Clandestine Wells Fargo Shell Game Exposed In Michigan And Michigan Courts Are Turning A Blind Eye To It
There is a clandestine Wells Fargo shell game going on in Michigan. This secret orgy of greed and white-collar crime is out of control at Wells Fargo. Shareholders need to step up and demand accountability before they see their investments in the bank disappear.
In the meantime, guess who’s paying for this latest round of corporate greed at Wells Fargo? It appears American taxpayers are picking up the tab. What makes it even worse is that Michigan judges are allowing it to happen right under their nose.
A foreclosure case in West Michigan is showing the cancer of greed has become embedded in bones of Wells Fargo. The Molotky case also shows that Wells Fargo’s problems transcend beyond a bunch of branch managers setting up fake bank accounts or bad accounting practices.
The Wells Fargo Shell Game Has Been Going On For Over A Decade
The Molotky case started out when Wells Fargo misplaced Gretchen Molotky’s payments and force-placing insurance on her home. Wells Fargo’s lawyers openly admitted during the early days of litigation that Wells Fargo did this. Lawyers from Trott & Trott (now Trott Law) also admitted there was a $30,000 overage in the escrow account at the time they initiated the foreclosure.
Trott Law’s admission should be grounds for the foreclosure to be rescinded. However, Judge Susan Jonas of the 58th District Court didn’t seem to thinks so.
Jonas refused to rescind Molotky’s foreclosure even with Trott Law admitting Wells Fargo screwed up. Judge Jonas also allowed Wells Fargo to keep the $30,000 that Gretchen Molotky overpaid into her escrow account. Jonas then ordered Molotky to begin making monthly payments to the court in the amount of $2,200 a month in 2014.
In 2015, Wells Fargo’s customer database showed a Form 1099 for 2011 for Molotky. The 2011 1099 form was from Fannie Mae, not the MBS Trust that was currently trying to evict her. It was in the amount of Molotky’s Sheriff’s Sale. Fannie Mae allegedly bought the loan in 2011. No one has publicly acknowledged the sale.
As a result of this discovery, a question of fact now exists regarding the MBS Trust’s right to evict Gretchen from her home. It appears they have no legal standing to do so. In other words, The MBS Trust doesn’t own the property. They sold any rights they had to evict to Fannie Mae.
Judge Jonas has been made aware this 11 times since 2015. Yet, she continues to ignore it.
Jonas then granted Trott’s motion to release Molotky’s $101,000 in escrow payments to the court to the MBS Trust and Trott Law.
Taxpayers Are Paying For Wells Fargo Shell Game
Wells Fargo will claim the Molotky case is an isolated case. After all, that’s what they said with the fake bank account scandal. That was until it was revealed 5000 employees were involved.
MFI-Miami has discovered nearly a dozen cases across Michigan similar to Molotky. Homeowners in all of these cases had post-foreclosure 1099 forms from either Fannie Mae or Freddie Mac. Yet, all of these loans were sold to MBS Trusts after origination. In all the cases, the MBS Trust proceeded with the foreclosure and eviction of the homeowner even though they allegedly sold their ownership to Fannie Mae or Freddie Mac. MFI-Miami also discovered all the foreclosure cases were handled by Trott Law.
Wells Fargo did something with the Molotky loan (and the other loans we reviewed) that only Wells Fargo appears to do.
Wells Fargo did one of two things. They either set up a bogus account with Fannie Mae in Molotky’s name similar to what they did in the bank account scandal. Or they filed a bogus claim with Fannie Mae over Molotky’s foreclosure.
Fannie Mae and Freddie Mac are the two GSEs who went into government conservatorship following the financial crisis. Nearly a decade later, they are still under control of the United States Treasury and the American taxpayer.
Wells Fargo isn’t the only one bilking taxpayer-owned Fannie Mae on the Molotky loan. MFI-Miami has learned that Trott Law’s REO company, Attorneys Title Agency or ATA is also collecting servicing fees on the Molotky mortgage. Trott Law appears to be double dipping. First by charging legal fees and by collecting premium REO servicing fees from Fannie Mae through Wells Fargo.