Has this happened to you? If so, please contact me at,
August 30, 2005
Office of the Commissioner of Insurance Mr. Steven Viskupic
Attention: Attorney Robert Luck Room 530
P.O. Box 7873 517 E. Wisconsin
Madison, Wisconsin 53707- Milwaukee, WI 531202
Department of Financial Institutions U.S. Bankruptcy Trustee
Attention: Examiner Kay Westbrock Mr. Thomas King
P.O. Box 7876 P.O. Box 3170
Madison, Wisconsin 53707-7876 Oshkosh, Wisconsin 54903
DOJ/DCI Judge Susan V. Kelley
Attention: Director Mr. Nickles United States Bankruptcy Judge
17 West Main Street 162 US Courthouse
Madison, Wisconsin 53707 517 E. Wisconsin Ave
Milwaukee, Wisconsin 5324581
Wisconsin Supreme Court
Office of Lawyer Regulations
Attention: Mr. Cathy Hahn
110 E. Main St.
Madison, Wisconsin 53703
Cc/ Litton Loan LP, Houston Texas/Wisconsin Law Firm Gray & End, Milwaukee.
Re: LITTON LOAN LLC/GRAY & END
In compliance of the Paragraph 15 of the Mortgage security agreement I am in enclosing the following complaint regarding the illegal and unethical conduct of Litton Loan LP and its law firm GRAY & END for engaging in mail fraud, wire fraud, money laundering, extortion, tax evasion and conspiracy. I intend to file an action under Paragraph 20 of the Mortgage security agreement. And make claim under Wisconsin Statue 224.80 (2) and its sub parts. 224.77 (b,c,d,e,h,i,l,m) for violations. By this letter it fulfills my Mortgage Security Agreement obligations. As an alleged conspirator to a crime the Law Firm GRAY & END through its attorneys Michael Riley have become a party to the following crimes under 939.05 (b), (c).
Litton Loan LP and GRAY & END are both aware of a number of current Criminal and Civil Racketeering and Class Actions that have been already filed against Litton Loan LP within other states and jurisdictions. My claim for relief under Paragraph 15 of the Mortgage Security Agreement is being to protect my interests from the criminal, and civil fraudulent activity of the two mentioned parties. Under Wisconsin Statues 946.80 and all of its sub sections. And all rights and claims to Wisconsin Statues 946.87 and all of its sub sections.
Under Wisconsin Chapter 224.75 (2) I am requesting copies of all records, documents, emails, and communications required to be kept under this statue as it pertains to my loan. Be forwarded directly to the State of Wisconsin Department of Financial Institutions, as well as under Wisconsin Chapter 224.75 (3) CONTENTS OF CREDIT AND APPRAISAL REPORTS Including all materials and documents relating to Litton Loan LP, and its relationship with C-BASS, a wholly owned joint venture with MGIC of Milwaukee, Wisconsin. And Salomon Mortgage Loan Trust 2001-CB4 (Exhibit F)
I am reporting to Office of Commissioner of Insurance under the authority of Wisconsin Chapters 618.50 as a Duty to report the civil and criminal actions of the law firm of Gray & End through its Attorneys and Partners, and Litton Loan LP
Under Wisconsin Chapter 618.39 Litton Loan LP and Gray & End are conspiring to violate the Surplus lines laws of the State of Wisconsin by using "Forced Placed" surplus lines policies upon its mortgage holders at a cost of several hundreds of times of those of the "admitted" insurance companies operating within the law. Including MGIC that is licensed within Wisconsin and is a Joint Venture Partner of C-BASS, a wholly owned subsidiary of MGIC. The surplus lines policy being forced placed and sold to Wisconsin residents is misleading and provides no coverage to property owners of Wisconsin, but is a policy underwritten by Lloyds of London (or so it seems) for and behalf of Litton Loan LP. In other words, Litton is reselling its own liability policy to Wisconsin Residents. (See attached Lloyds "Evidence of insurance" sheet).
This document was sent as evidence of a "Certificate of Insurance"; however there is "NO" coverage, and the document is fraudulently produced by Litton Loan, without the consent or authority of LLOYD’S. In apparent violation of Wisconsin Chapter 424.501 (Exhibit A, page 2)
Under 619.39 Personal Liability for violations apply to Larry Litton, Litton Loan LP, and the attorneys of Gray & End are personal liable for the damages that extend back as far as six years. Additionally Wisconsin Section 424.501 False Misleading and Deceptive Insurance selling has occurred. Wisconsin Statue 134.10 was violated on numerous times by Litton Loan LP, and forced collections were made through the Law Firm of Gray & End.
Please find the enclosed documents, records, letters, and copies of post marked materials, there is also enclosed excerpts from depositions from myself and a CHRISTPHER WYATT from LITTON LOAN LP. (Exhibit C) (Exhibit B: Expert Report)
This is a complaint regarding the civil and criminal conduct of the above company and law firm. The allegations that I am forwarding to your attention show violations of Wisconsin Law, as well as violations of legal ethics. I would be remiss if I did not inform you that I am currently in litigation with LITTON LOAN LP.
Briefly, Several litigation lawsuits have already been filed against LITTON LOAN LP for misconduct in a number of states. Those suits may speak for themselves. I am going to provide documents and records showing a systemic pattern of conduct by LITTON LOAN LP, and its use of GRAY&END to provide "cover" for its illegal activity here in the state of Wisconsin.
One of many actions of misconduct by LITTON LOAN LP is the "Forced Placement of Insurance" as you may see from the attached correspondence I have been billed $3,836.54 in March of 04 and $3,578.35 in March of 05 and at least one other occasion for "Home" owners insurance that I did not purchase or order. The State did not collect or receive the 3% tax that was due from these billings. This is a common business practice of LITTON LOAN and a violation of Wisconsin statue 618.41 Sub (4) and Sub (9) are clear violations of Wisconsin State law. Other subsections also apply, that have been violated. (Exhibit A)
The policy that is being "Forced Sold" is a "SURPLUS LINES" policy, that provides "NO" coverage to the homeowner. I have learned that LITTON LOAN LP does not have any licensed insurance brokers or agents within the state of Wisconsin, and LITTON LOAN LP uses the law firm of GRAY & END to collect the insurance premiums, and "launder" the money through its law firm’s trust account. The homeowner does not receive any declaration sheet showing the stamp as required under Wisconsin statute 618 Sub (9). Nor do we receive any policy showing coverage’s, or exclusions. (Exhibit A) Although requested a number of times.
When not paid by the homeowner after being billed, the law firm of GRAY & END is used to collect the money that is then deposited into the Trust account of GRAY & END and later transferred to Litton Loan LP
The 3% tax that is required to be paid to the State of Wisconsin for the sale of the Surplus Lines policy is thus laundered through the use of the law Firm of Gray & End trust account, and not paid to the state of Wisconsin as required by Wisconsin law by the broker or issuer.
Gray & End, and LITTON LOAN LP are aware of these statue violations, as I have personally discussed them with both parties on a number of occasions over the past two years. (Exhibit A: April 15, 04 letter to Litton)
I have also learned in the course of this investigation, LITTON LOAN LP decides what the premium is going to be, and acts as its own underwriting authority, or broker. As you may already see that there premiums are well over 800% above market prices, and provide "NO" coverage to the homeowner! The homeowner is either forced to pay the insurance bill or as in many cases, (like mine they file foreclosure actions). (Exhibit A)
The use of "Laundering" taxable money due the state of Wisconsin through the collection practices of GRAY & END amounts to extortion by LITTON LOAN LP/ C-BASS and GRAY & END acting under the color of law to avoid the paying of these tax’s to the State of Wisconsin, and the "Forced" selling of these "Surplus Lines" policies to Litton mortgage holders at a substantially inflated rate. (Exhibit G
Under Wisconsin law we are entitled to full recovery of payments. (618.44) And LITTON LOAN LP must assume all risks for the policy period. I am asking the Office of the Commissioner of Insurance investigate this, collect the tax money due the State of Wisconsin, and prosecute those responsible at GRAY & END, and LITTON LOAN LP/C-Bass for this criminal conspiracy to avoid the payment of these tax’s (Refer to K10 for auditing reports from MGIC regarding the Joint Venture with Litton Loan LP as early warning and indicators of misconduct)
The legal ethics, and collection practices of GRAY & END violate Wisconsin law, and there firm is aware that this is a tax violation of Wisconsin law by the collection of this money, and forwarding it to LITTON LOAN LP. Wisconsin Chapter 421.108 (Obligation to act in Good Faith) and 427.105 (2) also apply to the firm of Gray & End.
The second part of my complaint asks the both Insurance Commissioners office and Financial Institutions enforce the law against LITTON LOAN LP and the law firm of GRAY & END for the evading the surplus lines tax’s, selling insurance within the state of Wisconsin without a license, and terminate LITTON LOAN LP license to engage in business within Wisconsin. Collect the taxes paid, and make restitution to those that have had to pay the "Extortion" money. As attached evidence Litton Loan LP has indicated there "Forced Place" insurance is with LLOYD’S. However this document is a forgery, reproduced to give the consumer the appearance of a policy of record. There is no "Authorizing" signature as required for LLOYD’S Certificates of Insurance, and the "Evidence of Insurance" is misleading. This is a fraudulent security document!
LITTON LOAN LP has already violated numerous Wisconsin insurance laws, it has also engaged in wire and mail fraud as a business practice. For example see the attached monthly billing statements, you will note that the statements are most often printed "AFTER’ the due date thus having to incur late fees, and these are mailed by "Bulk" mail, thus making them delivered to the mortgage holder even later than what may be expected. You may note on my "monthly" Statements there are "Fee’s" attached to the monthly billing of OCTOBER, NOVEMBER, DECEMBER, JANUARY, FEBRUARY. Even though repeatedly asked what the fees were for I was never given an explanation to any of them. (Exhibit D)
The written demand for an explanation disappeared with the February payment I made in 2003. (By Certified Check) (Exhibit B: page 26 of the Experts report)
The intentional sending of monthly statements with additional fee’s that are not explained or described is mail fraud. The sending of fictitious billings through the mail by LITTON LOAN LP is well documented in numerous other litigation cases in other states. Wisconsin should close this business down and prosecute the misconduct at both GRAY & END and LITTON LOAN LP. (Exhibit D: note dates printed and sent bulk mail)
In February of 2003 an attempt was made to withdraw money from one of my personal bank accounts without my apparent authority. LITTON LOAN’s Attorney, Mike Riley from GRAY & END disclosed the attempt during recent depositions. There were not sufficient funds and LITTON LOAN LP charged $100.00 me for it. Even though I was current with all monthly payments. The admission of attempting to withdraw money from one of my personal accounts amounts to " Wire Fraud". Litton’s reliance of wording on the back of if is monthly billing statement "Allowing" them to make a one time withdrawal from my "Personal" account is beyond the pale of reason. Exhibit C; pages 15-20)
Attached is a copy of our response to LITTON LOAN’S motion for Summary Judgment against me. As you see in the Law Suit filed, Litton alleges that I did not make contractual payments from December of 2002 through April of 2003. Our response shows that payments were made for October, November, December, January February March and April, and that the further attempt to "Steal" additional money was made in February by the attempt to wire additional money out of one of my accounts. (Exhibit C pages 15-20)
After there motion was denied, GRAY & END continued to prosecute Litton Loans foreclosure against me knowing full well that payments were made, and checks were even cashed by Litton Loan for the period they claimed in the foreclosure action "no contractual payments were made"
It was clear from the deposition of both myself and Mr. Wyatt payments were made for the time frame in which the law suit alleged none were made. In spite of cancelled checks, correspondence with post markings showing payments made, GRAY & END has continued forward with the claim against me for what is now clearly a FALSE claim. GRAY & END, had the opportunity to withdraw or amend the complaint, however failed to do either, as a result of there unethical practices of filing, and pursuing a knowing false claim I have to incur substantial additional legal expenses. (Exhibits B, C, D)
What is clear is that GRAY & END, and LITTON LOAN LLC have entered into the conspiracy to bill, and collect money they are not legally entitled to. The State of Wisconsin has interests here also, by LITTON LOAN LP, and GRAY & END failing to pay the surplus lines taxes, they are intentionally defrauding the state of taxable income it is entitled to and thus evading tax’s due the state. (Exhibit A)
Documents that I possess and have assembled show an "Organized Crime and Corruption Organization" operating within the state of Wisconsin, its tactics of mail fraud, wire fraud, racketeering, extortion, money laundering, and tax evasion are but a part of a larger organization operating within the home mortgage markets within this country.
I am asking the Office of Commissioner of Insurance, and FINANCIAL INSTITUTIONS to immediately begin an "Organized Crime Investigation" into LITTON LOAN LP and GRAY & END. Numerous other states are just now beginning to receive complaints of a similar nature.
The Department of FINANCIAL INSTITUTIONS has authority under Wisconsin Chapters (224.77) to revoke or take other substantial action against Litton Loan LLC authority to conduct business. I ask you to investigate the conduct alleged here within, and take positive action by revoking there authority to do business within the State of Wisconsin, and protect Wisconsin property owners from these "predatory" lenders from operating within our state. A number of other states are now just beginning to understand the level or corruption being committed by these "lending servicing companies". Litton Loan LP and its use of the law firm Gray & End to "hide" behind fails to comply with Wisconsin Chapter 224.075, by disclosing it relationship with its own "Home Insurance" program, operating as a Surplus Lines carrier, doing its own underwriting of premium, failing to provide a copy of the policy, or pay the Wisconsin 3% tax due. As well as Wisconsin Statue 134.10 and 424.501. And, under 425.304 of Wisconsin Statues move the state to fully prosecute those responsible
I also ask that the state of Wisconsin seize the Bonds posted and use the money from the bond to investigate Litton Loan LP/C-Bass’s failure to comply with state laws. The issuance of fraudulent ‘Certificates of Insurance" as evidence of insurance by LLOYD’S is a financial security document. It is fraudulent in both representation and authorization. (Exhibit A page 2)
With regard to the Board of Professional review and Standards for Attorneys, My complaint against GRAY & END is based on two parts, first ethical, and second criminal misconduct.
The unethical action of Attorney Riley from GRAY & END law firm is the filing of a complaint, then finding his facts do not match the complaint he had filed. He had a duty to either amend his complaint or withdraw it. (Exhibits B, C, D)
The "False Authentication" under Wisconsin Chapter (706.06 (4) And Fraudulent Writings under Wisconsin Chapter 943.39 (3). Mr. Riley failed to do either. Knowing full well that "Contractual Payments" had been made from December to April of 2003 as evidenced by checks cashed by his client, and those returned un-cashed by his client. The deposition of Mr. Wyatt from LITTON LOAN indicated contractual payments were also made during the time period in which his complaint alleged none were made. Mr. Riley failed to amend, or withdrawal his complaint, and thus knew his complaint was false, and that he was in violation of Chapter 706.06 (4) in that, payments were made between December of 2002 and April of 2003 and he had personal knowledge of this from the documents, and depositions. (Exhibits B, C, D, E)
However Mr. Riley continues to pursue the claim on behalf of his client in an attempt to hide the Criminal Conduct of his Client who was engaged in Mail Fraud, Wire Fraud, Tax Evasion, Extortion, and other crimes. At the very least he had an ethical duty after learning his client had either lied or misrepresented facts to him that lead him to file the foreclosure action to withdraw as counsel. This has not occurred in part to the size of Litton Loan LP being one of or their largest clients of Gray & End. Wisconsin Chapter 427.104 (c) applies.
The Second part of the complaint is that Mr. Riley, and other attorneys at the law firm of GRAY & END know that they are making collections, and filing foreclosure actions for the collection of money in part from the "Forced" placed surplus lines insurance, and falsified fee’s. ’ There personal knowledge that substantial additional fee’s have been added without cause have gone through the mail thus the committing of mail fraud has been committed with their knowledge. (Exhibit B: page 5 of experts report: Verification of interest and fees computed by Litton Loan)
GRAY&END and its attorneys maybe held personable liable under Wisconsin Statue 618.39 for damages caused by the false reporting to credit agencies by Litton Loan LP that use credit information for the rating of insuring policy’s.
In short, a pattern of conduct is developing. From the original contracts that were sold by New Century were in the terms of a Californian attorney were "Cherry Picked" by Litton Loan, and that the contracts themselves may have been written in such a manor as to defraud thousands of home owners across the country of there equity in there property by and in which the manor the contracts were originally written, then sold.
Shortly after being sold, the entire underwriting department of New Century was dismissed. According again to attorneys I have spoken to from California that are litigating the same or similar matters the conduct is the same by Litton, the servicing contracts were either sent to or purchased by Litton from New Century after being with Ocland Bank for one month, Litton Loan LP then began providing "false information" to credit reporting companies about payment histories of thousands of home owners.
When the homeowner learns of this they usually attempt to change mortgage holders only to find that Litton had so damaged there credit history that changing to a competitive mortgage company is nearly impossible. In the meantime, Litton Loan continues to send out late payment notices, with added fees that they never explain what are for or signed by any company representative. So within a short period of time normally six months, the credit history of the home owner is destroyed, Litton is engaging in the sending of billings with in many cases thousands of dollars in added fees, and then threatens foreclosure actions in odder to collect. (My case exactly) I have spoken to numerous individuals that have either lost their homes or were forced to pay the "Extortion" money to Litton’s attorneys and have been left without legal recourse. Violating Wisconsin Statue 943.30 (1), as they did with me in late February of 2003 when I was forced to pay an additional $527.96.(Exhibit B; page 27 check #25379)
I have recently learned that Litton in their servicing agreements gets to keep any fees or added charges as part of its managing agreements. If this is true, and I assume it is, there is considerable financial motive to force mortgage holders with large amounts of equity in their homes to pay those "Extortion" fees, and or face foreclosure actions, where Litton obtains a windfall from the equity from the sale of the property. (See Solomon agreement) (Exhibit G)
I make myself available to supply any additional documents, records or materials that I possess to support the above claims. I have asked Litton to forward all there documents as required under Wisconsin Chapter 224.75 (2)&(3). These records should support the following. That I made payments for the months of October, and November of 2002, that the checks were received, and that a third check was issued for the month of December of 2002, it is then in the middle of December I received a demand latter from Litton that all my checks should be Cashiers Checks.(Exhibits B&D)
The December check was returned first, followed by the October and November Checks. In the time from late October to the middle of December Litton personal were continually calling my residence and stating they had not received any of my checks.
Shortly prior to receiving the demand letter for certified funds that was dated November 8, 2002, but not post marked until mid December 2002 I had cause to reissue two additional checks to replace the checks for October and November that Litton personal continued to claim they had not received. Upon receiving the demand for certified checks, I had issued two checks certified and sent to Litton, both certified checks were cashed on December 26, 2003; those checks were for December (replacement check for the one they sent back), and January.
I did not have reissued the replacement checks for October and November as there demand letter for certified funds was not dated until November 8th 2002, but not mailed until the middle of December of 2002. On January 23, I forwarded another certified check for the month of February 2003 along with a letter demanding to know why the thousands of dollars in added fees were being added to my monthly statements. (See attached Litton monthly billing statements)
Incidentally you will note these statements are printed near or after the due dates and are sent by bulk mail to ensure they arrive late, in order for Litton to charge late fees each month. However on my statements the amounts of fee’s added in no way could add up to just being late fee’s. My cashiers check, and letter were never cashed, or responded to, however we do know they were delivered to Litton, as the check and or envelope were never returned. (Exhibit B,C,D)
As late as February of 2003 I continued to receive calls from Litton indicating they had not received any payments! Of course this was not true, as they had received at least at least 8 payments by this time, however only cased two of the 8. During one of these many phone conversations in late February of 2003, I was told that if I did not pay an additional $597.00 with my March payment they would foreclose on my home, needless to say I was already miffed by the many contacts via phone, and what seemed there incompetent ability to account for checks or correspondence.
I paid the "Extortion" money in the form of a certified check along with my certified check for the month of March, both checks were cashed. Expecting to have this all ironed out by the end of March I sent the April payment, again Certified Check prior to the due date registered mail.
On April 18th 2003 a foreclosure actions was filed against me, the April check was then held for over two months then returned not cashed. I continued to make monthly payments after the foreclosure action through December of 2003, some checks were cashed and others were not, some were held of months then returned. (Exhibit B&D)
At the end of the year I received the Federal From 1098 showing interest paid, and amount of the remaining balance being $307,240.85, however, when attempting to change mortgage carries again, Litton demand over 359,000.00 within a month of reporting to the federal government (1098) that I owed, $307,000.00 This false reporting to the federal government of money owed under the note violates other Wisconsin Laws, and truth in lending Wisconsin Chapter 421.108 and 425.401. Wisconsin Statue 134.01 Injury to business was also violated when Litton falsely reported payment history, as well as, Wisconsin Statue 942.03 for giving false information of publication the damage to the credit history had prevented me from obtaining loans for business growth, and timely payments. The credit reports from April of 2003 support this claim. (Exhibit B,E,&F)
1718 Highcliff Ct.
Sturgeon Bay, WI 54235
920 743 8898 Home
262 206 7006 Cell
In addition of the enclosed complaint regarding Mr. Riley, and the law firm GRAY & END I have spoken with Mr. MICHAEL BINGTSON of U. S. Bank National Association (a party to this action) (651 495 3847). Mr. Bingtson is the "Account Manager" for U.S. Bank National Association that is indicated in the "Servicing Agreement".
Mr. Bingtson stated he was not aware of any litigation, foreclosure action, or any other counter claims or complaints regarding my individual matter. Mr. Bingtson stated he would be checking and getting back to me, as he was concerned that U. S. Bank National Association as Indenture Trustee was a party to this action and he is unaware of any information regarding this matter.
I also spoke with Mr. Jeff Rossi of Wilmington Trust Company (302) 626 6185. Mr. Rossi is the also the Account manager, and works for Ms. Patricia A. Evans Senior Financial Services Officer, also signer to the Servicing agreement, on behalf of Salomon Mortgage Loan Trust. Mr. Rossi also stated he is unaware of any legal action or counter claims made in my litigation. Mr. Rossi stated he was concerned because as "Account Manager" there is a contractual duty to report these matters to him.
It is apparent from the above two interviews that U.S. Bank National Association, as Indenture Trustee, and Salomon Mortgage Loan Trust, were not made aware they were named as Plaintiff’s in this matter, or subject to counter claims (See Mr. Wyatt’s deposition page 25 line 5 thru line 21).
Mr. Riley falsely prepared and filed an action without their apparent consent or knowledge, and has withheld information from them regarding this litigation.
Note the sworn testimony of Mr. Wyatt on page 10 line 4 thru line 12 Page 12. Indicating he is unaware of ownership of the loan. And page 7 line 13 thru page 8 line 4, indicating no one reviewed the complaint prior to its filing.
Mr. Riley had a duty to investigate and determine if Litton Loan had the authority to act independently from others, and without regard to the legal standing of the other named Plaintiff’s.
Also now noted is a two tier billing system. Litton has engaged in a separate billing agreement with GRAY & END, as evidenced in my filing of Chapter 13, Gray & End billed at a different rate than their agreement with Litton, there also is evidence of substantial duplicate billing contained in there filing before the Federal court for legal costs.
Note: On page 19 of Mr. Wyatt’s deposition (line 12 through 16) these two payments were sent in early March, were "applied". The April payment was returned in June with a letter dated April 15th (see Motion in opposition to the Plaintiffs motion for summary judgment.
Note the testimony and difference between receipt of payments vs. dates Litton chose to "Apply" the payments, is different from Mr. Wyatt’s testimony stating on page 15 line 22-23.