Cordray Outlines Fraud in Cleveland Foreclosure Case

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CLEVELAND, OH – October 28, 2010 – (RealEstateRama) — Citing false statements and documented fraud, Ohio Attorney General Richard Cordray today weighed in on a GMAC foreclosure case that threatens to oust a Parma man and his family from their home. Cordray filed a friend-of-the-court brief in the Cuyahoga County Common Pleas Court foreclosure proceeding and asked the court to consider evidence that GMAC committed fraud that tainted the entire judicial process.Cordray said that although it is unusual for his office to get involved in an individual foreclosure case, the potential use of fraudulent documents in this case prompted him to file the brief.

“Judges rely upon the accuracy of affidavits to grant judgments and ensure that the integrity of the judicial system can be trusted,” said Cordray. “False affidavits throw the entire system into question. Foreclosures should not move forward when the basis of evidence is perjured statements.”

After filing a lawsuit against GMAC for fraud earlier this month, Cordray demanded that the loan servicer withdraw all pending foreclosures in which questionable affidavits were used in Ohio. This foreclosure case, U.S. Bank National Association v. James W. Renfro, was one of a handful of cases in which GMAC willingly filed a motion to withdraw. However, on October 25, Judge Nancy Margaret Russo denied the motion and ordered GMAC to provide the court with “proof of integrity of all documents submitted” at a pretrial set for November 8. To inform the court of evidence of affidavit tampering, Cordray filed an amicus brief.

Cordray’s brief focuses on testimony given by GMAC employee Jeffrey Stephan in two cases acknowledging falsification of affidavits, two previous sanctions against GMAC for filing false affidavits and outlines the argument that filing false affidavits is an act of fraud on the court. To view the brief in full, visit www.OhioAttorneyGeneral.gov/ParmaForeclosureBrief.

To view GMAC’s motion to withdraw and Judge Russo’s ruling, visit www.OhioAttorneyGeneral.gov/ParmaForeclosureMotions.

For information on Cordray’s lawsuit against GMAC, visit www.OhioAttorneyGeneral.gov/GMACAllySuit.

Media Contacts:
Kim Kowalski: (614) 728-9692
cell: (614) 893-6018
Ted Hart: (614) 728-4127
cell: (614) 743-2286

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