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Lawsuit Alleges that MERS Owes California a Potential $60-120 Billion in Unpaid Land-Recording Fees

Posted By admin On October 24, 2010 @ 4:53 am In Money Watch | Comments Disabled

Washington’s Blog
Oct 24, 2010

Former hedge fund manager Shah Gilani notes [1]:

In creating MERS, these institutions actually changed the land-title system that this country – for much of its history – has relied upon to determine legal ownership status of land titleholders [2].

Not only did the lenders sidestep (read that to mean avoid) paying billions of dollars in fees to local governments, they paid themselves from the fees that MERS collected.

MERS is facing class-action lawsuits and civil racketeering suits around the country and their members are being individually named in all these suits. One suit alleges that MERS owes California a potential $60 billion to $120 billion in unpaid land-recording fees.

If suits against MERS and all its members are successful, unpaid recording fees and fines (that can be as much as $10,000 per incident) would make every one of them insolvent.

MERS is a shell company [3], with no employees. However, its parent does have employees.

As Bloomberg notes [4]:

MERS Inc., which holds the liens, has no employees, and MERSCORP, the parent, has only about 50, [the MERS spokeswoman said].

Plaintiffs’ lawyers will undoubtedly argue that the “corporate veil should be pierced”. In other words, they’ll argue that MERS hasn’t followed normal corporate formalities, and so the big banks which own it should have to pay any judgments against it.

I am not sure who will win that argument.

But Plaintiffs’ lawyers will probably also name the banks directly as co-defendants.

Having A Supply Of Healthy Foods That Last Just Makes Sense (AD) [5]

Lawsuit Alleges that MERS Owes California a Potential $60 120 Billion in Unpaid Land Recording Fees 140910banner5 [6]


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URLs in this post:

[1] notes: http://moneymorning.com/2010/10/15/mortgagegate/

[2] titleholders: http://en.wikipedia.org/wiki/Titleholder_system

[3] shell company: http://www.washingtonsblog.com/2010/10/what-is-mers-and-what-role-does-it-have.html

[4] notes: http://www.bloomberg.com/news/2010-10-19/u-s-electronic-mortgage-registry-comes-under-fire-in-foreclosure-crisis.html

[5] Having A Supply Of Healthy Foods That Last Just Makes Sense (AD): http://www.efoodsdirect.com//index.html?aid=14&adid=43

[6] Image: http://www.homegain.com/homevalues

[7] Monsanto to fight potential lawsuit by organic farmer whose land ruined by GMOs: http://www.prisonplanet.com/monsanto-to-fight-potential-lawsuit-by-organic-farmer-whose-land-ruined-by-gmos.html

[8] Cash-starved California orders unpaid leave for workers: http://www.prisonplanet.com/cash-starved-california-orders-unpaid-leave-for-workers.html

[9] States Fight Back Against MERS Mortgage Fraud: http://www.prisonplanet.com/states-fight-back-against-mers-mortgage-fraud.html

[10] U.S. Says Deadly MERS Virus Could Affect Nat’l Security: http://www.prisonplanet.com/u-s-says-deadly-mers-virus-could-affect-nat%e2%80%99l-security.html

[11] California Senate Approves Background Checks, Permits and Fees for Ammunition Purchases: http://www.prisonplanet.com/california-senate-approves-background-checks-permits-and-fees-for-ammunition-purchases.html

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