Patrick Missud
Attorney at Law
91 San Juan Ave.
San Francisco, CA, 94112
415-584-7251 office/fax
415-845-5540 cell
February 16, 2009
535 Congress members, USAG Eric Holder, 500+ International media
contacts, 500+ defrauded consumers, Wall Street, Regulatory Agencies, pervasively
posted to the web.
Re: Ironically,
HUD is being sued by home developer and the RICO-operating D R Horton Corporation
[DHI] [1:08 CV 1324]
Via: Mail,
electronically- mass media and complaint@ftc.gov,
greener@sec.gov
dennis.barghaan@usdoj.gov
_____________________________________________________________________
Dear Senator or Representative,
Last night on CBS’s 60 Minutes, Paul Bishop said he warned his
superiors at World Savings that thousands of consumers, as well as secondary
mortgage investors were being defrauded through predatory lending. Two
weeks ago Harry Markopolos testified before Congress that for ten years he
“packaged and gift-wrapped the largest known ponzi scheme” for the SEC to
investigate Madoff. Had the SEC acted
years ago, thousands of
clients would not have been defrauded of $40B
this year. Bishop was fired for his advocacy. Markopolos
likewise feared retribution for his efforts and even for his life.
Since March 4, 2004, I have sent federally certified mail to every
federal regulatory agency including HUD, the FTC, DOJ and FBI regarding
predatory lending by D R Horton Inc. [DHI].
The nation’s largest mortgage originator sold 53,000 homes in 2006, 94%
of which with DHI originated mortgages.
Other years were similarly as productive: 42,000/2007/95%, 36,000/2008/95%. In the certified letters to HUD and DOJ
(7003311000015944-6585, 3560, 3584….), I recommended that “independent
investigations” be conducted regarding builders and their affiliated
lenders. I stated that my predatory loan
was “not likely an isolated incident” limited to DHI’s Las Vegas agents, but
rather nationwide. I Express Mailed
#ET650195990US to the DOJ, a nearly gift-wrapped package including insider
information, so that investigators could conduct said investigation. Had the DOJ, HUD or FTC acted years ago, tens of thousands of consumers
would not have been defrauded through DHI’s predatory lending which has led to
the initial $700B toxic mortgage bailout, and additional $300B to save
AIG, Lehman, 9 nationwide banks including World Savings’ parent Wachovia in
turn rescued by B of A, ……Freddie, and Fannie.
The price tag for all this mortgage fraud has already exceeded $2T by
the end of February 2009, and still not stemmed worldwide economic collapse.
In addition-- DHI filed three retaliatory complaints against my
professional licenses for my part in whistle blowing, and on August 6, 2007,
the S.F. police documented car bomb damage caused on August 3rd,
when my consumer advocacy web sites were attracting 1200 sets of eyes per day,
--nationally. [http://www.drhortoncouldhavekilledme.com/
and www.drhortonsucks.info.]
Police report #070793172 is found at
http://www.drhortoncouldhavekilledme.com/.
Sixty of 400 pages of my various federal agency tips and communications
at: http://www.sec.gov/divisions/corpfin/cf-noaction/14a-8/2008/patrickmissud112108-14a8.pdf.
The notice of rampant nationwide fraud that DHI’s legal team received
on multiple occasions, and the two summons’ that DHI’s CEO and Chairman each
received at: http://www.donaldtomnitzisacrook.info/Demand_on_Board.html
Hundreds of consumer frauds by DHI reproduced at independent third
party site: http://www.consumeraffairs.com/housing/dr_horton.html
Hundreds more consumer frauds by DHI reproduced at other third party
sites: http://www.ripoffreport.com/reports/0/251/RipOff0251571.htm,
as well as citidata, topix, HOBB…….
The certified notices of DHI’s fraud and RICO that Congress received
at: http://www.drhortonconfidential.com/
The proof that a Nevada official, whose job it was to protect consumers
from DHI’s predatory lending, was on DHI’s payroll at: http://www.drhortonfraud.com/
190+ complaints filed only with the FTC, regarding DHI’s varied RICO are
available under my FOIA request #2009-00355, or through Prosecutor Dennis
Barghaan as below;
An unknown number of complaints filed with HUD, regarding DHI’s varied
RICO will be available under my FOIA request #FIIG476612PS;
The proof which a federal judge had, to consider and put a stop to the origination
of additional DHI toxic mortgages at: https://pacer.login.uscourts.gov/cgi-bin/login.pl?court_id=00idx,
case #C 07 2625 SBA;
Scans of international cover letters explaining in French, Italian,
Hindi, Korean, Russian….. that federal agencies were either asleep at the
wheel, or complicit in nationwide fraud during Bush’s reign at: http://drhortonhomesstink.info/Congressional_Notice.html
and, http://drhortonhomesstink.info/International_Notice.html
An amicus brief forwarded to Deputy AG Dennis Barghaan within which every
DHI argument that builders can’t practice fraud is refuted with 100 victims’
stories and contact information available from: dennis.barghaan@usdoj.gov
My database is enormous with 1000’s of documents, most of which without
doubt prove at least 20 different current RICO business models masterminded by
DHI’s Board of Directors.
If the above listed evidence is insufficient, let me paraphrase Markopolos
and Senator Ackerman- “how much more gift wrapping and deeper need I stick
HUD’s, FTC’s, DOJ’s and SEC’c noses in the pile before they act?” Let me sweeten the “stinking pile” with the
infra:
HUD’s first attempts to protect consumers in 30 years:
In early 2008, HUD announced plans to improve consumer protections for
the first time in 30 years by amending the Real Estate Settlement Procedures
Act. To block this, on December 22,
2008, DHI the nation’s largest builder submitted Appendix G in support of the
National Association of Homebuilders with the U.S. District Court’s eastern district
of Virginia. DHI claimed that HUD’s plan
will damage their relationships with affiliated mortgage providers (kick back
schemes) and ultimately hurt their competitive advantage (antitrust efforts)
and could even deny buyers “savings when they purchase a home” (predatory
lending). Do you want some additional
smoking guns?
These are just a few of the un-controverted official and
publicly available FACTS:
1. For four years, the DHI Board of Directors received notice of their
rampant board room initiated nationwide predatory lending that HUD is currently
trying to prohibit. DHI admitted to
1500 pages of such notices in Clark County Nevada case #A551662;
2. Chairman Donald Horton and CEO Donald Tomnitz each signed
federal waivers of service when they accepted copies of a complaint in which
they were individually named defendants in a conspiracy to defraud and
partake in same type of predatory lending that HUD is currently trying to
prohibit. Northern District of California, # C 07-2625 JL;
3. The Yeatman v. D R Horton federal class action filed in the N.
District of GA alleging the same RESPA violations that HUD is currently trying
to prohibit, # 4: 07 CV 081;
4. The Wilson v. D R Horton federal class action was filed in
the Southern District of California alleging that DHI illegally conditions the
purchase of homes on the purchase of affiliated mortgages which invariably
always hide predatory fees that HUD is currently trying to prohibit, # 08 CV
5921 BEN RBB;
5. Dozens of individual state and federal suits against DHI
throughout the nation such as Betsinger -Nevada # A503121, Dodson - Western
District of Texas # A 07 CA 230, Moreno - Richmond Virginia #08 CV 845 JRS, ……
have alleged the same predatory nationwide schemes that HUD is currently trying
to prohibit;
6. In October 2008, 11 Attorneys General settled with DHI’s preferred
lenders Countrywide and WaMu for predatory lending. In Washington State alone 42% of the sub
prime loans had defaulted. Northern
California and Las Vegas are the Country’s foreclosure capitols and also happen
to be where DHI originated a majority of their defaulting Countrywide, WaMu
and Indymac subprime mortgages issued primarily to minorities;
7. In its own SEC 10k
statement, DHI has admitted to a 96% “captive capture rate” whereby 96 of
every 100 homes that they sell are bundled with a predatory mortgage;
8. The 1945 Supreme Court in Alcoa ruled that market shares as small
as 70% are already considered anticompetitive and an antitrust violation;
9. CEO Donald Tomnitz’s internal emails implored DHI agents to
take whatever steps necessary to meet Wall Street’s expectations so that their
efforts would “reflect in increased stock valuation;”
10. Upwards of one trillion dollars have already been squandered and
lost to AIG, Bear-Stearns, Lehman, Citibank, IndyMac, Freddie, Fannie, Bank of
America, Wachovia, Merrill Lynch,……….. Countrywide, and WaMu because of
fraudulent bundling of worthless mortgages originated specifically to increase
those companies’ fraudulent bottom lines, as well as DHI‘s which would always
resell their worthless paper to the above banks and investors (bank fraud);
12. DHI’s CEO and genius Donald Tomnitz has made public admissions such
as “we want to write anyone with a pulse to purchase our homes.” This notwithstanding that tens of thousands
of unworthy home buyers have bought with no money down and defaulted
specifically because of this cavalier attitude to bank fraud when selling those
worthless notes. Right through until the
bitter end, Tomnitz was pushing ‘down payment assistance programs’ to sell his
inventory. Yet another unqualified
purchaser contacted me for help in 8-08 and was nearly sold a DHI home amidst
daily bank bankruptcies.
13. Beazer and Ryland Homes have already been caught in predatory
lending whereby they bundled homes with unaffordable mortgages which
ultimately bankrupted scores of consumers from several developments.
14. Hundreds of DHI consumers have posted their nightmare
stories concerning DHI’s fraud to http://www.consumeraffairs.com/housing/dr_horton.html
15. Hundreds more DHI consumers have posted their nightmare
stories concerning DHI’s grand larceny to http://drhortonsucks.info/_wsn/page2.html
16. Hundreds more DHI consumers have posted their nightmare
stories concerning DHI’s rampant RICO to http://www.ripoffreport.com/reports/0/251/RipOff0251571.htm,
as well as citidata, topix, HOBB and other third party web sites.
17. I have already received over 200 pages of FOIA information from
various sources confirming victims’ statements within my personal database that
DHI’s rampant RICO is indeed nationwide.
Within FTC’s file, and in addition to the predatory lending, there are 39
construction defects and warranty misrepresentation complaints, 13 land sale
misrepresentations, and 2 HOA fraud (skimming) complaints.
18. The SEC has scanned only 60
of 400 pages of my certified letters tipping the FTC, HUD, and DOJ off
to nearly 5 years of DHI’s criminal activity that if had been acted on would
have saved taxpayers over two trillion dollars by month’s end. http://www.sec.gov/divisions/corpfin/cf-noaction/14a-8/2008/patrickmissud112108-14a8.pdf.
19. I have in excess of 500 defrauded consumers within my personal
database. These contacts were
furnished to the California and Illinois State Attorneys General and to DOJ
prosecutor Dennis Barghaan under express mail #EB 527695415 US for the HUD
case.
20. Chairman and founder Donald Horton, and CEO Donald Tomnitz have of course
created and implemented their crimes to crush RESPA/TILA/EOCA/FCRA laws over
the past decade for which nationwide consumers and taxpayers have already paid
dearly.
The specifics about HUD’s plan to protect consumers:
HUD‘s plan, which has been successfully delayed by the builders until
April 16, 2009, aims to protect consumers from high settlement costs by:
- requiring more disclosures;
- improving standards for the good-faith estimate, a list provided by a
lender that details the fees expected to be associated with a loan’s closing;
- prohibiting builders from requiring the use of affiliated businesses
in order for consumers to earn incentives or discounts with the purchase of
their home.
DHI’s Exhibit G in case #1:08 CV 1324 on the other hand argues:
- The survival of their mortgage company is based on the ability to
offer such incentives;
- The relationships also streamline the closing process and reduce
expenses, which ultimately lowers the cost of buying a home for a consumer;
- The incentives also encourage competition among servicers like
mortgage lenders, title agents and appraisers and give buyers more choice;
- The close relationship between DHI and its mortgage affiliate is to
guarantee that closings happen in a certain time frame and that information is
transferred smoothly between the two parties.
These are just a few more of the very well documented absolute FACTS:
1. DHI seldom issues Good Faith Estimates within 3 days as is required
so that consumers can shop around for a competitive mortgage;
2. DHI’s sales offices, mortgage and title companies can never
approximate their very own closing fees.
More often than not, the fees from all three commonly owned affiliated
companies are thousands of dollars in excess of original oral misrepresentations;
3. DHI forces consumers to use its affiliated lender or will otherwise
forfeit consumers’ non refundable deposits which usually total in the tens of
thousands;
4. If consumers even attempt to use an outside lender, then DHI ceases
cooperation with the third party lender, forces the consumer into breach, and
then steals the consumers’ non refundable deposits as a ‘penalty’ for failure
to close timely.
I have already forwarded 800 pages of information and hundreds of
victims’ contacts to the California and Illinois Attorneys General by certified
package. The remaining 25 market state
AG’s were then given their counterpart’s contact information for their own
copies and for collaborative purposes:
Illinois Attorney General Lisa Madigan California
Attorney General Edmund Brown
c/o Daniel Ligocki Department
of Real Estate
100 West Randolph Street c/o
Deputy Commissioner Heather Doak
Chicago, IL 60601 2201
Broadway
(312) 814-3000 P.O.
Box 187000
Sacramento,
CA, 95818-7000
(916)
322-3360
#0303 3430 0000 4122 5952 #0307
1790 0003 3036 9591
By no means will my consumer advocacy efforts cease:
I will cause international exposure, and intend
to purposefully interfere with every one of DHI’s RICO business operations in
every conceivable way, nationally, for an indefinite amount of time, until
consumers are protected.
Litigation:
I have sponsored
individual, class and mass tort actions in local, state and federal jurisdictions. I have assisted in others already filed, and even
regarding builders other than DHI.
Whatever information any litigant wants, litigant gets. Individual DHI victims ask me what to do in
their specific cases and then I suggest that they talk to neighbors and retain
local attorneys for the purpose of filing expensive class action suits. My proven methods, widespread public
information, and advice are always free of charge.
Web Sites:
Google ‘patrick
missud.’ You will get 40 hits, ten of
which are of a very few postings that I have made to third party sites. This is called ‘spidering.’ Every day I get Google alerts regarding all
things D R Horton. I have kept all
alerts in my folder. In a week, I can
return to every active posting forum and list my various URL’s to third party
web articles. If I only post to ten
every day, by the end of the year I will have 3650 threads leading back to
drhortonsucks.info or fraud, or drhortoncouldhavekilledme or
tomnitzisacrook……….. These threads are
PERMANENT. Future web surfers will know
just how corrupt that DHI was and still is. Future web surfers will know just how inept
that the federal agencies have been (and still are?). I could also request the 500+ aggrieved
consumers in my database help me spider.
If only 10% of them link my sites 10 times, then that’s 500 threads and
a very good start. All of my fellow
victims are similarly quite upset.
Other factors in web
page dominance are prevalence of search terms within text, the cache volume,
size of files, interlinkedness, number of visits to said sites, web site
sponsoring, interaction with third party affiliates ……. I am now ready to maximize every aspect of
web dominance. I can easily upload the
1500 pages that DHI has already admitted to receiving. The SEC received 500 more. The State Attorneys General received an 800
page exhibit. My CA and NV state and
federal court filings total over 300 pages.
My FOIA requests will return in excess of an anticipated 300 pages. I have already uploaded approximately 400
pages to the web and my ever growing database can easily double that amount
with un-posted and recent victim statements/communications. By simply cutting and pasting my vast
existing database to my various web sites, the ’d r horton’ search term will be
found thousands of times throughout my sites.
Any web surfer entering ‘d r horton’ in any web browser will find my
sites even before DHI‘s. My upcoming
supersite will dwarf DHI’s. If
necessary, I will hire a full time employee only for this purpose. No future consumers researching DHI on the
web will fall into their trap. Web
traffic is increasing and has become a business necessity. Millions worldwide will learn of this
Enron/Madoff like scandal which has been allowed to fester under federal
authority.
Direct Interference:
When you visit DHI’s
web site, they conveniently list their current developments. Google the development city name and also
‘building department.’ That combination
gets you a mailing address where I directly mail information to inspectors that
DHI is always ranked among the lowest quality builders and that they foist
predatory loans on minorities. The
inspectors then tighten their inspection standards and put DHI behind schedule
in all 27 market states. No more corner
cutting, reverse flashing, negative grading or value engineering. Production times increase and so does DHI’s
overhead.
You can also get a
single address from said developments and with the aid of Zillow, find 200
more. These addresses are also sometimes
automatically returned in Google alerts as titles transfer and they are
recorded in tax assessor’s offices nationwide.
In four hours, I can direct mail an entire community to seed yet another
class action.
I have even helped
municipalities after learning of their plights.
Mayor Green in Port Orange Florida learned that his counterpart in West
Depford NJ had to freeze performance bonds to get DHI to perform warranty. The Vacaville City Counsel learned of San
Diego’s problems regarding rezoning which retroactively and negatively impacted
consumers’ property values after purchase.
Assistance from the other builders:
My last APB to DHI’s
competitors yielded the expected results.
Lennar, Centex, Pulte…. would all love to get part of DHI’s market
share. One or two unknown companies
‘suggested’ that I research the federal Ivey complaint wherein DHI routinely
does not report expenses in the quarter that they are incurred. The other tip was regarding land appraisal
fraud whereby the Donalds inflate the value of land that they purchase. In the former good times, the criminals
bought small parcels way over asking price and optioned surrounding land. When there was a subsequent buying frenzy
they subdivided that surrounding optioned land to other unwitting smaller developers
who thought that they were getting prized land.
I can guarantee that KB will benefit from DHI’s evisceration.
SEC Proposal for Action:
Unfortunately, this
year I was unable to get SEC support for the printing of my proposal. The grounds for resubmitting a similar
proposal this year and every year thereafter, if necessary, can be found at:
http://www.sec.gov/divisions/corpfin/cf-noaction/14a-8/2008/patrickmissud112108-14a8.pdf.
A very conservative
calculation of the nation’s consumer losses:
DHI has admitted to currently selling 100 homes per day.
DHI has admitted to financing 95% of its ‘captive’ business.
Alcoa’s Supreme Court has determined that market shares in excess of 70% are presumed anti-competitive.
Therefore 25 DHI sold homes are presumed to be bundled with an anti competitive predatory loan every day.
On average, every year for the past five years DHI has sold 9125 predatory loans.
In the past five years, DHI has sold 45,625 predatory loans.
If only a very small $5000 was lost per consumer, damages equal $228 million.
If only 10% of those predatory loans have led to foreclosures then the banks holding the notes have lost………………………. Billions.
Since Federal Judge Armstrong’s very thoughtful and deliberated ruling on October 30, 2007, for which she had evidence to support an injunction preventing future fraud from that date, an additional 11,125 predatory loans causing damages well in excess of an extremely conservative $55 million have been forced on consumers…………………. Consumers can’t afford to wait until HUD’s delayed April 16, 2009 revamped consumer protections.
A very conservative compilation of what I personally have
endured since March of 2004:
My own medical emergency triggered by DHI’s fraud; fighting a Nevada official on DHI’s payroll; fighting at least 13 known DHI attorneys and infinite money in their ongoing cover up; judicial abuses of all kinds completely twisting the sacrosanct Constitution, and attorney code of ethics; defamation by DHI and one of its legal firms; attempted license revocation through three agencies by another of DHI’s legal firms in retaliation for my consumer advocacy; a bombing in retaliation for my consumer efforts; having a federal judge label my evidentiary submissions ‘bald faced allegations;’ having an FTC agent document my 19509123 complaint as “derision and unsupported” -notwithstanding a hundred similar prior complaints within his own files; spending $15,000 through the internet to protect thousands of consumers; spending $15,000 in postage fees to get federal, state and local governments to act; spending $30,000 in court related fees and costs to bring DHI to justice; compiling an 800-1200 page evidence file; sending 400+ fraud notifying pages of letters to federal agencies which were sleeping for five years; sending 1500 fraud notifying pages of letters to DHI in hopes that they would stop screwing their own consumers; spending nearly two years time to get non feasants to act at five federal agencies; doing the work of five federal agencies without compensation for two years; postponing my career; postponing my family; extreme medications complications in connection to postponing my family; having to shoulder the burdens of hundreds of DHI victims; having to reassure old ladies that they wont go to their graves penniless; having to reassure home-owning parents that they wont have to deplete college funds to make their homes habitable; having to reassure young couples that they will emerge from bankruptcy notwithstanding the Donalds’ greed; having to calm the geriatric so that they don’t drop dead of heart attacks triggered by DHI harassment; ……………; trying for nearly five years to prevent trillion dollar mortgage fraud bail outs.
Conclusion:
If the federal regulatory agencies continue to shield DHI’s criminals at the expense of nationwide consumers, I will absolutely expose them and the government for mal and non feasance respectively. My very own FTC submissions have been recorded as 4168306, 3-04; 4277006, 4-04; 7127370, 11-05; 8416234, 6-06; 19509123, 7-08; 20544996, 10-08. Hundreds of certified letters have been sent in vain, for years, to every federal agency responsible for regulating mortgage fraud and predatory lending. Obviously, the FTC, SEC, HUD and DOJ have had ample notice of my many efforts to prevent the defrauding of THOUSANDS of nationwide consumers. Needless to say, this won’t stop until Donalds Tomnitz and Horton go to prison or this extremely sordid affair becomes front page news on the New York Times, Wall Street Journal and is the subject of a 60 Minutes episode or Front Line investigation.
Cordially,
/S/ Patrick Missud
Encl.
Cc: Obama Administration’s Federal Agencies, State AG’s, Media,
Internationally -until consumers are protected, the crooks go to prison, or
their corporation is decimated.
Patrick Missud
Attorney at Law
91 San Juan Ave
San Francisco, CA, 94112
415-584-7251 Office
415-845-5540 Cell
March 2, 2009
Scripps Broadcasting,
312 Walnut Street,
2800 Scripps Center,
Cincinnati, OH 45202
Re: The
RICO operating D R Horton Corporation [DHI] is about to Draft Federal Law- NHBA
v. HUD, 08 CV 1324
Via: Electronic and First
class mail
Dear Producer,
Our Congress, the FTC, HUD, DOJ and Federal Judiciary are about to let D R Horton draft federal legislation which will create tens of thousands more toxic mortgages, and bankrupt tens of thousands more consumers, for which an additional trillion dollars in taxpayer money will be squandered.
Find enclosed only official documents including: federal, state and judicial records; insider information; DHI admissions; and public domain information, all of which make the case that RICO operating D R Horton Corporation is about to have a significant role in drafting federal regulations. No opinions are expressed. Only the facts are presented. Be your own judge:
1. A police report documenting an explosive detonated on a webmaster/whistleblower’s hood during an evening when his web sites exposing DHI’s RICO were attracting over 1000 consumers daily;
2. Insider Email from DHI’s CEO Tomnitz imploring his sales staff to meet Wall Street expectations and sell homes to meet financial targets so that DHI stock valuation would surge;
3. A subpoena served on Nevada’s Deputy Commissioner for Mortgage Lending demanding an explanation as to why no investigations into DHI have been taken notwithstanding three dozen official complaints regarding predatory lending having been forwarded to her office. Eckhardt’s official reply is that because DHI Mortgage is the $8 Billion builder’s affiliate, her state division does not regulate DHI’s active license -which was issued by her very own division;
4. A letter by Nevada’s Attorney General stating that within a month of the subpoena to Eckhardt, she is no longer in Nevada’s employ;
5. DHI’s admitted “captive capture rate” whereby 95% of DHI homes sold are bundled with a DHI mortgage. Of all DHI homes on the market, 95% of them are sold with DHI originated mortgages [DHI SEC form 10k: http://www.drhorton.com/corp/RedirectDisclaimer.do?irRedirect=finAnnualReportDef, page 45];
6. A federal case whereby homes and home mortgages are ruled to be separate products not to be bundled and subject to antitrust laws [US Steel Corp. v. Fortner 394 US 495, 1969];
7. A federal case whereby market shares in excess of 70% are presumed to be anticompetitive and in violation of antitrust laws [US v. Alcoa 148 F 2d 416, 1945];
8. A federal case waiver of service for which founder Donald Horton acknowledges receipt of a complaint wherein he is individually sued for conspiring to defraud and sell predatory loans;
9. A federal case waiver of service for which CEO Donald Tomnitz acknowledges receipt of a complaint wherein he is individually sued for conspiring to defraud and sell predatory loans;
10. Replies by DHI chief litigation counsel and Board members after receipt of detailed descriptions of nationwide predatory loan sales;
11. An attempt by DHI to censor speech in Nevada [DHI v. Safe Homes Nevada, 5-03]. Nevada’s Judge Wall doesn’t side with the $8 Billion corporation in this case -however;
12. A South Carolina court injunction by Judge Coltrane censoring consumers’ inalienable First Amendment rights in favor of $8 Billion developer DHI [State of SC, Beaufort County, Court of Common Pleas, DHI v. Champoux, 06 CP 07-1658];
13. Another South Carolina court injunction censoring consumers’ inalienable First Amendment rights in favor of $8 Billion developer DHI [State of SC, Beaufort County, Court of Common Pleas, DHI v. Melendez, 06 CP 07-2224];
14. A ruling by Federal Judge Edinfield favoring $8 Billion DHI over class action consumers who allege RESPA violations which are consumer protections laws administered by HUD [Yeatman v. DHI 07 CV 081];
15. Another ruling by Federal Judge Armstrong favoring $8 Billion DHI over consumers in regards to the nationwide sale of predatory loans which have been well documented for 3 ½ years [Missud v. DHI # 07 CV 2625 SBA];
16. Another Federal class action alleging antitrust violations in that DHI illegally conditions the sale of homes on the purchase of DHI originated loans. Said loans are also predatory in nature [Wilson v. DHI # 08 CV 5921 BEN RBB];
17. A long series of other individual state and federal court filings all alleging DHI’s nationwide predatory lending and other fraud [Betsinger -Nevada # A503121, Dodson - Western District of Texas # A 07 CA 230, Moreno - Richmond Virginia #08 CV 845 JRS, Missud –Nevada # A551662, Ivey, Kandah, Stauffer, Huggins, Rielly, ……];
18. A finding by Virginia’s FBI that DHI was selling homes at inflated appraisals [http://www.washingtonpost.com/wp-dyn/content/article/2007/12/17/AR2007121701993.html];
19. The consumeraffairs website which documents hundreds of consumer complaints against DHI, including nationwide predatory lending;
20. The ripoffreport website which documents hundreds of consumer complaints against DHI, including nationwide predatory lending;
21. The topix, citidata, drhortonsucks, HADD, HOBB ….. websites which document hundreds of consumer complaints against DHI, including nationwide predatory lending;
22. Dozens of emails forwarded to the webmaster/whistleblower that DHI practices nationwide predatory lending;
23. Dozens of FTC records documenting years worth of consumer complaints regarding DHI’s nationwide sales of predatory loans;
24. A half dozen notices to the FTC by the webmaster/whistleblower who has been tipping off the FTC, HUD, DOJ and FBI of DHI’s nationwide predatory loans for years. An FTC agent notes that the web master is “chiding the federal government for not acting.” Another agent notes that the tipster claims that DHI has “corrupted the judicial system.” Another agent notes that the tipster goes into “great detail and has submitted legal documents” [enclosed and 40 of 400 pages sent to the feds at http://www.sec.gov/divisions/corpfin/cf-noaction/14a-8/2008/patrickmissud112108-14a8.pdf];
25. An amicus brief submitted by the webmaster/whistleblower to the DOJ’s prosecutor in the current federal case #08 CV 1324 CMH TCB wherein 100 DHI victims’ recounts are presented, and refuting each and every one of DHI’s claims that it can not practice RICO or originate predatory loans under the existing laws;
26. A CNN expose entitled “Culprits of the Collapse,” naming the SEC’s Cox, Fannie’s Raines, Countrywide’s Mozillo and Beazer Homes’ McCarthy as key contributors in furthering and/or not stopping predatory lending;
27. A 60 minutes expose wherein whistleblower Paul Bishop informs his superiors at World Savings that in house predatory lending is leading towards financial collapse;
28. A Congressional hearing wherein just two weeks ago Harry Markopolos testified that for ten years he
“packaged and gift-wrapped the largest known ponzi scheme” for the SEC to
investigate Madoff, but that no actions were taken;
29. Numerous
syndicated articles finding that the FTC, SEC, DOJ and HUD were “asleep at the
switch” and non feasing for nearly a decade;
30. A letter to every
member in Congress and to every federal regulatory agency that DHI has a long
record of RICO and predatory lending [http://www.drhortonhomesstink.info/Congressional_Notice.html];
31. A letter from HUD
to the webmaster/whistleblower that his Freedom of Information Act request #FIIG
0476612 did not return any documents similar to the 190 pages returned by the
FTC just one month prior, notwithstanding that HUD is the precise agency which
would archive these exact records;
32. Federal case #08 CV 1324 CMH TCB, Appendix G, which is DHI’s submission in support of the National Association of Home Builders, against HUD, and directed to the Federal Circuit proposing that the federal government should not change RESPA laws to protect consumers, and that the court should support this decision.
33. Federal Judge Trenga’s decision to issue a stay in favor of National Association of Home Builders, of which $8 Billion DHI is a part, to delay implementation of HUD’s RESPA consumer protection improvements until at least April 16, 2009.
34. On April 16, 2009 Federal Judge Bryan will determine whether $8 Billion DHI and its founder $1.4 Billion Donald Horton (2006) can continue to bundle predatory loans, and practice mortgage fraud on nationwide consumers for which an additional trillion dollars in taxpayer funds will be required to purchase an additional 36% of Citigroup, $30B more of AIG, and a dozen other banks with toxic mortgages.
All of the hard copy documents included herein are very publicly available on the web at
www.drhortonsucks.info the 14 interlinked, as well as at third party
sites:
http://www.sec.gov/divisions/corpfin/cf-noaction/14a-8/2008/patrickmissud112108-14a8.pdf;
http://www.consumeraffairs.com/housing/dr_horton.html;
http://www.ripoffreport.com/reports/0/251/RipOff0251571.htm;
https://pacer.login.uscourts.gov/cgi-bin/login.pl?court_id=00idx;
or by FOIA request
from federal agencies;
or at state and
federal government/judicial sponsored web sites;
or at least 40 other
sites as referenced in the Congressional letter posted at http://drhortonhomesstink.info/Congressional_Notice.html;
………. and hundreds of other internet sources.
Note that the enclosed are a mere fraction of my records.
What do you think? Should DHI help craft HUD’s RESPA and other reforms? How about disbursing the TARP funds? If so, then I’m moving to Canada.
Cordially,
Patrick Missud;
Webmaster/whistleblower
Cc: Holder #7008 1300 0002 0824 -3945
Armstrong -3952
Cal Bar -3969
Bryan 0823 -6459
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Patrick Missud
Attorney at Law
91 San Juan Ave
San Francisco, CA, 94112
415-584-7251 Office
415-845-5540 Cell
March 10, 2009
Syndicated Media
Re: Well connected, wealthy and powerful RICO operating builders
and the D R Horton Corporation [DHI] are about to Draft Federal Law- NHBA v.
HUD, 08 CV 1324
Via: Electronic
and First class mail
Dear Producer,
This letter in follow up of
March 2nd’s. It predicts a
judicial ruling likely to have an impact worth billions on US and international
economies. Please keep it until April
16, 2009 as another record of federal districts’ favoritism of RICO operating
corporations such as DHI over middle class tax paying Americans. The following is a discussion of consumers’
recourses and Constitutional ‘guarantees’ against multi billion dollar
corporations generally and DHI specifically as of today:
Legislative Authorities:
The Congress, FTC, HUD and
SEC have promulgated rules that
corporations must follow to protect consumers and shareholders. It has been widely reported that all three
agencies were derelict in their duties in investigating consumer and
shareholder fraud for nearly a decade.
My submissions of hundreds of complaints, letters and online reports
were received by said agencies which archived them in several interlinked
databases. By special request, I
forwarded dozens of official complaints to HUD regarding DHI’s fraud. Just months later, those frauds were
recounted in Ken Harney’s syndicated AP real estate article entitled “Builder
Affiliated Lenders Draw HUD Eye.”
Hundreds of other consumers likewise submitted their formal requests to
the above agencies. The federally self
described purpose of all these databases is to ‘provide a record identifying
patterns of abusive practices which can then be investigated.’ These agencies confirm receipt of the
information from whomever is the informant, and always adds that their offices
can not assist consumers in private court litigation. Until now,
no investigations into DHI’s predatory mortgage origination at the legislative
level have ensued, despite hundreds of complaints within their own databases.
Executive Authorities:
The DOJ and FBI are charged with enforcing the rules as established by the above legislative authorities. It has also been widely reported that
enforcement officers were diverted towards ‘homeland security’ rather than to
police financial fraud at home. My
submissions of scores of letters and complaints to these two agencies did
nothing to curtail existing fraud or to prevent predicted RICO by DHI. Americans now watching the news are inundated
with stories of mortgage fraud and predatory lending throughout the industry which
has been ongoing for nearly a decade.
DHI was at the forefront of toxic mortgage origination, and is now
trying to legislate rules to abuse for the next decade. Enforcement agencies sometimes confirm
receipt of tips from whomever the source, and likewise add that they can not
assist private litigants in their court actions. The rationale is that it would be unconstitutional
to use the power of government against a private party, even if it’s a multi
billion dollar corporation such as DHI. Private litigants are instead left to fend
for themselves in court, depleting their own coin purses.
Judicial Authorities:
When the legislative and
executive authorities fail, the judiciary
is a consumer’s last recourse for protection. It has been my personal and professional
experience as both a predatory lending victim and attorney defending hundreds
of defrauded consumers that the judiciary has been as derelict in their duties
as have been the Congress, FTC, HUD, SEC, DOJ and FBI. DHI has time and again requested and received
judicial intervention and help to continue practicing its nationwide RICO. For example:
1. South Carolina’s Judge Coltrane has
eradicated an entire community’s inalienable 1st Amendment rights in
favor of billion dollar DHI. Coltrane’s reasoning
was that DHI’s consumers, who had been fraudulently promised that an operating
golf course would be available for four years, could irreversibly damage DHI’s
reputation by informing new prospective consumers of the misrepresentations. [Champoux]. That same Court then eradicated
another private litigant’s rights when it issued another injunction preventing his
broadcasting that DHI used termite infested structural members when
constructing their home. [Melendez].
2. In California, DHI argued
that since it was incorporated in Delaware and headquartered in Texas, that it
had no ‘presence’ in the golden state.
This notwithstanding that 40% of its business volume and profits came
directly from Californians. [Missud,
Holmes]. Egregiously defrauded
Californians were then required to chase after billion dollar DHI in far away
states. For that matter, even when served
in Texas, DHI removes to another jurisdiction to make plaintiffs’ counsels have
to associate with the other state’s barristers, or to find completely different
state representation and start again from square one. [Dodson].
3. In Mecklenburg County North Carolina, a class action was filed against Beazer Homes’ affiliates for conspiring to illegally finance unqualified purchasers to buy newly-constructed homes, thusly making widespread foreclosure and abnormal property devaluation inevitable. U.S. District Judge Martin Reidinger dismissed the suit stating that the Tingleys ‘failed to directly connect Beazer's actions with the falling property value on their house. Foreclosures in Southern Chase could have resulted from factors other than Beazer's actions, including job loss, health problems, and a general weakening of the economy.’ [Tingley v. Beazer 3:07CV176]. In DHI’s case, I state with certainty and backed by scores of defrauded consumers that their foreclosures can be directly linked to DHI’s sub prime and otherwise predatory lending.
4. In Georgia, Federal Judge Edinfield
in Yeatman determined that DHI did not abuse RESPA laws by requiring consumers
to use their affiliate’s financial services by offering ‘incentives.’ However, Edinfield should have first
determined whether those incentives truly benefitted consumers, or were rather just
illusory. Apparently Edinfield reasoned
that DHI, in its infinite generosity, was offering something for nothing,
namely financial services. In actuality,
those financial services have greater yield spreads and closing costs which are
manipulated after consumers have been
bound to contracts to make up the cost of ‘incentives’ ….and then some. [Yeatman v. D R Horton 4:2007cv00081].
5. Plaintiffs frequently find
it impossible to front all or even some money to sue DHI because they have
already had their money stolen by DHI.
Plaintiff attorneys are reluctant to take on multi billion dollar
corporations such as DHI because they know about all those expensive court motions
which are designed to bankrupt plaintiffs’ attorneys. Perhaps this is why a conservative 9 of 10
DHI consumer-victims don’t even try to bring suit. Court sanctioned DHI RICO
pays very well, and those precious judicial resources are ‘saved.’ It’s a win-win for everyone except
consumers….
6. Billion dollar DHI files
expensive and time consuming motions such as Motions to Quash Service of
Summons. Process servers can follow the
rules and leave court documents at DHI agents’ places of business, but DHI will
invariably always find that service was defective. The courts then take the easy way out and usually
agree. Only when pictures of fleeing DHI
agents are snapped, is DHI loathe to admit service. DHI then goes on to file other expensive and
time consuming motions to batter litigants into submission, allowing for even more
fraud and additional victims. If a case
makes it past the motion stage and gets to mediation/arbitration, the process
is still an uphill battle….
7. The courts favor out of
court settlements for ‘judicial efficiency.’
Such settlements are always confidential, the terms not made public and
admission of guilt never included. If
only one of every ten defrauded DHI victims brings suit and then quickly
settles at the advice of the by then run-ragged plaintiff’s attorney, then that
consumer has at least gained a pittance.
However, when DHI does a cost benefit analysis of losing the maximum
estimated $50,000 to a successful litigant, but keeping the ill gotten gains of
the other 9 defrauded victims who conservatively lose only $20,000 each, then
DHI is ahead $130,000. Court sanctioned
RICO pays very well, and those precious judicial resources are ‘saved.’ It’s a win-win for everyone except
consumers….
8. Within just five minutes,
corporations such as DHI can defraud a consumer of tens of thousands of dollars
each. It takes five years or better for
consumers to get that money back, but only if they have the money and patience
to spend in the courts. Judge Bryan’s
decision will without doubt financially ruin thousands more consumers. He on the other hand will sleep soundly
because neither he nor his family have been victims of this type of fraud.
Find attached a bill from
American taxpayers to all the federal and state judges who have aided in DHI’s
RICO which has been directly linked to the bankruptcies of Corrente, Hernandez,
Rabahri, Lorenzo, Washington, Castillo, …… but has put many millions in additional
dollars in Donald Horton’s pocket.
Cordially,
Patrick Missud;
Webmaster/whistleblower
Cc: Holder #7008 1300 0002 0824 -3976
Cal Bar -3983
Armstrong
cc: -3983
Bryan
-3990
Edinfield
-4003
Reidinger
-4010
Coltrane
-4027
American Taxpayer
Everytown, U.S.A
Contacts furnished upon request
April 16, 2009
Summary bill for:
DHI’s proven Nationwide Predatory Lending and Mortgage Fraud
A. Total estimated DHI fraud on consumers including but not limited to: high yield spread premiums, high FICO consumers put into higher risk/interest rate loans, bait and switch interest rates, inflated closing costs, required payments of unnecessary PMI, non disclosure of HOA and other fees such as taxes on closing statements, last minute unilateral change of lending terms, false promises of qualifying for a loan which when becomes impossible leads to forfeiture of deposits, incorporating pre pay penalties to lock consumers into paying onerous rates….
B. Total estimated fraud on banks, secondary mortgage servicers and investors; inflated home appraisals, delinquencies and foreclosures due to A above.
Conservatively:
Total yearly estimated DHI fraud $1 Billion
Total yearly estimated Builder fraud including KB, Centex, Beazer, Pulte....
$20 Billion
Payments: $0
Balance $21 Billion/yr
If payment is by check, please make it payable to:
/S/ Joe Six Pack
300,000,000 taxpayers
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