Sanctions Awarded Against Minnesota Foreclosure Defense Attorney Now Total Over $263,000

Federal Court Sanctions William Butler of Butler Liberty Law, LLC Again

Reston, Virginia, December 4, 2012— MERSCORP Holdings, Inc. today announced that U.S. District Court Judge Donovan W. Frank of the U.S. District Court for the District of Minnesota recently awarded sanctions against William Butler of Butler Liberty Law, LLC to reimburse Bank of America, Mortgage Electronic Registration Systems, Inc. (MERS) and MERSCORP Holdings, Inc. for attorney fees and costs incurred in defending the case.

Butler had filed the case, Mustafa v Bank of America on behalf of 23 borrowers, alleging that the chain of title to each of their mortgages was broken and the defendants lacked authority to foreclose under Minnesota law because they did not hold the borrowers’ original promissory notes. 

In its August 21, 2012, Order, the court granted the motion for sanctions because “[i]n spite of clear, binding precedent to the contrary,” Butler was continuing to assert the “consistently rejected ‘show me the note’ legal theory, along with similarly baseless quiet title and slander of title claims.”  This sanction is at least the sixth time Butler has been penalized for similar matters.

Judge Frank’s November 30, 2012, Order directed Butler to pay $21,077.97 in attorney fees and costs incurred by Bank of America, MERS and MERSCORP Holdings.  Judge Frank also granted an award of $24,374 in attorney fees and costs requested by other defendants.  He noted that the additional sanctions were warranted because the August 21st order established that Butler’s conduct violated minimum legal standards of professional conduct and Butler’s behavior toward the remaining defendants was the same conduct the court found sanctionable as it related to Bank of America, MERS and MERSCORP Holdings.

“Mr. Butler has given false hope to struggling families and ignored clear edicts from the courts,” MERSCORP Holdings Director of Corporate Communications, Jason Lobo, said.  “The claims filed by Mr. Butler are frivolous, and this recent sanction is in addition to other orders, including a $50,000 award in March 2012 and a $75,000 award in June 2012."

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MERSCORP Holdings, Inc. is a privately held corporation that owns and manages the MERS® System and all other MERS® products.  It is a member-based organization made up of thousands of lenders, servicers, sub-servicers, investors and government institutions.  Mortgage Electronic Registration Systems, Inc. (MERS) serves as the mortgagee in the land records for loans registered on the MERS® System, and is a nominee (or agent) for the owner of the promissory note.  The MERS® System is a national electronic database that tracks changes in mortgage servicing and beneficial ownership interests in residential mortgage loans on behalf of its members.