AP Class Action

8/7/2019 AP Class Action

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Original Complaint

GLOBALCAPITALLAW,P.C.Gary Harre [86938]Diane Beall [86877]8700 Warner Ave, Ste 200Fountain Valley, CA 92708Telephone: (714) 907-4182Facsimile: (714) 907-4175Email: [email protected]

Attorney For Debtor, NELSON VO

UNITED STATES BANKRUPTCY COURTCENTRAL DISTRICT OF CALIFORNIA

SANTA ANA DIVISION

Case No. 8:10-bk-26258-TA

CHAPTER 13

ADVERSARY PROCEEDING

ADV. NO. _______________________

CLASS ACTION

JURY TRIAL DEMANDED

In re

NELSON VO, an Individual;

Plaintiff,

-vs.-

CHASE HOME FINANCE, LLC, ASSERVICING AGENT TO ARGENT

MORTGAGE COMPANY, LLC;

Defendants.

)))))))))))))

))))

ORIGINAL COMPLAINT

TO THE HONORABLE JUDGE OF SAID COURT:

Comes now, NELSON VO, by and through his counsel, files this Original

Complaint and Application for Injunctive Relief against Defendant, CHASE

HOME FINANCE, LLC (Chase or Defendant, or Defendant Chase),

complaining of Chases pattern and practice of violating the provisions of the

United States Bankruptcy Code. In support of the pleadings, Plaintiff respectfully

shows the court as follows:

//


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Original Complaint

I. PRELIMINARY STATEMENT1. This class action is brought by Plaintiff to remedy Defendant Chases

consistent pattern and practice of disregard for the provisions of the United

States Bankruptcy Code.

2. Specifically, this class action is brought to remedy Defendantspattern and practice of abusing the entire bankruptcy process by filing false and

misleading Proofs of Claim in bankruptcy cases.

3. Chase specifically and purposely disregards the Bankruptcy Codeand, through false, fraudulent, misleading and undocumented Proofs of Claim,

illegally collects or attempts to collect amounts from debtor that Chase cannot

document and/or are not actually owed. Defendants routine and persistent

filing of undocumented and false Proofs of Claim is an abuse of process and is in

violation of the Bankruptcy Code and Rules.

4. Plaintiff seeks a finding that Defendants acts are in violation of theCode and Rules, and that Plaintiff and class members are entitled to declaratory

and injunctive relief, monetary, actual and punitive damages, and attorneys

fees, a finding of contempt and the issuance of sanctions against Defendants

Chase for practices and failure to abide by the requirements of the Bankruptcy

Code. The practices complained of herein represent common policies and

practices of Defendant and similarly affect all members of the proposed class.

This Court has jurisdiction over this Adversary Proceeding pursuant to 28

U.S.C. 151, 157 and 1334(b). Venue is proper pursuant to 28 U.S.C. 1409.

II. PRELIMINARY STATMENT5. Jurisdiction of this action arises under 28 U.S.C. 1334, 11 U.S.C.

501 and 502 and Federal Rules of Bankruptcy Procedure 3001. Plaintiff

asserts claims against Defendant for violation of the Bankruptcy Code, 11

U.S.C. 101 et seq.


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Original Complaint

6. Venue is proper in this district pursuant to 28 U.S.C. 1409; andbecause a substantial portion of the events giving rise to Plaintiffs claims

occurred in this district. Plaintiff filed for bankruptcy protection in this district,

Chase filed its Proof of Claim in this district, and Defendant transacts business

in this district.

7. Plaintiffs action for declaratory relief is authorized by 28 U.S.C. 2201 and 2202. Plaintiffs actions for a finding of contempt of provisions of the

Bankruptcy Code are authorized by 11 U.S.C. 105, 501, and 502 and Federal

Rules of Bankruptcy Procedure 3001. Plaintiffs Request for Injunctive Relief is

authorized by 11 U.S.C. 105, 501 and 502, Fed. R. Civ. P. 65 and Federal

Rule of Bankruptcy Procedure 7065. Plaintiffs Request for Class Relief is

authorized by Federal Rule of Civil Procedure 23 and Federal Rule of

Bankruptcy Procedure 7023.

III. PARTIES8. Plaintiff Nelson Vo resided at 60 Bombay, Irvine, California.9.

Defendant is, on information and belief, a subsidiary of a Federal

Savings Bank with its office in Columbus, OH, which may be served with

process by serving its registered agent, C.T. Corporation System in Los Angeles,

California, by certified mail, restricted delivery, return receipt requested.

IV. NATURE OF THE ACTION10. A creditor may file Proof of Claim. 11 U.S.C. 501. Fed. R. Bankr. P.

3003(c)(1). A Proof of Claim is a written statement setting forth a creditors

claim. A Proof of Claim shall conform substantially to the appropriate official

form. Fed. R. Bankr. P. 3001(a). When a claim is based on writing, the original

or duplicate shall be filed with the Proof of Claim. Fed. R. Bankr. P. 3001(c). If

a security interest in property of the debtor is claimed, the Proof of Claim shall

be accompanied by evidence that the security interest has been perfected. Fed.


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Original Complaint

R. Bankr. P. 3001(d). In addition, the Official Form requires that the claimant

attach supporting documents, such as a Promissory Note, Purchase Orders,

Invoices, and itemized statements of running accounts, contracts, judgments,

mortgages, security agreement and evidence of perfection of lien. Official Form

B10. The Advisory Committee Note related to this portion of one version of

Official Form B10 states: If the claim includes prepetition interest or other

charges such as attorneys fees, a statement giving a detailed breakdown of the

elements of the claim is required. A Proof of Claim that is executed and filed in

accordance with the Federal Rules of Bankruptcy Procedure constitutes prima

facieevidence of the validity and the amount of the claim. Fed. R. Bankr. P.

3001(b). A claim, proof of which is filed under 11 U.S.C. 501, is deemed

allowed, unless a party in interest objects. 11 U.S.C. 502. The penalty for

filing a fraudulent claim is a fine of up to $500,000 or imprisonment for five

years, or both. 18 U.S.C 152 and 3571.

11. Despite these mandates, Chase has engaged in a pattern andpractice of abusing debtors who have filed for protection under Chapter 13 of

the United States Bankruptcy code (the Code) by filing false, fraudulent,

misleading and undocumented Proofs of Claim in the nations Bankruptcy

Courts.

12. Chase, and its affiliates under the Chase umbrella, have beenoperating under the assumption that the fees and costs in their Proofs of Claim

in consumer cases are invulnerable to challenge because debtors lack the

sophistication, the debtors bar lacks the financial motivation, and the

Bankruptcy Courts lack the time to call them to task on their false Proofs of

Claim. In re Prevo, 394 B.R. 847, 848-49 (Bankr. S.D. Tex. 2008).

13. Indeed, Chase, and other members of the mortgage industry, areintentionally trying to game the system by filing Proofs of Claim with


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Original Complaint

undocumented and excessive fees, and misleading or false information, and

then (sometimes, but not always) reducing those fees only after being exposed by

debtors counsel through and objection. The system cannot work if lenders

violate the Code and Rules in the first place by filing false and misleading

claims, only to amend them if caught by the debtors bar with and objection,

or, worse, litigate the debtor to death over claims that were not even legitimate

when filed. Such a system, if it can be called that, is inherently unfair to the

debtors and their counsel because they are forced to litigate claims that were

false and fraudulent, and not filed in accordance with the rules/ in the first

place. The economics of such matters makes it likely, much more often than

not, that the debtors and the trustees will simply pay the claims, even if they are

false.

14. Indeed, although debtors bear the initial burden of raising objectionsto claims, they should not be saddled with expenses incurred in filing objections

to claims, they should not be saddled with expenses incurred in filing objections

to Proofs of Claim that were false and fraudulent when filed in the first place.

Lenders must take some responsibility for complying with the minimum

requirements for filing a Proof of Claim by attaching supporting documents in

the first instance before the issue is raised by debtors counsel. Tate v. Nations

Bank Corp. (In re Tate), 253 B.R. 653, 666 (Bankr. W.D. N.C. 2000). In

addition, the Court has a duty to protect debtors from paying unsupported and

potentially overreaching charges, and it cannot do so if the claim is false,

fraudulent, misleading and unsupported. See Prevo, 394 B.R. at 850.

15. By this suit, Plaintiff seeks to remedy Chases consistent pattern andpractice of disregard for federal law and to prevent its wrongful filing of Proofs of

Claim in the United States Bankruptcy Courts. Individually, and on behalf of

the entire class, Plaintiffs seek a finding that Defendants acts are in violation of


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Original Complaint

the Bankruptcy Code, and an abuse of the Bankruptcy Courts of this country.

Plaintiff further seeks declaratory and injunctive relief, monetary, actual and

punitive damages, reasonable attorneys fees, a finding of contempt and the

issuance of sanctions against Chase for its actions.

V. SUMMARY OF THE CLAIMS & CLASS ACTION ALLEGATIONS16. Chase, and its affiliates, is among the largest mortgage lenders in th

nation. Through its lending activities, Chase is, and has been, a creditor in

thousands of consumer bankruptcy proceedings throughout the country. The

dollar amount of Defendants debt that has been subjected to consumer

bankruptcy proceedings under the Code is in the millions of dollars.

Defendants business practices are subject to, among other things, the Code and

the Rules.

17. For a number of years, Chase has engaged in a common course ofconduct to ignore the mandates of the Code by systematically filing false,

misleading and undocumented Proofs of Claim. Chase purposely does not have

policies and procedures in place to file accurate and documented claims. Even

after objections are filed, Chase either withdraws or amends the claim, and/or

Chase and its counsel engage in unconscionable litigation over the claim, still

refusing to provide the required documentation. As described in more detail

herein, all such actions are in direct violation of the Code and Rules, and

constitute an abuse of process.

18. Chases fraudulent practices are made with reckless disregard forthe truth and the mandates of the Code.

19. This process of false, misleading, and undocumented claims occursnumerous times throughout the United States at a tremendous and

unconscionable cost to unsophisticated consumer debtors, their counsel, their

creditors, the bankruptcy court systems in which they operate, and the rule of


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Original Complaint

law und the Bankruptcy Code.

20. Through its actions, on information and belief, Chase has wrongfullycollected or attempted to collect millions of dollars of debt in bankruptcy

proceedings, and have caused millions of dollars in damage to debtors and their

counsel in paying and/or responding to Chases false claims. Chases policies

and practices are manifestly unlawful in that they cause Chase to (a) conceal

from all parties the nature of the claimed debts and the required documentation

for the claimed debts, (b) deprived debtors, their counsel, the Trustees and the

Courts of the ability to analyze the claims and determine if the amounts claimed

are accurate and justified, (c) commit perjury in the United States Bankruptcy

Courts of America, (d) destroy the debtors ability to formulate an accurate

reorganization plan based on actual, documented debt, and (e) deprive other

creditors of money from the estate because the Trustee pays money from the

estate to Chase, based on its false and fraudulent Proofs of Claim. Indeed,

Chases actions destroy a key component of the bankruptcy processes in

America. By its actions, Chase has shown it is not only indifferent to the

requirements of the United States Bankruptcy Courts of the country.

21. Section 105 may be used to sanction the filing of a false orfraudulent Proof of Claim because it is violative of the Bankruptcy Code and

abusive of the bankruptcy process. In re Verona, 388 B.R. 705, 716 (Bankr.E.D

Va. 2008). The filing of a false or fraudulent claim in a bankruptcy case would

unquestionably constitute an abuse of the claims process as well as an

attempted fraud upon the court. Id. Filing a false or fraudulent claim in a

bankruptcy is also violative of any number or specific Bankruptcy Code

provisions, warranting the imposition of sanctions. Id.

22. The bankruptcy system simply cannot operate if mortgage lenderscan force debtors to spend thousands of dollars litigating a claim to force the


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Original Complaint

lender to provide information regarding the claim, which the lender was

supposed to include with the claim. The system especially cannot operate if

they claims filed by the lenders are false and fraudulent in the first place.

VI. SPECIFIC ALLEGATIONS AS TO PLANTIFF NELSON VO23. On November 22, 2004, Plaintiff executed and delivered to Argent

Mortgage Company, LLC, a Promissory Note in the principal face amount of

$710,000.00. The Note was secured by a Deed of Trust.

24. On November 15, 2010, the Debtor filed Case No. 08:10-bk-26258.25. On December 27, 2010, Chase filed a Proof of Claim, Claim No. 5. In

the Proof of Claim Addendum in Exhibit A of the Proof of Claim, Claim No. 5

the facts are set forth as follows:

Total Debt as of:Interest rate: 9.1250%Principal Balance: $676,558.92Interest from last installment: $75,274.94Escrow Advance: $6,576.078*Total Debt: $758,409.93

Total Arrearages as of:

Payments:From: 08/01/09 12/01/095 payments @ $6,794.41 $33,972.05From: 01/01/10 06/01/106 payments @ $6,338.61 $38,031.66From: 07/01/10 11/01/105 payments @ $5,903.66 $29,518.30

Total Arrearages: $101,522.01

*see Escrow Transaction History page of POC Addendum

26. The claim had no supporting documentation for the amountsclaimed and did not make sense.

27. The claim is being made by Chase Home Finance, LLC, as ServicingAgent to Argent Mortgage Company, LLC (Argent). However, the copy of non


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Original Complaint

original copy of Promissory Note indicated that Argent Mortgage Company, LLC,

had endorsed the Note without recourse to Ameriquest Mortgage Company

(Americquest). The endorsement was made by Wayne Lee, President.

28. Thereafter, Ameriquest Mortgage Company endorsed the Note inblank to unknown party. Again, the endorsement was made by Wayne Lee,

President/C.E.O.

29. Furthermore, there is no documented agency agreement betweenChase and Argent, who no longer have interest in the Promissory Note.

30. Attached to the Claim is the Deed of Trust, which indicated thatArgent was the Lender and Beneficiary under the Deed of Trust. However, there

is no assignment of such beneficial interest in the Deed of Trust that was ever

assigned to anyone.

VII. CLASS ACTION ALLEGATIONS31. Because Chases wrongful conduct is widespread and uniform,

Plaintiff would show the Court that this case should be certified for class action

treatment pursuant to Rule 23(a) and 23(b)(3) and/or (b)(2), Fed. R. Civ. P.

32. The class Plaintiff seeks to represent consists of:Individual debtors who filed for protection under the UnitedStates Bankruptcy Code after January 1, 2009, and in whichChase filed a proof of claim.

33. The class is so numerous, numbering in the tens of thousands ofmembers, with class members throughout the country, that joinder of all class

members is impracticable. A class action is the only feasible method of

adjudicating the rights of the affected borrowers, and, absent allowance of

certification of a class action, a failure of justice will result.

34. The Plaintiffs claims are likewise, typical of those of the un-namedclass members. The Plaintiff has been subjected to the same misconduct as the


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Original Complaint

members of the proposed class. They seek similar remedies for themselves and

the absent class members.

35. This plaintiff will fairly and adequately protect the interests of allclass members and in the administration of all matters relating to claims stated

herein. Moreover, they are prepared and willing to obtain redress of the wrongs

committed by Defendant and will adequately protect the interests of the class.

36. To that end, Plaintiff has retained capable counsel experienced inbankruptcy matters, Federal Consumer Law and complex consumer class-action

litigation. Neither the Plaintiff, nor his counsel, has any conflicts that would

interfere with the vigorous prosecution of this action.

37. The questions of law and fact common to all class members whichpredominate over those pertaining to individual class members only include, bu

are not limited to, whether Chase engaged and engages in the policies and

practices complained of and whether such actions violate the Code and the

Rules and Constitute an abuse of process as alleged herein. In addition, Chase

in pursuing the procedures challenged herein, has acted and refused to act on

grounds generally applicable to the class as a whole.

38. A class action is superior to other available methods for the fair andefficient adjudication of this controversy in that (a) the class necessarily consists

of persons in unfavorable economic circumstances who are not able to pay to

maintain individual actions against Defendant, (b) many class members and

their counsel will not be able to recognize that Defendants Proof of Claim are

fraudulent and/or false, (c) many class members and Trustees will not challenge

Defendants false and fraudulent claims, even if they suspect the claims are

false or fraudulent, and (d) there is no reason that the Bankruptcy Courts

should be burdened with multiple lawsuits challenging Defendants practices.

//


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VIII. REQUEST FOR RELIEFRELIEF FOR FALSE, MATERIALLY

INACCURATE AND/ORMISLEADING REPRESENTATIONS OF FACT

39. Plaintiff hereby repeats and reasserts the allegations contained inthe preceding paragraphs, as if fully set forth herein.

40. Chase authorized, directed and caused the filing of the Proof ofClaim.

41. Chase authorized, directed and caused the filing of the Proof of Claimthat contained false, materially inaccurate and/or misleading representations of

fact. Chase filed its Proof of Claim in an attempt to obtain money or property

from the Debtor and/or the bankruptcy estate. Chases conduct and practices

in filing the Proof of Claim created unnecessary delay and expense in the

administration of this bankruptcy case. Chases conduct and practices in filing

the Proof of Claim are sanctionable under the Courts inherent powers and

under 11 U.S.C 105.

42. Plaintiff and the class ask this Court to find Defendant in contemptpursuant to its inherent powers and 11 U.S.C. 105(a) due to its repeated

wrongful actions. Based upon such findings, Plaintiff seeks an award of actual

damages, sanctions, punitive damages, attorneys fees and costs.

RELIEF FOR REPEATED FAILURE TO ENSURETHE ACCURACY OF PLEADINGS AND ACCOUNTS

43. Plaintiff hereby repeats and reasserts the allegations contained inthe preceding paragraphs, as if fully set forth here.

44. Chase directed and caused the filing of the Proof of Claim thatcontained allegations that were inaccurate and/or misleading concerning the

Debtors obligations in this case.

45. Chases conduct and practices in authorizing, directing and causing


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Original Complaint

the filing of its Proof of Claim are indicative of a repeated failure to ensure the

accuracy of its pleadings and accounts. Chase filed the Proof of Claim in an

attempt to obtain money or property from the debtor and/or the bankruptcy

estate. Chases conduct and practices have created unnecessary delay and

expense in the administration of this bankruptcy case. By its conduct, Chase

has acted in bad faith in the conduct of litigation before the Court and the rules

are not up to the task of adequately sanctioning such conduct.

46. By its conduct, Chase has abused the bankruptcy process and itsconduct and practices are sanctionable under the Courts inherent powers and

11 U.S.C 105(a).

47. Plaintiff and the class ask the Court to find Defendant in contemptpursuant to its inherent powers and 11 U.S.C. 105(a) due to its repeated

wrongful actions. Based upon such findings, Plaintiff seeks an award of actual


RELIEF FOR CONTEMPT, ABUSE OF PROCESS, AND RELIEFPURSUANT TO COURTS INHERENT POWES AND 11 U.S.C. 105(a)


49. Chase directed and caused the filing of the Proof of Claim thatcontained allegations that were false, fraudulent, undocumented, inaccurate

and/or misleading concerning the Debtors obligations in this case.

50. Chase filed the Proof of Claim in an attempt to obtain money orproperty from the debtor and/or the bankruptcy estate. Such conduct,including unjustified litigation, has created unnecessary delay and expense in

the administration of this bankruptcy case. By its conduct and practices, Chas

has acted in bad faith of such a nature that the rules are not up to the task of

adequately sanctioning Chase for its conduct. Chases conduct and practices


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Original Complaint

are sanctionable under the Courts inherent powers and under 11 U.S.C.

105(a).

51. Plaintiff and the class ask this Court to find Defendant in contemptpursuant to its inherent powers and 11 U.S.C. 105(a) due to its repeated

wrongful actions. Based upon such findings, Plaintiffs seek an award of actual


RELIEF FOR VIOLATIONOF THE BANKRUPTCY CODE AND RULES


53. Chases actions violate 11 U.S.C. 501, 502 and Bankruptcy Rule3001. Plaintiff request that the Court award actual damages, punitive damages

and attorneys fees for Chases violations of the Code and the Rules.

OBJECTION TO CLAIM 5 and CLAIM 6


55. 11 U.S.C. 501 and 502 and the Federal Rules ofBankruptcy Procedure (FRBP or Bankruptcy Rules) 3001, 3002, 3003, 3005,

3006, 3007 and 3008 govern the way in which creditors and equity security

holders present their claims or interests to the bankruptcy court, and provide

the guidelines within which such claims are allowed or disallowed in the

bankruptcy proceeding.

56. Creditors filing a Proof of Claim based on a writing must attacheither the original, or a copy, of the writing. Rule 3001(c). In re Stauder, 396

B.R. 609 (Bankr. M.D. Pa. 2008) (when the claim does not attach the

documentation required by Bankruptcy Rule 3001(c) the claim cannot

serve as prima facie proof of its validity); In re Rogers, 391 B.R. 317 (M.D.


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La. 2008); In re Brooks, 2008 WL 2993948 (Bankr. E.D. Pa. 2008); In re

Reyna, 2008 WL 2961973 (Bankr. W.D. Tex. 2008). If the claim includes pre-

petition interest, attorneys fees, or other charges, a statement providing a

breakdown of the elements of the claim is required.

57. A security interest in the property of the debtor is claimed, however,CHASE identified itself as servicer to Argent Home Mortgage, LLC, without any

supporting document to demonstrate authority as Servicer to act on the behalf

of Argent Mortgage Company, LLC to file this instant Proof of Claim.

58. Despite such unsupported authority, CHASE submitted evidence ofsuch proof by way of an unauthenticated copy of a Note (hereinafter Note)

dated November 22, 2004, purportedly executed by such Debtor to lender Argen

Mortgage Company, LLC. Also included was a purported Deed of Trust

(hereinafter DOT) as security interest on the same Debtor without showing

any authority to bring this claim; has standing; or that the security interest has

been perfected, as required under F.R.B.P. Rule 3001(d) and F.R.B.P. 3002; and

is facially defective and does not constitute prima facie validity of the claim.

59. In addition, Argents POC has indicated that their secured interest isin the amount of $758,409.93, but there is no accurate accounting and basis as

to how Argent arrived at such an amount, or even how their indicated interest

rate was determined. Pursuant to 11 U.S.C. 502 (a), Debtor objects to Argents

POC as to the claim amount. Additionally, any arrearages, if any, are not

accurately itemized, nor does the POC reflect any itemized fees, current monthly

payment owed, along with an accurate interest rate from which to base any

payments owed. Argents POC is so devoid of detail that this Court must

consider it unenforceable against Nelson Vo.

60. The Promissory Note was made payable to Argent MortgageCompany, LLC. Evidence as produced to support Argents POC did not indicate


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Original Complaint

that the promissory had been endorsed back to Argent or any other named

entity. The Deed of Trust states that Argent is the Lender, and Beneficiary. No

recorded document suggests that Argent transferred its beneficial interest to

Chase Home Finance, LLC.

61. There is no evidence whatsoever supporting CHASEs authority to filthis Proof of Claim. There is no attached Pooling and Servicing Agreement

(herein after known as "PSA") which identifies that CHASE is the servicing agent

for Argent Mortgage Company, LLC. Assuming arguendothat CHASE is the

servicer of this subject loan, there is no notice of change in servicer as required

under RESPA, and there is no documentation or amendment identifying CHASE

as the newly appointed party as servicer.

62. By filing a false and misleading claim, Chase has failed to establishthe prima facievalidity of its claim. Plaintiff objects to the claim under 11 U.S.C

502 and request that the Court disallow it.

63. The documents in the record before this Court speak for themselves.CHASE has not established standing as a creditor within the meaning of the

Bankruptcy Code; therefore CHASE lacks standing to file a Proof of Claim, or to

object to confirmation. CHASE is an unauthorized party and cannot file this

Proof of Claim since CHASE does not have standing as agent for Argent

Mortgage Company, LLC.

64. Therefore, Argents POC does not satisfy the requirements of Rule3001(c) and thus, not prima facie evidence of a claim and must be disallowed.

REQUEST FOR DECLARATORY RELIEF

65. Plaintiff hereby repeats and reasserts the allegations contained inthe preceding paragraphs, as it fully set forth here.

66. As outlined in the preceding counts and the preceding factualallegations, the Defendant has violated 501 of the Code and Bankruptcy Rule


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3001. Plaintiff seeks a declaration that Defendants filing and litigation of false

Proofs of Claim are per se an abuse of process, an abuse of the Bankruptcy

Code and Rules, and that such actions violate 11 U.S.C. 501, 502 and

Bankruptcy Rule 3001.

REQUEST FOR INJUCTIVE RELIEF

67. Plaintiff hereby repeats and reasserts the allegations contained inthe preceding paragraphs, as it fully set forth here.

68. Title 11 U.S.C. 105(a) allows the Court to exercise its equitablepowers where necessary or appropriate to facilitate implementation of Code

provisions, including the imposition of temporary and permanent injunctions.

69. Unless restrained, Chase will, in all likelihood, continue to violateFederal Law by filing false and undocumented Proofs of Claim and continuing in

unreasonable and abusive litigation with respect to such false, fraudulent,

undocumented, and misleading claims. As a result, Plaintiff and the class seek

a permanent injunction to enjoin further violations of the law by Chase.

REQUEST FOR ACTUALAND PUNITIVE DAMAGES


71. Through the filing of false, misleading and undocumented Proofs ofClaim, Chase has inflicted actual damages upon Plaintiffs and the absent class

members by collecting from them and their estate amounts not owned under the

law. Such amounts should be disgorged from Defendant and returned to thedebtors from whom they were wrongfully taken.

72. Plaintiff further seeks imposition of all available damages, penalties,sanctions and punitive damages in an amount sufficient to deter Defendant

from future misconduct.


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Original Complaint

REQUEST FOR ATTORNEYS FEES


74. As outlined in the preceding counts and the preceding factualallegations, the Defendant has violated 501, 502 of the Bankruptcy Code and

Bankruptcy Rule 3001.

75. Defendants violations can be remedied by the specific Code sectionviolated as well as under and pursuant to the Courts inherent powers and 11

U.S.C. 105.

76. Moreover, the Plaintiff has been forced to retain legal counsel andhave incurred reasonable and necessary attorneys fees on their own behalf and

that of the class. Such fees are properly taxed against Chase by virtue of its

flagrant abuse of the bankruptcy process and violation of 11 U.S.C. 501 of the

Code and Bankruptcy Rule 3001.

77. Plaintiff and class members are entitled to attorneys fees pursuantto 11 U.S.C. 105, the Courts inherent contempt powers, and other sections

cited herein for this action and any appeals taken in this action.

IX. PRAYERWHEREFORE, Plaintiff requests that this Court grant the following relief in

favor of Plaintiff and the members of the class:

a. Issuing a Declaratory Judgment declaring that Defendants conductconstitutes the filing of false, fraudulent, and undocumented Proofs

of Claim, that the filing of such Proofs of Claim and subsequent

vexatious litigation constitute an abuse of process and an abuse of

the Bankruptcy Code and Rules;

b. Issuing a declaratory judgment declaring that Defendants conductviolates 11 U.S.C. 501 and 502 of the Bankruptcy Code, and


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O i i l C l i t

Bankruptcy Rule 3001;

c. Enjoining Defendant from further filing false, fraudulent, misleadingand undocumented Proofs of Claim;

d. Awarding Plaintiff and class members compensatory damages,including disgorgement, restitution and attorneys fees and costs,

and/or punitive damages and sanctions, for Defendants actions;

e. Awarding Plaintiff and class members pre-judgment and post-judgment interest, as well as reasonable attorneys fees, expert

witnesses fees, disbursements, accounting, class costs and other

costs of litigation;

f. Finding the Defendant in contempt under the Courts inherentpowers and 11 U.S.C. 105 for abuse of process, abuse of the

Bankruptcy Code, abuse of the Federal Bankruptcy Court system,

and abuse of the statutorily-mandated Bankruptcy Code sections

applicable, and awarding Plaintiffs and class members appropriate

relief including attorneys fees and costs, sanctions, and other such

relief deemed appropriate by this court; and

g. Awarding such other relief as this Court may deem just and proper.Dated: 03/12/2011 Global Capital Law, P.C.

_______________________________

By Gary Harre, Esq.Attorney for Plaintiff, NELSON VO

Documents

AP Class Action