Class Action Settlement News

After coming off a pretty good week in the stock market JP Morgan Chase is in hot water over claims that they engaged in forgery to gain an advantage in numerous bankruptcy cases dating back to 2009.  The case is entitled Ernest Michael Bakenie v. JPMorgan Chase Bank, and is in the jurisdiction of the U.S. District Court, Central District of California.  The lawsuit claimed that Chase actually Photoshop documents to create the illusion that they had rights to money due under mortgage loans which in turned allowed Chase to obtain “relief from stay” motions in bankruptcy court.  The  Occupy Wall Street protesters must be pulling their hair out over this one!

The Chase Bankruptcy Lawsuit states: “Chase is engaged in the business practice of deceiving bankruptcy judges, Chapter 7 trustees, Chapter 11 trustees, Chapter 13 trustees, the Office of the United States Trustee, creditors, creditor attorneys, debtors in possession, debtors and debtors attorneys as to Chase’s status as a secured creditor in tens of thousands of bankruptcy cases filed nationwide.” The lead plaintiff in this class action lawsuit is Ernest Michael Bakenie.  Bakenie claims that “Rather than incur the cost of ‘proving up’ its own standing or the standing of its principal Mortgage Backed Security Trust, Chase systemically misrepresents Chase or a designated MBST to be a creditor in tens of thousands of bankruptcy cases by utilizing manufactured documents,”.  Mr. Bakenie will be represented by Joseph Arthur Roberts of Newport Beach.

Chase is just over a different lawsuit which resulted in the firm paying out $153,000,000 in relation to accusations that JPMorgan was negligent in providing details to investors about a mortgage transaction. Chase denied all wrong doing in that case and is expected to do the same in the JP Morgan Chase Bankruptcy Lawsuit.  2012 is not of to a good start for Chase.  JP Morgan Chase & Co. Common Stock (JPM) gained 1.16% today and closed at 37.36.