JPM Fraudclosure Whistleblower Emerges

Tyler Durden's picture

The one main thing missing from the recent escalation in charges against the major banks in regard to the fraudclosure scandal has been an internal whistleblower who can corroborate that all the charges against the various illicit mortgage practices. After all, it is one thing to lay allegations, and totally different for a court of law to find that these are validated. So far it is precisely the latter that has been missing as no court is willing to escalate an issue that could potentially unwind decades of mortgage securitization. Yet all that may be about to change. Daily Finance's Abigail Field presents the case of one Linda Almonte, a former employee of JPM, who is not only suing the bank for wrongful termination, but has now also filed a whistleblower complaint with the SEC. Filed says: "The core allegations add context to her lawsuit, and they charge Chase
with grotesque and illegal practices involving its credit card debt
processes, including robo-signing." Sure enough, JP Morgan is denying everything. Yet a close look at the details presented by Almonte indicates that either she is blatantly lying, or JPM may be in water just as hot as Bank of America.

Per the formerly confidential statement, Almonte's 5 main allegations regarding JP Morgan are as follows:

1. Chase Bank sold to third party debt buyers hundreds of millions of
dollars worth of credit card accounts. . .when in fact Chase Bank
executives knew that many of those accounts had incorrect and overstated balances.

3. Chase Bank executives routinely destroyed
information and communications from consumers rather than incorporate
that information into the consumer's credit card file, including
bankruptcy notices, powers of attorney, notice of cancellation of
auto-pay, proof of payments and letters from debt settlement companies.

4. Chase Bank executives mass-executed thousands of
affidavits in support of Chase Banks collection efforts and those Chase
Bank executives did not have personal knowledge of the facts set forth
in the affidavits.

5. When senior Chase Bank executives were made aware of these systemic
problems, senior Chase Bank executives -- rather than remedy the
problems -- immediately fired the whistleblower and attempted to cover up these problems.

Almonte's lawyer, George Pressly operates the http://www.secwhistleblowerprogram.org/ website, which is how she reached him. It is reasonable to expect that now that the first whistleblower has emerged from the crowd, many other former employees will soon follow, making the legal headache for JPM's general counsel only comparable to the fees about to be charged by the firm's outside counsel. Furthermore, should this case come to court, it will become a public spectacle that will likely make JPMorgan be perceived in the same utterly fraudulent light in which Brian Moynihan's bank is currently basking: the preliminary evidence, if proven to exist, is very damning:
To support her claims, Almonte says she has "a large volume of documents in her possession available for review by the SEC" and offers her first-hand observations as well.

Those direct observations allegedly include witnessing the head of Chase's pre-litigation group "shred" material communications from borrowers, such as "bankruptcy notices, settlement communications, and debt settlement company communications" rather than entering the information into Chase's database. She also claims that senior Chase Bank executives instructed Chase Bank employees remove important information and data from Litigation Accounts because the retention of the information would have resulted in increased computer hardware costs. Both types of record destruction rendered the accounts inaccurate, she says.

Concerning robo-signing, Pressly wrote:

"On numerous occasions, Ms. Almonte witnessed these Affidavit Signers work through at times 3-feet tall stacks of Judgment Affidavits at once during weekly multi-hour long, non-related company meetings. The notaries were not present at these meetings. The Affidavit Signers simply relied on hourly workers to reconcile amounts owed and then treated the actual execution of the affidavits as busy work to be performed while the Affidavit Signers could focus on other matters."

According to Almonte, determining the amounts owed wasn't easy: Chase had a number of "legacy" databases from its various acquisitions that were not well integrated. So, perhaps the executives should have looked more closely at the documents. "Indeed, Ms. Almonte determined that as many as 20% of the Judgment Accounts to be sold failed an internal test to check for accuracy."

As for the background on Almonte, here is what field dug up on the former employer:

During her time at Chase, Almonte was a "mid-level executive" who "supervised employees across the litigation and post-judgment functions" of the credit card litigation department.

In March, she sued the bank, claiming that she was fired for refusing to participate in the sale of 23,000 credit card accounts Chase had packaged for sale. Almonte says 5,000 of the accounts listed the wrong amount owed, and thousands more had other problems. By going forward with the sale after being informed of the problems, Almonte says, Chase was breaking the law.

Almonte's whistleblower complaint provides big-picture context for the sale she refused to participate in, providing background on how so many credit card accounts could contain flawed data.

To be sure, there may be some prior animosity which has only bubbled to the surface due to the termination, which may serve to diluate Almonte's claims somewhat, which may be perceived as retaliation. What will be far more useful is finding a whistleblower who is still in good standing and employed by either JPM or any of the other large mortgage lenders. We are confident that following this important example, many more far more credible cases will soon emerge. The result will be another major push against the auditors and FASB in general, to make even legally mandated price discovery irrelevant when it comes to the trillions of "assets" held on the bank books. Either that, or a prompt settlement with the various AGs who are currently investigating the bank and its peers, so as to remove any future legal standing of new claims to the bank's mortgage practices.

Full Almonte whistleblower complaint:

 

h/t Deadhead

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bobboberson's picture

Can't wait for these fuckers to crash and burn!

Cleanclog's picture

They should . . . but it'll probably be just another "fine" as wrist-slap and wink-wink carry on.  We're in a real pickle in this country when the elected officials, the regulators, and the courthouses are under the extremely powerful influence (some say payroll) of the financial and corporate elite.

Herd Redirection Committee's picture

Officials, regulators, and courthouses are part of the Oligarchy?  You damn straight, PsychoNews has been saying that since inception.

The Media is completely bought and paid for by corporate interests, as are the regulators.  The bankers are the lynch pin though, and that is why it is so important to combat Zimbabwe Ben, the Fed and its money out of nothing.

http://psychonews.site90.net

PsychoNews: Exposing the Oligarchy, one Psycho at a time.

Popo's picture

PsychoNews: Attempting to hijack yet another thread.

Please give it a rest.

Slash's picture

http://www.businessinsider.com/jessica-fashano-suicide-2010-12

 

looks like a citi banker had a sudden acute case of suicide.

bobboberson's picture

Probably saw something she wasn't supposed to.

Or...

"Fashano, an associate at Citi Global Markets, was according to reports active in philanthropy."

Or maybe she just discovered that her employer is single handedly responsible for a expressible percentage of the entire world's misery...

VeloSpade's picture

Fashano's death is quite shocking, but I doubt it was work related.  Circumstances seem to suggest her death preceded a relationship problem.

benburnyanki's picture

As usual just another vagina only concerned with what goes in it and what shoots out of it.

Yes women have a gun too like a black powder rifle you must jab with ram rod and bang stick in 9 months.

The Jewish/Russian Mafia has taken over the USA. All Bush's cabinet was Jewish. Hollywood is Jewish Mafia controlled. Banks are Jewish Mafia controlled. Universities back East are Jewish Mafia controlled. FBI, CIA, NSA, DEA, DHS, EPA, FDA, FCC, and Treasury are all Jew Mafia controlled.

Mayer Lansky Jew Mob Boss ran america, not the Sicialian Mafia folks.

We are so f**ked its not funny and all the crazy bitches that had babies in a world run by the Mafia are Mafia Dona Pigs who only care about what goes in and what comes out of their little fat asses.

Having babies around Mafia like smokin' cigarettes in gunpowder factory!

Men need to grab some tools and reapeat after me. This is my rifle, this is my gun. This ones for Mafia and this ones for cunt.

Ben Burnyankee say: "We wacked Jesus & JFK for Bank Bustin' and walked, and have a 40 foot container of Gringo Bar-B-Q sauce"

Read Best Bank Book "None Dare Call It Conspiracy":

www.filefactory.com/file/b422gc9/n/ndcic.pdf

Herd Redirection Committee's picture

If I am being accused of adding to the discussion, I stand guilty.

caconhma's picture

Since Goldman and JPM own the country, Fraudclosure business is going to nowhere. The Congress will fix it to the Wall-Street liking.

In any case, anyone must pay for the real estate holdings. Rent-free MacMansion living does not make any sense. The sooner foreclosures will be over the better for everybody (except for parasites).

trav7777's picture

if you are a hack at the SEC, your wet dream is to go to work for a major bank.  Here's a chance for quid pro quo...

StychoKiller's picture

Does Wikileakz have this info?  Is JPM their next target?

Lionhead's picture

Hell hath no fury as a woman scorned...

boooyaaaah's picture

Speaking of BAC, JPM

They have stopped the accounts of Assange the wikileaks founder
Has this man been found guilty?
Has he had due process?

Wadif it happened to you?

Your credit gone
Your bank accounts frozen

Are they the judge jury and sherrif

Are they the new royalty?

Should we not be greatful their decisive action?

Where is the DOJ protecting Assang's rights?

Where is the outcry from ZH

Every thing is fine until the crocidile begins to eye you

 

DavidPierre's picture

She would best stay out of hot-tubs...airplanes...autos!

... lose her cellphone and blackberry...

Move to new address every few days.

Not have a leather leash to walk her dog!

Did I miss anything?

 

 

RobD's picture

Stay out of Fort Marcy Park?

tbd108's picture

Don't go swimming in the sea like the guy who ratted out BP.

RobD's picture

Never a good idea to go anywhere where you are not the top of the food chain.

benb's picture

Well, if Linda Almonte is looking for work I hear David Rockefeller has an opening at his personal bank.

http://online.wsj.com/article/SB125297114071610275.html

GoinFawr's picture

Indeud RobD.

Connor MacLeod,

" I don't like boats, I don't like water. I'm a man, not a fish! "

 

 

breezer1's picture

you forgot about walking ahead of people carrying umbrellas and eating lunch with old friends and contacts with access to nuclear material. oh yeah, may as well give up eating without a food taster in your entourage as well as a car starter and a look alike. 

i'm sure i forgot something. i better go back into hiding.

ThisIsBob's picture

Don't be screwing any Swedish chicks.

AGoldhamster's picture

And another reason for Gold bitches on their way to 1600 for the final showdown with that wicked witch Blythe

living on the edge's picture

I certainly do not want an account at JPM. No major US bank either.

breezer1's picture

we have seen these cracks in the dam before. it may take a few more. keep an eye on FAZ for opportunity called the domino effect.

Cognitive Dissonance's picture

Whoops. Another inconvenient truth that exposes the Ponzi partners. Looks like the RICO crew needs to hire Mr. Wolfe to clean up this ugly mess. On second thought, even Mr. Wolfe can't keep this under wraps.

http://en.wikipedia.org/wiki/Pulp_Fiction

http://www.imdb.com/title/tt0110912/

http://www.youtube.com/watch?v=ANPsHKpti48

Calculated_Risk's picture

So pretty please, with sugar on top. Clean the fucking docs!

Yits and the Yimrum's picture

nice, sign up for Chase Sapphire; just don't send them any unwanted documents as they get feed to a high speed shredder

hope Chase is paying for Zero Hedge today; its a crazy f--king world, but ones's soul can be easily medicated with a retail blitzkreig around the Holidays!

Merry christmas to you unrully Zedgers.

velobabe's picture

bless your heart, dear. i support you one hundred %.

courage, babe. your just listening to your soul and heart.

i think you have some angels. around you. believe. please†

 

bankrupt JPM buy silver's picture

Who cares....just order another 5 trill from the ben bernank....too big too fail.  Case closed.  Buy silver.  Done.

unum mountaineer's picture

its always the employees who felt wronged is it not?

 

Cursive's picture

I'm sure the attack machine will be in full force on Linda Almonte.  I was a whistleblower at the publicly traded utility where I used to work.  It was brutal, but I survived until I found another gig.  Neither the management nor the board of directors were interested in correcting any of the problems.  Perhaps I'm biased, but I'll give Ms. Almonte's claims preference over the denials of JPM.

Kiwi Pete's picture

Yes indeed. How long till the rape charges appear? I'm sure they can dig up some poor bloke she took advantage of . Maybe she forced him to have sex without wearing a condom? I'm sure that's illegal in some states. Then they can render her to Guantanimo till she confesses.

GreenSideUp's picture

Best. Christmas. Present. Ever.

Thank you Ms. Almonte!  May you be the first in a long line of whistleblowers who take this evil monster down!

treemagnet's picture

Say what you will, but you gotta hand it to the courageous souls who step up and tell it like it is.  I'm from the very upper northern plains where quite frankly, very few can appreciate the value of labor - its nice today - about -5 degrees F.  I'm no saint - but I work hard and own without debt.  I know many, most - of you are the same.  But, for a moment - I have to stop and think of the courage and moral conviction it would take to live/work/and endeavor in a large metropolitan environment, scared to shit that they're after you, they know who you are, what you know, and that you're a threat......and still hold your ground for your limit of bullshit.  Whoever they are, I really very truly, truly, salute them.  Think of what they risk - think of what is taken from them along the way.  Do you ever wonder is a place like ZH could serve as a clearing house of sorts for the extreme secrets known by you?........thing of the possibilities?!

MachoMan's picture

Not to burst your altruistic bubble, but she only came forward after she was fired.  You talk about courageous souls, but all I see are shitbird opportunists.  If you want to take the moral high ground, don't give them your labor in the first place....  don't help them succeed.  This wasn't some bait and switch routine...  she was engaged in it like the rest and is jumping ship while there are life rafts available.

Let's call it like it is, she's likely a total piece of shit that, in the process of telling on her former employer, has interests similar to our own...  I'm not going to thank her for being a piece of shit, but I will appreciate the effort of others who utilize her information to attempt some semblance of justice.

myshadow's picture

"To be sure, there may be some prior animosity which has only bubbled to the surface due to the termination, which may serve to diluate Almonte's claims somewhat, which may be perceived as retaliation. What will be far more useful is finding a whistleblower who is still in good standing and employed by either JPM or any of the other large mortgage lenders..."

 

Waitaminute.  You don't think it would be SOP at anyone of these squidhouses to do just that.  As soon as someone starts 'to the right thing', they start fitting them with a disgruntled/incompetant/loose cannon, frame?

If she has documents and a linear paper trail she can be called every name in the phone book.  She has to worry that DOJ isn't in the tank.

So do we.

Bitch Tits's picture

"As soon as someone starts 'to the right thing', they start fitting them with a disgruntled/incompetant/loose cannon, frame?"

 

You forgot the big one: "crazy". They're "crazy."

buzzsaw99's picture

Destruction of documents, securities fraud, material misrepresentation. Just another day at the office for JPM Chase.

Hansel's picture

Yeah, I thought that was in the corporate charter. Does anyone expect a bank to earn money honestly? Where's the profit in that?

blobbus's picture

so what was the second allegation?

downrodeo's picture

I saw that too, it was probably the most damning one of all...

Worker Bee's picture

Oh! maybe THISis the stake through the heart!?...not...all the evidence that's been amassed and this chick is gonna bring the whole ponzi down? Wake me when someone records a banker admitting the whole thing on tape or something..hell even then people dont give two shits so it would be ponzi as usual after about a news cycle in the lamestream media.

buzzsaw99's picture

JPM could cut out the hearts of a million children per day and nothing would be done to stop them. They are more powerful than Stalin.

MayIMommaDogFace2theBananaPatch's picture

Heck, that would probably earn them a Nobel @#$%^& Peace Prize.

Temporalist's picture

Are you trying to start a vampire squid feeding frenzy in here?

ThirdCoastSurfer's picture

A related situation regarding the banksters:

http://bankimplode.com/viewnews/2010-12-19_NewYorkJudgeTellsCitiToGetOve...

where corporate lawyers don't want to sign affidavits that will make them personally responsible for the accuracy!

Why isn't this a standard requirement across the country? Bravo NY!