Lawsuit Alleges Banksters Violated PATRIOT ACT

Among Claims including malfeasance, statutory violations, and unfair business practices, a California team of attorneys is accusing the nation's largest lenders of violating “proof of funds” provisions of the USA PATRIOT ACT.

The law firms of Kramer & Kaslow and Mitchell J. Stein & Associates claim, on behalf of a client list numbering on the thousands, that over 62 MILLION mortgages held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry, could be “foreclosure-proof.”

The claims, made in what are described as “mass-joinder” cases, assert that California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles—and therefore to foreclose on mortgaged properties.