or even younger."

Request for compensation, which was filed today with Attorney Kornberg, details evidence of fraud by Bet Tzedek's Sandor Samuels in collusion with other former and current Bet Tzedek senior officers: Attorney David Pasternak - current Bet Tzedek Board Member, former Bet Tzedek President, and former President of the Los Angeles Bar Association, and Terry Friedman - current Bet Tzedek Board Member, former Bet Tzedek Executive Director, and former California Judge. [^iv]

The request for compensation reveals a troubling pattern of conduct by Bet Tzedek, by the Los Angeles Jewish community, and by the Los Angeles legal profession. It also provides unique insights into the criminal activity that underlies the financial crisis, and the reasons for the failure to prosecute the culprits in what is likely to be the biggest heist in human history. The request also provides new insights into how Los Angeles County came to be distinguished in FBI reports already in the early 2000s as "the epicenter of the epidemic of real-estate and mortgage fraud", which hatched the financial crisis.

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.

_____

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".

______

• 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

In 2004, wrongs started with a straw-buyer attempt to purchase the victim's property at 320 South Peck Drive, Beverly Hills, then offered for sale. The straw-buyer was Ms Nivie Samaan. Records, discovered much later, showed her lack of qualification. Her fabulously fraudulent loan applications stated that her source of funds was a business engaged in the online sale of Tarot cards, crystal balls, and divining rods... The transaction was to be financed by Countrywide Home Loans, a subsidiary of Countrywide Financial Corporation, through the fraudulent funding of government-backed residential mortgage loans.

By the early 2000s Jay Arre Lloyd (formerly Timothy Lloyd Morrow) was a convicted felon on financial crimes (embezzlement of ERISA funds) at Skyline Funding, Inc. By 2004, he was a "Loan Originator" for Countrywide Home Loans, and forged the fabulously fraudulent residential loan applications for Nivie Samaan - the straw buyer on Dr Zernik's Beverly Hills residence - in collusion with Countrywide's San Rafael Branch Manager Maria McDonald. By 2005, after the straw-buyer scheme had failed, Lloyd was running a much more elaborate fraud scheme in the Los Angeles Superior Court in collusion with Countrywide's Chief Legal Officer Sandor Samuels, a pack of Los Angeles Superior Court judges, led by Rampart Judge Jacqueline Connor, and some of the largest law-firms in the nation. All along, the Beverly Hills Police Department and its Chief David Snowden refused to accept fraud complaints against Lloyd. And the Beverly Hills City Council refused to hold the police accountable. Today JR Lloyd is President & CEO of the Beverly Hills Capital Group.

_____

The scheme was the brainchild of Mr Jay Arre Lloyd (formerly Timothy Lloyd Morrow), then a "Loan Originator" for Countrywide Financial Corporation, and later Ms Samaan's husband. Lloyd was then also a convicted felon on financial crimes (embezzlement of ERISA funds) at Skyline Funding, Inc, where he had been a senior officer. Today JR Lloyd is President & CEO of the Beverly Hills Capital Group. In deposition, Samaan admitted that Lloyd was the one, who forged her loan applications. The evidence shows that he did so with full knowledge and collusion of Maria McDonald, then head of Countrywide Home Loans San Rafael branch.

However, the straw-purchase scheme failed, since the preposterous fraud in the Samaan's loan applications was immediately detected by Diane Frazier, then Senior Underwriter in the Countrywide Home Loans San Rafael branch. As found out much later, Ms Frazier suffered serious retaliation for her honest conduct in this matter.

From 2005-2010, such wrongs continued through simulated court actions by Samaan against the victims. The cause of action was "Specific Performance" of a contract that was never filed by the Plaintiff in court, a classic case of Statute of Frauds... The preposterous claims were elaborated only much later - that the fraud victims had caused Ms Samaan's failure to obtain her mortgage loans from Countrywide.

Initially, Countrywide was not a party to the case at all. the seller had no business relationship with Countrywide, and did not even recognize the name "Countrywide" until late 2006. However, later it was discovered that on the opening page of the electronic Register of Actions (California docket) of the case in Sustain (IT system of the Los Angeles Superior Court), Judge Jacqueline Connor secretly and wrongfully listed Countrywide - "Real Parties in Interest".

Mr Sandor Samuels, then President and CEO of Bet Tzedek, doubled at the time as Chief Legal Officer of Countrywide Financial Corporation. On the Bet Tzedek web site he was described as holding the responsibility for all legal matters in Countrywide.

Moreover, at that time, Mr Samuels, in his capacity as Bet Tzedek President and CEO, advertised his ongoing "Fraud Buster" campaign against housing and mortgage fraud, conducted in churches and synagogues throughout Southern California.

Furthermore, when the fraud victim tried to seek help from local Los Angeles agencies, he was informed that Bet Tzedek was delegated by such agencies the responsibility for handling complaints, pertaining to housing and real estate fraud in Los Angeles.

Then and now, Bet Tzedek also advertises housing fraud as one of its areas of expertise.

Key event in this ordeal took place in June 2007 in the Bet Tzedek office on Fairfax Avenue in Los Angeles. By that time the fraud victim discovered that Countywide and its Legal Department were behind the fraud being perpetrated against him. Given Bet Tzedek's and Mr Samuels' then ongoing "Fraud Buster" campaign, and following the referral by local Los Angeles agencies, he filed in the Bet Tzedek office a request for help, personally addressed to Mr Samuels in his capacity as President and CEO of Bet Tzedek. Mr Samuels was asked to help in stopping the fraud, being perpetrated against him by Countrywide and its Legal Department.

Within 24 hours, the entire Bet Tzedek web site was down. When it came up again a few days later, there was neither mention of Mr Samuels' "Fraud Buster" campaign, nor of Mr Samuels himself on the Bet Tzedek web site.

However, a few days later, Countrywide and Mr Samuels launched a harassment, intimidation, and retaliations campaign against the fraud victim. The law-firm of Bryan Cave LLP started appearing in the court case initiated by Samaan. Attorneys from Bryan Cave LLP purportedly appeared in court on behalf of Countrywide, while lacking authority as Counsel of Record in the case.

The "unethical" appearance of unauthorized counsel, often with "no communications with client" clause, was a routine practice of Countrywide's Legal Department in courts throughout the Untied States under Mr Samuels' leadership, as was later fully documented elsewhere. [^vii]

Brian Cave, LLP, filed papers in court on behalf of Countrywide under ever changing false party designations - "Plaintiff", "Defendant", "Intervenor", and others, all without any legal foundation. Brian Cave LLP also filed in court a paper on behalf of Mr Samuels himself under the false party designation, "Person In Interest".

The "unethical" filing of false records in court by Countrywide's outside attorneys was later the immediate direct cause of Countrywide's collapse -- one of the key opening events in the current financial crisis. [^viii]

Former President of the Los Angeles Bar Association, former Bet Tzedek President, then and now Bet Tzedek Board Member David Pasternak as well as former Bet Tzedek Executive Director, now Bet Tzedek Board Member Terry Friedman were also key figures in the scheme.

FBI veteran James Wedick, decorated by US Congress, by FBI Director, and by US Attorney General, is one of the fraud experts, who opined regarding the fraud committed by Bet Tzedek's officers. Wedick also explained by FBI would not provide protection -- since the case involved numerous judges of the Los Angeles Superior Court.

_____

Suffice is to point out the fraud expert opinion, which was issued by veteran FBI agent James Wedick in this matter after reviewing a large volume of Los Angeles Superior court papers in the case. Mr Wedick is probably the most highly acclaimed fraud expert in the United States today, having been decorated by US Congress, by US Attorney General, and by FBI Director. Regarding the Grant Deeds, pertaining to the Beverly Hills property, generated by Mr David Pasternak, Mr Wedick opined "fraud being committed". [^ix]

Regardless of fraud expert opinions and mounting credible evidence of such wrongful conduct by Countrywide and others, all local, state, and national agencies refused to accord the fraud victim equal protection under the law during the years of the ordeal. Even a Congressional Inquiry by Senator Dianne Feinstein on FBI Director and on Director of the US Attorneys' Office failed to provide any remedy.

On August 21, 2008, FBI called fraud expert James Wedick to discuss Dr Zernik's case, and Wedick tried to argue that FBI should provide Dr Zernik protection against the fraud being committed by Countrywide's Sandor Samuels and the Los Angeles Superior Court judges. On the same day, FBI Assistant Director for Criminal Investigations Kenneth Kaiser provided Senator Dianne Feinstein false response on her Congressional Inquiry on FBI Director John Mueller III, on behalf of Dr Zernik. Kaiser falsely wrote to Feinstein that Dr Zernik's complaint originated in foreclosure actions. Then Director of the US Attorneys' Office Kenneth Melson (later of fame in the "gunwalking" scandal), likewise provided false response on Senator Feinstein's Congressional Inquiry on Attorney General Eric Holder in the same matter. "-Supervisory Special Agent at FBI Los Angeles Steve Goldman received Dr Zernik's first complaint in the case in January 2007, a full year before Countrywide's collapse. The complaint documented Countrywide's large-scale sub-prime mortgage fraud, and racketeering by Countrywide's senior management in collusion with Los Angeles large law firms and Superior Court judges. Goldman explained to Dr Zernik, 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"...

_____

An August 2008 email message from Mr Wedick documented contact made with him by FBI to discuss the case. In that conversation, Mr Wedick tried to convince FBI to duly accord the fraud victim equal protection. [^x] Such communication took place on the very same day that FBI Assistant Director for Criminal Investigations Kenneth Kaiser issued a false response on Senator Feinstein's Inquiry. In his response to Senator Feinstein, Kaiser falsely stated that the case originated in a foreclosure action.

Later, the Inspector General of US Department of Justice refused to address Senator Feinstein's Congressional Inquiry, pertaining to the false response by FBI Assistant Director for Criminal Investigations Kaiser on Senator Feinstein's original Congressional Inquiry in the case.

Throughout the ordeal, as Defendant in such case, it was impossible to obtain honest legal representation in Los Angeles County. Several attorneys, engaged in what should be deemed "unethical" conduct. In one extreme case, a (Jewish) attorney had Defendant's signature forged and papers, which were forwarded to the attorney for filing in court, were adulterated, as discovered upon inspection of the court file. In two other cases (Jewish) attorneys, who were retained, abruptly withdrew from representation, stating that they were fearful of retaliation against them.

As a result, Defendant was left unrepresented since 2007, forced to invest most of his waking hours studying the case, studying the law, and handling the wrongful campaign, which was waged against him under the leadership of Mr Samuels.

Regardless of the fact that Defendant, the fraud victim, had no legal background, once he studies the matter, he was easily able to detect numerous examples of preposterously wrongful conduct by attorneys and judges in this case, while they were being committed, and often to anticipate their next steps.

Conduct of the California courts, California attorneys, and justice agencies in this matter was part of the evidence, which was submitted by Human Rights Alert (NGO) to the UN Human Rights Council for the first ever Periodic Review of Human Rights in the United States (2010). The submission was incorporated into the UN Periodic Review Report (2010) with the note: "Corruption of the courts and the legal profession and discrimination by law enforcement in California". [^xi]

Conduct of the US courts in related matters is part of the evidence submitted by Human Rights Alert (NGO) for the Periodic Review Human Rights in the United States, scheduled for January 2015. [^xii]

The organized Los Angeles Jewish and legal communities vis a vis the financial crisis

The story is not unique. Millions of Americans have been impoverished in the ongoing financial crisis through a multitude of variations of the conduct, outlined above.

As one who also happened to be then a member of the Los Angeles Jewish community, and at times also participated in fund-raising for the Jewish Federation of Greater Los Angeles, the rude awakening that was experienced by the victim in this case was one of the painful parts of the ordeal.

Throughout those years, leaders of Bet Tzedek, leaders of the Jewish Federation of Greater Los Angeles, leaders of national Jewish organizations (e.g. ADL -- the Anti-Defamation League) were repeatedly informed of the conduct of Bet Tzedek and its senior officers. [^xiii]

Without exception, they failed to respond, and also failed to take any effective corrective action.

Likewise, senior rabbinical figures in Los Angeles and beyond were repeatedly informed of the conduct of Bet Tzedek and its senior officers. Regardless, Mr Samuels continued to be honored through membership on the boards of directors of key Los Angeles Jewish institutions, and Los Angeles rabbis refused to address his conduct, which I was reporting.

Rabbi Michael Lerner was and is a notable exception.

With today's request for compensation, hope was expressed that Bet Tzedek's new President would respond in a way that would document that conduct, which was documented in the request was only an aberration, and that the change of guards in Bet Tzedek indicated that the organized Los Angeles Jewish community and the Los Angeles legal profession were on a new path.

End-note: A transforming growth experience

My experience through the Countrywide/Bet Tzedek/Los Angeles Superior Court was a transforming life event. It forced me to expand my knowledge in fields, where I had no interest before. Eventually, I founded Human Rights Alert (NGO), and my research on related matters led to my recognition as an expert on human rights, particularly pertaining to banking and legal fraud, and the criminal foundation of the current financial crisis. [^xiv] My writing on such matters has been repeatedly included in UN Human Rights Council reports. [^xii,^xv] It was also repeatedly published by media and by peer-reviewed academic journals. In recent years, I have also repeatedly presented on these subjects in international academic conferences. [^xvi] My most significant, original contribution in these fields is probably in the employment of IT system analysis and data-mining as the foundation for human rights reports.

Any funds that I may receive in compensation from Bet Tzedek, would also assist in funding such ongoing activities for the general public good.

It remains to be seen if and how Bet Tzedek's new President and CEO and the Los Angeles Jewish community address the challenge...

LINKS

(Article changed on December 23, 2014 at 06:08)

(Article changed on December 23, 2014 at 06:38)

Authors Website: https://www.scribd.com/Human_Rights_Alert

Authors Bio:

Dr Zernik's core research pertains to e-government and its significance for Human Rights and Civil Society.

His work won appreciation in Israel and abroad:
* Prof Uzzi Ornan - "All power to you! I hope that you see your tremendous efforts reach fruition!"
* Attorney Avigdor Feldman - "In my opinion you are doing very important work" thank you for your thorough and persistent work".
* Prof Amnon Shashua, Mobileye Co-founder - "" very important work".
* International experts, as part of anonymous peer-review - "" challenges current concepts in the field".
Four submissions, which he authored on behalf of Human Rights Alert - NGO, were incorporated into UN Human Rights Council Periodic Reports regarding the US or Israel (2010, 2013, 2015, 2018). His research has been presented and published in international academic conferences, including Data Mining (2010), Criminology (2012), E-government (2015, 2017), and were also cited in a textbook on "Machine Learning".
Online updated version: http://www.scribd.com/doc/46421113/