PA and NJ Homeowners File Foreclosure Fraud Class Action Against Wells Fargo and Phelan Hallinan & Schmieg | PRWEB | 10/27/11

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On behalf of a proposed class of distressed homeowners residing in New Jersey and Pennsylvania, BHN Law Firm filed a Complaint in the United States District Court for the District of New Jersey against Wells Fargo Bank, N.A. (Wells Fargo) and one of its principal foreclosure law firms. The caption of the Complaint, filed on October 24, 2011, is Giles v. Phelan Hallinan & Schmieg, LLP, 1:11-cv-06239 (D.N.J.).

The Complaint alleges that:

  • Wells Fargo and Phelan, Hallinan & Schmieg (Phelan), a high-volume foreclosure law firm in Pennsylvania and New Jersey, engaged in a fraudulent scheme to “pile on” unlawful foreclosure fees from financially troubled families on the brink of losing their homes.
  • To carry out the scheme, defendants systematically filed falsified complaints, affidavits and mortgage assignments to bring foreclosure actions in the name of parties without legal standing to sue.
  • Beginning in 2005, Phelan adopted a business model in which companies under its ownership and control provide “default management services” incidental to foreclosures, such as title searches, notary public certifications, investigations and service of process at inflated rates which were charged to the defrauded homeowners.
  • In 2009 and 2010 alone, Phelan and its affiliated companies obtained $48 million in “default services” fees from just one of their many clients — Fannie Mae — a government sponsored enterprise.

The Complaint seeks monetary and injunctive relief against defendants under the Racketeer Influenced and Corruption Act, the New Jersey Consumer Fraud Act and Pennsylvania’s Unfair Trade Practices and Consumer Protection Law.

Read the full story at http://www.prweb.com/releases/2011/10/prweb8913366.htm

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About vinhsu

Center City Philadelphia General Practice Law Firm with emphasis on Criminal Defense, Family Law, Immigration, Real Property, and Wills/Trusts/ Estate Planning. Licensed in Pennsylvania and New Jersey.
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