OPEN LETTER TO SAMUELS - COLLUSION IN FRUAD

Moshe’ ben Maimon / Maimonides (1138, Cordoba Spain – 1204, Fustat, Egypt) -Historically renowned medieval Jewish codifier

March 19, 2008

Att Sandor Samuels
By Open Letter to the Los Angeles Jewish and/or Legal Communities and
By email and by fax to Bryan Cave, LLP

OPEN LETTER TO MR SANDOR SAMUELS – PRESIDENT OF BET TZEDEK - “HOUSE OF JUSTICE”
RE: Notice to cease and desist collusion in fraud and obstruction of justice, and to mitigate damages.
Timed response requested by Friday, March 21, 2008, 5:00pm

Mr Samuels:

On web pages of Bet Tzedek you described yourself as personally responsible for all litigation matters at Countrywide. You also pronounced your commitment to fight fraud throughout Southern California. Similarly, Mr Mozilo, in web pages still posted, advocates Corporate Ethics in Countrywide* and pronounces his commitment to fight fraud in Countrywide. Both Mr Mozilo and Mr Samuels are charged with the safeguard of integrity of operations at Countrywide as Officers, Mr Samuels also as Chief Legal Counsel, and Mr Mozilo also as Chair of the Internal Audit Committee.

Moreover, Mr Samuels recently filed a Notice of Person in Interest in Samaan v Zernik (SC087400), when the case was in the courtroom of Judge Terry Friedman – former Executive Director of Bet Tzedek – “House of Justice”. And Judge Friedman to date refuses to file statements on the record regarding his relationships with Mr Samuels – current President of Bet Tzedek – “House of Justice” and David Pasternak – former President of Bet Tzedek –“House of Justice” – out of compliance with the California Code of Judicial Ethics.
Therefore, Zernik approached Mr Samuels in the past, and is approaching Mr Samuels again to cease and desist collusion in fraud with Samaan, and to mitigate damages to Zernik.

Countrywide’s wrongful and harmful collusion in fraud in Samaan v Zernik (SC087400) was originally related to a letter, declarations, and documents submitted by Maria McLaurin, San Rafael’s Branch Manager, and an acquaintance of JR Lloyd - Samaan’s husband:
a. 11-6-06 Letter by Maria McLaurin with an attached Countrywide document – these documents were submitted as an exhibit to 11-6-06 Parks Supplemental Declaration, part of Samaan’s Sur Reply to Defendant Zernik motion to expunge lis pendens, heard Nov 9, 2006
b. 5-23-07 Declaration by Maria McLaurin with an attached Countrywide document – these documents were submitted as evidence in Samaan’s opposition to Zernik’s motion to expunge lis pendens, heard, July 23, 2007.
c. 5-23-07 Declaration by Maria McLaurin, described above, was filed a second time in Plaintiff Samaan’s Motion for Summary Judgment, heard Aug 9, 2007
d. 8-3-07 Supplemental Declaration by Maria McLaurin, filed in Plaintiff Samaan’s Reply brief in her motion for summary judgment, heard Aug 9, 2007. In this declaration McLaurin also refers to the document purported to be a copy of a fax transmission of a purchase contract from Parks to Countrywide on Oct 25, 2004, 5:03pm.

Such declarations and documents filed by Maria McLaurin were critical to Samaan’s case, since her claims, far fetched as they were, had no documentary evidence whatsoever in Samaan’s loan file. In order to fabricate such readings into documents from the loan file, Maria McLaurin entered a number of critical false and deliberately misleading statements in her letter, declarations, and in the identification of the respective Countrywide documents.
Shifting litigation on Samaan’s failure to perform on her 2004 contract to the unbelievable arena of Samaan’s loan underwriting, provided great advantages to Samaan:
a. Defendant Zernik had no part in this process, and relied entirely on information provided by Samaan and Countrywide, almost 2 years after the fact.
b. Samaan had access through her husband, JR Lloyd (unlicensed, but active as “Originator”) to San Rafael Branch Manager who was able, willing, and ready to produce such false declarations.
c. Countrywide’s legal department was willing to collude in the fraud by providing false information, and deleting critical information from Subpoena production.
d. Countrywide’s top officers – Samuels and Mozilo – refused to act in any way to stop such fraud.

Maria McLaurin was the person most knowledgeable regarding Countrywide’s operations and procedures in the context of Samaan v Zernik. Therefore, the only way to undermine her false declarations and misrepresentation of documents was to approach higher management in Countrywide. For that purpose – Angelo Mozilo and Sandor Samuels were requested in the past, and are requested again, to authenticate or repudiate critical documents that were misrepresented by Maria McLaurin:
a. The document attached to her 11/6/06 and her 5-23-07 declarations filed in court - misrepresented as a true and correct copy of an October 14, 2004 Underwriting Letter.
b. The document referenced in her 8-3-07 declaration – misrepresented as a copy of an Oct 25, 2004, 5:03pm fax transmission from Parks to Countrywide of the Purchase Contract.
c. The document attached to her 8-3-07 declaration – October 14, 2004 Underwriting Letter notifying suspension, misrepresented as an approval letter.

Sandor Samuels and Angelo Mozilo have refused so far to respond to any question regarding these documents for about a full year. Instead, they chose to take various actions in Samaan v Zernik, which are still pending review, and are alleged by Zernik to constitute abuse of his rights per the U.S. Constitution Amendments 1st, 5th, and 14th.

One must also recall that in early 2007 Defendant Zernik was often labeled “conspiracy theorist” for making allegations that Countrywide filed fraudulent documents in court, and also for making allegations that Countrywide was involved in a massive fraud against the U.S. Government.

More recently, NYT reported on Jan 8, 2008, a case of “recreated letters” filed by Countrywide in a Pennsylvania Court, and LAT reported on March 6, 2008, rebuke of Countrywide in a Texas court where ‘Countrywide and its lawyers showed "a disregard for the professional and ethical obligations of the legal profession and judicial system’.

Therefore, Zernik’s allegations regarding Countrywide’s litigation methods are by now common public knowledge. And allegations of fraud against the US Government and against share-holders are under numerous investigations and litigations now. However, it appears that some Los Angeles Courts are more permissive or even supportive even today of Countrywide’s litigation methods, and of real-estate and mortgage fraud in general, compared to their peers elsewhere. One must wonder what part geographical differences among the courts may have in the fact that Los Angeles has become what is described in an FBI report the “epicenter” of a U.S. real estate and mortgage fraud epidemic that is a high national priority to fight.

Mr Samuels, please accept this letter as a demand that you and Mr Mozilo:
a. Review the letter, declarations, and documents (a-d, above) provided by Maria McLaurin, Countrywide Home Loans, Inc, San Rafael Wholesale Branch Manager, for filing by Samaan in Samaan v Zernik, and inform Zernik if you - as individuals and in your capacities as officers of Countrywide - find them true and correct in all their statements and representations.
b. Review in particular the documents filed or referenced by Maria McLaurin (a-c, above), in Samaan v Zernik, and inform Zernik if you - as individuals and in your capacities as officers of Countrywide – are willing to authenticate these documents as represented by Maria McLaurin.

Please also accept this notice as a demand for Mr Samuels immediate resignation from the position of President of the Board of Bet Tzedek – “House of Justice”. The continued association of Mr Samuels name with the name of this organization is a disgrace to Bet Tzedek, a disgrace to the Jewish community, and a disgrace to Justice itself.

Please respond by Friday, March 21, 2008, 5:00pm.

Joseph Zernik

* Countrywide here denotes Countrywide Financial Corporation and/or any and all of its subsidiaries and/or affiliates, jointly and/or severally.