A Collection of Orders from Judge Arthur M.

SCHACK
NY

The following Orders by Judge Arthur M. SCHACK, of King, NY are

interesting:

American Brokers Conduit v ZAMALLOA, Judge Arthur M. SCHACK, Kings,

Index No. 07206/2007 (11 Sep 2007)
In American Brokers Conduit v ZAMALLOA, on September 11, 2007, Judge SCHACK denied an
application for a judgemnt of foreclosure and sale of a Kings County property without prejudice
due to the plaintiff's lack of standing. The plaintiff American Brokers Conduit instituted suit on
February 28, 2007, but did not receive an interest in the mortgage which is subject of the suit until
a March 5, 2007 assignment (CFRN 2007000169450). This case is a little bizarre in that
American Brokers Conduit seems to have assigned the mortgage to ITSELF at a different
address in Melville, New York. The case does have a good discussion of the case authority
requiring a plaintiff to have standing.
American Brokers Conduit v ZAMALLOA, Judge Arthur M. SCHACK, Kings,
Index No. 07206/2007 (28 Jan 2008)
In American Brokers Conduit v ZAMALLOA, on January 28, 2008, Judge SCHACK denied an
application for an order of reference due to the plaintiff's failure to include an affidavit of merit by
the party. Rahter than having an officer of American Brokers Conduit execute the affidavit of
merit, the plaintiff submitted an affidavit of merit excuted by a Robert HARDMAN, who identified
himself as Vice President of Mortgage Electronic Registration Systems, Inc. (MERS).
Aurora Loan Services, LLC v SATTAR, Judge Arthur M. SCHACK, Kings,
Index No. 15208/2007 (09 Oct 2007)
In Aurora Loan Services, LLC v SATTAR, Judge SHACK denied an application for an order for
service by publication and dismissed the complaint by Aurora Loan Services, LLC, due to the
plaintiff's lack of standing. The plaintiff pled a promissory note and mortgage iin which the
promissory note was in favor of First Magnus Financial Corporation and the mortgage was
recorded in favor of MERS. Judge SCHACK notes that there is no evidence whatsoever within
the record that the mortgage was assigned in favor of the plaintiff and notes that no such
mortgage assignemnt was either pled or recorded. Judge SCHACK goes on to note that First
Magnus Financial Corporation had gone out of business in AUgust 2007 and filed for bankruptcy
on August 21, 2007. The opinion then contains a thorough discussion of the case authority
requiring a plaintiff to have demonstrable standing in order to be eligible to maintian a suit. In
addition to dismissing the suit, Judge SCHACK also cancelled the notice of pendency. Judge
SCHACK also found the original complaint and suit to be frivolous, but declined to impose
sanctions upon the law firm filing the suit because it was the first instance that the Court had
noted such conduct.
Bank of NY NA v OROSCO, Judge Arthur M. SCHACK, Kings, Index No.
32052/2007 (19 Nov 2007)
In Bank of NY NA v OROSCO, Judge SCHACK denied an application for an order of reference
due to the plaintiff's failure to demonstrate ownership of the mortgage for the subject property.
The plaintiff pled an assignment from MERS to Bank of New York dated August 21, 2007, but
Judge SCHACK noted that this assignment had never been recorded. But Judge SCHACK went
on to note that Bank of New York also pled an affidavit executed by a person who is identified as
Keri SELMAN. Judge SCHACK notes that while in her affidavit in the OROSCO case she
identified herself as an Assistant Vice President for Bank of New York, in another case before
Judge SCHACK Keri SELMAN had signed an affidavit identifying herself as a Vice President of
"Countrywide Home Loans, Attorney in Fact for Bank of New York". Judge SCHACK ordered that
Ms. Keri SCHACK furnish an affidavit describing her employment history for the previous three
years. [In point of fact, this would seem to be Keri or Kerri L. SELMAN (b 26 Aug 1969 - Los
Angeles, CA), formerly Keri Lynn ATWOOD, of McKinney, Texas. She seems likely to be an
employee of Countrywide, which has a large servicing facility near where Ms. SELMAN lives.]
Deutsche Bank v CASTELLANOS, Judge Arthur M. SCHACK, Kings, Index
No. 22375/2006 (11 May 2007)
In Deutsche Bank v CASTELLANOS, on May 11, 2007, Judge SCHACK denied an application for
a judgment of foreclosure and sale due to the plaintiff's lack of standing. Judge SCHACK noted
that the foreclosure was commenced in July 2006 by Deutsche Bank. After obtaining an order of
reference (November 16, 2006) and after preparing an affirmation of regularity (January 10, 2007)
and during the pendency of the action, Deutsche Bank seems to have assigned the mortgage to
MTGLQ Investors, L.P. on January 19, 2007 (recorded February 7, 2007). Judge SCHACK
therefore denied the plaintiff's application for a judgment of foreclosure and sale without prejudice
expressly inviting the Plaintiff to amend its pleadings to appropriately to correct the identity of the
plaintiff. Judge SCHACK cites Gretchen Morgenson's April 6, 2007, New York Times article "Fair
Game; Home Loans: A Nightmare Grows Darker" in his opinion.
Deutsche Bank v CASTELLANOS, Judge Arthur M. SCHACK, Kings, Index
No. 22375/2006 (14 Jan 2008)
In Deutsche Bank v CASTELLANOS, on May 11, 2007, Judge SCHACK denied a renewed
application for a judgment of foreclosure and sale due to the plaintiff's lack of standing (see case
above). He noted that the defects identified within his May 11, 2007, order remained
unaddressed. In addition, he noted the presence of a affidavit of merit executed by a Mr. Jeff
RIVAS, who was identified as Deutsche Bank's "Vice President Default Timeline Management".
He then notes the presence of mortgage assignment within the files executed the same date
which identifies Mr. Jeff RIVAS as the "Vice President Default Timeline Management" for Argent
Mortgage Company, LLC, the assignor of a the mortgage to Deutsche Bank. Judge SCHACK
points out that if Mr. RIVAS was acting as an officer of both the grantor and the grantee of the
assignment that this would create a conflict rendering the conveyance VOID. Judge SCHACK
then directs that Mr. RIVAS' employment history be clarified in any future application for a
foreclosure order. Judge SCHACK then goes on to note that Deutsche Bank and MTGLQ
Investors, L.P. are also shown to share the same address at 1661 Worthington lioad, Suite 100,
West Palm Beach, where suspicious transactions executed by one Scott ANDERSON seem to be
occuring. Judge SCHACK then also demands an explanation as to WHY so many corporations
seem to be sharing the SAME suite in West Palm Beach.

Judge Arthur M. SCHACK is a Justice of the Supreme Court of New York for
King County. [See http://www.nycourtsystem.com/Applications/JudicialDirectory/Bio.php?
ID=7029077 ]
Deutsche Bank v CLOUDEN, Judge Arthur M. SCHACK, Kings, Index No.
00277/2007 (18 Sep 2007)
In Deutsche Bank v CLOUDEN, Judge SCHACK denied an application for an order of reference
due to the plaintiff's failure to demonstrate ownership of the mortgage for the subject property. He
also notes a defect in the affidavit of merit, which is NOT executed by an officer of the plaintiff in
conformance with CPLR §3215(f). Judge SCHACK finds an assignment from intermediate
mortgagee Argent Mortgage Company LLC to Deutsche Bank to be defective in that it is executed
by a Tamara PRICE who identifies herself as authorized agent of AMC Mortgage Services Inc.
without giving any power of attorney or otherwise showing her authority to act on behalf of Argent.
The affidavit of merit is executed by a Rose C. LARA, who holds herself out to be an officer of
AMC Mortgage Services Inc. Judge SCHACK notes that AMC Mortgage Services Inc. seems to
be holding itself out to be the agent of BOTH Deutsche Bank AND Argent Mortgage Company
LLC.

Deutsche Bank v EZAGUI, Judge Arthur M. SCHACK, Kings, Index No.

03724/2007 (21 Dec 2007)
In Deutsche Bank v EZAGUI, Judge SCHACK denied an application for an order of reference due
to the plaintiff's failure to demonstrate ownership of the mortgage for the subject property. Judge
SCHACK notes that in an affidavit in support of the application a Ms. Tamara PRICE identifies
herself as the "Vice President" of Deutsche Bank while also showing herself to be the Vice
President of AMC Mortgage Services, Inc. Judge SCHACK orders Deutsche Bank to provide an
affidavit within thirty days clarifying Ms. Tamara PRICE's employment history for the previous
three years, as well as explaining WHY Deutsche Bank seems to have purchased a non-
performing loan from Ameriquest and WHY Deutsche Bank and Ameriquest seem to be sharing
office space with Ameriquest at 505 City Parkway West, Orange, CA 92868.

Deutsche Bank v GRANT, Judge Arthur M. SCHACK, Kings, Index No.

39192/2007 (25 Apr 2008)
In Deutsche Bank v GRANT, Judge SCHACK denied an application for an order of reference due
to the plaintiff's failure to conform to the statute in furnishing an affidavit of merit from an officer of
the plaintiff. Judge SCHACK notes that the affidavit of merit is from a Leo S. ORTEGA, Jr., who is
identified as the Vice President of Option One Mortgage, the entity which is purported to have
sold this mortgage to Deutsche Bank. But the affidavit is dated November 1, 2007, AFTER the
purported assignment of this mortgage to Deutsche on October 22, 2007 (this assignment also
contains an antedated effective date). Judge SCHACK also notes that the assignment of the
mortgage to Deutsche Bank seems to have occured AFTER the mortgage is asserted to have
gone into default.

Deutsche Bank v HARRIS, Judge Arthur M. SCHACK, Kings, Index No.

39192/2007 (05 Feb 2008)
In Deutsche Bank v HARRIS, Judge SCHACK denied an application for an order of reference due
to a number of troubling questions he has about the representations in the plaintiff's application.
Judge SCHACK is troubled (a) by the purported October 23, 2007, assignment to Deutsch Bank,
(b) conflicting sworn accounts as to the identity and role of one Erica JOHNSON-SECK, (c)
Deutsche Bank's purchase of what is represented to have been an already non-performing loan,
and (d) the coinciding addresses shown for IndyMac Bank FSB, MERS, and Deutsche Bank.
Judge SCHACK notes that the assignment from MERS was executed by on Laura HESCOTT,
Vice President of MERS. Judge SCHACK expresses dismay that this assignment is purported to
have been executed in Dakota County, Minnesota, when both the grantor and grantee are
represented to be headquatered in Pasadena, California. He goes on to note that the affidavit or
merit was executed in Williamson County, Texas, rather than in Pasadena, California, despite the
representation that Erica JOHNSON-SECK is shown to be a Vice President of Deutsche Bank.
Judge SCHACK orders Deutsche Bank to provide an affidavit within forty-five days showing the
employment history of Erica JOHNSON-SECK for the previous three years. He also demands an
explanation as to WHY Deutsche and IndyMac Bank FSB are sharing office space in Pasadena
and WHY Deutsche Bank is purchasing non-performing loans for the trust of which it is the
trustee. [Erica JOHNSON-SECK (b Apr 1973) is a resident of Wylie, Colin County, Texas.] [Laura
HESCOTT and the identified notary for the purported assignment James C. MORRIS are actually
employees of FIS Foreclosure Solutions, Inc, of Mendota Heights, Dakota County, MN.]
"MUST READ ANOTHER GREAT SCHACK DECISION ON STANDING AND UNNAMED
BENEFICIARIES TO TRUSTS" (Posted by Nye LAVELLE at 02:37 PM on Monday 07 Jul 2008)
http://websitetoolbox.com/tool/post/ssgoldstar/vpost?id=2824297
"MUST READ!!!! NY Judge Dismisses Case WITH PREJUDICE Sua Sponte Without
Borrower Answering Complaint & Calls Fraud On Court & To Sanction Lawyers!!!!" (Posted
by Nye LAVELLE at 02:41 AM on Thursday 03 Jul 2008)
http://www.websitetoolbox.com/tool/post/ssgoldstar/vpost?id=2816632

In each of these cases, Justice SCHACK has disnissed a foreclosure case WITH PREJUDICE
due to plaintiff misconduct. As Nye observes, these are both singularly important cases and must
reads for those seeking to keep abreast of the standing issue