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HomeBlogPart I: Altisource Hit With Two Class Action Lawsuits

Part I: Altisource Hit With Two Class Action Lawsuits

Altisource, as a whole, has become the trainwreck no one can look away from. Since Foreclosurepedia's initiation of #OpAltisore less than a year and a half ago, the entire Altisource Portfolio now resembles a homeless wino holding a Homeless and Hungry sign on the corner of Artesia and Santa Fe Boulevard in Compton. Fraud has become so common within the Mortgage Field Services segment of Altisource that I like to think there are water cooler bets being taken daily on how much time Pat McTaggart has left in her current position as Altisource's Manager, Field Vendor Management, VMO. The reality is that it may not matter a whole lot over the next several months anyway.

Altisource Residential Corporation (RESI) was hit with not one but two class action lawsuits. The Brualdi Law Firm, P.C. kicked off their litigation in the United States District Court for the Virgin Islands on behalf of purchasers of Altisource Residential Corporation securities during the period between February 7, 2013 and January 23, 2015 for violations of federal securities laws. Not to be outdone, the Rosen Law Firm, a global investor rights law firm, filed on a nearly identical set of circumstances.

The case, right now, to follow is: Eric Martin, Individually and On Behalf of Others Similarly Situated v Altisource Residential Corporation, William C Erbey, Ashish Pandey, Kenneth D Najour, Robin N Lowe, and Rachel M Ridley; 1:15-cv-WAL-GWC. Martin filed it on 27 March 2015 in the St Croix Division of the Virgin Islands --- pretty damn wise for more than one reason which does not deal with thong bikinis.  ;)  You see, Big Bill Erbey claims this as his residence. More on that later.

The Martin, et al., lawsuit alleges: 1. This is a federal securities class action on behalf of a class consisting of all persons other than defendants who purchased RESI securities between February 7, 2013 and January 23, Case: 1:15-cv-00024-WAL-GWC Document #: 1 Filed: 03/27/15 Page 1 of 47 2015, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, codified at 15 U.S.C. § 78a et seq. (the “Exchange Act”) and Rule 10b-5 against the Company and certain of its officers and directors.

William Big Bill Erbey tossed his own proverbial salad and left Ocwen Financial (Ocwen) earlier this year after an investigation - castration by Benjamin Lawsky, Superintendent of the New York Department of Financial Services (NYDFS). Depending upon which side of the table you were sitting it was deemed a conflict of interest --- to put it mildly --- pertaining to a boatload of financial transactions by Ocwen and entities involved with Ocwen, including Altisource, Altisource Portfolio Solutions and Home Loan Servicing Solutions, Ltd.

From bad to worse, WA Sokolowski fired off a shareholder lawsuit on Christmas Eve, 2014, against Big Bill Erbey and Ocwen in a case entitled WA Sokolowski Individually and Derivatively on behalf of Ocwen Financial Corp v William C Erbey, Ronald M Farris, Ronald J Corn, William H Lacy, Barry N Wish and Robert A Salcetti; and Ocwen Financial Corporation as a Nominal Defendant; 9:14-cv-81601-WPD. In a testament to the fact that all roads lead to #Fraudsterville Florida, the shareholder litigation was based, in part, upon Florida Business Corporation Act, § 607.07401.

[Ocwen was the lovechild of] Oxford, which was founded in 1983 by Defendant Wish, who was soon joined by Defendant Erbey, and together they founded Ocwen and took the Company public in 1996. By 1999, Ocwen had largely stopped making loans to people with poor credit and focused instead on servicing these loans, positioning the Company to reap profits in the aftermath of the 2008 housing collapse from the millions of delinquent and underwater borrowers. --- Case No. 9:14-cv-81601-WPD Document 1 Entered on FLSD Docket 12/24/2014 Page 3 and 4 of 90.

In 2009 Ocwen began the first of four separate company spin-offs. These spin-off companies, which do business with each other and with Ocwen, were purportedly created to provide technology and perform various services for Ocwen, including management of its foreclosed properties, while appearing, on the surface, to be separate and independent entities from Ocwen. In August, 2009, Ocwen spun off its Real Estate Owned and related business operations to Altisource Portfolio Solutions S.A. (“Altisource”), a publicly traded company that derives its revenues largely from providing mortgage foreclosure services to Ocwen. In 2010, Ocwen spun off Home Loan Servicing Solutions, Ltd., (”HLSS”), a publicly traded company created to acquire mortgage servicing rights (“MSRs”), rights to fees, and other income from servicing loans from Ocwen, which hires Ocwen to collect its loan payments. In 2013, Ocwen spun off two more publicly traded companies: Altisource Residential Corporation (“Residential”), which purchases non-performing loans and foreclosed homes, many from Ocwen, to turn into rental homes; and Altisource Asset Management Corporation (“AAMC”), which serves as ...

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Paul Williams
Paul Williamshttps://foreclosurepedia.org
Linux addict buried deep in the mountains of East Tennessee.
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