Wells Fargo Bank, N.A. Accused of Control Fraud through Stumpf and Other Corporate Insiders

Wells Fargo Bank, N.A. Accused of Control Fraud through Stumpf and Other Corporate Insiders

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By Daniel Edstrom
DTC Systems, Inc.

October 19, 2016

The purpose of Sarbanes-Oxley legislation is to put in place financial controls in order to not only reduce fraud, but to identify risks so that the controls can be expanded or new controls put in place. Large companies such as Wells Fargo Bank have compliance departments and ethics lines where questionable conduct (unlawful or not) can be reported “safely” in order for the company to take action to stop and/or remediate the questionable conduct. This is done so that a business operates safely and soundly, and is the perfect source for implementing new controls, enhancing existing controls, testing the effectiveness of the controls, or at least disclosing material deficiencies that can be identified and corrected at a later date. Continue reading “Wells Fargo Bank, N.A. Accused of Control Fraud through Stumpf and Other Corporate Insiders”

Wells Fargo Fined $85,000,000.00 for Falsifying Information on Loan Applications

Wells Fargo Fined $85,000,000.00 for Falsifying Information on Loan Applications

By Daniel Edstrom
DTC Systems, Inc.

On July 20, 2011, the Board of Governors of the Federal Reserve System issued an Order to Cease and Desist and Order of Assessment of a Civil Money Penalty Issued Upon Consent to Wells Fargo & Company and Wells Fargo Financial, Inc.

Here is an excerpt from this Order:

WHEREAS, this Order is issued with respect to the following allegations:

A. During the period from at least January 2004 to the Reorganization (the “Relevant Period”), Financial’s business model with respect to home mortgage lending was to sell debt consolidation, cash-out refinance loans at sub-prime rates (“nonprime loans”) to customers principally through a network of more than 800 offices located throughout the United States, called “stores.” The principal marketing method was salespersonnel making outbound, unsolicited telephone calls to individuals who had some existing customer relationship with Financial. Under Financial’s underwriting process, the salespersonnel were responsible for obtaining income-related documents (such as pay stubs and W-2 forms) and forwarding them to Financial’s centralized underwriting centers. Financial typically did not require that borrowers fill out and sign loan applications that included the borrower’s representation of his or her income. Continue reading “Wells Fargo Fined $85,000,000.00 for Falsifying Information on Loan Applications”

Cease & Desist Orders for: Citigroup, HSBC, JP Morgan Chase, MetLife, PNC, SunTrust, US Bancorp and Wells Fargo Bank

Cease & Desist Orders for: Citigroup, HSBC, JP Morgan Chase, MetLife, PNC, SunTrust, US Bancorp and Wells Fargo Bank

By Daniel Edstrom
DTC Systems, Inc.

The latest round of Cease and Desist orders issued by the Office of the Comptroller of the Currency (OCC) are against some of the largest “too big to fail” banks.  Notably missing so far is Deutsche Bank National Trust Company along with Deutsche Bank Trust Company Americas and of course OneWest Bank.

The gist of these Cease and Desist orders is that certain “deficiencies” were found and the banks are operating with “unsafe or unsound” practices in residential mortgage servicing and in the Bank’s initiation and handling of foreclosure proceedings.

We hail the OCC for these efforts, but the problem is following up.  How are the banks going to immediately comply with this order?  They would have to stop processing nearly every single foreclosure they are working on today.

Continue reading “Cease & Desist Orders for: Citigroup, HSBC, JP Morgan Chase, MetLife, PNC, SunTrust, US Bancorp and Wells Fargo Bank”

Anger Growing Over the Office of the Comptroller of the Currency’s Regulation of National Banks

Anger Growing Over the Office of the Comptroller of the Currency’s Regulation of National Banks

By Daniel Edstrom
DTC Systems, Inc.

Instead of regulating the national banks as they have been mandated, the Office of the Comptroller of the Currency (OCC) appears to actually be promoting the outrageous behavior of the banks.  According to various groups, “Right now, more than 500 people are making lots of noise outside the Office of the Comptroller of the Currency – the worst bank regulator that you never heard of.   They are demanding that the OCC stop throwing homeowners under the bus in the their tireless efforts to protect the big banks.”

Apparently the OCC does not know that citizens are using the Internet to understand what they are doing.  The OCC believes it can stand up against the very people of this country that it was specifically designed to protect – the citizens who are being used as pawns.  The people are being taken for a ride by the national banks who are and have been operating outside of their authority for many years (at least 5 years, probably much longer).  How can the banks be operating outside of their authority?  When they operate against public policy, including when they have inadequate risk measurements in place and inadequate internal controls.  This is obvious from their actions over the last 5 years – including the use of robo-signers, flagrant notary violations, inadequate affidavits and declarations, etc., etc.  The list goes on and on, but this is nothing new to the OCC.  After all, they have given legal opinions based on this very information.  They know exactly what is going on but apparently refuse to act – or are completely incompetent.  Because they are doing the very opposite of what they have given in their legal opinions, it is apparent that they are not incompetent, but are refusing  to enforce their very own regulations. Continue reading “Anger Growing Over the Office of the Comptroller of the Currency’s Regulation of National Banks”

Daniel Pennell Explains why MERS is Completely out of Control

Daniel Pennell Explains why MERS is Completely out of Control

By Daniel Edstrom
DTC Systems, Inc.

Daniel Pennell has the following qualifications:

  • PMP
  • LSSGB
  • Certified Lean Six Sigma (Process & Quality Control)
  • Certified Technical Program & Risk Manager
  • Former investment advisor and insurance broker
  • 16 Years designing and automating & business processes in regulated environments
    • Florida State Supreme Court
    • Florida 20th & 6th Judicial Circuits
    • Chubb Insurance
    • Pharmacia
    • Other State, Federal and Fortune 500 clients

Mr. Pennell goes on to give a professional analysis of the Frankenstein (MERS) process.  Which can only be described as completely out of control.  It is of significance to note that the very entities that created and brought forth Frankenstein are governed by the Office of the Comptroller of the Currency.  It is just as important to note that Frankenstein is NOT governed by the Office of the Comptroller of the Currency, nor governed by federal, state or county land recordation laws.   The OCC requires that national banks have “effective risk management procedures and internal controls to conduct the activities safely and soundly.”   It is apparent to everyone except OCC that this is not and has not been the case (i.e. rampant industry standards of notary violations, no personal knowledge, forgery, perjury, etc).  It is also apparent that the national banks are using other entities such as Frankenstein and foreclosure mills such as the Stern Law Firm and Dolan Media (NDEx West) to perpetuate these activities.  Dolan Media specifically states to their investors they are proudly not involved in the robo-signing fiasco (notary violations, no personal knowledge, forgery, etc).  If Mr. Pennell did an analysis of the shoddy work done by Dolan Media he would find that they give Frankenstein a run for its money.  What I want to emphasize though is that  Frankenstein, because of the very nature of its work, is required to have “effective risk management procedures and internal controls to conduct activities safely and soundly.”   But this was the OPPOSITE of the INTENT of the parties when they created this monster in their laboratories.   I can still hear the echos of their diabolical laughter.  As a side note, see Fred Smith explain why Frankenstein (MERS) was involved: http://livinglies.wordpress.com/2011/01/23/fred-smith-explains-why-mers-was-involved-multiple-securitizations/

Continue reading “Daniel Pennell Explains why MERS is Completely out of Control”