Securities Industry Commentator by Bill Singer Esq

[UBS] sold investors RMBS backed by mortgage loans based on inaccurate statements in prospectus supplements and/or investor presentations for the RMBS. Indeed, many of the mortgage loans did not comply with underwriting guidelines or applicable laws and regulations, among other defects. The loan pools backing the securitizations suffered billions of dollars of collateral losses, causing investors to experience shortfalls in principal and interest payments, as well as declines in the market value of their certificates. The conduct uncovered by Attorney General Schneiderman's office harmed countless New York homeowners and investors, as home values declined dramatically during the financial crisis.

During this time, UBS's diligence vendors determined that loans sold by the loan originators to UBS did not conform to underwriting guidelines; yet UBS packaged and sold them anyway. Moreover, UBS limited the scope of the diligence conducted on mortgage loans, and UBS admits that it securitized various loans for which no diligence was performed to assess whether the loans conformed to underwriting guidelines or had other defects. Further, UBS's review of securitized mortgage loans, which defaulted shortly after issuance, showed serious problems in the origination of the loans. Nevertheless, even after identifying these problems, UBS continued to purchase and securitize risky loans from the same originators. 

Beginning in December 2016, Drakeford allegedly agreed to help manage her victim's financial affairs and pay for her care. She was granted limited access to the victim's checking account. Unbeknownst to victim or the victim's guardian, Drakeford already had fraudulently gained access to the victim's credit card account and had several cards issued in her name. Drakeford then used the credit cards for personal expenditures, including clothing, jewelry, and automobiles, dental work, rent, and utilities. Drakeford paid off the credit card bills with checks drawn on the victim's checking account, all without permission. Drakeford allegedly defrauded the victim of approximately $237,000. 

In 2014, Campbell set up a car dealership called Campbell's Cars, LLC, using the stolen identity of O.C., a Georgia resident who had good credit, but no connection to Campbell or the business.  Campbell then used the new car dealership entity and O.C.'s good credit to obtain a loan from a commercial lender.  The lender was unable to recover its losses by repossessing the cars that were supposedly collateralizing the loan, and eventually sued O.C. to collect the debt. 

On March 31, 2017, while Campbell was on bond in another federal case, agents executed search warrants at Campbell's home and business.  These searches caught Campbell "red-handed," in the process of carrying out the same fraud scheme with a new lender and two new identity theft victims.  At Campbell's workplace, agents discovered a fake ID in the name of one of Campbell's previous identity theft victims. 

At Campbell's home, agents discovered a complete loan package ready to be mailed to the lender from a new fake car dealership named Launch Auto Sales, more fake IDs in the names of two new identity theft victims, and pieces of paper on which Campbell had been practicing the signatures of the victims repetitively.  Shortly thereafter, Campbell's bond was revoked and he has been in custody since April 2017.

During the case, Campbell repeatedly claimed to be a physician, even though he is not.  As part of this deception, Campbell had the same criminal associate prepare a fake income tax return for him claiming income from a local hospital and showing employment as a physician.  This tax return was never filed with the IRS, and appears to have been intended to help Campbell get approved for a rental home.  Campbell also swore out a false affidavit, which he provided to a DeKalb County Assistant District Attorney, in which he falsely claimed to be a licensed neurologist.  The affidavit was submitted to the DeKalb County prosecutor as part of an unsuccessful attempt to convince that official to dismiss a car theft case pending against a friend of Campbell's.

On May 8, 2017, Campbell entered a negotiated plea of guilty to a criminal information charging aggravated identity theft and conspiracy to commit wire fraud.  Campbell admitted that, from at least June 2014 through September 2014, he had conspired with others to commit wire fraud victimizing the commercial lender, and that he had also committed aggravated identity theft by using the identity of O.C. to apply for credit from the lender. 

[B]etween 2011 and 2015, Nazer founded and operated 10 different businesses, each of which engaged in cold-calling timeshare owners across the United States and fraudulently inducing them to pay advance fees for services that the businesses never intended to render. Nazer, and others that he had recruited for this scheme, made a series of false claims to victims, including that Nazer's businesses would help the owner market his or her timeshare; that they had identified buyers to purchase the timeshare; that they would facilitate the sale of the timeshare; and that they would refund the advance fee within a prescribed time period if the timeshare sale did not go through.

• Securities Industry Commentator
• Bill Singer