A federal judge has ruled that a bankruptcy lawyer who sued for millions of dollars over alleged foreclosure fraud is a “massive fraud” who has a “clear and present danger” to the financial system.
In a ruling released Monday, U.S. District Court Judge Steven Rhodes said the lawsuit by Robert A. Nader, a former Wall Street Journal reporter, is a blatant attempt to make the foreclosure crisis worse.
He said Nader’s claim is “so blatantly false, and so obvious, that it beggars belief that any reasonable person could believe that Nader had a legitimate claim to be entitled to the money that he is suing.”
Nader has repeatedly asked the court to dismiss the case against him, saying he has been repeatedly threatened with prosecution by the Justice Department.
He has been charged in the bankruptcy fraud case.
The case is pending.
In his ruling, Rhodes said Narker’s claims are baseless and that he has no legal standing to sue.
“The government cannot claim that the lawsuit is ‘unfair and vexatious’ simply because it has not been proven to be based on legitimate legal claims,” Rhodes wrote.
“This is because it is a lawsuit against a sovereign government, not a private individual seeking to recover damages from a private person.
The plaintiff is a sovereign, not an individual.
In other words, the government cannot use this lawsuit as an excuse to take away your property.”
Narker has been seeking $5.4 million from Bank of America, Bank of New York Mellon, Citigroup and Morgan Stanley in a bankruptcy lawsuit filed last month.
The suit alleged that the banks and their mortgage servicers were deliberately defrauded and misled the public about the foreclosure process.
The judge said he had heard from many people who believed Nader was acting in good faith, but he also noted that some of the people he heard from believed Narkers claims were “so ludicrous, they’re almost laughable.”
“In fact, many of these individuals have expressed the view that Narkes claim is ‘silly,’ ‘irrelevant,’ ‘crazy’ or ‘utter nonsense,'” Rhodes wrote, according to a copy of the ruling obtained by The Washington Post.
Nader, who served as the chief correspondent for The Journal before moving to the Wall Street Times, began filing lawsuits in 2009 in order to make his case to the courts.
He told the court he would not sue until the U.K. government ended its legal fight against his lawsuit, and said he did not intend to be “a bully.”