Consumer complaint received 2025-02-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: WELLS FARGO & COMPANY
State: NY

Complaint narrative:
JOINT FORMAL NOTICE TO XXXX XXXX, XXXX. AND WELLS FARGO BANK , N.A . REGARDING SECURITIZATION DATE : XXXX XXXX SUBJECT : FORMAL NOTICE OF SECURITIZATION FRAUD, DOUBLE PLEDGING, TRUSTEE LIABILITY, FALSE CLAIMS ACT VIOLATIONS, AND POTENTIAL RICO CONSPIRACY -- - INTRODUCTION This letter serves as formal notice to XXXX XXXX, XXXX. ( as Trustee for XXXX XXXX XXXX Trust XXXX ) and Wells Fargo Bank XXXX N.A., regarding their roles in a fraudulent securitization scheme involving the same mortgage loan being unlawfully pledged into multiple mortgage-backed securities ( MBS ) trusts, investor fraud, and federal law violations, including but not limited to the Racketeer Influenced and Corrupt Organizations Act ( RICO ), the Securities Act of 1933, and the False Claims Act. 

The Notarized Affidavit of XXXX XXXX XXXX, XXXX, a licensed private XXXX and mortgage fraud expert, confirms that the subject loan was securitized into XXXX XXXX XXXX Trust XXXX, which XXXX XXXX  XXXX XXXX. oversees as trustee, while simultaneously being pledged into XXXX  Asset-Backed Securities XXXX XXXX, which is overseen by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

This evidence, supported by sworn testimony, legally admissible exhibits, and verified loan-level data, establishes a pattern of fraudulent activity implicating both Wells Fargo Bank , N.A . and XXXX XXXX, XXXX. as co-conspirators in a scheme to deceive investors, government regulators, and courts. 


-- - EVIDENCE OF FRAUDULENT SECURITIZATION & JOINT LIABILITY OF WELLS FARGO XXXX XXXX XXXX  1. Double Pledging of the Same Mortgage Loan The same mortgage loan was unlawfully securitized into two separate mortgage-backed securities ( MBS ) trusts : XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX, XXXX XXXX as XXXX  ) XXXX  Asset-Backed Securities XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX A single mortgage debt can not legally be sold into multiple trusts, constituting securities fraud, investor fraud, and fraudulent misrepresentation. 



2. Wells Fargo Bank , N.A . Fraudulently Claimed Ownership ( PETE Status ) While Acting as Servicer Wells Fargo Bank , N.A . falsely claimed to be the PETE ( Person Entitled to Enforce the Note ) while simultaneously acknowledging that the loan was securitized into XXXX XXXX XXXX Trust XXXX. 

The Loan Level Data retrieved from XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX, confirms that the subject loan remains in XXXX XXXX XXXX Trust XXXX, directly contradicting Wells Fargos claims of ownership. 

The original Note and Mortgage do not list XXXX XXXX XXXX Trust XXXX as a party, nor is XXXX XXXX  XXXX XXXX. referenced as the trustee holding legal title to the loan. 

Wells Fargos endorsement of the note was incomplete and legally defective, as confirmed in Exhibit A ( Esquivel Affidavit ) and Exhibit B ( Promissory Note ). 



3. False Claims Act Violations Fraudulent FHA Insurance Claims Wells Fargo Bank , N.A . received FHA insurance proceeds on XX/XX/XXXX, despite the loans improper securitization and double pledging. 

XXXX XXXX, XXXX. failed in its fiduciary duty as trustee to prevent fraudulent claims against government-backed insurance programs, thereby enabling Wells Fargos False Claims Act ( 31 U.S.C. 3729-3733 ) violations. 

If FHA insurance was paid on a loan that was securitized, neither Wells Fargo nor XXXX XXXX  should have received payments, constituting a fraudulent government claim. 



4. RICO Conspiracy Between Wells Fargo Bank , N.A . & XXXX XXXX, XXXX. 

A pattern of fraudulent activity, deceptive mortgage assignments, and misrepresented securitization transactions demonstrates a scheme to defraud borrowers, investors, and government agencies. 

Wells Fargo knowingly misrepresented its status as PETE, XXXX XXXX  oversaw a trust that never legally acquired the loan, and both banks participated in an orchestrated effort to defraud investors and federal regulators. 

These activities constitute a pattern of racketeering activity ( RICO violations ) under 18 U.S.C. 1961-1968. 





-- - DEMAND FOR DISCLOSURE & CORRECTIVE ACTION Given the severity of these violations, both XXXX XXXX, XXXX. and Wells Fargo Bank , N.A . are hereby placed on notice and must respond within 30 days with : 1. All records related to the loan transfer, including custodial records and PSA compliance documentation for both trusts ( XXXX XXXX XXXX Trust XXXX and XXXX  Asset-Backed Securities XXXX XXXX ). 


2. A sworn declaration from each bank confirming whether they were aware of the double pledging of this loan and what actions were taken to address this issue. 


XXXX. Confirmation of whether Wells Fargo Bank , N.A . submitted an FHA insurance claim and whether XXXX XXXX, XXXX. reviewed or approved such claims. 



Failure to comply will result in immediate escalation to the SEC, HUD OIG, the FBI Financial Crimes Division, and other federal agencies, as well as the pursuit of civil and criminal legal action under RICO and the False Claims Act.

-- - RESERVATION OF RIGHTS This notice is issued without prejudice and reserves all rights to seek full legal and equitable remedies, including but not limited to : Treble damages under RICO ( 18 U.S.C. 1964 ) Damages for securitization fraud, investor fraud, and fraudulent misrepresentation Civil penalties under the False Claims Act for fraudulent FHA insurance claims -- - CONCLUSION This joint formal notice places XXXX XXXX, XXXX. and Wells Fargo Bank , N.A . on legal notice of their direct involvement in fraudulent securitization practices, RICO violations, and False Claims Act violations. Immediate corrective action and full disclosure are expected. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX # XXXX XXXX, NY XXXX XXXX ( XXXX ) XXXX CC : Securities and Exchange Commission ( SEC XXXX Enforcement Division U.S. Department of Housing and Urban Development ( HUD OIG ) Federal Bureau of Investigation ( FBI ) Financial Crimes Division Consumer Financial Protection Bureau ( CFPB )

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation