in ,

Lawsuit Against Foreclosure Law Firm For Overbilling Fannie Mae Foreclosure Expenses

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Rene Febles, Deputy Inspector General for Investigations for the Federal Housing Finance Agency (“FHFA-OIG”), announced today that the United States has filed a complaint-in-intervention against Rosicki, Rosicki & Associates, P.C. (“ROSICKI”), a foreclosure law firm in New York, and its wholly owned affiliates, Enterprise Process Service, Inc. (“ENTERPRISE”) and Paramount Land, Inc. (“PARAMOUNT”), for engaging in a scheme to generate false and inflated bills for foreclosure-related expenses and causing those expenses to be submitted to and paid for by the Federal National Mortgage Association, known colloquially as Fannie Mae. The case is assigned to U.S. District Judge Jed S. Rakoff.

Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the complaint, for years the Rosicki law firm exploited its relationship with Fannie Mae, a Government-sponsored entity, for its own financial gain by knowingly causing Fannie Mae to pay artificially inflated costs for foreclosure-related services. This lawsuit demonstrates this Office’s continued commitment to root out fraud in all of its forms.”

FHFA Deputy Inspector General for Investigations Rene Febles said: “FHFA-OIG recognizes that the best deterrent against fraud is a proactive and visible law enforcement effort. We are vigilant and remain committed to conducting vigorous investigations and working closely with prosecutors to hold those organizations and persons accountable who waste, steal, or abuse funds in connection with FHFA or any of the entities that it regulates.”

As alleged in the complaint:

From May 2009 through the present (“Covered Period”), ROSICKI, a law firm based in Plainview, New York, that specializes in mortgage foreclosures, acted as counsel to various mortgage servicing companies, and in that capacity effectuated mortgage foreclosures on Fannie Mae-owned loans. ENTERPRISE was a service-of-process company wholly owned and controlled by the two founding partners of ROSICKI, and PARAMOUNT was a title search company also wholly owned and controlled by the same ROSICKI partners.

Throughout the Covered Period, ROSICKI, ENTERPRISE, and PARAMOUNT perpetrated a scheme whereby ROSICKI exclusively engaged ENTERPRISE and PARAMOUNT purportedly to serve process and perform title searches that were required to complete mortgage foreclosures on Fannie Mae-owned loans. In reality, however, ENTERPRISE and PARAMOUNT engaged third-party vendors to perform the majority of the work, and then applied exponential markups, as much as 750%, to those vendors’ bills for foreclosure-related services, while adding little if any value to the services that the vendors had performed. ENTERPRISE and PARAMOUNT submitted their marked-up expenses, which significantly exceeded market rates, to ROSICKI. ROSICKI in turn billed the mortgage servicers for those inflated expenses, which ROSICKI represented were the actual expenses incurred for the foreclosure-related services, with knowledge that the mortgage servicers would submit claims to Fannie Mae for full reimbursement of the expenses. Defendants’ submission of these fraudulently inflated expenses caused Fannie Mae to pay millions of dollars for falsely inflated foreclosure expenses.

This matter was initiated by a relator pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. § 3729 et seq.

* * *

Mr. Berman thanked the FHFA-OIG for its efforts and ongoing support and assistance with the case.

The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Cristy Irvin Phillips, Andrew E. Krause, and Lauren A. Lively are in charge of the case.

Read More Law Firm Briefing Papers Here

>> Latest Legal Jobs in LawFuel’s Law Jobs Network

FX Atom Pro

  1. There is a lot more to this probe that has not come out of this investigation yet!

    Tom Rosicki has taken so many homes from innocent families using fake documentation and he put these families on the street, while, he left their houses abandon to deteriorate fulling with black mold, collapsing. He has extorted so many homes through being in every judges pocket. Especially, in Westchester County Court House. They used fake documents “FAKE” to take homes in Westchester County, New York. They “the homeowners” not one day in court! These are houses from 2008 the biggest real estate crash when the banks were bailed out. They use mixed faulty paperwork and take people’s homes. In a summary judgement, Judge Orazio Bellantoni and Judge Sam Walker, Supreme Court Justice, 9th JD. at Westchester County Courthouse are just two mentioned judges that took so many houses with fake paperwork, they’re criminal. They denied all the evidence, all of it! Rosicki and Rosicki, collected the “insurance money” while washing dirty cash through the process. He belongs behind bars with Bernie Madoff. I am so happy his dirty deeds are catching up with him. I hope they indict all the judges involved in this extortion foreclosure scam. Pandora’s Box is open!

    Tom Rosicki uses fake title searches to extort homes and he has a lot of connections on the inside of government offices and inside the judicial system.

    He takes the homes of innocent homeowners with foreclosure cases that should have been demised!

    How do I know all this? I’m one of his victims.

NZ Law – Simpson Grierson Appoint ‘Down to Earth’ Chair

The Day #Metoo Caught Big Law’s Bill Voge