Human Rights Alert (NGO)

(NGO)

Joseph Zernik, PhD

"
PO Box 33407, Tel-Aviv, Israel
",33407 "
Fax: 077-3179186
Email: [email protected]

December 22, 2014

Jessie Kornberg, President & CEO
Bet Tzedek
3250 Wilshire Blvd., 13th Floor
Los Angeles, CA 90010
Phone: (323) 939-0506, Fax: (213) 471-4568
Email: [email protected]
By fax and by email
RE: Request for compensation by Bet Tzedek
Your response within 30 days is kindly requested.
Dear Attorney Kornberg:
Congratulations on your recent appointment as President and CEO of Bet Tzedek.
Following the change of leadership in Bet Tzedek, I write to request compensation from Bet
Tzedek for wrongs perpetrated against me by Bet Tzedek current and former officers under
the leadership of Mr Sandor Samuels - former Bet Tzedek President and CEO, former
Countrywide Financial Corporation Chief Legal Officer, and former Bank of America
Associate General Counsel. Other Bet Tzedek officers involved in such wrongs include Mr
David Pasternak - current Bet Tzedek Board Member and former Bet Tzedek President, and
Mr Terry Friedman - current Bet Tzedek Board Member and former Bet Tzedek Executive
Director.
In part, such wrongs were perpetrated on Bet Tzedek premises in relationship to Bet Tzedek's
advertised charitable legal activity.
My request is also written in the wake of the recent record settlement of Bank of America,
Countrywide's successor, pertaining to fraud in Countrywide business practices, and the
related recent large awards to Countrywide whistle-blowers, which reaffirm my claims. [1,2]
The overarching underlying issue is conduct of Bet Tzedek - the Los Angeles House of
Justice - in particular, and in general, conduct of the organized Jewish and legal community
in Los Angeles - the epicenter of the epidemic of real-estate and mortgage fraud - vis a vis
the financial crisis.

Figure 1: The request for compensation pertains to conduct of current and former officers of Bet Tzedek, the
Los Angeles House of Justice, an affiliate of the Jewish Federation of Greater Los Angeles, including current
Board Member and former President David Pasternak, former President and CEO Sandor Samuels, and
current Board Member and former Executive Director Terry Friedman.
______

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Digitally signed
by Joseph
Zernik, PhD
Date: 2014.12.22
13:46:05 +02'00'

Outline of the case

The matter, outlined below, is meticulously documented, and records are available for your
inspection upon request. Included among the records are opinions by several renowned fraud
experts. Additional records pertain to other cases of similar conduct by the same individuals.

Figure 2: Part of the Bet Tzedek web site on June 20, 2007, prior to my request for help, filed with Mr Sandor
Samuels in his capacity as President of Bet Tzedek in the Bet Tzedek office on Fairfax Avenue in Los Angeles.
Mr Samuels was asked to help in stopping housing fraud, then being perpetrated by the Countrywide Legal
Department under his leadership. Within 24 hours after filing of the request, the entire Bet Tzedek web site
went down. When it came up again, there was neither mention of the Fraud Buster campaign nor of Mr
Samuels himself on it.
________

Points of interest
The case provides unique documentation of fundamental issues related to the origins of the
current financial, to the justice system in Los Angeles County and beyond. The most
interesting part of the records pertains to the period prior to Countrywide's collapse in
January 2008:
The basic scheme of straw-buyer, purchase failed, combined with simulated real-estate
litigation for Specific Performance in the Los Angeles Superior Court, [1] was employed
already in the late 1990s in Los Angeles, with some of the same key figures, including
former Los Angeles Bar Association President, former Bet Tzedek President, current Bet
Tzedek Board Member David Pasternak.
The scheme of straw-buyer, combined with fraudulent sub-prime loans from Countrywide
Home Loans was already in place in 2004. The records of Ms Nivie Samaan's Uniform
1 Simulate litigation refers here to conduct outlined in Texas Penal Code - 32.48. Simulating Legal Process, also
falling under Fraud Upon the Court, pursuant to Appling v. State Farm Mut. Auto. Ins. Co., 340 F.3d 769, 781 (9th Cir.
2003)

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Residential Loan Applications (1003) (a total of 4) to Countrywide Home Loans, together

with the respective Countrywide underwriting records, which were obtained through
discovery, documented the fraudulent underwriting process in Countrywide already in
January 2007, identified those involved in the San Rafael branch, in the Corporate
Underwriting office, and also documented the involvement of Countrywide President
Angelo Mozilo and Chief Legal Officer Sandor Samuels.
The highest ranking officers in Federal Trade Commission, Thrift Supervision, SEC, FBI,
US Department of Justice were colluding with Countrywide in covering up such largescale fraudulent underwriting practices years before Countrywide's collapse. On the other
hand, already in the early 2000s, FBI reports identified Los Angeles County as the
epicenter of the epidemic of real-estate and mortgage fraud.
Judges of the Los Angeles Superior Court and large number of Los Angeles attorneys,
including leading law-firms, were tightly involved in Countrywide's mortgage and realestate schemes. Key figure in the Los Angeles Superior Court in this matter was Judge
(since retired) Jacqueline Connor. Judge Connor was also a key figure in the Rampart
scandal (1998-2000). Government and independent Rampart scandal reports point out that
judges of the Los Angeles Superior Court should have been held accountable for conduct
of the LAPD uncovered in the scandal. However, no significant effort has ever been made
to reform the Court. The records in instant matter provide evidence that figures like Judge
Connor, who a decade or two earlier were deeply involved in the Rampart scandal,
originating in wholesale cocaine trading by LAPD undercover narcotics officers, were
deeply involved in banking and real-estate fraud by Countrywide and others by the early
2000s.
The records from the period after Countrywide's January 2008 collapse also provide
important insights:
Following the 2008 merger of Countywide and Bank of America, Mr Samuels was
appointed Associate General Counsel of Bank of America. Following the merger, and as
long as General Counsel Timothy Mayopoulos was in office, all harassment, intimidation
and retaliation actions against me ceased. However, within 24 hours of the much
investigated dismissal of Mr Mayopoulos and his replacement by General Counsel Brian
Moynihan (today Bank of America President and CEO) such conduct resumed.
Brief Chronology
In 2004, wrongs started with a straw-buyer attempt to purchase my property at 320 South
Peck Drive, Beverly Hills, then offered for sale. The straw-buyer was Ms Nivie Samaan.
Records, discovered much later, showed her lack of qualification. Her fabulously fraudulent
loan applications stated that her source of funds was a business engaged in the online sale of
Tarot cards, crystal balls, and divining rods... The transaction was to be financed by
Countrywide Home Loans, a subsidiary of Countrywide Financial Corporation, through the
fraudulent funding of government-backed residential mortgage loans.
The scheme was the brainchild of Mr Jay Arre Lloyd (formerly Timothy Lloyd Morrow),
then a Loan Originator for Countrywide Financial Corporation, and later Ms Samaan's
husband. Upon information and belief, Mr Lloyd was then also a convicted felon on
financial crimes (embezzlement of ERISA funds) at Skyline Funding, Inc, where he had been
a senior officer. Today JR Lloyd is President & CEO of the Beverly Hills Capital Group.
However, the straw-purchase scheme failed, since the preposterous fraud in the respective
loan applications was immediately detected by Ms Diane Frazier, then Senior Underwriter in
the Countrywide Home Loans San Rafael branch. As I found out much later, Ms Frazier
suffered serious retaliation for her honest conduct in this matter.
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From 2005-2010, such wrongs continued through simulated court actions by Ms Samaan
against me. The cause of action was Specific Performance of a contract that was never filed
by the Plaintiff in court, a classic case of Statute of Frauds... The preposterous claims were
elaborated only much later - that I had caused Ms Samaan's failure to obtain her mortgage
loans from Countrywide.
Initially, Countrywide was not a party to the case at all. I had no business relationship with
Countrywide, and did not even recognize the name Countrywide until late 2006. However,
later I discovered that on the opening page of the electronic Register of Actions (California
docket) of the case in Sustain (IT system of the Los Angeles Superior Court), Judge
Jacqueline Connor secretly and wrongfully listed Countrywide - Real Parties in Interest.
Mr Sandor Samuels, then President and CEO of Bet Tzedek, doubled at the time as Chief
Legal Officer of Countrywide Financial Corporation. On the Bet Tzedek web site he was
described as holding the responsibility for all legal matters in Countrywide.
Moreover, at that time, Mr Samuels, in his capacity as Bet Tzedek President and CEO,
advertised his ongoing Fraud Buster campaign against housing and mortgage fraud,
conducted in churches and synagogues throughout Southern California.
Furthermore, when I tried to seek help against such fraud from local Los Angeles agencies, I
was informed that Bet Tzedek was delegated by such agencies the responsibility for handling
complaints, pertaining to housing and real estate fraud.
Then and now, Bet Tzedek also advertises housing fraud as one of its areas of expertise.
Key event in this ordeal took place in June 2007 in the Bet Tzedek office on Fairfax Avenue
in Los Angeles. By that time I discovered that Countywide and its Legal Department were
behind the fraud being perpetrated against me. Given Bet Tzedek's and Mr Samuels' then
ongoing Fraud Buster campaign, and following the referral by local Los Angeles agencies,
I filed in the Bet Tzedek office a request for help, personally addressed to Mr Samuels in his
capacity as President and CEO of Bet Tzedek. Mr Samuels was asked to help in stopping the
fraud, being perpetrated against me by Countrywide and its Legal Department.
Within 24 hours, the entire Bet Tzedek web site was down. When it came up again a few days
later, there was neither mention of Mr Samuels' Fraud Buster campaign, nor of Mr Samuels
himself on the Bet Tzedek web site.
However, a few days later, Countrywide and Mr Samuels launched a harassment,
intimidation, and retaliations campaign against me. The law-firm of Bryan Cave LLP started
appearing in the court case initiated by Ms Samaan. Attorneys from Bryan Cave LLP
purportedly appeared in court on behalf of Countrywide, while lacking authority as Counsel
of Record in the case.
The unethical appearance of unauthorized counsel, often with no communications with
client clause, was a routine practice of Countrywide's Legal Department in courts
throughout the Untied States under Mr Samuels' leadership, as was later fully documented
elsewhere. [3]
Brian Cave, LLP, filed papers in court on behalf of Countrywide under ever changing false
party designations - Plaintiff, Defendant, Intervenor, and others, all without any legal
foundation. Brian Cave LLP also filed in court a paper on behalf of Mr Samuels himself
under the false party designation - Person In Interest.
The unethical filing of false records in court by Countrywide's outside attorneys was later
the immediate direct cause of Countrywide's collapse one of the key opening events in the
current financial crisis. [4]
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Former President of the Los Angeles Bar Association, former Bet Tzedek President, then and
now Bet Tzedek Board Member David Pasternak and former Bet Tzedek Executive Director,
now Bet Tzedek Board Member Terry Friedman were also key figures in the scheme.
Suffice is to point out the fraud expert opinion, which was issued by veteran FBI agent James
Wedick in this mater after reviewing a large volume of Los Angeles Superior court papers in
this case. Mr Wedick is probably the most highly acclaimed fraud expert in the United States
today, having been decorated by US Congress, by US Attorney General, and by FBI Director.
Regarding the Grant Deeds, pertaining to my Beverly Hills property, generated by Mr David
Pasternak, Mr Wedick opined fraud being committed. [5]
Regardless of fraud expert opinions and mounting credible evidence of such wrongful
conduct by Countrywide and others, all local, state, and national agencies refused to accord
me equal protection under the law during the years of my ordeal. Even a Congressional
Inquiry by Senator Dianne Feinstein on FBI Director and on Director of the US Attorneys'
Office failed to provide any remedy.
A message from Mr Wedick documented contact make with him by FBI to discuss my case,
where Mr Wedick tried to convince FBI to duly accord me equal protection. [6] Such
communication took place on the very same day that FBI Assistant Director for Criminal
Investigations issued a false response on Senator Feinstein's Inquiry. In such response to
Senator Feinstein, FBI falsely claimed that my complaint originated in a foreclosure action.
Later, the Inspector General of US Department of Justice refused to address Senator
Feinstein's Congressional Inquiry, pertaining to the false response by FBI Assistant Director
for Criminal Investigations on Senator Feinstein's original Congressional Inquiry in my case.
Throughout the ordeal, I was unable to obtain honest legal representation in Los Angeles
County. Several attorneys, whom I retained, engaged in what should be deemed unethical
conduct. In one extreme case, a (Jewish) attorney had my signature forged and papers, which
I forwarded to him for filing in court, were adulterated, as I discovered upon inspection of the
court file. In two other cases (Jewish) attorneys, whom I retained, withdrew from my
representation, stating that they were fearful of retaliation against them.
As a result, I was left unrepresented since 2007. I was forced to invest most of my waking
hours studying the case, studying the law, and handling the wrongful campaign, which was
waged against me under the leadership of Mr Samuels.
Regardless of the fact that I had no legal background, once I studies the matter, I was easily
able to detect numerous examples of preposterously wrongful conduct by attorneys and
judges in this case, while they were being committed, and often to anticipate their next steps.
Suffice is to say that conduct of the California courts, California attorneys, and justice
agencies in this matter was part of the evidence, which was submitted by Human Rights Alert
(NGO) to the UN Human Rights Council for the first ever Periodic Review of Human Rights
in the United States (2010). The submission was incorporated into the UN Periodic Review
Report (2010) with the note: "Corruption of the courts and the legal profession and
discrimination by law enforcement in California". [7]
Conduct of the US courts in related matters is part of the evidence submitted by Human
Rights Alert (NGO) for the Periodic Review Human Rights in the United States, scheduled
for January 2015. [8]
Harm sustained by me
As a result of the conduct, outlined above, substantial harm was sustained by me, including
but are not limited to the following:
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 From 2004-2010, I was held hostage by the conduct of current and former Bet Tzedek
officers. I was deprived of prime years, which could have been spent with my family and
in my business activity.
From 2004-2010, I had to spend large sums of money and enormous amount of time on
futile efforts to gain equal protection under the law. In the process I was placed under
tremendous stress, with documented harmful results.
In 2007 my Beverly Hills property was unlawfully taken under the threat of force, and I
was abruptly forced to leave my residence.
In 2010, still under such retaliation campaign, I finally had to close my business and leave
Los Angeles. I had no income ever since.
Request for compensation
Therefore, in accordance with Bet Tzedek's own motto, Justice for All, and with Bet
Tzedek's now formulated Values Statement, Addressing Injustice, I request that Bet
Tzedek compensate me for the harm resulting from the conduct outlined above.
The organized Los Angeles Jewish and legal communities vis a vis the financial crisis
My story is not unique. Millions of Americans have been impoverished in the ongoing
financial crisis through a multitude of variations of the conduct, outlined above. Long-term
Bet Tzedek President Sandor Samuels was a key figure in the crisis. And today, Bet Tzedek
advertises itself as one of the nation's premier poverty law center...
As one who also happened to be then a member of the Los Angeles Jewish community, and at
times also participated in fund-raising for the Jewish Federation of Greater Los Angeles, the
rude awakening that I experienced was one of the painful parts of the ordeal.
Throughout those years, leaders of Bet Tzedek, leaders of the Jewish Federation of Greater
Los Angeles, leaders of national Jewish organizations (e.g. Anti-Defamation League) were
repeatedly informed of the conduct of Bet Tzedek and its senior officers.
Without exception, they failed to respond, and also failed to take any effective corrective
action.
Likewise, senior rabbinical figures in Los Angeles and beyond were repeatedly informed of
the conduct of Bet Tzedek and its senior officers. Regardless, Mr Samuels continued to be
honored through membership on the boards of directors of key Los Angeles Jewish
institutions, and Los Angeles rabbis refused to address his conduct, which I was reporting.
Rabbi Michael Lerner was and is a notable exception.
Worse yet, it became apparent that I would not be able to obtain honest legal counsel in this
matter, not even from Jewish legal professionals, whom I had known for years through my
synagogue membership, and whom I had considered my friends.
Therefore, I hope that your response on my request, would document that conduct, outlined
above, was only an aberration, and that the change of guards in Bet Tzedek, an affiliate of the
Jewish Federation of Greater Los Angeles, indicates that the organized Los Angeles Jewish
community and the Los Angeles legal profession are on a new path.
Final note: A transforming growth experience
My experience in this matter was a transforming life event. It forced me to expand my
knowledge in fields, where I had no interest before. Eventually, I founded Human Rights
Alert (NGO), and my research on related matters led to my recognition as an expert on human
rights, particularly pertaining to banking and legal fraud, and the criminal foundation of the
current financial crisis. My writing on such matters has been repeatedly included in UN
Human Rights Council reports. [7,9] It was also repeatedly published by media and by peer6/8

reviewed academic journals. In recent years, I have also repeatedly presented on these
subjects in international academic conferences. [10] My most significant, original
contribution in these fields is probably in the employment of IT system analysis and datamining as the foundation for human rights reports.
Any funds that I may receive in compensation from Bet Tzedek, would also assist in funding
such ongoing activities for the general public good.
I look forward to your timely response.
Truly,
_____________
Joseph Zernik, PhD
CC:
President's Council
Members of the Board
The Jewish Federation of Greater Los Angeles
Rabbis in Los Angeles and beyond
Media
LINKS
[1] 2014-08-21 Bank of Americas $16 Billion Mortgage Settlement Less Painful Than It Looks, New
York Times
http://dealbook.nytimes.com/2014/08/21/bank-of-america-reaches-16-65-billion-mortgagesettlement/
[2] 2014-12-17 Whistle-Blower on Countrywide Mortgage Misdeeds to Get $57 Million, New York
Time
http://dealbook.nytimes.com/2014/12/17/countrywide-whistle-blower-to-receive-more-than-57million/?emc=edit_dlbkpm_20141217&nl=business&nlid=29414868&_r=1
2014-12-19 Whistle-Blower Payouts Approach $170 Million in Bank of America Case, New York
Times
http://dealbook.nytimes.com/2014/12/19/whistle-blower-payouts-approach-170-million-in-bank-ofamerica-case/?emc=edit_dlbkpm_20141219&nl=business&nlid=29414868
[3] 2008-03-05 Case of Borrower William Parsley (05-90374) in the US Bankruptcy Court, Southern
District of Texax,Dkt #248: Judge Jeff Bohm's Memorandum Opinion, rebuking Countrywide's
litigation practices, Countrywide's false outside counsel scheme - appearances by counsel who
are not Counsel of Record, with "no communications with clients" clause:
http://www.scribd.com/doc/25001966/
[4] 2008-01-08 Case of Borrower Hills (01-22574) - in the US Bankruptcy Court, Eastern District of
Pennsylvania: Countrywide's Three "Recreated Letters" and a Transcript
http://www.scribd.com/doc/25003494/
[5] 2007-12-17 Samaan v Zernik (SC087400) in the Los Angeles Superior Court: David Pasternak's
Grant Deeds in re 320 South Peck Drive, Beverly Hills, CA 90212, opined fraud by FBI veteran,
fraud expert James Wedick
http://www.scribd.com/doc/24991238/
[6] 2008-08-21 Samaan v Zernik (SC087400) Email note by FBI veteran, fraud expert James
Wedick, regarding FBI's refusal to provide Dr Zernik protection against real estate fraud.
http://he.scribd.com/doc/29713733/
[7] 2010 The Human Rights Alert (NGO) submission to the Human Rights Council of the United
Nations was incorporated into the 2010 Periodic Review Report regarding Human Rights in the
United States with the note: "Corruption of the courts and the legal profession and discrimination
by law enforcement in California".
http://daccess-dds-ny.un.org/doc/UNDOC/GEN/G10/169/65/PDF/G1016965.pdf?OpenElement
[8] 2014-09-13 Human Right Alert (NGO): UPR Submission - United States - 22nd session - "Largescale fraud in IT systems of the US courts - Unannounced regime change?"

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http://www.scribd.com/doc/239652334/
2014-09-13 Human Right Alert (NGO): Appendix to UPR Submission - United States - 22nd session
- "Large-scale fraud in IT systems of the US courts - Unannounced regime change?"
http://www.scribd.com/doc/239647129/
[9] 2013-01-01 The Human Rights Alert (NGO) submission for the Universal Periodic Review of
Israel by the UN Human Rights Council (2013), as it appears on the UN web site
http://lib.ohchr.org/HRBodies/UPR/Documents/Session15/IL/HRA_UPR_ISR_S15_2012_HumanRig
htsAlert_E.pdf
2013-01-01 The Human Rights Alert (NGO) submission, as incorporated into the UN Human RItghts
Council UPR reprort with the note "Lack of integrity in the electronic records of the Supreme
Court, the district courts and the detainees courts in Israel" (page 4, paragraph 25) )
http://daccess-dds-ny.un.org/doc/UNDOC/GEN/G12/180/12/PDF/G1218012.pdf?OpenElement
2012-05-10 Human Right Alert, Appendix I to Submission; 15th UPR - State of Israel - "Integrity, or
lack thereof, of the electronic record systems of the courts of the State of Israel"
https://docs.google.com/open?id=0B8Aa2xQGbmk5cjNxd2szX05oMkU
[10] 2014-10-12 Biographical Sketch Joseph Zernik, PhD
http://www.scribd.com/doc/46421113/

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