Alexander Eugenio Moskovits v. Aldridge Pite, LLP

677 F. App'x 510
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 24, 2017
Docket16-11216 Non-Argument Calendar
StatusUnpublished
Cited by2 cases

This text of 677 F. App'x 510 (Alexander Eugenio Moskovits v. Aldridge Pite, LLP) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander Eugenio Moskovits v. Aldridge Pite, LLP, 677 F. App'x 510 (11th Cir. 2017).

Opinion

PER CURIAM:

Pro se plaintiff Alexander Moskovits filed a putative class-action suit in the Southern District of Florida against twenty-three defendants, alleging that defendants engaged in a widespread conspiracy *512 to fraudulently foreclose on mortgaged properties throughout the state of Florida. Plaintiff appeals from the district court’s s/m sponte dismissal of his complaint without prejudice for failure to comply with court order and failure to prosecute. Upon careful review of the record, we find no abuse of discretion and affirm the district court’s dismissal.

BACKGROUND

I. Facts Alleged 1

Plaintiffs allegations relate to a single home mortgage executed in Miami Beach, Florida, by an individual named Mel Gor-ham. In late 2007, Gorham borrowed a sum of $417,000 from HSBC Mortgage Corp. (“HSBCMC”), apparently for the purpose of purchasing Plaintiffs Miami Beach home (the “Miami property”). Around the same time, Plaintiff conveyed the Miami property to Gorham via quitclaim deed. Plaintiff then joined Gorham in co-signing a thirty-year mortgage on the Miami property to secure Gorham’s borrowing.

The mortgage instrument identifies both Gorham and Plaintiff as joint borrowers of the $417,000 from HSBCMC. HSBCMC is, in turn, identified as lender throughout the relevant documentation. The mortgage instrument additionally designates Mortgage Electronic Registration Systems, Inc. (“MERS”) as mortgagee, acting “solely as nominee” for lender HSBCMC. In so designating, the mortgage instrument empowers MERS to exercise HSBCMC’s right to foreclose on the subject property in the event of default.

In the ensuing three years, home values plummeted and employment prospects deteriorated, Gorham ultimately found herself in the position many homeowners faced at the height of the Great Recession: underwater on her mortgage, unemployed, and unable to make her monthly loan payments. In the meantime, Plaintiff alleges, HSBCMC profited from the housing boom and bust by “repeatedly” selling and reselling its interest in mortgages like Gor-ham’s to investors, “in the secondary market.” As a result, Plaintiffs theory goes, HSBCMC no longer held a security interest in the Miami property at the time Gorham finally defaulted on her mortgage.

HSBCMC nonetheless attempted to foreclose on the Miami property in August 2010. Shortly after HSBCMC filed its foreclosure action, Gorham received a letter stating that her mortgage loan had been “transferred to” HSBCMC in September 2010 and that HSBCMC was Gorham’s “new creditor.” The record before us does not clarify the legal significance of this letter, nor is there any evidence regarding the status of HSBCMC’s mortgage interest (or lack thereof) at the time of the foreclosure filing. But as the Complaint alleges, this letter represented HSBCMC’s post hoc attempt to regain its interest in the Miami property after selling it in the secondary market. As such, the letter supports Plaintiffs theory that HSBCMC did not hold a security interest in Gorham’s mortgage at the time it sought to foreclose.

Plaintiff cites the August 2010 foreclosure filing and subsequent letter as evidence that HSBCMC, MERS, and other entities involved in servicing Gorham’s mortgage were involved in “a scheme to file fraudulent documents against [Plaintiff] to extract his property.” Plaintiff does not deny that Gorham was, indeed, in de *513 fault, nor does he allege that foreclosure was improper or unwarranted for any reason. Rather, Plaintiff argues that HSBCMC lacked standing to bring the August 2010 foreclosure action because, after selling the mortgage “repeatedly” in the secondary market, HSBCMC had failed to successfully reacquire its interest before initiating foreclosure. Plaintiff maintains that “[f]iling a foreclosure lawsuit ... without standing constitutes an intrinsic fraud against the homeowner and an extrinsic fraud upon the Court.” And this fraudulent filing, Plaintiff alleges, was an act in furtherance of a “conspiracy between the defendants to unlawfully extract property from homeowners throughout the State of Florida.” HSBCMC voluntarily dismissed the foreclosure suit in December 2012 for reasons not reflected in the record. Plaintiff has not specified the nature or extent of any injury he suffered as a result of the August 2010 filing. 2

Plaintiff goes on to allege a second, similar instance of fraud, this time involving MERS and another HSBC entity, HSBC Bank USA, N.A. (“HSBCNA”). In November 2012, MERS—acting as “nominee” of original lender HSBCMC—executed a “corporate assignment of mortgage” purporting to assign the Gorham mortgage to HSBCNA. The assignment was signed on behalf of MERS by Rebecca A. Cosgrove and recorded shortly thereafter. Plaintiff alleges that the assignment constituted a “fraudulent legal document” because Cos-grove was an employee of HSBC, and not an agent of MERS, at the time she executed the assignment and because the notary public who notarized the document was “a fraud and known to be a fraud by the defendants.” At a minimum, Plaintiff argues, the purported assignment by MERS, as nominal mortgagee, had no legal effect because only the actual holder of the note was authorized to assign its interest to another party. Here again, Plaintiff fails to allege that he suffered any injury as a result of the execution or public recordation of this assignment.

The final instance of alleged fraud occurred in April 2014, when HSBCNA— acting through mortgage-loan servicer PHH Mortgage Corp.—filed a second foreclosure proceeding against Gorham and Plaintiff. As before, Plaintiff does not contend that foreclosure was improper or that Gorham was not in default. Plaintiffs contention is that, because the attempted assignment of Gorham’s mortgage by MERS to HSBCNA was legally insufficient at best and fraudulent at worst, HSBCNA lacked standing to foreclose on the Miami property. In so alleging, Plaintiff reasserts his contention that filing a foreclosure suit without standing constitutes fraud and characterizes the April. 2014 foreclosure filing as a further step in Defendants’ “conspiracy ... to unlawfully extract property from homeowners.” Plaintiff again fails to specify the nature of any injury he may have suffered as a result of this allegedly fraudulent filing. At the time Plaintiff filed this appeal, HSBCNA’s foreclosure *514 proceeding remained pending in Florida state court. 3

Plaintiff adds several conclusory allegations to this primary list of frauds, including dissemination by Defendants of “deceitful [] collection letters regarding impending foreclosures [and] notices of pendencies” and false billing of attorneys’ fees and costs in the course of foreclosure proceedings. Plaintiff does not, however, assert any facts to substantiate these allegations.

II, Procedural History

On the basis of these alleged facts, Plaintiff filed a putative class-action complaint in the Southern District of Florida in February 2016, more than four years after the first foreclosure action was filed.

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Cite This Page — Counsel Stack

Bluebook (online)
677 F. App'x 510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-eugenio-moskovits-v-aldridge-pite-llp-ca11-2017.