class action chase home fiance llc

8/7/2019 class action chase home fiance llc

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Original Complaint

GLOBAL CAPITAL L AW, 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 Chase’s 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:

//

Case 8:11-ap-01127-TA Doc 1 Filed 03/12/11 Entered 03/12/11 12:18:19 DescMain Document Page 1 of 18



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Original Complaint

I. PRELIMINARY STATEMENT

1. This class action is brought by Plaintiff to remedy Defendant Chase’s

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

States Bankruptcy Code.

2. Specifically, this class action is brought to remedy Defendant’s

pattern 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 Code

and, 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. Defendant’s 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 Defendant’s acts are in violation of the

Code 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 STATMENT

5. 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; and

because a substantial portion of the events giving rise to Plaintiff’s 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. Plaintiff’s action for declaratory relief is authorized by 28 U.S.C. §§

2201 and 2202. Plaintiff’s 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. Plaintiff’s 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. Plaintiff’s Request for Class Relief is

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

Bankruptcy Procedure 7023.

III. PARTIES

8. 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 ACTION

10. 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 creditor’s

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 attorney’s 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

facie evidence” 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 and

practice 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 nation’s Bankruptcy

Courts.

12. Chase, and its affiliates under the Chase umbrella, have been

operating 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, are

intentionally 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 objections

to 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 Chase’s consistent pattern and

practice 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 Defendant’s 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 ALLEGATIONS

16. 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 Defendant’s debt that has been subjected to consumer

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

Defendant’s 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 of

conduct 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. Chase’s fraudulent practices are made with reckless disregard for

the truth and the mandates of the Code.

19. This process of false, misleading, and undocumented claims occurs

numerous 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 wrongfully

collected 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 Chase’s false claims. Chase’s 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 debtor’s 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,

Chase’s 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 or

fraudulent 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 lenders

can 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 VO

23. 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 amounts

claimed and did not make sense.

27. The claim is being made by Chase Home Finance, LLC, as Servicing

Agent 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 in

blank to unknown party. Again, the endorsement was made by Wayne Lee,

President/C.E.O.

29. Furthermore, there is no documented agency agreement between

Chase and Argent, who no longer have interest in the Promissory Note.

30. Attached to the Claim is the Deed of Trust, which indicated that

Argent 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 ALLEGATIONS

31. Because Chase’s 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 of

members, 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 Plaintiff’s claims are likewise, typical of those of the un-named

class 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 all

class 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 in

bankruptcy 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 which

predominate 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 and

efficient 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 Defendant’s Proof of Claim are

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

Defendant’s 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 Defendant’s practices.

//




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Original Complaint

VIII. REQUEST FOR RELIEF

RELIEF FOR FALSE, MATERIALLYINACCURATE AND/OR

MISLEADING REPRESENTATIONS OF FACT

39. Plaintiff hereby repeats and reasserts the allegations contained in

the preceding paragraphs, as if fully set forth herein.

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

Claim.

41. Chase authorized, directed and caused the filing of the Proof of Claim

that 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. Chase’s conduct and practices

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

administration of this bankruptcy case. Chase’s conduct and practices in filing

the Proof of Claim are sanctionable under the Court’s inherent powers and

under 11 U.S.C § 105.

42. Plaintiff and the class ask this Court to find Defendant in contempt

pursuant 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


the preceding paragraphs, as if fully set forth here.

44. Chase directed and caused the filing of the Proof of Claim that

contained allegations that were inaccurate and/or misleading concerning the

Debtor’s obligations in this case.

45. Chase’s 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. Chase’s 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 its

conduct and practices are sanctionable under the Court’s inherent powers and

11 U.S.C § 105(a).

47. Plaintiff and the class ask the Court to find Defendant in contempt


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


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



49. Chase directed and caused the filing of the Proof of Claim that

contained allegations that were false, fraudulent, undocumented, inaccurate

and/or misleading concerning the Debtor’s obligations in this case.

50. Chase filed the Proof of Claim in an attempt to obtain money or

property 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. Chase’s conduct and practices




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Original Complaint

are sanctionable under the Court’s inherent powers and under 11 U.S.C. §

105(a).

51. Plaintiff and the class ask this Court to find Defendant in contempt


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


RELIEF FOR VIOLATIONOF THE BANKRUPTCY CODE AND RULES



53. Chase’s actions violate 11 U.S.C. §§ 501, 502 and Bankruptcy Rule

3001. Plaintiff request that the Court award actual damages, punitive damages

and attorneys’ fees for Chase’s 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 of

Bankruptcy 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 of

such 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, Argent’s POC has indicated that their secured interest is

in 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 Argent’s

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. Argent’s 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 Mortgage

Company, LLC. Evidence as produced to support Argent’s POC did not indicate




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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 CHASE’s authority to fil

this 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 arguendo that 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 establish

the prima facie validity 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, Argent’s POC does not satisfy the requirements of Rule

3001(c) and thus, not prima facie evidence of a claim and must be disallowed.

REQUEST FOR DECLARATORY RELIEF


the preceding paragraphs, as it fully set forth here.

66. As outlined in the preceding counts and the preceding factual

allegations, the Defendant has violated § 501 of the Code and Bankruptcy Rule




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3001. Plaintiff seeks a declaration that Defendant’s 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


the preceding paragraphs, as it fully set forth here.

68. Title 11 U.S.C. § 105(a) allows the Court to exercise its equitable

powers 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 violate

Federal 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 ACTUAL AND PUNITIVE DAMAGES



71. Through the filing of false, misleading and undocumented Proofs of

Claim, 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 factual

allegations, the Defendant has violated §§ 501, 502 of the Bankruptcy Code and

Bankruptcy Rule 3001.

75. Defendant’s violations can be remedied by the specific Code section

violated as well as under and pursuant to the Court’s inherent powers and 11

U.S.C. § 105.

76. Moreover, the Plaintiff has been forced to retain legal counsel and

have 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 attorney’s fees pursuant

to 11 U.S.C. § 105, the Court’s inherent contempt powers, and other sections

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

IX. PRAYER

WHEREFORE, 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 Defendant’s conduct

constitutes 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 Defendant’s conduct

violates 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, misleading

and 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 Defendant’s actions;

e. Awarding Plaintiff and class members pre-judgment and post-

judgment interest, as well as reasonable attorney’s fees, expert

witnesses’ fees, disbursements, accounting, class costs and other

costs of litigation;

f. Finding the Defendant in contempt under the Court’s inherent

powers 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


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class action chase home fiance llc