Bank of America fights court battle over purge of nearly 2 billion bank records 

According to a timeline Jacobs spelled out in court records, he said he learned in 2015 that a company called SourceCorp did work for Bank of America. The company’s name appeared on loan records he had obtained through the discovery process in a separate Miami-Dade County foreclosure case. Jacobs said he found that odd because he had never heard of the company.

Court filings show that Jacobs filed a notice to take a deposition on Nov. 2, 2015, asking for more information about the loan in the case.

The following month, he filed a “notice of intent to serve (a) subpoena for deposition” on SourceCorp. That notice asks for “any relationships, agreements, work orders, instructions” related to the loan and Bank of New York Mellon and Bank of America.

In January 2016, a court-ordered subpoena was issued and served on SourceCorp.

Then in February 2016, SourceCorp turned over a copy of a contract with Bank of America.

Jacobs said he was stunned to learn through discovery in another case more than a year later that Bank of America had ordered SourceCorp to purge its records.

“And what I found out later is that as I’m going though that whole process, Bank of America has ordered SourceCorp to do a military-grade purge of all of their records, everything: 1.88 billion objects of data, metadata, encryption keys,” he said.

Jacobs points to two emails he received from SourceCorp as part of the discovery process that he says alerted him to the purge.

The first email, dated Feb. 16, 2016, described what SourceCorp called “a final summary of the Fastrieve Purge Project.” The document shows the purge took about three months to complete.

Jacobs said he obtained a second SourceCorp email from June 16, 2017. It said Bank of America “had us execute an extensive project to purge all of its data, which we were obligated to do.”

The email was from Dimple Sehgal, corporate counsel for SourceHOV, which is SourceCorp’s current name. Sehgal did not respond to multiple requests for comment via email and voicemail.

Jacobs has now subpoenaed SourceCorp to appear for a deposition in connection with the records purge.

A “statement of work” between Bank of America and SourceCorp describes how the bank’s loan documents would be imaged and ultimately purged from SourceCorp’s system, according to a document turned over in discovery.

“Image storage and final disposition will be in accordance with Bank of America protocol currently in place,” the document states. “All images will remain in FASTRIEVE until such time they are archived in Bank of America iPortal repository. In no case will the images be purged or deleted without Bank of America approval.”

The red flag, according to Jacobs’ court filings, is when Bank of America actually ordered SourceCorp to start purging the 1.88 billion records: Nov. 13, 2015, which was 11 days after Jacobs filed the notice to take a deposition about the loan in the case. He said the purge continued even after the court-ordered subpoena was served on SourceCorp.

In addition, Jacobs said a Bank of America flow chart he obtained as part of the discovery process shows the note endorsement process.

“The flow chart shows that Bank of America corrected the lack of endorsements on original notes in open, active foreclosures by using unauthorized workers to surrogate sign endorsements on original notes with rubber stamps,” Jacobs wrote in a court filing. “Later, Bank of America continued the surrogate signing process for loans about to be referred to foreclosure.”

In another court filing, he wrote that Bank of America “stonewalled discovery with scorched earth tactics to hide evidence of its ‘delinquent note enforcement process'” involving SourceCorp.

Be the first to comment

Leave a Reply

Your email address will not be published.


*