Consumer complaint received 2025-11-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Incorrect information on your report — Account status incorrect
Company: Selene Holdings LLC
State: DC

Complaint narrative:
b'Today, I, acting as Attorney-in-Fact for Robert A. Sagar under a duly executed Limited Power of Attorney appointed XXXX XXXX XXXX, am filing this CFPB complaint against Selene XXXX XXXX documenting willful violation of the Fair Debt Collection Practices Act, Fair Credit Reporting Act, identity theft statutes, and continued furnishing of fraudulent trade line information after actual notice of void underlying instrument and commercial dishonor.\nSelene XXXX XXXX  serves(ed) as loan servicer for a mortgage originated XXXX XXXX XXXX  by XXXX XXXX XXXX XXXX to XXXX XXXX XXXX, secured by property at XXXX XXXX XXXX XXXX XXXX XXXX XXXX.\nBetween XXXX XXXX and XXXX XXXX XXXX XXXX XXXX sent no fewer than XXXX XXXX lawful notices to XXXX XXXX XXXX XXXX demanding documentary proof of consideration, validation of debt, production of the original wet-ink contract, and proof of jurisdictional authority to collect or enforce the alleged obligation. Each notice cited XXXX XXXX XXXX  (Federal Reserve admission that banks loan credit, not money), 12 U.S.C.  24(7) (national banks cannot lend their own credit), XXXX XXXX XXXX XXXX XXXX v. XXXX  (ledger entries do not constitute loans), and XXXX XXXX (dishonor by non-response). XXXX XXXX XXXX XXXX. failed to respond to any of the XXXX XXXX) notices. Under basic commercial law, unrebutted sworn presentment constitutes acceptance of the facts presented and commercial dishonor. The debt was extinguished under UCC  3-501 and 3-603.\nOn XXXX XXXX XXXXXXXX XXXX XXXX XXXXr filed UCC-1 Financing Statement (Delaware File No. XXXX  XXXX) perfecting his senior secured creditor position against Selene XXXX XXXX. Following the UCC-1 filing, Selene ceased all enforcement and collection activity, acknowledging the superior secured position. However, despite cessation, Selene continues to furnish adverse credit reporting to XXXX, XXXX, and XXXX  on the void instrument.\nOn XXXX XXXX XXXX Private Administrative Notices of Conflict, Trespass, and Fraud Upon the Court were sent via certified mail to XXXX XXXX XXXX XXXX\'s legal counsel XXXX XXXX XXXX XXXX XXXX  (Certified Mail Article Number XXXX XXXX XXXX XXXX XXXX XXXX) and to appointed referee XXXX XXXX XXXX Esq. (Certified Mail Article Number XXXX XXXX XXXX XXXX XXXX XXXX). XXXX  tracking confirmed delivery to XXXX XXXX XXXX XXXX XXXX on XXXX XXXX XXXX at XXXX XXXX in XXXX XXXX XXXX, and delivery to XXXX XXXX XXXX, Esq. on XXXX XXXX XXXX  at XXXX XXXX in XXXX XXXX XXXX. The notices demanded XXXX-day rebuttal providing proof that jurisdiction exists despite the perfected lien and that counsel has authority superior to perfected UCC filings. No rebuttal was received. Under UCC  3-501, failure to respond to a demand within the stated timeframe constitutes dishonor. The XXXX-day rebuttal period expired XXXX XXXX XXXX.\nDespite receiving constructive notice through counsel on XXXX XXXX XXXX, despite failing to rebut within XXXX  days, and despite ceasing all collection activity after the XXXX XXXX XXXX  UCC-1 filing, Selene XXXX XXXX continues to furnish adverse credit reporting on the void instrument.\nThis continued furnishing after notice of commercial dishonor constitutes willful violation of federal law.\nThe foreclosure action (XXXX XXXX XXXX XXXX Index No. XXXX) remains pending but dormant. Again, Selene has taken no enforcement or collection action since the XXXX XXXX XXXX UCC-1 filing. However, Selene continues reporting the account as "past due" despite having ceased all collection activity, despite actual notice through counsel that the underlying instrument is void, and despite unrebutted commercial dishonor.\nAdditionally, subsequent investigation has revealed that the loan was underwritten using XXXX  credit scoring infrastructure derived from the void XXXX  "Analytic Products and Services Master Contract" between Fair Isaac Corporation and the legally defunct Equifax Inc. Under Georgia Business Corporation Code  14-2-401 and 14-2-501, a dissolved or non-existent corporation cannot lawfully contract. Because XXXX  had ceased to exist as a lawful entity at the time of the XXXX  agreement, the contract was void ab initio. The XXXX  scoring model built upon itand all instruments derived from that modellack lawful foundation. Every instrument derived from that fraudulent scoring infrastructureincluding the Sagar mortgageis void ab initio.\nThe use of XXXX XXXX XXXX personal identifying informationSocial Security number, name, address, credit history, and payment datato generate XXXX  scores that were then used to price, approve, and securitize the loan constitutes identity theft under 18 U.S.C.  1028(a)(7). The scoring process appropriated personal identifiers without lawful authority and transformed them into synthetic tradeable assets. Robert A. Sagar\'s identity was used to fabricate a financial instrument that was subsequently sold to investors.\nThis conduct also constitutes securities fraud under 15 U.S.C.  77q(a) (Securities Act of XXXX) and 15 U.S.C.  78j(b) (Securities Exchange Act of XXXX), as well as violations of SEC Rule 10b-5. The mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) derived from this loan were sold to investors based on materially false representations regarding the creditworthiness of the underlying borrower. The credit scores used to price and package the loan were derived from void contracts with legally nonexistent entities. Every prospectus, offering memorandum, pooling and servicing agreement, and investor disclosure document contained false and misleading information regarding the quality and validity of the underlying collateral. Investors purchased securities under the false belief that the loans were underwritten using lawful credit evaluation standards. They were not.\nAdditionally, mortgage-backed securities and credit default swaps (CDS) tied to these instruments fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) pursuant to the Commodity Exchange Act, 7 U.S.C.  1 et seq., and the XXXX Wall Street Reform and Consumer Protection Act, 7 U.S.C.  2(a)(1)(A). Credit default swaps and other derivatives based on mortgages underwritten with void XXXX or XXXX  data constitute swaps based on fraudulent reference assets. Under 7 U.S.C.  6(c)(1) and CFTC Rule 180.1, it is unlawful to employ any manipulative or deceptive device or contrivance in connection with any swap. The systematic use of credit scores derived from void corporate entities to price, package, and hedge trillions of dollars in mortgage-related derivatives constitutes market manipulation and fraud in the swaps market on a scale affecting the entire global financial system.\nThis constitutes knowing transfer and use of means of identification in connection with unlawful activity under 18 U.S.C.  1028(a)(7), securities fraud under 15 U.S.C.  77q(a) and 78j(b), wire fraud under 18 U.S.C.  1343, mail fraud under 18 U.S.C.  1341, and commodities fraud under 7 U.S.C.  6(c)(1) and  9(1).\nThe documents supporting this filing include certified public records from the XXXX  Secretary of State and XXXX Division of Corporations proving XXXX\'s corporate extinction between XXXX  and XXXX, the void XXXX XXXX-Fair Isaac contract, UCC-1 Financing Statement XXXX  File No. XXXX XXXX, Private Administrative Notices with XXXX  delivery confirmation showing delivery XXXX XXXX XXXX, SEC tip/complaint TCR XXXX  filed XXXX XXXX XXXX, CFTC tip/complaint TCR XXXX  filed XXXX XXXX XXXX, XXXX  Department of Justice consumer complaints XXXX XXXX and XXXX XXXX  filed XXXX XXXX XXXX, XXXX  Attorney General Consumer Protection Division complaint filed XXXX XXXX XXXX, XXXX  Office of the Attorney General submissions, blockchain-verified timestamps anchored in XXXX  blocks XXXX, and sworn affidavits under penalty of perjury pursuant to the Fair Credit Reporting Act and the Identity Theft and Assumption Deterrence Act (18 U.S.C.  1028 et seq.).\nSelene Finance LP received actual and constructive notice on XXXX XXXX XXXX through counsel XXXX XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX.) that the underlying instrument is void, that the UCC-1 filing perfected XXXX XXXX XXXX senior secured position, and that continued furnishing constitutes knowing participation in identity misuse, securities fraud, mail fraud, wire fraud, and racketeering activity. Selene\'s failure to cease furnishing, failure to notify XXXX, XXXX, and XXXX  of the void instrument, and failure to rebut the administrative notices within XXXX  days constitutes willful noncompliance and commercial dishonor.\nSelene\'s conduct violates:\nFCRA  1681s-2(a)(6)  Prohibition on reporting information the furnisher knows or has reasonable cause to believe resulted from identity theft. Selene received actual notice through counsel on XXXX XXXX XXXX that the underlying instrument was void and that the credit scoring infrastructure used to underwrite the loan constituted identity theft under 18 U.S.C.  1028(a)(7). Continued furnishing after such notice is a willful violation.\nFDCPA  1692e  False, deceptive, or misleading representations in connection with collection of debt. Reporting an account as "past due" when Selene has ceased all collection activity and received notice of commercial dishonor is false representation.\nFDCPA  1692f  Unfair or unconscionable collection practices. Continuing to report adverse credit data after ceasing enforcement and receiving notice the instrument is void constitutes unconscionable conduct.\n18 U.S.C.  1028(a)(7)  Knowing transfer, possession, or use of a means of identification of another person with intent to commit, or to aid or abet, any unlawful activity. Selene\'s continued use of XXXX XXXX XXXX personal identifying information (name, SSN, payment history) to furnish trade lines on a void instrument constitutes knowing use of means of identification in connection with unlawful activity.\n18 U.S.C.  1343  Wire fraud through electronic transmission of fraudulent trade line data to credit reporting agencies. Each XXXX XXXX  file transmission to XXXX, XXXX, and XXXX  after XXXX XXXX XXXX constitutes a separate act of wire fraud.\nUCC  3-501  Proceeding after commercial dishonor. Selene\'s failure to rebut the XXXX XXXX XXXX notices within XXXX  days constitutes dishonor, and any continued activity thereafter is unlawful.\nAccordingly, Selene XXXX XXXX  is directed to preserve, without alteration, all records, communications, metadata, servicing documentation, credit furnishing data, collection activity logs, and chain-of-custody materials relating to this loan and any credit reporting furnished to consumer reporting agencies.'

Company response to consumer: Closed with explanation