Richard F, Davet PO Box 10092 Cleveland, OH 44110 Phone 216-451-6211 Email: Rfdavev@gmail.com June 1, 2016 The Honorable Margaret M. Sweeney United States Court of Federal Claims Howard T. Markey National Courts Building 717 Madison Place, NW, Washington, DC 20439 RE: The GSE Business Model’s Sprawling Litigation Dear Judge Sweeny: Out of a sense of civie responsibility I must call to your attention the Sham being perpetuated before you to the detriment of every US Taxpayer. FYI, Lam a twenty year litigant on the subject (see attached WSJ article). 1 am also attaching a criminal complaint that | filed, circa 1997 which is self explanatory. ‘The matters before you are a perpetuation of the sham, e.g. GSE Business Model that has been perpetrated on the US Taxpayers as victims (see attached my 2009 exchange with Jamie Dimon). The hedge funders spotted a less than noble opportunity in our government's hesitance to pull the plug on these Frankensteinish entities hoping to capitalize on their discounted pricing to their own end, I can tell you first hand that FNMA was and is complicit in the fraud perpetrated on their victims and continue to do so to this day. As a business person, I applaud the quest for discovery to bring to the light of day the goings on at FNMA/FHFA; however one must hold their nose knowing that the whole thing is predicated on an elaborate crime. No one should be able to eat the fruit of the poisonous tree. From the Government’s perspective their conduct to date is worse. I have been in contact with Laura Wertheimer, OIG of FHFA who has done nothing with respect to the fraud going on at FNMA, As you are aware the press is all over the supposedly $50 Billion “profit” which is an absolute joke when you know the latent liability, unreported fraud going on at the GSEs. FYI,there is a self serving Report by Mark Cymrot of Baker Hostetler alluding to those exposures reported by the NY Times. I strongly urge you to read it cover to cover as it will make clear that all the players are complicit in the crime to this day and in the matters before you (http://s3.documentcloud.org/documents/289482/lavalle-report-small-printed.pdf ) . I stand ready to assist you based on my experiences in discharging your duties with respect to the felonious activities before you. Please do not hesitate to call, Sincerely yours, Richard Davet Rélee Enclose: Criminal Complaint Dimon Exchange 2009 How one Family fought ForeclosureIN THE COURT OF COMMON FLEAS CUYAKOGA COUNTY GHID pag se? 151 P 2 08 HTRTGAAG MORIGAAE GORIORMEN Sage ASHE co nagp Cout'e "Gp i Plaintitt ) JuDeE: KATHLEEN A, SUTULA te V5. AFFIDAVIT ) ) ) ) RICHARD F, DAVET, etal. ) ) ) Defendants PREFACE: THE AFFIDAVIT SET FORTH BELOW IS BEING FILED BY A PRIVATE CITIZEN WITH THE HONORABLE JUDGE KATHLEEN A, SUTULA PURSUANT TO SECTION 2935.09 OF THE OHIO REVISED CODE, DEFENDANT RICHARD F, DAVET, A PRIVATE CITIZEN KNOWLEDGEABLE OF FACTS THAT A FELONY HAS BEEN COMMITTED BY PERSONS IN THE STATE OF OHIO, DOES SO CHARGE SAID PERSONS IN THIS AFFIDAVIT AND EXPECTS, BY THIS FILING, THAT THE HONORABLE JUDGE SUTJLA SHALL FORTHWITH ISSUE A WARRANT FOR THE ARREST AND PROSECUTION OF SAID PERSONS PURSUANT TO SECTION 2935.10 OF THE OHIO REVISED CODE.PAGE 2 (For reference) NAMES & ADDRESSES ARE HEREIN PROVIDED OF THOSE PERSONS CHARGED IN AFFIDAV-T: NATIONSBANC MORTGAGE CORPORATION 205 PARK CLUB LANE BUFFALO, NY 14231 H. RANDALL CHESTNUT, CHIEF EXECUTIVE OFFICER NATIONSBANC MORTGAGE CORPORATION 205 PARK CLUB LANE BUFFALO, NY 14231 RICHARD McNELLIE, MANAGEING PARTNER McNELLIE & RINI CO., L,P.A. 2520) CHAGRIN BOULEVARD, Suite 240 CLEVELAND, OH 44122PAGE 3 AFFIDAVIT The undersigned, being duly sworn, does hereby state that the persons NATIONSBANC MORTGAGE CORPORATION, H. RANDALL CHESTNUT, and RICHARD McNELLIE, without standing or privilege for so doing, did knowingly and complicitly attempt to facilitate a fraud upon Affiant by filing this foreclosure lawsuit (CASE NO. CY 308224) in Cuyahoga County Common Pleas Court, State of Ohio. By so acting, the named persons did complicitly initiate a "Sham legal process" in violation of Section 2921.52 of the Ohio Revised Code, as defined in Section 2921.52 (A)(4), Also, the persons charged violated Section 2921.13(A)(1) of the Ohio Revised Code by making a false statement when filing the foreclosure lawsuit on March 1, 1996, in its filing, NATIONSBANC MORTGAGE CORPORATION falsely stated it had an equity ownership interest in the Affiant's zeal estate mortgage, and its attendant note, upon which foreclosure action was being sought. Such falsification is evidenced as a matter of public record. Consequently, the persons charged herein did also specifically violate Section 2921.52 (Bi(4) of the O2io Revised Code by knowingly committing a felony by using sham legal process.PAGE 4 Evidence of the felonious act of the persons charged is set forth in attached Exhibit "A" which is incorporated herein by reference, Exhibit A is a copy of the Complaint for foreclosure filed on March 1, 1996 by RICHARD McNELLIE, Counsel for NATIONSBANC MORTGAGE CORPORATION (NMC) at the direction of NMC Chief Executive Officer, H. RANDALL CHESTNUT. In said Complaint, the false statement is made that NATIONSBANC MORTGAGE CORPORATION is owner of the real estate mortgage and note upon which foreclosure is sought, Affant further states that the filing of this Affidavit with Judge Sutula is not-only being done in good faith but is also being done in the spirit of civic duty as authorized under Section 2935.09 ORC, AFFIANT SAYETH NOTHING FURTHER. 1 UA Richard F. Davet, AFFIANT Sworn to and acknowledged before me this Eth Day of September, 1998, recall howe (all MILDRED SUE PHILLIPS NOTARY &SRAL —— wrcomaresorespatin! 2° 509PAGE § PROOF OF SERVICE The undersigned hereby certifies thet a true and exact copy of this AFFIDAVIT FILED WITH THE HONORABLE JUDGE KATHLEEN SUTULA was tailed to Ted A. Humbert, Attomey for Defendant, Bank One, Cleveland, N.A., at 323 Lakeside Avenue, Suite 200, Cleveland, OH 44113; Jeffrey F, Slavin, Attorney for Defendant, Body, Vickers & Daniels at 75 Public Square, Suite 1225, Cleveland, OH 44113; Robert J. Olender, Attorney for Defendant, American National Bank at 925 Euclid Avenue, Suite 1940, Cleveland, OH 44115; Stephon M. Darlington, Attorney . for-Defendant, Huntington National Bank at 917 Euclid Avenue, Cleveland, OH 44115; and Lynn G, Davet at 24800 Community Drive, Beachwood, OHIO; by ordinary U.S. Mail., this 15th Day of September 15, 1998. Pye RICHARD F, DAVET, AFFIANTFAH EBL “A Q-15-98/ F96-96/kai (02-29-96) ii THE COURT OF COMMON PLEAS CUYAHOGA COUNTY, OHTO NationsBanc Mortgage Corporation CASE NO.: 205 Park Club Lane Buffalo, NY 14231 JUDGE: Plaintiffé ANID B04224 vs- Richard F. Pavet wr CE RI 24800 Community Drive BY THE FAIR DEBT COLLECTION Beachwood, Ohie 44122 PRACTICES AGT ATTACHED Jane Doe, Real Name Unknown, Permanent Parcel The Unknown Spouse, if any, of Nog.: 741-12-009 Richard F. Davet 741-12-010 24800 Community Drive Beachwood, Ohio 44122 Bank One, Cleveland NA 1288 Euclid avenue Cleveland, OH 44214 American National Bank 5603 Ridge Road Parma, Ohio 44129 Body, Vickers, & Daniels, nka, Vickers, Daniels & Young 50 bublic Square Terminal Tewer, #2000 Cleveland, Ohio 44113 Buntington National Bank 917 Buclid Avenue Cleveland, Ohio 44115 Defendants FIRST COUNT 1. Plaintif€ saya that it is the owner and holder of a certain promissory note, a copy of which is attached hereto, marked Exhibis "a", and made a part hereof; that by reason of default in the paymen- cf the note and mortgage securing same, it has declared said debt due; and, that there is due and unpaid thereon the sum of $83,162.89, plus st at the rate of 9.00% per annum from April 1, 1995.£ CHIBIT A“q4s¢ Pan. 3, " SECOND COUNT Plaintiff incorporates herein by reference all of the allegations contained in its first count, and further says that it is the owner and holder of a certain mortgage deed, securing the payment of said promissory note, a copy of which mortgage deed io attached hereto, marked Exhibit “B", and made a part hereof; and, that said mortgage is a valid and first lien upon the premises described in said mortgage deed. 2, Plaintiff says that the conditions of said mortgage deed have been broken, by reason of default in payment and the same has become absolute; and, that the defendants named in this complaint have or claim to have an interest in the premises described in Exhibit * 3, Plaintiff says that pursuant to the covenants and conditions of said mo: age deed it may, from time to time during the pendency of this action, advance sums to.pay realestate taxes, hazard insurance premiums and property protection and maintenance, which sums so advanced are a good and valid first lien upor the premises described in Exhibit "BY, Plaintiff further says that it has performed all of the conditions precedent required to be performed by it. WHEREFORE, plaintiff demands judgment against the defendant, Richard F. Davet, in the sum of $83,162.89, plus interest at the rate cf 9.00% per annum from April 1, 1995; that the defendants named herein be required to answer and set up any claim that they may have in said premises or ba forever barred; that the plaintiff be found to have a first lien on said premises for this amount so owing, together with its advances made pursuant to the terms of the mortgage for rea” estate taxes, insurance premiums and property protection and maintenance; that upon failure tc pay said amount within three (3) days thereafter, said premises be ordered appraised, advertised andEXHIB I A‘. G-ts- 98 PE 3 A sold according to law; that from the proceeds of said sale, the plaintiff be paid the amount so found due it; and, that plaintiff be awarded such other and further reY/ef as equity eptit, receive. ‘ROW Mv: RICHARD L. McNELLIE (0032130) Attorney for Plaintiff 28601 Chagrin Blvd., SUITE 600 Sleveland, CH 44122-4531 (216) 360-7200Richard Davet 2009 JPM Shareholder’s meeting Exchange with James Dimon CEO and Chairman ‘As you know, for years, the Bank has been and continues to be major players in its mortgage business in what has come to be known as the “Government Sponsored Enterprise (GSE) Business Mode!” In September of 2008, Treasury Secretary Paulson declared that, and I quote, “these enterprises pose a systemic risk”. Your mortgage business goes 90%+ to Fannie Mae on a daily basis. Much has been written about the GSE flawed business model, including a Wall Street op-ed by George Soros which calls the models “hopelessly conflicted” and “it simply doesn’t work”. ? 1, When do you and the Board intend to disclose to shareholders the consequences of the Bank’s vigorous involvement with this fatally flawed business model? ? 2 Isn't this business a little like your running a house of ill repute while knowing that all your ladies have aids and what are you doing to your client base? 2.3, What would you say to the skeptics that are out there that think that all players involved with the GSE Business Model are engaged in a simple criminal scheme, albeit of a dimension that we have never seen before, that a prosecutor would call “theft by deception” with the American taxpayer as the victim?The Court House: How One Family Fought Foreclosure By AMIR EFRATI December 28, 2007; Page AL BEACHWOOD, Ohio -- Faced with the threat of foreclosure, many homeowners give up and abandon their homes. ‘Then there's Richard Davet. He and his wife, Lynn, lived in a six-bedroom home in this Cleveland suburb for nearly 20 years when, in 1996, he was served with a foreclosure lawsuit. Rather than turn over the keys, he hit the law books. Flooding the courts with papers, Mr. Davet staved off foreclosure for 11 years, until this past January, when a county sheriff's deputy evicted the couple and changed the locks. They didn't make a mortgage payment the entire time. "Our four Scottish terriers are buried there," says the 63-year-old Mr. Davet. "It was heaven on earth, an/Unbelievable property, and they took it from us like candy from a baby." Richard Davet ————_Mr. Davet’s case is believed to be the longest residential foreclosure of its kind in the history of Cuyahoga County, which is at the epicenter of the foreclosure crisis currently enveloping Chio and many other parts of the country. Foreclosure actions are generally routine, typically taking from a few months to a couple of years to get the borrower out of the home. Companies turn the work over to so-called foreclosure-mill Jaw firms, and generally cases are uncontested. DISCUSS ON THE LAW BLOG Za Mr. Davet's argument -- NationsBanc couldn't bring the suit because it didn't legally own his mortgage ~ is the same red-hot legal theory now being embraced by judges and regulators in ‘Ohio and elsewhere to help give homeowners a chance against foreclosure. Is this all about a legal system at work, or not working? Discuss it here. These days, more homeowners are digging in their heels. They delay foreclosures by filing for bankruptcy on the eve of a court-ordered sale of the property, or by refusing to answer the door when the plaintiff tries to "serve" them with a foreclosure lawsuit. They pay lawyers a few hundred dollars to file a motion that can buy them a little more time.But few are as dogged as Mr. Davet. And his fight may not be over yet. Though ousted from his home for nearly a year now, he is trying to get the charming 1940s house back, plus damages. He's relying on the legal argument -- currently making headlines -- that 2 financial institution can only file a foreclosure action if it can prove it actually owns and holds the mortgage and promissory note. "give him credit. He truly believes a banking institution did him a great wrong,” says Daniel Kalk, one of several lawyers who at various times represented Mr. Davet in the case. "The funny thing is, some of the things he argued 10 years ago ~ all of a sudden you see a federal court saying the same thing.” A former jewelry-business owner, Mr. Davet and his wife, a former graphic-arts tutor, bought their home in 1978 for $150,000. As its value increased they borrowed against it. They made their mortgage payments, but on one loan, they allegedly made payments late -- 90 times, according to NationsBanc Mortgage Corp.,. which assessed the couple some $4,000 in late fees. After the Davets for two years refused demands to pay the late fees, during which NationsBanc began refusing to accept their regular mortgage payments, the company sued for foreclosure. At the time the couple still owed $80,000 in principal, plus an additional $160,000 on a second mortgage on the home. Mr. Davet insists the late fees were erroneous -- he points to a deposition in which a NationsBanc ‘employee conceded that the company couldn't back up its claims for a chunk of the fees. So he began his full-time crusade in the courts to keep his home. CASE DOCUMENTS @ He started with the help of lawyers, but those arrangements didn't last. Dan Dreyfuss, who represented the couple when the case was filed, called Mr. Davet's strategy "a recipe for how to confound the courts." He quit after Mr. Davet filed a motion to disqualify a judge against his advice. Mr. Kalk eventually sued Mr. Davet, successfully, for unpaid legal fees. lationsBanc’s complaint against Mr. Davet he Davets' motion for reconsideration On his own, as a "pro se" litigant, Mr. Davet was undeterred. Four times a week he went to Case Western Reserve University School of Law to study legal writing and case law in its library. His briefs were angry and colorful, including football analogies and an aside on Enron Corp. ‘Among his maneuvers: asking a judge to arrest NationsBanc's CEO for initiating a "sham" proceeding against him because the company claimed in error that it owned his loan. (The judge dismissed the request.) He later sought to disqualify the judge because she had accepted campaign contributions from real-estate developers, whose Beachwood developments Mr. Davet had publicly protested before the foreclosure litigation. When he didn't win that motion, Mr. Davet sought to disqualify the judge who had dismissed it. He appealed at every chance he could, which bought him extra years in his home."Mr. Davet has litigated these same issues over and over again...and in each instance the courts have dismissed his claims," said Bank of America Corp., Charlotte, N.C., which merged with the owner of NationsBane. Several years into the case, Bank of America took the unusual step of bringing in lawyers from a big corporate law firm, Jones Day. Five years later, in 2005, a judge granted foreclosure in the amount Mr. Davet owed and set a sale date for the property so that the creditors could take the sale proceeds. But when the property finally went to sale, Mr. Davet set up a shell company to win the auction, for $436,000. He couldn't pay more than the required $10,000 deposit, but the move delayed his eviction by months. Mr, Davet says it wasn't a delay tactic and that he was trying to line up investors to buy the property. The house was later sold to another family for $410,000. The eviction finally happened on a snowy day in January of this year. Don Saunders, who lived three doors down from Mr. Davet and is a trustee of the neighborhood association, says it came as a shock in the upscale area, Mr, Davet continued to try, unsuccessfully, to get the federal court to agree that the state judgment was invalid. Then, a possible lifeline arrived this past October, when a federal judge in Cleveland, Christopher A. Boyko, dismissed 14 foreclosure suits because the plaintiffs that brought them couldn't prove they ‘owned the mortgages when the suits were filed, Such a problem can occur when mortgages are turned into securities and sold to investors. The companies involved in the transaction may not have checked that each mortgage was legally transferred, or "assigned," to the new owners. In essence, the originating lender continued to legally ‘own the mortgage -- and would thus need to be the plaintiff in a foreclosure suit. In Mr. Davet's case, however, the mortgage, which was not securitized, changed hands multiple times and wasn't actually owned by NationsBanc until three years after the company filed suit. Other judges have since followed Judge Boyko's lead. The Ohio attorney general has asked numerous judges to dismiss or delay foreclosures based on similar grounds. Earlier this month, Mr. Davet filed a second federal appeal, this time citing the Boyko ruling, which he believes he inspired. It's unclear whether the latest salvo will work. If it doesn't, Mr. Davet says, he will set his sights on the U.S. Supreme Court. All the litigation makes the home's new owner, Paul Mikhli, a dentist, "a little nervous." Should Mr. Davet succeed, he adds, title insurance should cover his expenses. After spending much of the year living at the homes of friends and family, including their daughter, 2 university student in Indiana, the Davets recently moved into a small, $900-a-month home in a ruralcommunity east of Cleveland. "The money is short,” Mr. Davet said on a recent afternoon, adding that ‘one of his siblings, a pawn-shop owner, has been helping financially. But hope prevails. From time to time, he drives back to Beachwood, just to see how his old home is doing, James R. Hagerty contributed to this article, Write to Amir Efrati at amir.efrati@wsi.com