by Joshua Denbeaux
Citing fraudulent misrepresentations and violations by Wells Fargo affecting 500,000 homeowners across nine states, Arizona, California, Colorado, Florida, Illinois, Nevada, New Jersey, Texas, and Washington, Westwood, NJ law firm Denbeaux & Denbeaux has sent letters to all nine State Attorneys General offices asking it to reopen its investigation of Wells Fargo, it was announced by Attorney Joshua Denbeaux.
According to Denbeaux, “Wells Fargo used federal courts to nullify agreements it had simultaneously signed with the Attorneys General of nine states.”
“We’ve sent the report to all nine of the Attorneys General over a week ago and have heard no response from any of them. As strange as it may seem, for everyone’s sake we hope that they were duped, because the alternative would be unthinkable. This week we sent another letter to the NJ Attorney General saying exactly that,” continues Denbeaux.
The following is the list of states that had an attorney general assurance prior to the notice sent to In re: Wachovia class members, on the class action filed in the Northern District of California, M:09-CV-2015-JF, and that date on which those assurances were reached.
1. Arizona: October 6, 2010
2. California: December 16, 2010
3. Colorado: October 4, 2010
4. Florida: October 5, 2010
5. Illinois: October 6, 2010
6. Nevada: October 6, 2010
7. New Jersey: October 5, 2010
8. Texas: October 6, 2010
9. Washington: October 1, 2010
“The people of New Jersey should stand for nothing less than reopening the investigation into Wells Fargo banking practices in New Jersey. But the problem doesn’t end there because there are eight other states where this has happened in a calculated and orchestrated way by Wells Fargo,” Denbeaux concludes.
Following the housing-bubble burst Wells Fargo faced many lawsuits from homeowners who accused the bank of committing fraud through its “Pick-A-Payment” mortgage loan program (Wells Fargo inherited these loans when they bought Wachovia Bank.)
To avoid these lawsuits Wells Fargo negotiated a series of settlements in Sept 2010 with the Attorneys General of nine states that would provide homeowners a series of promised modifications, while still granting those homeowners the right to sue Wells Fargo for the fraudulent loans.
However, while Wells Fargo was negotiating this deal with the Attorneys General, it was secretly simultaneously negotiating a Class-Action Settlement in California Federal Court that would give homeowners the same promised modifications, but only if the homeowners agreed to surrender their rights to sue Wells Fargo. (The Class-Action Settlement was signed in Dec 2010–two months after the Attorneys General Settlement).
None of the homeowners were told by Wells Fargo that they had already been given the promised modifications by the attorneys’ general settlement. After signing the Class Action Settlement the majority of the homeowners, some who have lost their homes to foreclosure, received a check for only $178.04.
“Wells Fargo clearly used the Federal Class-Action Settlement as a way to wash its hands of any future lawsuits”, said Denbeaux. “They signed a settlement with nine state attorneys general which they had no intention of honoring. It was a bait-and-switch. Simply put, homeowners were paid $178 to surrender their rights to sue for fraud.”
The lawyers at Denbeaux & Denbeaux fight for the rights of all homeowners. If you have questions or if you feel you might be getting taken advantage of, or you are in default, or are nearing default, or have refinanced and something doesn’t seem right, you need to talk to a lawyer and get a consultation to find out what you don’t know. Call Joshua Denbeaux of the Westwood, New Jersey, law firm, Denbeaux and Denbeaux to answer your questions at 201-664-8855. or send an email to pr(at)denbeauxlaw(dot)com