This issue will probably be the next major housing story since the tax credit and will go well into 2011. Again I can't even speculate on the impact on housing with this story.
The subpoena was sent to the law firm as part of a civil investigation by the AG, alleging the firm fabricated and manufactured documents to speed up foreclosures. A sworn statement from a former paralegal at the firm was publicly released last week. In it, the former employee alleged other employees at the law firm changed dates, forged signatures on documents, claimed homeowners were served with foreclosure lawsuits when they weren't, and overcharged for services.
In a one-page ruling, Palm Beach County Judge Eileen O'Connor denied the motion to quash without giving a reason for the denial.
The subpoena seeks the names of all current, former and contract employees, names of notaries who signed affidavits, and the names and addresses of all lending institutions the firm has represented, among other things. The subpoena also asks for documentation on several specific foreclosure cases.Read it all