Source: https://www.scribd.com/document/69365481/State-of-Ohio-v-MERS-and-Banks
Timestamp: 2016-12-09 07:13:27
Document Index: 50577412

Matched Legal Cases: ['§ 305', '§ 5301', '§ 5301', '§ 317', '§ 5301', '§ 5301', '§ 309', '§ 5301']

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STATE OF DAVID P. JOYCE PROSECUTING ATTORNEY OF GEAUGA COUNTY, OHIO Courthouse Annex, 231 Main St., Suite 3A Chardon, Ohio 44024
On behalf ofGeauga situated, County and all others similarly
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JUDGE FOR~ESf
MERSCORP, INC. 1818 Library Street, Suite 300 Reston, Virginia 20190 and MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC. 1818 Library Street, Suite 300 Reston, Virginia 20190 and HOME SAVINGS &LOAN COMPANY OF YOUNGSTOWN c/o Statutory Agent: Jude J. Nohra 275 Federal Plaza West Youngstown, Ohio 44503 and BANK OF AMERICA CORPORATION c/o Statutory Agent: CT CORPORA TrON SYSTEM 1300 East 9th Street Cleveland, Ohio 44114
CLASS ACTION COMPLAINT, REQUEST FOR DECLARATORY RELIEF, PERMANENT INJUNCTIVE RELIEF, AND DAMAGES
and CCO MORTGAGE CORPORATION c/o Statutory Agent: The Prentice-Hall Corporation System, Inc. 50 West Broad Street, Suite 1800 Columbus, Ohio 43215 and CHASE HOME MORTGAGE CORPORATION c/o Statutory Agent: Chase Manhattan Mortgage Corporation 2175 Terminal Tower Cleveland, Ohio 44113 and CITIMORTGAGE, INC. c/o Statutory Agent: CT CORPORATION SYSTEM 1300 East 9th Street Cleveland, Ohio 44114 and CORELOGIC REAL ESTATE SOLUTIONS, LLC c/o Statutory Agent: CSC-Lawyers Incorporating Service (Corporation Service Company) 50 West Broad Street, Suite 1800 Columbus, Ohio 43215 and CORINTHIAN MORTGAGE CORPORATION c/o Statutory Agent: CT CORPORATION SYSTEM 1300 East 9th Street Cleveland, Ohio 44f14 and EVERHOME MORTGAGE COMPANY c/o Statutory Agent: CT CORPORATION SYSTEM
) ) ) ) ) .) )
1300 East 9th Street Cleveland, Ohio 44114 and GMAC RESIDENTIAL FUNDING CORPORATION cia Statutory Agent: CSC-Lawyers Incorporating Service (Corporation Service Company) 50 West Broad Street, Suite 1800 Columbus, Ohio 43215 and GUARANTY BANK., S.S.B. cia Statutory Agent: CT CORPORATION SYSTEM 1300 East 9th Street Cleveland, Ohio 44114 and HSBC BANK U.S.A. N.A. clo Statutory Agent: CT CORPORATION SYSTEM 1300 East 9th Street Cleveland, Ohio 44114 and MGIC INVESTORS SERVICES CORPORATION clo Statutory Agent: National Registered Agents, Inc. 145 Baker Street Marion, Ohio 43302 and NATIONWIDE ADVANTAGE MORTGAGE COMPANY clo Statutory Agent: CT CORPORATION SYSTEM 1300 East 9th Street Cleveland, Ohio 44114 and
PMI MORTGAGE SERVICES COMPANY c/o Statutory Agent: CT CORPORATION SYSTEM 1300 East 9th Street Cleveland, Ohio 44114 and SUNTRUST MORTGAGE INC. c/o Statutory Agent: CSC-Lawyers Incorporating Service (Corporation Service Company) 50 West Broad Street, Suite 1800 Columbus, Ohio 43215 and UNITED GUARANTY CORPORATION c/o Statutory Agent: CT CORPORATION SYSTEM 1300 East 9th Street Cleveland, Ohio 44114 and WELLS FARGO BANK, N.A. c/o Statutory Agent: CSC-Lawyers Incorporating Service (Corporation Service Company) 50 West Broad Street, Suite 1800 Columbus, Ohio 43215 and DOE CORPORATIONS addresses unknown, I - MMM, names and ) ) ) ) ) ) )
CLASS ACTION COMPLAINT AND NOW COMES Plaintiff Geauga County, by and through David P. Joyce as Prosecuting Attorney for the County of Geauga and in the name of the State, on behalf of itself and all other Ohio counties, for its class action complaint against Defendants MERSCORP, Mortgage Electronic Registration System, Inc., Home Savings & Loan Company of Inc.,
Youngstown, Bank of America Corporation, CCO Mortgage Corporation, Chase Home Mortgage Corporation, CitiMortgage, Inc., CoreLogic Real Estate Solutions, LLC, Corinthian Mortgage Corporation, EverHome Mortgage Company, GMAC Residential Funding Corporation, Guaranty Bank, S.S.B., HSBC Bank U.S.A N.A., MGIC Investors Services Corporation, Nationwide Advantage Mortgage Company, PMI Mortgage Services Company, Suntrust Mortgage, Inc., United Guaranty Corporation, Wells Fargo Bank, N.A., and Defendants Doe Corporations I - MMM (collectively, "Defendants") and belief as follows: NATURE OF THE ACTION 1. This is a class action commenced by Plaintiff Geauga County, on behalf of itself failure to record each and every mortgage alleges and states upon information
and all other Ohio counties, arising out of Defendants'
assignment in the proper Ohio county recording office, and pay the attendant recording fees, as required by Ohio law. 2. Ohio law requires that each and every mortgage assignment must be recorded
with the county recorder of the recording office in the county in which the property is located, a practice codified in Ohio statutes for nearly two hundred years. Ohio law also requires that county recorders, who work at county recording offices and are responsible for maintaining each
county's public land records, collect fees for each entitled land instrument (e.g., a mortgage assignment) presented for recording. 3. Mortgage securitization is a financial practice that generally involves the transfer
(i.e., assignment) of mortgages among Defendants and other banking institutions so that the mortgages can eventually be pooled into trusts that will, in turn, issue mortgage-backed securities for sale to investors. 4. To securitize, mortgages are typically assigned at least twice.
Defendants and others realized that it would be faster and cheaper to securitize
mortgages, thus rendering higher profits, if they did not record each and every intermediate mortgage assignments in county recording offices. a. To accomplish this goal, Defendants and others began to record land
instruments in the name of a private corporate entity that they contended could act as their placeholder in county public records should they want to use public records to alter or foreclose on the mortgage. b. In other instances, Defendants and others simply failed to record mortgage
assignments in county recording offices at all. 5. By circumventing county recording requirements, Defendants and others avoided
the time it took to physically file for recording each and every mortgage assignment at county recording offices --- and, most importantly, Defendants and others avoided paying counties the attendant recording fees. 6. Defendants, therefore, violated (and continue to violate) Ohio's statutory
recording requirements by failing to record each and every mortgage assignment, and pay attendant recording fees.
Even worse, Defendants systematically broke chains of land title throughout Ohio
counties' public land records by creating "gaps" due to missing mortgage assignments they failed to record, or by recording patently false andlor misleading mortgage assignments. Defendants' failure to record has eviscerated the accuracy of Ohio counties' public land records, rendering them unreliable and unverifiable. 8. Consequently, Defendants' purposeful failure to record each and every mortgage
assignment has resulted in far-reaching, devastating consequences for Ohio counties and their public land records -- damage to public records that may never be entirely remedied.
This Court has both subject matter and personal jurisdiction over the parties and
causes of action set forth in this Complaint. 10. This Court has jurisdiction over Defendants where each Defendant has sufficient
minimum contacts with Ohio so as to render the exercise of jurisdiction by Ohio courts permissible under traditional notions of fair play and substantial justice.
Plaintiff Geauga County ("Plaintiff") is located in the State of Ohio. Pursuant to
§§ 305.14, 309.12 of the Ohio Rev. Code Ann., Plaintiff Geauga County, by and through David P. Joyce as the Prosecuting Attorney for the County of Geauga and in the name of the State, sues on behalf of itself and all other Ohio counties. 12. Defendant MERSCORP, Inc. ("MERSCORP") is a Delaware corporation that
maintains it principal place of business at 1818 Library Street, Suite 300, Reston, Virginia 20190. As a national organization, DefendantMERSCORP conducts business in the State of Ohio.
Defendant Mortgage Electronic Registration System, Inc. ("MERS"), a wholly-
owned subsidiary of Defendant MERSCORP, is a Delaware corporation and maintains its principal place of business at 1818 Library Street, Suite 300, Reston, Virginia: 20190. As a national organization, Defendant MERS conducts business in the State of Ohio. 14. Defendant Home Savings & Loan Company of Youngstown ("Home Savings"), a
subsidiary of United Community Financial Corporation, is an Ohio corporation that is headquartered at 275 West Federal Street, Youngstown, Ohio 44503. As an Ohio organization, Defendant Home Savings conducts business in the State of Ohio and its registered agent in Ohio is Jude J. Noma, 275 Federal Plaza West, Youngstown, Ohio 44503. 15. Defendant Bank of America Corporation ("Bank of America") is a Delaware
corporation that maintains its principal place of business at 100 N. Tryon St. Charlotte, North Carolina 28255. As a national organization, Defendant Bank of America conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION 9th Street, Cleveland, Ohio 44114. 16. Defendant CCO Mortgage Corporation ("CCO") (flkla American Home Funding, SYSTEM, 1300 East
Inc. and Charter One Mortgage Corporation), a division ofRBS Citizens, N.A. and a subsidiary of Citizens Financial Group Inc., is a New York corporation that maintains its principal place of business at 10561 Telegraph Road, Glen Allen, Virginia 23059. As a national organization, Defendant CCO conducted business in the State of Ohio and its registered agent in Ohio was The Prentice-Hall Corporation System, Inc., 50 West Broad Street, Suite 1800, Columbus, Ohio 43215. 17. Defendant Chase Home Mortgage Corporation ("Chase") (flkla Chase Home
Finance), a division of Chase Bank N.A., and JPMorgan Chase & Co., is a Delaware corporation
that maintains its principal place of business at 4915 Independence Parkway, Tampa, Florida 33634. As a national organization, Defendant Chase conducts business in the State of Ohio and its registered agent in Ohio is Chase Manhattan Mortgage Corporation, 2175 Terminal Tower, Cleveland, Ohio 44113. 18. Defendant CitiMortgage, Inc. ("CitiMortgage"), a wholly owned subsidiary of
Citibank N.A., is a New York corporation that maintains its principal place of business at 1000 Technology Drive, MS 140, O'Fallon, Missouri. As a national organization, Defendant
CitiMortgage conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION 19. SYSTEM, 1300 East 9th Street, Cleveland, Ohio 44114. (flkla First
Defendant CoreLogic Real Estate Solutions, LLC ("CoreLogic")
American Real Estate Solutions LLC) is a Delaware corporation that maintains its principal place of business at 4 First American Way, Santa Ana, California 92707. As a national organization, Defendant CoreLogic conducts business in the State of Ohio and its registered agent in Ohio is CSC-Lawyers Incorporating Service (Corporation Service Company), 50 West
Broad Street, Suite 1800, Columbus, Ohio 43215. 20. Defendant Corinthian Mortgage Corporation ("Corinthian"), a fully owned
subsidiary of SOUTHBank,
is a Mississippi corporation that maintains its principal place. of
business at 5700 Broadmoor, Suite 500, Mission, Kansas 66202. As a national organization, Defendant Corinthian conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION 21. SYSTEM, 1300 East 9th Street, Cleveland, Ohio 44114. (flkla Alliance
Defendant EverHome Mortgage Company ("EverHome")
Mortgage Company), a fully owned subsidiary of Everbank Financial Corp., is a Florida corporation that maintains its principal place of business at 8100 Nations Way, Jacksonville,
Florida 32256. As a national organization, Defendant EverHome conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION Cleveland, Ohio 44114. 22. Defendant GMAC Residential Funding Corporation (d/b/a GMAC Bank, GMAC SYSTEM, 1300 East 9th Street,
Commercial Mortgage Corp., GMAC Mortgage, GMAC Mortgage Corp., GMAC Mortgage LLC) ("GMAC"), a wholly owned subsidiary of Ally Financial Inc., is a Delaware corporation that maintains its principal place of business at 8400 Normandale Lake Blvd., Minneapolis, Minnesota 55437. As a national organization, Defendant GMAC conducts business in the State of Ohio and its registered agent in Ohio is CSC-Lawyers Incorporating Service (Corporation
Service Company), 50 West Broad Street, Suite 1800, Columbus, Ohio 43215. 23. Defendant Guaranty Bank, S.S.B. ("Guaranty") is a Delaware corporation that
maintains its principal place of business at 4000 West Brown Deer Road, Brown Deer, Wisconsin 53209. As a national organization, Defendant Guaranty conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION Street, Cleveland, Ohio 44114. 24. Defendant HSBC Bank U.S.A N.A. (d/b/a HSBC Mortgage Corp. U.S.A., HSBC SYSTEM, 1300 East 9th
Bank U.S.A. Trust, HSBC Mortgage Services Inc.) ("HSBC") is a Delaware corporation that maintains its principal place of business at 1800 Tysons Blvd., Suite 50 Mclean, Virginia 22101. As a national organization, Defendant HSBC conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION Ohio 44114. 25. Defendant MGIC Investors Services Corporation ("MGIC"), a subsidiary of SYSTEM, 1300 East 9th Street, Cleveland,
MGIC Investment Corp., is a Wisconsin corporation that maintains its principle place of business
at 250 E. Kilbourn Ave., Milwaukee, Wisconsin 53202. As a national organization, Defendant MGIC conducts business in the State of Ohio and its registered agent in Ohio is National Registered Agents, Inc., 145 Baker Street, Marion, Ohio 43302. 26. Defendant Nationwide Advantage Mortgage Company (d/b/a Nationwide Bank, a subsidiary of
Nationwide Mortgage Concepts, Nationwide Mortgage Corp.) ("Nationwide"),
Nationwide, is an Iowa corporation that maintains its principal place of business at 1100 Locust Street, Dept. 2009, Des Moines, Iowa 50391. As a national organization, Defendant Nationwide conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION SYSTEM, 1300 East 9th Street, Cleveland, Ohio 44114. 27. Defendant PMI Mortgage Services Company ("PMI") is a California corporation
that maintains its principal place of business at 3003 Oak Road, Walnut Creek, California 94597. As a national organization, Defendant PMI conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION Ohio 44114. 28. Defendant Principal Residential Mortgage, Inc. ("Principal Residential") was an SYSTEM, 1300 East 9th Street, Cleveland,
Iowa corporation that maintained its principal place of business at 711 High Street, Des Moines, Iowa 50392 and a principal office located in Columbus, Ohio 43215. Defendant Principal Residential, in conjunction with Principal Wholesale Mortgage, Inc., merged into Defendant CitiMortgage on February 11,2005. As a national organization with Ohio offices, Defendant
Principal Residential conducted business in the State of Ohio and its registered agent in Ohio was CT CORPORATION 29. SYSTEM, 1300 East 9th Street, Cleveland, Ohio 44114.
Defendant Suntrust Mortgage, Inc. ("Suntrust") is a Virginia corporation that
maintains its principal place of business in 901 Semmes Avenue, Richmond, Virginia 23224. As
a national organization, Defendant Suntrust conducts business in the State of Ohio and its registered agent in Ohio is CSC-Lawyers Incorporating Service (Corporation Service Company),
50 West Broad Street, Suite 1800, Columbus, Ohio 43215. 30. Defendant United Guaranty Corporation ("United") is a Nevada corporation that
maintains its principal place of business at 230 N. Elm Street, Greensboro, North Carolina 27401. As a national organization, Defendant United conducts business in the State of Ohio and its registered agent in Ohio is CT CORPORATION Ohio 44114. 31. Defendant Wells Fargo Bank, N.A. (d/b/aAmerica's Mortgage Outsource SYSTEM, 1300 East 9th Street, Cleveland,
Program) ("Wells Fargo"), a subsidiary of Wells Fargo and Company, is a South Dakota corporation that maintains its principal place of business at 101 North Phillips Avenue, Sioux Falls, South Dakota 57104 and a principal office at 115 Hospital Drive, Van Wert, Ohio 45891. Wells Fargo Home Mortgage, Inc. (flkla Directors Mortgage Loan Corporation, Courtesy Funding, Norwest Mortgage, Inc.) merged into Defendant Wells Fargo on October 1, 2004. Wachovia Shared Resources, LLC merged into Defendant Wells Fargo on January 1,2011. Wells Fargo Dealer Services, Inc. and SouthTrust Mortgage Corporation merged into Defendant Wells Fargo on July 1, 2011. As a national organization with Ohio offices, Defendant Wells Fargo conducts business in the State of Ohio and its registered agent in Ohio is CSC-Lawyers Incorporating Service (Corporation Service Company), 50 West Broad Street, Suite 1800, Columbus, Ohio 43215. 32. The true names and capacities of Defendants Doe Corporations I - MMM are Plaintiff believes that through discovery, the identity of Defendants Doe
Corporations I - MMM will become known to Plaintiff.
Ohio Requires the Recording of Certain Land Instruments in County Recording Offices
To finance the purchase of real property, a borrower typically receives a loan, A "mortgage" is a land instrument
often in the form of a mortgage, from an originating lender.'
comprised of two separate documents: (1) a promissory note, which establishes the borrower's obligation to repay the loan, and (2) the mortgage itself, which gives the lender a security interest in theborrower's 34. property to secure repayment of the loan. Land instruments, such as mortgages and mortgage assignments, must be Ohio Rev.
recorded in proper county recording offices, which are operated by county recorders. Code
Ann. § 5301.25 ("[I]nstruments of writing properly executed for the conveyance or
... shall be recorded in the office of the county recorder of the county in
encumbrance oflands
which the premises are situated."); Ohio Rev. Code Ann. § 5301.32 ("The separate instrument of [a mortgage] assignment or partial release shall be recorded."). 35. County recorders are required to collect nominal fees for each mortgage-related Ohio Rev. Code
land instrument presented and entitled to be recorded.
Ann. § 317.32 ("The
county recorder shall charge and collect the following fees, to include base fees for the recorder's servIces. .. ") .
The MERS Operation
things, register and track changes in ownership interests in mortgages.
Mortgages and deeds of trust are collectively referred to herein as "mortgages."
Since 1997, over 65 million mortgages have been registered on MERS's system-
three out of every five on the market. Currently, nearly 5,600 participating MERS members ("MERS Members" or "Members") track roughly 31 million active residential mortgage loans on the MERS system. MERS Members include a collection of banking and mortgage entities that ranges from local banks and investments banks to mortgage lenders and title insurers to approximately 3,000 mortgage servicers. a. Members pay MERS membership fees to register and track mortgage
ownership interests and servicing rights on MERS' s system. b. Members also pay MERS fees for each transaction conducted, such as
assigning a mortgage within to itself or to another MERS Member, identifying the mortgage's servicer, or using the MERS corporate seal. 38. 39. MERS does not itself originate, assign, service or invest in mortgages. Instead, MERS Members used (and continue to use) the "MERS" name to avoid
recording in county recording offices each time a mortgage ownership interest was assigned thereby avoiding the payment of attendant county recording fees. 40. MERS Members, at times, avoid recording every mortgage assignment by
recording an initial land instrument, on which they claim "MERS" as their agent through a series of designations, such as "MERS as assignee," "MERS as nominee, "MERS as beneficiary." 41. MERS Members contend that, as long as mortgage ownership interests are
assigned to other MERS members, they are not required to record each mortgage assignment in county recording offices because MERS acts on behalf of both the assignor and assignee (representing both MERS Members simultaneously).
The MERS Scheme 1. How MERS Members Place MERS in Land Instruments
IvIERS Members typically record the initial land instrument, on which "MERS" is
named, in county recording offices in two different ways: a. One way occurs when Members record an original mortgage on which
"IvIERS" is designated in a myriad of ways: "MERS as mortgagee of record," "MERS as nominee," "MERS as beneficiary," as beneficiary." and even "MERS (solely as nominee for Lender)
MERS and its Members use the term "MERS as Original Mortgagee
(MOM)" to describe this type of mortgage. b. The second way occurs when Members record a mortgage assignment on On such mortgage assignments, Members often purport to
which "MERS" is named.
assign the mortgage and underlying debt either to: (i) MERS itself; or (ii) MERS on behalf of another Member. 43. Members. MERS, however, does not draft or execute paperwork on behalf of itself or its Rather, MERS instructs its Members to self-certify their employees (e.g., people who
work for the lending banks and mortgage servicers) to become certified MERS "assistant secretaries" and "vice-presidents" in order to appear on various "MERS land instruments" for the MERS Members' employees access MERS certification
purpose of recording land instruments. forms on MERS's website. 44.
Members have their employees self-certify as MERS "assistant secretaries" or in order to appear as though those employees actually work for MERS. In
"vice-presidents"
doing so, county recorders record what facially appear to be proper mortgages and assignments,
even though the lenders' and servicers' employees are only acting under the guise ofMERS employment.
How MERS Members Fail to Record Intermediate Mortgage Assignments
MERS was intended to improve the profitability of the primary and secondary
mortgage market, and facilitate securitization of mortgages through the rapid assignment of mortgages between financial institutions - while avoiding: (i) recording each time the mortgages are assigned in county recording offices, and (ii) paying the attendant county recording fees. 46. Beginning in the 1990s, securitization of mortgages became more common. The
overall scheme of securitizing mortgages began with mortgage lenders who would originate as . many residential mortgage loans as possible for sale to various banks and fmancial institutions. Those banks and financial institutions would, in turn, trade the mortgages amongst themselves and subsequently pool them into trusts for eventual sale to investors as mortgage-backed securities ("MBS"). 47. Thus, to securitize a mortgage, several assignments must be made. a. First, originating lenders sell mortgages (each of which includes both the
promissory note and the mortgage documents) to an aggregator or sponsor. The sponsor is a special purpose entity that is often affiliated with a large financial institution or investment bank. b. Second, the sponsor initiates the securitization by transferring (i.e.,
assigning) the mortgage to a depositor. c. Third, the depositor then transfers the mortgage to a "special purpose
vehicle" (usually a trust) to be held for the eventual sale to and subsequent benefit of investors.
The typical life of a securitized mortgage, therefore, entails at least three
assignments - all of which are statutorily required to be recorded in the Ohio county recording office in which the underlying property is located. Securitization of a mortgage does not vitiate the legal requirement to record each assignment of a mortgage. 49. In reality, however, once "MERS land instruments" - such as mortgages and
mortgage assignments - are recorded in county land records and purportedly registered on MERS's private system (either as a MOM or mortgage assignment), MERS Members usually fail to record subsequent, intermediate mortgage assignments. 50. MERS Members often only record a mortgage assignment (regardless of how
many times the mortgage had been assigned prior) in county recording offices when they are attempting to assign the mortgage from
MERS. This generally occurs when MERS Members
seek to initiate a terminating event (e.g., to foreclosure when the mortgage is in default, or to release when the mortgage is refinanced or satisfied). 51. mortgage's When MERS Members finally record a mortgage assignment, they break the chain of title by creating "gaps" from the prior mortgage assignments they made, yet
failed to record in county recording offices.
52. Plaintiff brings this class action on behalf of itself and, pursuant to Ohio Civ, R.
23, on behalf of all other Ohio counties (collectively referred to herein as the "Class"). 53. The Class is comprised of each of the eighty-eight counties in the State of Ohio,
thus joinder of all Class members in one action would be impracticable.
The Class claims present common questions oflaw and fact that predominate over
questions that may affect particular putative class members individually, including without limitation the following: a. Whether the Class members are irreparably harmed by Defendants'
conduct in violation of Ohio Rev. Code Ann. §§ 5301.25, 5301.32 as alleged herein and are thus entitled to injunctive relief; b. Whether Defendants failed to record each and every prior and future
mortgage and mortgage assignment on real property located in Ohio with the county recorder of the proper Class Member's county recording office, in accordance with Ohio Rev. Code Ann. §§ 5301.25, 5301.32; c. Whether Defendants should be enjoined from continuing to assign Ohio
mortgages without recording each and every prior and future mortgage and mortgage assignment in the proper Class Member's county recording office; and d. Whether Defendants should be ordered to correct the failure to record each
and every prior and future mortgage and mortgage assignment with the county recorder of the proper Class Member's county recording office, and thereby pay attendant
recording fees, as required by Ohio law. 55. The claims asserted by Plaintiff are typical of claims asserted for the Class in that
all claims are based on the same legal and remedial theories: a. b. Ohio state law is applicable to all claims asserted by the Class; Ohio recording laws create identical requirements for the recording of
each and every mortgage and mortgage assignment on real property located in Ohio
with the county recorder of the proper county recording office in each of Ohio's 88 counties; and c. Each Ohio county is required by Ohio state law to collect fees for the
recording of each and every entitled mortgage and mortgages assignment presented to the county recorder for recording at the county recording office. 56. Plaintiff is an adequate representative of the Class that will fairly and adequately
represent the interests of the Class. 57. Plaintiff has retained competent class counsel with experience in prosecuting class
action litigations of this nature, and will vigorously prosecute the putative class claims alleged herein. 58. This action is maintainable as a class action where Defendants have acted on
grounds generally applicable to the Class thereby making final, injunctive, and declaratory relief, and a damage award appropriate with respect to the Class as a whole. 59. Class action treatment is superior to other methods for resolution of this
Members' ability to adequately protect their interests; c. The fmancial burden on individual Class Members would make it
impractical for them to pursue their claims against Defendants individually; and
Judicial economy would be served by maintenance of this action as a class
CLAIMS FOR RELIEF DECLARATORY
60. forth in full. 61. Plaintiff Geauga County, by and through David P. Joyce as Prosecuting Attorney
FIRST CAUSE OF ACTION JUDGMENT AND A PERMANENT INJUNCTION AGAINST ALL DEFENDANTS
Plaintiff incorporates by reference herein Paragraphs 1 through 59 as though set
for the County of Geauga, is authorized by Ohio Rev. Code
Ann. § 309.12 to institute
proceedings upon being satisfied the funds belonging to the county are illegally withheld from the county treasury and to recover such funds illegally withheld for the benefit of the county. 62. Defendants' failure to record each and every pri~r and future mortgage and
mortgage assigmnent on real property located in Ohio with the county recorder of the county recording office in which the property is located constitutes an actual existing justiciable controversy between the parties, having opposing interest, which can and should be resolved by this Court through declaratory relief. 63. Plaintiff and Class Members request a judgment declaring that Defendants are
required to record, pursuant to Ohio Rev. Code
Ann. §§ 5301.25, 5301.32, each and every prior
and future mortgage and mortgage assignment on real property located in Ohio must be recorded in, and attendant statutory recording fees paid to, the county recording office in which the real property is located. 64. Plaintiff and Class Members request that this Court enter an injunction
compelling Defendants to record each and every, prior and future, mortgage and mortgage
assignment on real property located in Ohio that was not recorded in the proper county recording office, and to immediately cease the practice of non-recording of mortgages and mortgage assignments on real property located in Ohio counties.
SECOND CAUSE OF ACTION UNJUST ENRICHMENT AGAINST ALL DEFENDANTS
65. forth in full. 66.
Plaintiff incorporates by reference herein Paragraphs 1 through 64 as though set
In order to avoid the payment of attendant recording fees to the Class, Defendants
failed to record each and every prior and future mortgage and mortgage assignment on real property located in Ohio in Plaintiff and Class Members' county recording officers, in violation of Ohio state law. 67. Instead of properly recording each and every prior and future mortgage and
mortgage assignment on real property located in Ohio in Plaintiff and Class members' county recording offices, Defendants unjustly retained recording fees per mortgage assignments, which injustice and equity belong to the Class. 68. By their wrongful and improper conduct, Defendants were, and are, unjustly
enriched at the expense of and to the detriment of Plaintiff and the Class. 69. As a direct and proximate result ofD~fendants' unjust enrichment, Plaintiff, on
behalf of itself and the Class, seeks restitution from Defendants and respectfully requests that this Court disgorge all profits, benefits, and other compensation Defendants obtained by their wrongful and improper conduct.
WHEREFORE, on behalf of itself and all other Ohio counties, by and through its undersigned counsel, Plaintiff prays for judgment declaring and determining that: a. This action is properly maintainable as a class action under Ohio Civil R.
23(B)(1)(a) andlor (B)(l)(b), Ohio Civil R. 23(B)(2), and Ohio Civil R. 23(B)(2); b. Plaintiff is an adequate class representative of the Class, and Plaintiff s
counsel is designated lead counsel for the Class; c. Each and every prior and future mortgage and mortgage assignment on
real property located in Ohio shall be recorded by Defendants with the proper Class Members' county recorder in the county recording office in which the property is located, thereby paying Plaintiff and the Class attendant recording fees; d. Defendants are permanently enjoined from non-recordation of mortgages
and mortgage assignments on real property located in Ohio with the county recorder in the recording office in the county in which the property is located; e. Plaintiff and the Class are entitled to restitution and disgorgement of
Defendants' profits, benefits, and other compensation Defendants obtained by their wrongful and improper conduct; f. above; g. Plaintiff and the Class are entitled to an award of reasonable attorneys' fee Plaintiff and the Class are entitled to an award of damages as set forth
and costs of bringing this action; and h. Plaintiff and the Class are entitled to such other and further relief as the
David Po Joyce (#0022437) Prosecuting Attorney Geauga County Prosecutor's Courthouse Annex 231 Main Street, Ste 3A Chardon, Ohio 44024 (440) 279-2100
Stanley Do Bernstein (#1'7035) (NY) Christian Siebott (#4004255) (NY) Sara Goodman (#4868923) (NY) Bernstein Liebhard LLP 10 East 40th Street New York, NY 10016 (212) 779-1414 (212) 779-3218 fax
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State of Ohio v MERS and Banks by Martin Andelman2.6K viewsEmbedDownloadDescriptionThis is the complaint filed by Geauga County prosecutor against MERS and a myriad of others, alleging that MERS has deprived the counties of recording fees by avoiding compliance with Ohio law for ...This is the complaint filed by Geauga County prosecutor against MERS and a myriad of others, alleging that MERS has deprived the counties of recording fees by avoiding compliance with Ohio law for the past 200 years.Read on Scribd mobile: iPhone, iPad and Android.Copyright: Attribution Non-Commercial (BY-NC)Download as PDF, TXT or read online from ScribdFlag for inappropriate contentShow moreShow less
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