Matt Weidner – Fighting With The American People

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BOMBSHELL! BOMBSHELL! BOMBSHELL!- FDIC SUES THE BIG BANKS FOR MASSIVE SECURITIES FRAUD!

September 10th, 2012 |

Author: Matthew D. Weidner, Esq.

Excerpt:

This is an action for damages caused by violation of the Texas Securities Act (TSA) and the Securities Act of 1933 (1933 Act) by the defendants. As alleged in detail below, defendants issued, underwrote, or sold eight securities known as “certificates,” which were backed by collateral pools of residential mortgage loans. Guaranty Bank (Guaranty) paid approximately $1.5 billion for the eight certificates. When they issued, underwrote, or sold the certificates, the defendants made numerous statements of material fact about the certificates and, in particular, about the credit quality of the mortgage loans that backed them. Many of those statements were untrue. Moreover, the defendants omitted to state many material facts that were necessary in order to make their statements not misleading. For example, the defendants made untrue statements or omitted important information about such material facts as the loan-to-value ratios of the mortgage loans, the extent to which appraisals of the properties that secured the loans were performed in compliance with professional appraisal standards, the number of borrowers who did not live in the houses that secured their loans (that is, the number of properties that were not primary residences), and the extent to which the entities that made the loans disregarded their own standards in doing so.