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0:10-cv-01465-JFA

Date Filed 11/01/11

Entry Number 55

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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA COLUMBIA DIVISION _______________________________________ ) ) UNITED STATES EX REL. [SEALED], ) ) Plaintiff, ) ) v. ) ) [SEALED], ) ET AL. ) MATTER ) ) Defendants, ) ) _______________________________________)

C.A. No. 0:10-cv-01465-JFA NOTICE REGARDING POSSIBLE DISCLOSURE OF QUI TAM [SEALED]

FILED UNDER SEAL

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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA COLUMBIA DIVISION _______________________________________ ) ) UNITED STATES EX REL. SYZMONIAK, ) ) Plaintiff, ) ) v. ) ) ) AMERICAN HOME MORTGAGE, ) ) ) Defendants. ) ) ______________________________________ )

C.A. No. 0:10-cv-01465-JFA NOTICE REGARDING POSSIBLE DISCLOSURE OF QUI TAM MATTER

FILED UNDER SEAL This qui tam lawsuit was filed under seal pursuant to the False Claims Act, 31 U.S.C. 3730(b)(2), and remains under seal until December 10, 2011. The purpose of the sealing requirement is to allow the Government an adequate opportunity fully to evaluate the private enforcement suit and to determine both if that suit involves matters the Government is already investigating and whether it is in the Governments best interest to intervene and take over the civil action. S. Rep. No. 345, 99th Cong., 2d Sess. 24 (1986). The United States continues its active and extensive investigation in this matter. This Notice Regarding Possible Disclosure of the Qui Tam Matter (the Notice) is submitted by the United States to inform the Court of a possible disclosure of the existence of the qui tam suit. The Courts Order of July 6, 2010 [Docket No. 7], allows 1

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the United States to disclose the existence of this lawsuit and its contents to any expert, agent, or consultant used in the present case. In March of this year, attorneys for the United States met with Professor Adam J. Levitin of the Georgetown Law School in Washington, D.C. to interview him as a possible consultant in the above referenced matter. To date, the United States has not retained Professor Levitin. Today, counsel for relator forwarded to counsel for the United States the attached e-mail message sent from Professor Levitin to relator. The text of the Professors e-mail to Ms. Szymoniak reads: I'm not supposed to know that you're involved in some qui tam actions, but I guess I do. I'm curious about the status of those actions. Has DOJ given any indication of intent to move or not? You might get a call from a reporter, Shahien Nasiripour about this--he's looking into the question of whether the DOJ brass basically said "don't investigate" on mortgage issues. I've certainly seen enough things that are consistent with that--investigations started and then put on hold and the like--that it doesn't sound far-fetched. (See Attachment A) Although we have telephoned his office and sent him an e-mail asking him to contact us, the United States has been unable to contact Professor Levitin this afternoon. We currently do not know whether Professor Levitin revealed the existence of this qui tam suit to the reporter he mentions, or to anyone else. We are, however, concerned about the possibility he might have done so. We will continue to seek information regarding Professor Levitins activities and, if necessary, will report further to the Court when we have more complete information. The United States brings this Notice to the attention of the Court to ensure that it is fully and promptly informed of matters regarding the seal.

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The relator has been served with a copy of this Notice.

Respectfully submitted, WILLIAM N. NETTLES United States Attorney

s/ Fran Trapp Fran Trapp (# 6376) 1441 Main Street, Suite 500 Columbia, South Carolina 29201 803-929-3000 November 1, 2011

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From: To: Subject: Date:

Smith, Ed (USASC) Hughes, Regina (USASC) FW: {spam} Fwd: Qui tam status? Tuesday, November 01, 2011 4:41:53 PM

Here is the email to use as attachment. Ed. Smith USAO-SC ACE Investigator
From: Trapp, Fran (USASC) Sent: Tuesday, November 01, 2011 3:48 PM To: Bowens, Barbara (USASC) Cc: Smith, Ed (USASC) Subject: Fwd: {spam} Fwd: Qui tam status?

Scroll down Sent from my iPad Begin forwarded message: From: Reuben Guttman <RGuttman@gelaw.com> Date: November 1, 2011 1:47:33 PM EDT To: "'Fran.Trapp@usdoj.gov'" <Fran.Trapp@usdoj.gov>, "'bill.nettles@usdoj.gov'" <bill.nettles@usdoj.gov>, "'rah@harpootlianlaw.com'" <rah@harpootlianlaw.com> Cc: "'szymoniak@mac.com'" <szymoniak@mac.com> Subject: Re: {spam} Fwd: Qui tam status?
Yes but boa cannot disciuss outside.
From: Trapp, Fran (USASC) [mailto:Fran.Trapp@usdoj.gov] Sent: Tuesday, November 01, 2011 01:31 PM To: Reuben Guttman; Nettles, Bill (USASC) <Bill.Nettles@usdoj.gov>; 'RAH@Harpootlianlaw.com' <RAH@Harpootlianlaw.com> Cc : 'szymoniak@mac.com' <szymoniak@mac.com> Subject : Re: {spam} Fwd: Qui tam status?

Seal not lifted There is partial lift allowing us to disclose when we want to They know Lynn is relator or at least BOA knows and others certainly suspect
From: Reuben Guttman [mailto:RGuttman@gelaw.com] Sent: Tuesday, November 01, 2011 09:49 AM To: Nettles, Bill (USASC); 'rah@harpootlianlaw.com' <rah@harpootlianlaw.com>; Trapp, Fran (USASC) Cc : 'szymoniak@mac.com' <szymoniak@mac.com> Subject : Re: {spam} Fwd: Qui tam status?

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I believe: (1) partial disclosure and only to show defendants, (2) I don't believe lynn's name has been disclosed as it has been redacted. Is this correct?
From: Nettles, Bill (USASC) [mailto:Bill.Nettles@usdoj.gov] Sent: Tuesday, November 01, 2011 09:18 AM To: Dick Harpootlian <rah@harpootlianlaw.com>; Trapp, Fran (USASC) <Fran.Trapp@usdoj.gov> Cc : Lynn Szymoniak <szymoniak@mac.com>; Reuben Guttman Subject : RE: {spam} Fwd: Qui tam status?

The seal has not been lifted, right Fran?


From: Dick Harpootlian [mailto:rah@harpootlianlaw.com] Sent: Tuesday, November 01, 2011 8:28 AM To: Nettles, Bill (USASC); Trapp, Fran (USASC) Cc: Lynn Szymoniak; Reuben Guttman Subject: FW: {spam} Fwd: Qui tam status? Importance: Low

Bill and Fran Lynn got this email from a Georgetown professor who obviously knows she is the relator and is urging her to call the press. It may be the seal has been breached. Wanted you to have this information. Dick

From: Adam Levitin <adam.levitin@law.georgetown.edu> Date: October 31, 2011 11:04:49 PM EDT To: Lynn Szymoniak <szymoniak@mac.com> Subject: Qui tam status?
Hi Lynn, I'm not supposed to know that you're involved in some qui tam actions, but I guess I do. I'm curious about the status of those actions. Has DOJ given any indication of intent to move or not? You might get a call from a reporter, Shahien Nasiripour about this--he's looking into the question of whether the DOJ brass basically said "don't investigate" on mortgage issues. I've certainly seen enough things that are consistent with that--investigations started and then put on hold and the like--that it doesn't sound far-fetched. Best, Adam

Adam J. Levitin Professor of Law Georgetown University Law Center

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600 New Jersey Ave., N.W. Washington, DC 20001 202.662.9234 Adam.Levitin@law.georgetown.edu -------------------------------------------------- Home page: http://www.law.georgetown.edu/faculty/levitin/ -------------------------------------------------- View my research on my SSRN Author page: http://ssrn.com/author=450592 -------------------------------------------------- Blog: http://www.creditslips.org --------------------------------------------------