IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
CASE NO.. 07-104-16 KJC, and Related
INRE: Actions, Jointly Administered
NEW CENTURY TRS HOLDINGS, INC., et aI., CHAPTER 11
a Delaware Corporation,
ADVERSARY PROCEEDING
Debtor. CASE NO.: 09-50244
RELATED CASE:
USDC NDC Case No: C06-06806 SI
LESLIE MARKS,
MOTION FOR RECONSIDERATION OF
Plaintiff, MAY 10, 2011 ORDER and REQUEST FOR
CLARIFICATION OF THE 2008
vs. BLANKET ORDER FOR RELIEF FROM
STAY
NEW CENTURY TRS HOLDINGS, INC., a
Delaware Corporation, et al.
Debtors
TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD PLEASE TAKE NOTICE:
ADVERSARY PLAINTIFF, LESLIE MARKS, in Pro Per, hereby requests this Court
reconsider its May 10, 2011 order denying Stay of Dismissal. The May 20, 2011 Order
appears to be prepared by the Trust, is biased as to favor the Trust and FAILS to address the
issues raised by Marks Evidentiary Brief and FAIR and IMPARTIAL consideration of
EVIDENCE discovered at the February 28, 2011 Evidentiary Hearing (hereinafter
"Evidentiary Hearing). Marks continues to suffer manifest injustice in these matters, and
seeks immediate resolution by this motion.
In In re Stewart, 280 B.R. 268, 287 (Bankr.M.D. Fla. 2001), stated that a motion for
reconsideration should "demonstrate why the court should reexamine its prior decision, and
'set forth facts or law of a strongly convincing nature to induce the court to reverse its prior
decision." In re Envirocon Int'l Corp., 218 B.R 978, 979 (M.D. Fla. 1998) (citing Cover v.
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REQUEST FOR RECONSIDERA nON OF MAY 20, 2011 ORDER
Wal-Mart Stores, Inc., 148 F.R.D. 294 (M.D. Fla. 1993».
Furthermore, a motion for reconsideration should be based on one of three grounds:
1) an intervening change in controlling law; 2) the availability of new evidence; or 3) the need
to correct clear and manifest injustice. See, In re Envirocon Int'l Corp., 218 B.R. at 979
(citing Kern-Tulare Water District v. City of Bakersfield, 634 F. Supp. 656, 665 (E.D. Cal.
1986». Here Marks seeks to correct CLEAR manifest injustice in these matters.
Extrinsic fraud occurs when a party is deprived of the opportunity to present his claim
or defense to the court; where he was kept ignorant or, other than from his own negligence,
fraudulently prevented from fully participating in the proceeding. (Sporn v. Home Depot USA,
Inc. (2005) 126 Cal.App.4th 1294, 1300.) Marks here was not advised of the 2008 blanket
order of relief from stay, prior to the evidentiary hearing OR in 2009 when Marks filed her
adversary complaint. This failure resulted in SEVERAL years of litigating matters that should
have reasonably been resolved in 2007. The Trust FAILED to provide Marks with this
information and as Marks properly alleges, the settlement agreement was based upon
fraudulent statement of the Trust and its Counsel.
Extrinsic mistake involves the excusable neglect of a party. [When this neglect results
in an unjust judgment, without a fair adversary hearing, and the basis for equitable relief is
present, this is extrinsic mistake. (Heyman v. Franchise Mortgage Acceptance Corp. (2003)
107 Cal.App.4th 921, 926.) To set aside a judgment based on extrinsic fraud or extrinsic
mistake, the moving party must satisfy three elements: "First, the defaulted party must
demonstrate that it has a meritorious case. Secondly, the party seeking to set aside the
default must articulate a satisfactory excuse for not presenting a defense to the original
action. Lastly, the moving party must demonstrate diligence in seeking to set aside the
default once it had been discovered." (Stiles v. Wallis (1983) 147 Cal.App.3d 1143, 1147-
1148. Marks does so here and continues to suffer manifest injustice in these proceedings.
This motion is based on evidence already submitted for review, evidence discovery at
the Evidentiary Hearing and requests clarification of this of items in this Court's 2008 Blanket
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REQUEST FOR RECONSIDERATION OF MAY 20, 2011 ORDER
Order for relief from Stay. Specifically, because failure to reconsider this matter will result in
manifest injustice to Marks.
THE MAY 20,2011 ORDER FAILS TO ADDRESS THE SUBSTANCE OF THE
EVIDENTIARY HEARING
1. THE TRO REQUEST WAS DEEMED MOOT AND NOT CONSIDERED AT THE
EVIDENTIARY HEARING
Even though Marks serviced all parties, including the California parties regarding the
fraudulent foreclosure sale, this Court failed to protect Marks and her family from further
litigation in the form of a Temporary Restraining Order, as to the Home 123 Mortgage to
which this Court has sole jurisdiction. As a result, Marks had to commence with
ADDITIONAL litigation in California with parties who purchased her property with a
"handwritten" receipt; references a loan to which Marks has NO obligation; references a loan
which is NOT related to Marks' Deed of Trust; references a loan to which Marks has NO
obligation; based upon fraudulent assignments and substitution of trustee among many bold
and glaring defects. Additionally, purchasing a property which was heavily in litigation,
Eikenberry's clients should simply received a refund from whomever they purchased the
property from. Eikenberry's clients did not do that because NO MONIES WERE
EXCHANGED for Marks property, as is clearly evidenced by the 'handwritten receipt". So
Mr. Eikenberry and his clients embarked on a robust quest to STEAL Marks by continued
abuse of the judicial system, and fraud upon the court. Attorney Eikenberry LOST his motion
for summary judgement against Marks. A jury did NOT award Eikenberry's clients Marks'
home, yet Marks REMAINS in litigation for 6 (SIX) years now. The TRO was NOT discussed
at all at the evidentiary hearing, as the Court's failure to protect Marks caused her to suffer
and continue to suffer manifest injustice defending her home against parties who CLEARLY
have no standing to seek recovery from her. Since Marks requested TRO was NOT timely
GRANTED, it was off the table by the time of the Evidentiary Hearing.
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REQUEST FOR RECONSIDERATION OF MAY 20, 20]] ORDER
2. MARKS CLAIMS WERE MISREPRESENTED AND NOT ADJUDICATED IN THE
MAY 10,2011 ORDER
Marks represented to the Court at the Evidentiary Hearing, which the Trust now refers
to as a "trial" (no trial was conducted in this matter) that the Trust, specifically Attorney
Indelicato, stated as a provision of the Settlement Agreement that he would provide evidence
for Marks to pursue the other banks. Attorney Indelicato stated that the Trust could not quiet
title and had no power to do so. Marks request and received the Sworn Statement of Alan
Jacobs as part of that Settlement, stating that Marks mortgage was "satisfied" and that the
Trust had no interest in Marks loan and that Marks had NO OBLIGATION TO THE TRUST.
Marks further represented evidence that the Trust did NOT correctly report the status on her
credit report and BREACHED the Settlement Agreement by failing to 1. Deem the 2006
mortgage as "SATISFIED" or "PAID IN FULL"; and 2. The Trust FAILED to provide Marks
with her original mortgage stamped "PAID IN FULL" and issuing a new Note naming the new
beneficiary.
In cross-examination at the Evidentiary Hearing, Attorney Indelicato testified under
oath that the Trust HAD NO EVIDENCE of transfer and that Marks should "take the WORD
of an officer of the Court" that the transfer was in fact done. Marks, to date, cannot find case
law, state law, federal law that supports that the WORD of an officer of the Court is sufficient
to verify, validate, effect of substantiate a lawful transfer of real estate mortgages. Marks
continues to suffer manifest injustice as this issue was not addressed by the court.
Furthermore, the Trustee, Alan Jacobs, stated under oath that Marks mortgage was
NOT one of the four mortgages that he administered and had no knowledge of the
administering of Marks mortgage, yet Trustee Jacobs prepared and signed a sworn
statement of the progression of Marks loans. As such, Marks continues to suffer Manifest
Injustice as the Trustee's sworn statement cannot be accurate to the extent it fails to provide
evidence of the transfer from Home 123 to ANY entity.
As such, it can only be deemed that Marks 2006 note was NOT transferred to any
entity. It can only be determined that Marks 2006 Note was "satisfied" in 2007 and FAILING
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REQUEST FOR RECONSIDERATION OF MAY 20, 2011 ORDER
to show evidence of transfer, this is CLEAR evidence that Marks could NOT have been in
default in 2010 on a Note Satisfied in 2007.
As the Trust through its Counsel Indelicato and its Trustee claims to have NO
INTEREST in Marks note, this Court has jurisdiction and the power to quiet title - without
prejudicing the Trust in any way. The party to whom the Note has been transferred, should
then pursue Marks in the appropriate venue. Marks continues to suffer manifest injustice in
these matters.
Marks further provided evidence that New Century and Home 123 have ACTIVE
websites and ARE in fact conducting business in California in violation of the Department of
Corporations order that New Century and Home 123 can no longer do Mortgage Business in
the State of California. Marks presented evidence of same to this court. Marks continues to
suffer Manifest Injustice in these matters.
A short time AFTER the evidentiary hearing, Marks discovered the 2008 Blanket
Order granting Relief from Stay to any party with mortgages bearing the name of the debtors
or any of its subsidiaries. Marks subsequently provided these documents to the Court as
evidence. Failure to make determinations on the SPECIFIC issues raised by Marks at the
Evidentiary Hearing and immediately subsequent to the Evidentiary Hearing is clear evidence
that Marks continues to suffer manifest injustice in these matters.
The promissory note and the Deed of Trust are inseparable. "The note and the
mortgage are inseparable, the former is essential, the later as an incident. An
assignment of the note carries the mortgage (deed of trust) with it, while an
assignment of the latter alone is a nullity." Carpenter v. Longan, 83 u.S. 271,274
(1872); accord Henley v. Hotaling, 41 Cal 22, 28 (1871); Seidell v. Tuxedo Land
Co., 216 Cal. 165, 170 (1932); Cal. Civ. Code §2936.
This is nothing more than a fraudulent conveyance, and this court failed to address this
pertinent issue, resulting in Marks suffering manifest injustice. These facts, properly brought
to bar, were not addressed. Marks continues to suffer manifest injustice should these matters
not be fairly and impartially addressed and adjudicated.
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REQUEST FOR RECONSIDERA nON OF MAY 20, 2011 ORDER
The Trustee represented to the Court that it did not have to power to clear, satisfy or
avoid the 2006 mortgage which Marks challenges. See 11 U.S.C. § 547(b)(4) (providing that
a trustee may avoid any transfer made by a debtor on or within 90 days before the date of
filing (or up to one year before filing if made to an insider) if the transfer was a preference);
11 U.S.C. § 548 (providing that a trustee may avoid any transfer made or obligation incurred
by a debtor upon or within two years before filing in the case of a fraudulent transfer); 11
U.S.C. § 544 (permitting a trustee to enforce avoidance rights under state law); see also 5
Collier on Bankruptcy, PP 547.03[6], 548.03; Section 6 infra. Carr continues to suffer
manifest injustice in these matters. Even the California courts will not have the power to
avoid athe lien which is in the control of the Delaware Bankruptcy Trustee. Furthermore, the
Trust confirmed that it did in fact, transfer Marks mortgage within 90 days of filing for
protection of the automatic stay, which Marks properly alleged, in violation of Bankruptcy law.
This manifest injustice will cause Marks to lose her home based upon abuse of the judicial
process and fraud upon the Court perpetrated by the Trust.
At the May 10, 2011 Omnibus Hearing, the Court advised that any party seeking
clarification of the 2008 Blanket Relief from Stay order, it make a motion to the Court. Marks
does so here. As is clear, a Hawaii District Court Judge made the same determination that
Marks did in the interpretation of the 2008 Order. The May 10, 2011 Order of this Court does
not offer explanation or consideration of the merits of Mark's claims in this regard. Marks
continues to suffer manifest injustice in these matters.
NEW CENTURY FINANCIAL (TRS HOLDINGS) IS USING THE BANKRUPTCY AS A
VEHICLE FOR CONCEALMENT OF ASSETS (THE LOANS NEVER LEFT NEW
CENTURY MORTGAGE, NEW CENTURY CAPITAL CORP, HOME123 CORP.) THE
TRUST FAILS TO PROVIDE EVIDENCE OF SUCH LAWFUL TRANSFER.
The issues properly brought at the Evidentiary Hearing must be addressed and a final
determination must be rendered by this Honorable Court. Specifically, Marks properly
brought to bar the above issues and requested the Court take judicial notice of same:
There is no valid explanation of why Home123 Corporation is executing and recording
an assignment four (4) years AFTER Marks note was "satisfied" and in clear violation of the
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REQUEST FOR RECONSIDERATION OF MAY 20, 2011 ORDER
Cease and Desist Order of the California Department of Corporations. 195FTC v. USA
Bevs., Inc., 2005 U.S. Dist. LEXIS 39075 at *24-25 (S.D.Fla. 2005) (U.S.M.J report adopted
by U.S.D.J. at 2005 U.S. Dist. LEXIS 39026) ("The scope of the monetary liability for
Defendants' unlawful conduct is enormous and provides considerable motivation for
defendants to place their assets beyond the Court's reach"). Furthermore, the two month
DELAY in issuing an order that FAILS to ACCURATELY address the matters brought and
evidence discovered at the Evidentiary Hearing further prejudices Marks. These delays were
an attempt to allow time for a WRONGFUL foreclosure to take place. Marks continues to
suffer manifest injustice in these matters.
Finally, Marks believes that even if the wrongful foreclosure takes place, when New
Century and Home 123 complete their bankruptcy, as they are ACTIVELY continuing to do
business they will bring the SAME allegations Marks brings regarding fraudulent
convenyances and some 6 (six) years later claim Marks then OWES money on the 2006
Note. That note has not been resolved and the TRUST remains the beneficiary. These
matters clearly result and show that Marks continues to suffer manifest injustice in these
matters.
CONCLUSION
Marks continues to suffer manifest injustice in these matters. Attorney Indelicato
appeared angry at the May Omnibus Hearing and stated he takes the allegations of fraud
very seriously. It was also stated that Marks "better get an attorney". Marks takes the
THEFT of her home very seriously as well. Marks takes the misrepresentations of the Trust
and the DELAY in these proceedings very seriously.
Marks does NOT need an attorney to review documents in the Alameda County
Recorder's office that CLEARLY reflect NO transfer from Home 123 to ANY entity prior to
2007, as evidenced by the SWORN statement of ALAN JACOBS.
Marks does NOT need an member of the BAR to address the CLEAR issues of
FRAUD as properly alleged by Marks in the Evidentiary Hearing and by the pleadings on the
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REQUEST FOR RECONSIDERATION OF MAY 20, 2011 ORDER
docket which she properly brought to bar.
Marks does NOT need an attorney to interpret documents that are CLEARLY
fraudulent on their face and in CLEAR violation of LAW.
Marks does NOT need an attorney to question why she is still litigating these matters
after what is now 6 (SIX) years without reasonable, fair or just resolution.
Marks does NOT need an attorney to explain that she did NOT buy a home she could
not afford. Marks did NOT take out a second and third mortgages. Marks FOLLOWED the
advice of representatives of New Century giving her BAD advice to satisfy their own greed,
inflate her home value for their OWN monetary benefit and now, leave Marks and her
disabled son HOMELESS. Manifest injustice is CLEAR and irrefutable in these matters.
Marks does NOT need an attorney to argue that New Century set out to DEFRAUD a
certain group of people including minorities, the handicapped and the elderly with it mortgage
products that were CREATED with the intention to cause the borrower to FAIL and result in
unlawful and wrongful foreclosure.
Marks does NOT need an attorney to argue why a HANDWRITTEN receipt that does
not reflect Marks primary residence is NOT evidence of purchase for value.
Marks does NOT need an attorney to argue that ABSENT timely recorded documents
in the recorder's office - there is NO evidence of lawful transfer.
Marks does NOT need an attorney to argue why she continues to suffer manifest
injustice at the hands of the Trust and their Counsel based upon the evidence provided,
sworn testimony and documents clearly fraudulent on their face.
Marks does NOT need an attorney to argue that these acts have GREATLY
contributed to the worldwide economic collapse, as she properly argued at bar since 2006.
Marks DOES need the issues brought to bar fairly and impartially adjudicated
WITHOUT PREJUDICE to Marks. Marks DOES need a judge to be FAIR AND IMPARTIAL
as the oath of office taken suggests that matters properly brought to bar should be treated
fairly and impartially. None of the issues brought to bar at the evidentiary hearing have been
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REQUEST FOR RECONSIDERATION OF MAY 20, 2011 ORDER
addressed and fairly and impartially adjudicated in this matter as Marks properly alleges.
When a party brings a matter to bar, at the VERY LEAST, fair and impartial
adjudication of the issues before the Court should be heard. Marks has not been deemed
vextatious. Marks claims have NOT been deemed in valid. Marks evidence is CLEAR on its
face. Six years of Marks life have been STOLEN without relief, and Marks CONTINUES to
suffer manifest injustice in these matters.
That said, Marks respectfully requests this Court reconsider its May 10, 2011 order
and render a ruling that addresses the issues brought to bar fairly, justly and impartially.
DATED: May 16, 2010 Respectfully Submitted,
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REQUEST FOR RECONSIDERATION OF MAY 20, 2011 ORDER