You are on page 1of 19

TO:

Loretta E Lynch
U.S. Attorney
Eastern District of New York
Richard K. Hayes
Kenneth M. Abell
!" #ad$an %la&a East' !
th
(loor
)rooklyn' NY ""*"
N+,-#E +( (-L-N. #+M%LA-N,
,+/ RES%+NDEN,S/
0illia$ She1ro' Le2al #o3nsel and %resident of
of Altiso3rce
"
%ortfolio Sol3tions S.A. And for
4445665"!7"
0estern %ro2ressi8e

9 Ari&ona'
%re$i3$ ,itle Ser8ices -nc.'
** S3$$it )l8d' s3ite :**
Altanta' .a ;*;"7
www.altisource.com/
Ke8en <. 0ilco=
.eneral #o3nsel
Altiso3rce %ortfolio Sol3tions S.A.
0estern %ro2ressi8e 9 Ari&ona'
%re$i3$ ,itle Ser8ices -nc.'
** S3$$it )l8d' s3ite :**
Atlanta' .a ;*;"7
866-960-8299
%LEASE ,AKE N+,-#E that on the
>>>>>>>> day of *"?, I filed the attached
Complaint

1 http://www.marketwatch.com/story/altisource-investiation-initiated-!y-former-louisiana-
attorney-eneral-kahn-swick-foti-llc-investiates-altisource-portfolio-solutions-sa-followin-
disclosure-of-department-of-financial-services-"#1$-#%-1#
" Western Progressive, Premium Title Services Inc.,Altisource's wholly owne trustee
su!sii"ries, #rocesses resienti"l non-$uici"l %oreclosures in &"li%orni", 'ev""
"n Arizona. Western Progressive-Arizona, Inc. (()0 *. +niversity ,rive Tem#e,
A- 8)28(. Phone. 866-960-8299 / ste#h"nie.s#urloc01"ltisource.com
1

Christopher &toller
'#$( ). *rand +ve +pt $1$
Chicao, Illinois '#',-
,1"-%,$--.1.

"
---------------------------------------------------
/
In the 0atter of: /
/ 1o2s/:
/
)I33I+0 4. &5678O /
9lorida 4ar 1um!er $1"-. /
/
:evin ;ames )ilco< /
9lorida 4ar 1um!er -#$$(. /
/
AL,-S+UR#E %R+(+L-+ @
S+LU,-+NS S.A @
@
0estern %ro2ressi8e Ari&ona -nc.' @
@
0estern %ro2ressi8e LL#.' @
%re$i3$ ,itle Ser8ices -nc.' @
8espondents /
555555555555555555555555555555555555555555555555555
#+M%LA-N,
0-LL-AM ). SHE%R+ AND KEA-N <AMES 0-L#+B
The 8espondent )illiam 4. &hepro is chared with mortae foreclosure fraud and the.(
unlawful practice of law
,
William Shepro who serves as President and legal
counsel for RESPONDENTS ALTISOURCE PROFOLIO SOLUTIONS S.A
/Western Progressive Ariona In!." Western Progressive
,#$%# Flori&a Stat'tes ()(.#* Penalties.+Any person not licensed or otherwise
authorized to practice law in this state who practices law in this state or holds himself or herself out to
the pulic as !ualified to practice law in this state" or who willfully pretends to e" or willfully ta#es or
uses any name" title" addition" or description implying that he or she is !ualified" or recognized y law
as !ualified" to practice law in this state" commits a felony of the third degree" punishale as provided
in s$ %%&$'()" s$ %%&$'(*" or s$ %%&$'(+$
,
LLC."Premi'm Title Servi!es In!." 'nla,-'ll. hol&s himsel- o't to /e
an attorne. an& a!ts as legal !o'nsel an& -or Respon&ents
Altiso'rse
?
%ortfolio Sol3tions S.A. And for Western Progressive
)
0 Ariona"
In!." an& Premi'm Title Servi!es In!.
Res1ondent Ke8en <. 0ilco= EsC., who also serves as leal counsel for 8espondent
2s/AL,-S+UR#E %R+(+L-+ S+LU,-+NS S.A D0estern %ro2ressi8e Ari&ona -nc.'
0estern %ro2ressi8e LL#.' and %re$i3$ ,itle Ser8ices -nc.' is chared with fraud in the
conductin the unlawful resienti"l non-$uici"l %oreclosures in Arizona which is clearly
evidenced in the complaint at bar.
%AR,-ES
Res1ondents
)I33I+0 4. &5678O
9lorida 4ar 1um!er $1"-.

:evin ;ames )ilco<
9lorida 4ar 1um!er -#$$(.
AL,-S+UR#E %R+(+L-+
S+LU,-+NS S.A

0estern %ro2ressi8e Ari&ona -nc.'

0estern %ro2ressi8e LL#.'
%re$i3$ ,itle Ser8ices -nc.'

$ http://www.marketwatch.com/story/altisource-investiation-initiated-!y-former-louisiana-
attorney-eneral-kahn-swick-foti-llc-investiates-altisource-portfolio-solutions-sa-followin-
disclosure-of-department-of-financial-services-"#1$-#%-1#
( Western Progressive, Premium Title Services Inc. Altisource's wholly owne
trustee su!sii"ry, #rocesses resienti"l non-$uici"l %oreclosures in &"li%orni",
'ev"" "n Arizona. Western Progressive-Arizona, Inc. (()0 *. +niversity ,rive
Tem#e, A- 8)28(. Phone. 866-960-8299 / ste#h"nie.s#urloc01"ltisource.com
$
#o$1lainant
Christopher &toller
'#$( ). *rand +ve +pt $1$
Chicao, Illinois '#',-
,1"-%,$--.1.
)A#K.R+UND
Christopher &toller purchased a piece of property in &cottsdale +ri=ona known as "%$,.
1. 11"
th
)ay &cottsdale, += %("'"-$."( 7hilip &tone >uit claimed his interest to #hristo1her
Stoller %ension and %rofit Sharin2 %lan Li$ited 2#S%%S%/ on &eptem!er 1-, "##% 2E=hibit
"/, recorded in the 0aricopa County 8ecorders Office "##%-#%1($"" on #-/""/#%. The
successor trustee was divested of its power of sale after *7DD*4.
On Se1te$ber "7' **4, 7hilip &tone transferred and conveys to C&77&7 a 4ahamas
Corporation, and/or Christopher &toller and/or 3eo &toller 2collectively, +ssinees/, under the
Law of Assi2n$ents of #a3ses of Action2E=hibit /, insofar as permitted !y law, forever, any
and all causes of action, remedies, or claims, now or in the future, that +ssinor C&77&7 have
aainst any party, not limited to financial institution, contractors, !uilders, and their employees,
affiliates, successors and assins, et al., as well as the riht to prosecute such causes of action in
the name of +ssinor or +ssinees or any of them , and the riht to settle or otherwise resolve
such causes of action as +ssinees sees fit, reardin the followin real property in 0aricopa
County, &tate of +ri=ona:
3ot ,, 7innacle 9oothills, accordin to 4ook ,-% of 0aps, 7ae (#, and +ffidavit of Correction
recorded in ?ocument 1o. -'-#1$((%", records of 0aricopa County, +ri=ona.
+ssessor@s 7arcel 1um!er: "1'-.$-#$$
Commonly known as: "%$,. 1. 11"
th
)ay, &cottsdale, += %("'".

1otice2s/ of Li& %endens was filed !y the complainant, Christopher &toller on the su!Aect real
estate on "D7D**4 **45"*7*7?; with the 0aricopa Counter 8ecorders Office and aain
another 3is 7endens was filed on "D*D*"; *";5"*6?;6.

%hili1 ). Stone' as of !D;D*"? does not owe a delin>uency payment of of
E"7!'"?.?7. 1or does 7hilip 4. &tone, as of <3ly 6' *"? owe unpaid principle !alance of
(
E:?:':4;.4!'1l3s interest fro$ *D*"D**4. +s well known to the 8espondents, all of these
de!ts were dischared in 7hilip 4. &tone@s 4ankruptcy see E=hibit ;' yet the 8espondents are
still attemptin to collect on these said de!ts in violation of the 9lorida 8ules of 7rofessional
Conduct and in clear violation of the 9ederal 9air ?e!t Collection +ct.
%hili1 ). StoneFs promissory note secured !y a ?eed of trust and the adAusta!le rate note
toether with the deed of trust securin same was canceled as a result of the Bnited &tates
)ankr31tcy #ase "*5""6645"!, ?istrict of 1ew 0e<ico and the de!t dischare, <3ly "7' *"*.
GE=hibit ;@.
Complainant filed a full Release and (3ll Re5con8eyance of said Deed of ,r3st and all
other de!ts in connection with same, includin the +dAusta!le 8ate 1ote secured !y the ?eed of
Trust was filed with the 0aricopa County 8ecorder Office "#1$-#(1""$# #%/#$/1$. 2E=hibit ?/
1otwithstandin the fact that %hili1 ). Stone was not the owner of record on <3ly ;'
*"? and did not owe any monies includin the said delin>uency payment of of E"7!'"?.?7.
1or does 7hilip 4. &tone, as of <3ly 6' *"? owe unpaid principle !alance of E:?:':4;.4!'1l3s
interest fro$ *D*"D**4. StoneFs debts were all dischar2ed in bankr31tcy E=hibit ;.
The respondents 0illia$ ). She1ro and :even ;. )ilco< caused to !e file an unlawful
1otice of Trustee@s &ale under oath and caused the fraudulent document .ro31 E=hibit 6 to !e
recorded in the 0aricopa County 8ecorder@s Office ?ocument num!er 1um!er "#1$#$%#"$-.
Complainant served a O!Aection to the 8espondents via email and certified $ail on !5;5
"? the fraudulent 1otice of trustee &ale 2.ro31 E=hibit 6/ filed !y the respondents, with the
0aricopa County 8ecorder@s Office on !D;D*"? ?ocument no. "#1$#$%#"$- announcin that
the Complainant@s property known as "%$,. 1. 11"th )ay, &cottsdale, += %("'"-$."( will !e
sold Cat pu!lic auction to the hihest !idder. +t the main entrance of the &uperior Court 4uildin
"#1 ). ;efferson, 7hoeni< += %(##,, on ""D"D*"? at 1":,#70 of said day.D at E 1, ?ocument
'
"#1$#$%#"$-.
The said 1otice of Trustee@s &ale 2.ro31 E=hibit 6@ filed !y the 8espondent@s represents
a clear fraud on the 0aricopa County 8ecorderFs Office, a clear fraud on the Complainant for the
followin reasons:
The Trustee in the 1otice of Trustee &ale document 2.ro31 E=hibit 6/ has no 1ower
andDor a3thority to convey the deed of trust dated #(/#"/"##' !ecause 7hilip &tone >uit claimed
his interest to Christopher &toller 7ension and 7rofit &harin 7lan 3imited 2C&77&7/ on
Se1te$ber "7' **4' recorded in the 0aricopa County 8ecorders Office "##%-#%1($"" on
#-/""/#% 2E=hibit "/ as well known to the 8espondents.
The successor trustee was divested of its power of sale after *7DD*4. On Se1te$ber
"7' **4, 7hilip &tone transfers and conveys to C&77&7 a 4ahamas Corporation, and/or
Christopher &toller and/or 3eo &toller 2collectively, +ssinees/, under the 3aw of +ssinments of
Causes of +ction 2E=hibit /, insofar as permitted !y law, forever, any and all causes of action,
remedies, or claims, now or in the future, that +ssinor C&77&7 have aainst any party, not
limited to financial institution, contractors, !uilders, and their employees, affiliates, successors
and assins, et al., as well as the riht to prosecute such causes of action in the name of +ssinor
or +ssinees or any of them , and the riht to settle or otherwise resolve such causes of action as
+ssinees sees fit, reardin the followin real property in 0aricopa County, &tate of +ri=ona:
3ot ,, 7innacle 9oothills, accordin to 4ook ,-% of 0aps, 7ae (#, and +ffidavit of
Correction recorded in ?ocument 1o. -'-#1$((%", records of 0aricopa County, +ri=ona.
+ssessor@s 7arcel 1um!er: "1'-.$-#$$
Commonly known as: "%$,. 1. 11"
th
)ay, &cottsdale, += %("'".
The former Trustee, 8econstruct Co 1+, was not reistered as a loan servicer, !roker
with the +ri=ona ?epartment of 9inancial Institutions as of &eptem!er -, "#11 and pursuant to
their 1otice of Trustee &ale +ri=ona recorded in the 0aricopa 8ecorders Office "#11#.("(11 on
#-/#-/"#11 2E=hibit !@ and lacked the authority to transact !usiness within the &tate of +ri=ona.
The Trustee &ale +ri=ona was void ab initio and canceled !y the Trustee.
The complainant@s shell entities,AL,-S+UR#E %R+(+L-+ S+LU,-+NS S.A
D0estern %ro2ressi8e Ari&ona -nc.' 0estern %ro2ressi8e LL#.', herein after referred to
as2)7+I/ 2&u!stitution Trustee/ are not reistered with the +ri=ona ?epartment of 9inancial
Institutions and are not licensed as a !roker or servicer of mortaes as of the date <3ly ;'
*"? that the respondents filed with the 0aricopa 8ecorders Office its &u!stitution of Trustee
2 "#1$#$,,-('/. .ro31 E=hibit 6
#hristiana ,r3st' a di8ision of 0il$in2ton Sa8in2s (3nd Society' ,r3stee of ARL%
,r3st ;' s not re2istered with the Ari&ona De1art$ent of financial instit3tions and is not
licensed as a broker or ser8icer of $ort2a2es as of the date <3ly *' *"?. 1or are they
reistered with the +ri=ona Corporation ?ivision and they do not have a corporation certificate
.
of authority to transact !usiness within the &tate of +ri=ona.
On <3ly ;' *"? the 8espondents filed their 1otice of Trustee &ale and ?e!t Galidation
1otice, &tatement of !reach and non performance, and these documents 2.ro31 E=hibit 6@ were
fraudulently recorded with the 0aricopa 8ecorders Offices on <3ly ;' *"? *"?*?4*?7.
+s well known to the 8espondents their successor Trustee )7+I does not >ualify as a
Trustee of the deed of Trust in the Trustees capacity as an escrow aent as re>uired !y +.8.&. H
,,-%#, 2+/2'/ accordin to the +ri=ona ?epartment of 9inancial Institutions. )+7I is not a
reistered Trustee, they have no license.
+s well known to the 8espondents the statement of !reach or non performance 2 .ro31
E=hibit 6/falsely claimin that 7hilip &tone is in Cforeclosure !ecause he is delin>uent in
paymentsD is a false and misleadin statement, !ecause %hili1 Stone debts ha8e been
dischar2ed in )ankr31tcy #ase No. "*5""6645"! District of New Me=ico. ,he Debt
dischar2e date was <3ly "7' *"*. GE=hibit ;@
+s well known to the 8espondents the !eneficiary or su!stitute Trustee lacks the
authority under the 8elease and 9ull conveyance of the Trustee ?eed 2E=hibit ?/ and the
cancellation of all of de!ts, includin the adAusta!le rate note, secured !y the ?eed of Trust and
the Title of the &u!Aect 7roperty !ein in the name of C&7757 and cannot not !e sold under the
conveyance of the ?eed of Trust.
+s well known to the Complainants pursuant to the &u!stitution of Trustee 2.ro31
E=hibit 6/ dated ;une -
th
, "#1$ 8ecorders 1um!er "#1$#$,,-(', Mel5Lin2 Mitchell, Contact
0anaement Coordinator, is not an Officer of Ocwen 3oan &ervicin 33C and is a
unauthori=ed Cro!oD siner. This is further evidence of the respondents clear fraud on the
0aricopa County 8ecorders Office.
+s well known to the respondents the previous trustee 2E=hibit !/ 4+C 5ome 3oans
&ervicin, 37., 24+C/ the successor to Countrywide 4ank 1a, was not reistered with the
+ri=ona Corporation ?ivision, was not reistered as a 3imited 3ia!ility 7artnership as of +pril
-, "##-. 4+C was not reistered with the +ri=ona ?epartment of 9inancial Institutions. 4+C
had no authority to convey any assinment to RE#+NS,RU#, #+M%ANY' N.A. or +cwen
Loan Ser8icin2 LL#.
On <3ne ;
rd
' *"?, the 0aricopa Country 8ecorders Office recorded a fraudulent
assinment CThe record !eneficial interest under said ?eed of Trust as a result of the last
2fraudulent/ recorded assinment thereof is Christiana Trust, + ?ivision of )ilminton &avins
9und &ociety 9&4, not in its individual capacity !ut as Trustee of +837 Trust ,, !y an unlawful
instrument 8ecorded on ;une ,, "#1$, in 0aricopa County 8ecords at 8ecorder@s 1o. 1$-,'#(1(
c/o Ocwen 3oan &ervicin 33C (."# 7remier 7ark ?r )est 7alm 4each 9l ,,$#..D
+ well known to the 8espondents a representative of Ocwen 3oan &ervicin 33C, who
%
claimed to !e an aent, #hira2 %atel' on March :' *"?
'
, informed Christopher &toller, that
he was re>uired to have insurance for his property pursuant to a residential mortae and since
Christopher &toller has refused to provide a copy of the insurance, Ocwen was placin insurance
on the su!Aect property and would !e charin E;'*** annually, for a home owners insurance
policy that would enerally cost a!out I;**.** per year.
#hira2 %atel confirmed in a telephonic conversation Thursday, A323st "' *"?. Chiraa
7atel confirmed that the 1otice of Trustee dated <3ly ;' *"? and recorded at the 0aricopa County
8ecorder@s Office document 1um!er "#1$#$%#"$- was a fraud and violated the 9are ?e!t
Collection +ct !y attemptin to collect a de!t of 7hilip 4. &tone that was dischared in a 1ew
0e<ico 4ankruptcy proceedin. #hira2 %atel stated that Ocwen is aware of the ?eed of 8e-
Conveyance that they received !y certified mail, that Ocwen has no lawful interest in the property
known as "%$,. 1. 11"th )ay &cottsdale, +ri=ona %("'" and Ocwen 3oan and/or its aent )estern
7roressive-+ri=ona, Inc., will immediately forward 1otice to: "%$,. 1. 11"th )ay &cottsdale,
+ri=ona %("'" that the 1otice of Trustee@s &ale for No8e$ber "' *"? GE=hibit .ro31 E=hibit 6@
is permanently canceled. &ee a true and correct copy of the email marked as E=hibit 4 2email
confirmation/
1otwithstandin,the 8espondents knowinly and willfully are continuin to unlawfully
foreclose 2.ro31 E=hibit 6/ on the Complainant@s property on No8e$ber "' *"?
!
8espondents are well aware that they are not not entitled to enforce the said note or
mortae aainst 7hilip &tone, which has !een dischared 2E=hibit ;/ + 8eleased with a full 8e-
conveyance of the ?eed Trust and Cancellation of the 7romissory 1ote and the +dAusta!le 8ate
1ote securin the ?eed of Trust has !een filed and recorded with the 0aricopa County
8ecorder Office "#1$-#(1""$# #%/#$/1$. GE=hibit ?@ as well known to the Res1ondents.
,he Res1ondents are in violation of the 9air ?e!t Collection 7ractices +ct and the
9ederal 9air ?e!t Collection 7ractices +ct !y attemptin to collect on a de!t from %hili1 ).
Stone that is not owed that in an of itself is a violation of the 9lorida 8ules of 7rofessional
Conduct. The de!t has !een dischared E=hibit ;.
In 8espondents fraudulent S3bstit3tion of ,r3stee Doc3$ent G.ro31 E=hibit 6@
8ecordin 8e>uested !y the sham title company, 7remium Title +ency, Inc., filed in the
0aricopa County 8ecorder@s office on <3ly ' *"? "#1$#$,,-(', states that CThe successor
trustee 2)estern 7roressive -+ri=ona, Inc./ appointed herein >ualifies as trustee of the trust
?eed in the trustee@s capacity as an -ns3rance #o$1any as re>uired !y +8& &ection ,,-%#,,
&u!section 2+/2'/. The a!ove is a fraudulent statement as well known to the 8espondents. +s of
A323st !' *"? )estern 7roressive -+ri=ona, Inc., was not reistered with the +ri=ona
?epartment of Insurance to do !usiness in +ri=ona as an Insurance Company accordin to R3th
+Heda' an e$1loyee with the Ari&ona De1art$ent of -ns3rance.
' +cwen Loan Ser8icin2 had no authority to place an home owners insurance policy
on the su!Aect on 0arch "', "##$. Christopher &toller that this was done primarily for
the 8espondents to receive a Ckick!acksD in the form of commissions from the
insurance company from whom policies were o!tained and placed, which caused the
rates and the amount of coverae to !e e<cessive in violation of the law.
.
-
,he Res1ondents have !een notified !y the complainant via email and certified mail
correspondence of its o!Aection to the fraudulent Trustee &ale which is marked as .ro31
E=hibit 7. The 8espondents have refused and failed to take any remedial action to with draw
the fra3d3lent Notice of ,r3stee Sale G.ro31 E=hibit 6@ as of A323st "!' *"?.
The 8espondents are clearly in violation of the &tate civil and criminal laws et al., in
conductin the unlawful resienti"l non-$uici"l %oreclosure m"r0e "s 2 Group Ehibit !"
iwhich is clearly evidenced in this complaint.
0HERE(+RE' Complainant re>uest that an investiation immediately !e initiated aainst the
said 8espondents and that a formal complaint !e filed aainst them.

Christopher &toller
'#$( ). *rand +ve +pt $1$
Chicao, Illinois '#',-
,1"-%,$--.1.

#ER,-(-#A,-+N
Bnder penalties as provided !y law, the undersined certifies that the statements set forth
in this instrument are true and correct, e<cept as to matters therein stated to !e on information
and !elief and as such matters the undersined certifies as aforesaid that he verily !elieves the
same to !e true. +nd if called to testify would testify to same.
JJJJJJJJJJJJJJJJJJJJJJJJJJJJ
1#
6K5I4IT 1
11
6K5I4IT "
1"
6K5I4IT ,
1,
6K5I4IT $
1$
*8OB7 6K5I4IT (
1(
6K5I4IT '
1'
6K5I4IT .
1.
6K5I4IT %
1%
6K5I4IT -
1-