“In a federal RICO complaint, homebuyers claim that Washington Mutual’s, and its successor JP Morgan Chase’s reckless lending to unsophisticated borrowers whom they knew could not afford their mortgages was a “nationwide Ponzi scheme.”
Posts Tagged ‘JP Morgan Chase’
JP Morgan Chase sued as ponzi scheme
June 1, 2009Chase gouges homeowners on insurance: suit
April 28, 2009“JP Morgan Chase gouges homeowners for temporary insurance, a class action claims in Federal Court. The named plaintiffs say Chase charged $403 for 20 days coverage, which it bought from its own subsidiary or affiliate, American Security Insurance Co. That works out to $7,300 a year for coverage for which they were paying $500 annually. They claim more than 100,000 people could be affected. ”
Lawsuit: Mortgage scam led by pastor
January 12, 2009
JP Morgan Chase is suing Pastor Michael Wilkerson, his wife, some members of his church, the lending company, American Group Mortgage, title company, real estate agents and others for setting up straw men buyers of several parcels of property at inflated prices and then selling them for much less than the mortgage price at which Chase purchased them for, from the original lender. Chase attempted to force AGM to repurchase the loans as required under the agreement but they have refused. (No money?)
If these allegations are true, its emblematic of what went wrong during this bubble; people and institutions embodying trust – pastor, mortgage and title companies as well as brokers and individuals gamed the system, turned real property into fake money. Its very Madoff and all the rest.
Complaint courtesy of Courthousenews
