Mortgage Fraud Blog - AG Settles with 5 Lenders Involved in Foreclosure Rescue & Brings in 4 New Parties

AG Settles with 5 Lenders Involved in Foreclosure Rescue & Brings in 4 New Parties

Attorney General Martha Coakley has filed a proposed settlement with the U.S. Bankruptcy Court in Boston, Massachusetts, with five mortgage lenders that funded loans which facilitated fraudulent foreclosure rescue transactions orchestrated by Brockton, Massachusetts attorney Alec Sohmer. The Attorney General, together with the Chapter 7 trustee in Sohmer’s bankruptcy case, have requested bankruptcy court approval of the settlement, which impacts 26 residential properties that are part of Sohmer’s bankruptcy case. The Attorney General filed a Motion to Amend the Complaint to add the closing attorney who conducted the transactions, another attorney who referred distressed homeowners to Sohmer in exchange for a fee, and a mortgage broker who arranged financing for many of the deals.

Four professionals were named in Monday’s Motion to Amend the Complaint, whose participation was essential to the continuation of Sohmer‘s scheme:

Andrew Palmer, Norwell, Massachusetts, is the attorney who closed all the transactions, drafted false Housing and Urban Development Settlement Statements depicting false information about the transactions, and collected attorneys fees and title/closing insurance commissions for each closing.

Shaun Ellis, Sagamore, Massachusetts, is a Sandwich-based attorney who referred clients to Sohmer and accepted referral fees and/or other benefits from Sohmer for the referral of clients who ended up victimized by Sohmer transactions.

Edward de la Flor, Londonderry, New Hampshire, is the primary mortgage broker.

Carteret Mortgage Corporation, based in Centerville, Virginia, with offices in Boston and Charlestown, is the mortgage broker/originator and de la Flor’s employer. The corporation originated and brokered many of the loans involved in the Sohmer transactions. Both Carteret and de la Flor profited from the transactions by collecting closing points, commissions, yield spread premiums, sales bonuses and other fees.

“These fraudulent foreclosure rescue transactions never would have occurred without the participation of mortgage lenders and closing attorneys that represented mortgage lenders,” said Attorney General Martha Coakley. “This settlement is designed to return homeowners to their financial position before Sohmer arranged foreclosure rescue transactions that stripped their home equity and required payment of Sohmer’s fees and high settlement costs.”

Under the terms of the proposed lender settlement, filed late last week, the lenders will pay restitution to the homeowners victimized by Sohmer’s fraudulent scheme by reducing the outstanding mortgage liens on the homeowner’s properties. As a result of these transactions, 26 homeowners transferred title of their homes to Sohmer. Under the terms of the agreement, the original homeowners can reclaim their property by paying a reduced mortgage obligation instead of the inflated mortgage loan arranged by Sohmer. In total, across 26 properties, the settlement would provide approximately $1 million in reduced mortgage obligations.

The properties include:

36 Restful Lane, Wareham, MA
389 Centre Street, Hanover, MA
9 Midway Street, Wareham, MA
28 Vineyard Avenue, Oak Bluffs, MA
57 Stage Coach Road, Centerville, MA
2 Belgian Road, Danvers, MA
667 Bridge Street, E. Bridgewater, MA
49 Courtland Street, Middleboro, MA
5 Joe Jay Lane, Forestdale, MA
15 Beechwood Drive, Mashpee, MA
73 Adams Avenue, Pembroke, MA
19 Shangri-La Blvd., Wareham, MA
3 Lady Allison Way, Bourne, MA
27 General Patton Drive, Hyannis, MA
23 Roxanne Road, Pembroke, MA
71 Legion Parkway, Suite 23, Brockton, MA
200 Cordwainer Drive, Suite 301, Norwell, MA
159 Green Street, Weymouth MA
10 Samoset Road, Mashpee, MA
420 High Street, Bridgewater, MA
1 Diamond Street, Plymouth, MA
23 Primrose Lane, Middleboro, MA
46 Bourne Neck Road, Buzzards Bay, MA
72 Purchase Street, Carver, MA
7 Butterfield Lane, Walpole, MA.

The lenders agreeing to the settlement to date are: First Horizon Home Loans; Option One Mortgage Corp.; Wells Fargo Bank, N.A.; America Brokers Conduit; and Ocwen Loan Servicing, LLC. Additional lenders may participate in advance of an October 15th hearing before the Bankruptcy Court.

Assistant Attorneys General Christopher Barry-Smith and Jacqueline Welch of Attorney General Martha Coakley’s Consumer Protection Division are handling this matter with the assistance of Liam Lowney and Ashley Cinelli of the Victim Services Division, financial investigator Christine Murphy, and paralegal Yolanda Kruczkowski.

mortgage fraud

Why isn’t this guy in criminal court?

Posted by on 09/19 at 10:00 AM

Attorney General Martha Coakley gets 1 Million for 26 Massachusetts Homeowners in Mortgage Fraud Scam-

Atty. David G. Baker of Boston, who represents many victims in the Mortgage Foreclosure rescue scam case of Alec G. Sohmer, writes letter to the Herald Editor in response to AG Coakley’s Pre-emptive media strike to try to save face on a bad deal to Mortgage Foreclosure rescue scam victims that would make them more eligible for residence at the pine street inn than save them from losing their homes as promised by AG Reilly-
“The Herald recently published a short article by Jerry Kronenberg stating that attorney general Martha Coakley got Wells Fargo and four other lenders to pay $1 million to 26 Bay State homeowners allegedly victimized by a foreclosure rescue scam run for attorney Alec Sohmer. The reality is far different. In the view of at least one of Sohmer’s victims, the settlement with the lenders reached by the attorney general and Sohmer’s bankruptcy trustee, a copy of which is attached, is a travesty that leaves the homeowners with a Hobson’s Choice: take the deal or lose their homes, either to foreclosure or to sale by Sohmer’s bankruptcy trustee. The deal requires most of the homeowners to absolve the lenders of any responsibility for their part in the scheme and to PAY the LENDERS hundreds of thousands of dollars within 90 days. Bill Nazario - one of the victims - sent a letter to the bankruptcy judge protesting the settlement and asking the judge not to approve it. Since the letter is a part of the bankruptcy court’s file and is a public document, a copy is attached.”

The letter referred to is in my other article I posted this evening. Coincidently when the AG was contacted by one of the homeowner’s, Ron McCallum, Wareham, They were clueless when he asked him for his share. I gave an interview with Jennifer Jarvis of the standard times today and with Mont Fennel of NECN.

In a meeting held on September 10th 2007, members of the AG’s Office, Chris-Barry Smith and Jacqueline Welch explained the deal to victims of the scam in far different terms than the ones filed on morning of September 11th. The terms they stated at the meeting mentioned nothing of having ninety days to get a new mortgage or get sold at auction by Bankruptcy Trustee Harold Murphy of the law offices of Hannify and King in Boston who is handle Sohmer’s Chapter 7 Bankruptcy.

I called Jacqueline Welch today for comment but she has yet to respond.

In speaking to other fellow victims in the case they vast majority feels as if AG Martha Coakley has “sold them out”.

Letting the mortgage lenders off the hook when they are as culpable for the scam as Alec Sohmer just doesn’t cut it. They had a responsibility in ensuring that these transactions were legit. They hired attorney’s who acted on their behalf and they had underwriters who signed off on each and every one of these deals and they should have realized what they were getting themselves into. The victims were on the brink of foreclosure and many of them had options with the Bankruptcy Court that would never have even taken them down this road. However, the bankruptcy lawyer that I had, Atty. Shaun Ellis of Sandwich, who was recently arrested in Harwich for pulling a loaded 9mm handgun on a CVS Pharmacy employee, never informed us and sent us to this criminal who wanted to scam us while he collected a nifty referral fee.

Many people tend to believe that lawyers are crooked, but the truth is that Lawyers are officers of the court. We depend on them to represent us, interpret the law for us, and guide us into a path that would protect our interests. Based on that we trusted them. These are individuals who had abused their authority as officers of the court and took advantage of people in a moment of despair. Hmmmmm, does that make Alec Sohmer and his bunch any better than the accused Doctor, Teacher or Preacher who rapes another. Well maybe that analogy was over the top. But, I think it’s close.

Stay Tuned!!!!!

Posted by on 09/20 at 05:49 AM

please be aware that you have made a very critical mistake in your report on the article as labeled above, AG Settles with 5 Lenders Involved in “Foreclosure Rescue & Brings in 4 New Parties” the proposed settlements force the victims to sign relsases for no further lawsuits be taken against any of the parties, they do not modify a settlement that would reflect that or make it acceptable for the victimized parties and more importantly, you have 3 addresses included in the 26 that should not be there… as we are one of their victims, please do not confuse the criminals as one of us…
thank you,
Barbara R Bryson
1 diamond Street
Plymouth, MA

23 Roxanne Road, Pembroke, MA - ALEC SOHMER’S HOUSE

71 Legion Parkway, Suite 23, Brockton, MA - ALEC SOHMERS OFFICE

200 Cordwainer Drive, Suite 301, Norwell, MA- ANDREW PALMER’S OFFICE

HMMMMMMM! YOU MEAN SOHMER AND PALMER WERE VICTIM’S TOO???

Posted by on 09/21 at 03:21 AM

I called Jacqueline Welch today for comment but she has yet to respond.

In speaking to other fellow victims in the case they vast majority feels as if AG Martha Coakley has “sold them out”.

Additionally Martha Coakley’s Office Reported 26 familes. If you pay attention to the list there are three addresses that do not belong there:
71 Legion Parkway- Alec G. Sohmer’s Office

23 Roaxanne - Alec Sohmer’s main home

200 Cordwainer- Andrew Palmer’s Office

Hmmmmm, Guess they are victims???

Posted by on 09/21 at 08:20 AM

I am a victim in this case. I have alot to say. These victims had options that were not disclosed to them. Many of the victims were rushed through closing and in all cases took lees than 15 minutes. No paperwork was given to the homeowners and Sohmer refinanced the properties to their limits, some of them were refinanced for more than the property values. He made fraudulant statements on the HUD 1 forms indicating that he paid homeowners checks for up to $150,00.00. The issues is that he and his co-defendants used predatory, deceptive practices and took advantage of folks. There are laws about full disclosure. In many cases Sohmer told homeowners that he was acting as their attorney. Typically he would wait until the day before auction to pressure the closing.

So Rachel do not even say that there is a risk involved here. You do not enter these agreements and shell out 100% of the fair market value. Typically you, pay the payoff. You obtain a mortgage that would satisfy your fees so you get your money and if you have to evict, you flip the house for it’s fair market value. What risk??? Sounds like a win win to me.

Read this excerpt from a letter to the AG. Tell me what kind of pigs these guys are. If your practice is not above the boards completely, beware, we will no longer stand for it:

“In our case as in many others, Alec G. Sohmer was introduced to us by Attorney Shaun M. Ellis of Sandwich after convincing us to dismiss our chapter 13 and go with Sohmer’s deal.

Attorney Shaun M. Ellis represented both myself and Sigrid in Bankruptcy proceedings in the past and has established a relationship of trust between attorney and client.

Attorney Shaun M. Ellis and his wife Annie were well aware of the fact that Sigrid and I suffered tremendously while attempting to bring our lives back in order in 2001.

Attorney Shaun M. Ellis and Alec Sohmer were well aware that we lost a family member on flight 11 in the September 11th, 2001 attacks on the World Trade Center. Sonia Morales Puopolo was an inspiration to our family and a true testament to all that was humanly decent. Her loss deeply affected all of our family. Her life and legacy of giving back to the community was well documented as was the efforts of her son Dominic J. Puopolo who spent almost three hundred thousand dollars of his own money putting himself into financial destitution to help the governments of the United States and the Federal Republic of Germany serve justice upon two of the terrorists of the Hamburg Cell that assisted the other 19 terrorists. A well respected and well loved person and family member and true pillar of the community of the decent and humane was lost that day.

Attorney’s Ellis and Sohmer were well aware that two months and eight days following those attacks, my wife Sigrid was involved in a near fatal single car accident while returning from her newly acquired job as a Nursing Supervisor at a Cape Cod nursing home. She suffered a hypoglycemic episode losing consciousness while operating her car on Macarthur Boulevard. The car jumped a turnaround and flew seven feet into the air striking a tree and landing on its wheels. She sustained several life threatening injuries and was resuscitated at the scene and in the Med-Evac Helicopter while on route to Boston Medical Center where she was treated for her injuries with emergency surgery. She suffered from internal bleeding caused by an obliterated spleen, broken ribs and punctured and collapsed lungs. She had suffered a head injury that took surgery to close the wound. She was in a coma for almost two months. I lost my job and custody of my son to DSS. I was emotionally devastated and had completely fallen apart. We were devastated.

She has been recently diagnosed with Liver Cancer.

Having said this, we hope that you realize that we were taken advantage of while in a state severe despair. In hind sight we could have filed a chapter 7 conversion and requested the reaffirmation of our mortgage with Option One. Our situation was completely avoidable and the defendant(s) knew it. Yet they still proceeded to convince us that this was our final solution.

Their actions were at the very least “criminal” and they should be dealt with accordingly.

Justice demands that these defendants be punished.

Justice demands that the victims in this case be completely restored to a better position.

Justice demands that these defendants never be allowed to practice law anywhere within the realm of the Commonwealth.

Justice demands that an example be made of these defendants that would send a clear message to anyone that would dare take advantage of another by means of the blatant abuse of the power and authority granted on to them as Officers of the Court of the Commonwealth that this will not be tolerated...EVER!

Thank you for your time.

Respectfully,

William J. Nazario

Posted by on 09/21 at 08:25 AM

I have a mortgage with OCWEN Mortgage. They have not paid my property taxes in 2-years. They gladly accept my mortgage payment every month and the amount that goes in to my escrow account to pay the taxes. I have been calling them for 2-years and spent hours and hours on the phone with them, they will do nothing. Now my house is in forclosure because they haven’t paid the taxes. Can someone help me please? At least can someone investigate OCWEN. I spoke to another person today that had the same thing happen to him with OCWEN. In my small little world that makes 2 of us...no telling how many of us are out there.

Posted by on 03/11 at 12:12 PM

Coakley panders to Lenders in Sohmer Case.

Latest Settlement Offer Same Pig Different Lipstick!!!

By Bill Nazario

Saturday, 12 April 2008

BOSTON, MASSACHUSETTS- The Attorney General of the Commonwealth, Martha (Stuart) Coakley along with her chief victim basher Chris Barry Smith with the help of Bankruptcy Court Trustee Harold (cut and paste) Murphy, once again showed that they are pandering to the lenders, who in the words of Chris Barry Smith - “Without the help of these lenders Alec Sohmer could not have perpetrated this scheme”, came up with yet another settlement offer that appears to be the same pig dressed up in a different shade of lipstick! The so called “lengthy negotiations” that took place which brought them to the current settlement offer in this case must have been strenuous, what with all that cutting and pasting in the master word document done by some low paid paralegal in a cramped cubicle. The victims were not invited for the marathon of what appears to be libation and snack gorging at the expense of the U.S. and Massachusetts Taxpayer because, in reading the settlement agreement it makes you say...what, were they high when they came up with this P.O.S?

Apparently, they just don’t get it. The entire country is in a housing crisis because of the sub-prime Mortgage crunch. Any why you ask? Because of millions of folks were subjected to predatory tactics used by unscrupulous lenders, brokers, bankruptcy attorneys and closing attorneys across the country. Now I know that many of the people bit off more than they could chew but there are also the victims who were in despair and were taken by the white collar hoodlums that have no better intentions than someone who would slit your throat for a bag of crack.

This is why there is a kind of “Second American Revolution” if you will. Not aimed at the government but aimed at corporate America because they are today’s tyrannical influence that is turning the American dream into the American nightmare. Anyone can see it as plainly as if it were a sign permanently attached to a stick jutting out of your forehead. Gas prices go up, goods and services go up, at will states can fire you for no good reason, people get blackballed from jobs, wages stay low and who wins.....THEM and the end result is that people are increasingly unable to afford to live anymore.

I stand with 22 other victim families in a fight to keep from further becoming victimized by yet another illusory settlement offer from the aforementioned group of the book smart and brain dead.

So because of all this I, a victim of Alec G. Sohmer of Pembroke and his associates, ask a simple question.... What is all of this worth?

Posted by on 04/15 at 10:13 AM

Continuation of previous article--

We, the 23 homeowners victimized by Alec G. Sohmer, Shaun Ellis, Andrew Palmer Cataret Mortgage and the various lenders, all came to this road for one reason or another in desperation from our circumstances. Some had hard times, some tragedy, some had financial collapse due to external situations beyond our control. We all have a story that has been told over and over again. Some of our stories were substantive with horrific events such as mine. These things we can never forget. Our very hearts, minds and souls will never permit it. This road has been filled with bumps and struggle only seemingly to be uphill at best. We can not forget what Sohmer and his henchmen brought upon us under the guise of a solution to all of our problems. We were made to feel that this solution was to redeem ourselves but it ended up being the dove that turned into the vulture. We sat here watching our very lives start to circle the drain as they benefited from our anguish. Former Attorney General, Tom Reilly promised that we would not lose our homes. He promised to bring us back to normal and bring us justice. Martha Coakley said that she would carry the torch but when she got it, she dropped it and began pandering to the lenders. We were all accused in a public meeting by AAG Chris Barry-Smith of being “Responsible” for our situations which drew an extremely heated response from me as I lambasted that moron for even implying it. He has never apologized to any of us for that brazen statement. Martha made us poster children for her agenda of tightening up lending requirements in the Commonwealth and in turn created a virtual wall that would prevent us from getting a loan. In the Desiree Case, a similar, well publicized case that practically mirrored this case, victim Diane Rayford has been to 23 lenders and may lose her home anyway.

The parties that created the agreement inflated mortgages, gave us ridiculous terms and kept us out of negotiations. The AG and Murphy’s offices have told some of us to take the deal or be forced to give up our homes anyway. Martha Coakley also released a illusory press article to polish her apple in the public eye stating that she got us a million dollar plus settlement. It never happened.

Meanwhile Sohmer’s gang is still practicing law.

Is it right?

What is it all worth to us?

How many of us suffered exacerbated mental illnesses over this? How many of our children lost faith in us over this and turned to self medication? How many of us have turned to self medication in order to temporarily “forget”? How many of us have stressed relationships and marriages over this? How many of us have suffered the indignity of having to explain this all over and over again? How many of us are being looked at as deadbeats by our neighbors because they don’t have an understanding of what’s going on here? How many of us feel dehumanized by the bumbling bureaucrats in Murphy’s and Coakley’s office?

Speaking for myself I have been devastated by the loss of my wife Sigi at age 49 to liver cancer on December 20th 2007. I am struggling to cope with it while trying to deal with my own health issues, disability and this case. How has this exacerbated my situation as I sit and put off surgery to my cervical spine while waiting for some relief that would be meaningful of this fight? How long does Sigi’s family have to wait for this to produce my escrow funds so I can bring her home to her mother so she can be laid to rest with her father in Germany? All of these questions add up to one ultimate question....

What is it all worth to us? What would be the ultimate solution to this question?

To the lenders: Give us our deeds, Titles, rescind the mortgages and walk away from it. They helped to perpetuate this crime against us.

To Sohmer, Murphy and the rest of the bunch: Give us our Escrow balances according to the HUD-1 statements and be prepared to pay the damages we deserve. We filed a motion as an emergency measure to get those funds released a day after my wife passed away. Yet Murphy blatantly fought this and tried to have me disqualified as a litigant in the wake of my wife’s death. Imagine what it must feel like to have you spouse’s ashes be held at the funeral home a full month while having to wait for money to finish paying the bill. I felt dehumanized to have to go to Catholic Charities 9-11 fund and ask them for $1500.00 to bring her beck to our home.

To AG Coakley: Bring us REAL JUSTICE not some dog and pony show surrounded by your own political agenda.

And to the readers, I ask you to support us as we go to the next hearing on April 22, 2008 at the 10:30a.m. at the Bankruptcy Court in the O’Neill Federal Building. I invite the media to be present and please call the Attorney General and let them know that you support the Nazario Victims in the Alec G. Sohmer Case.

Posted by on 04/15 at 10:18 AM

Dear Mrs. Dollar.

My agency is currently working with a very well know Mortgage Isurance Company.

We are in the need of finding Investigators who specialize or have a great knowledge of the field.

Would you be able to assist us in networking with anyone who you may know, if any.

Feel free to call. 443.783.9646

Thank you,

John M. Bukovack

Posted by john bukovack on 04/18 at 06:39 AM

Rescue me!

Posted by on 05/13 at 04:02 PM

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Wednesday, September 19, 2007

AG Settles with 5 Lenders Involved in Foreclosure Rescue & Brings in 4 New Parties

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