Cotchett, Pitre & McCarthy represents individuals, businesses and public institutions in a variety of actions relating to both economic and major injury cases. Currently, Cotchett, Pitre & McCarthy is investigating the following cases:

• Subprime Mortgage Losses
  In addition to the investigation into subprime credit (see above), Cotchett, Pitre & McCarthy is investigating potential fraud in the subprime mortgage industry. Acting on several inquiries from individual investors and business entities, the investigation is focusing on whether investment banks and lenders knew about the risks of mortgage securities backed by subprime loans and whether they hid those risks from investors. The background: In years past, borrowers simply got loans from the neighborhood bank, which held the mortgage risk. Now that risk has expanded dramatically — subprime mortgages are bundled together and sold to investors, with credit-rating agencies offering advice. According to media reports, lenders wrote $625 billion in subprime mortgages in 2005, nearly four times the total in 2001. The boom brought in big fees to mortgage brokers, lenders, banks and ratings agencies. However, dropping home prices are now hurting those players, with global banks reportedly ousting executives and writing off nearly $150 billion since mortgage securities began collapsing last summer. If you feel you have been victimized by investing in securities back by subprime mortgages, please contact us at TAKE ACTION to explore your legal rights.
   
• Credit Card Counseling Industry Cases: Suit names Chase, Money Management International and Investigates Others
  Cotchett, Pitre & McCarthy is continuing its investigation into fraudulent "debt counseling" and debt collections in the subprime credit industry. The suit, filed in U.S. District Court in Los Angeles by Cotchett, Pitre & McCarthy and co-counsel, named JP Morgan Chase & Co., Chase Manhattan Bank USA, Money Management International (MMI), also known as Consumer Credit Counseling Service (CCCS), and Money Management By Mail Inc. The suit and investigation arise out of the relatively new sub-prime credit counseling industry. The industry was created by the nation's leading creditors (including leading credit card companies) to use third party, allegedly non-profit "credit counseling" organizations, to secretly facilitate their collections from unsuspecting customers who were in financial distress and had turned to what they thought were non-profits for financial help. The complaint alleges that Management International Inc. (MMI) and others advertised and promoted themselves as non-profit credit counseling organizations whose main purpose was to act on behalf of the consumer. These companies were in fact operating as agents of the consumers' creditors, including Chase, according to the complaint. These agencies claimed in their advertisements that they would "negotiate" on behalf of consumers with Chase and other credit card companies to whom consumers owed money — however, as alleged in the Complaint, there was no real "negotiation" — instead there were back room deals between the creditors and the "counseling" agencies designed to collect as much money as possible from unsuspecting consumers. The complaint alleges: MMI and others were nothing more than debt collectors that, even according to ChaseÕs own documents, "partnered" with Chase to collect its accounts under the guise of "rescuing" consumers drowning in debt; The agencies, in reality, operated as for-profit organizations, distributing monthly payments they collected from consumers to Chase, while keeping a share for themselves Ð effectively a payment by Chase that was kept hidden from the consumers; and The agencies also failed to provide comprehensive financial counseling that communicated all options open to indebted consumers. For example, the agencies as a matter of practice failed to discuss bankruptcy as an option since that would cut off the flow of money to the creditors. The lawsuit seeks to recover monies wrongfully obtained from consumers (including Chase credit card holders) who were indebted to Chase and/or who contracted for credit repair and debt management plan services from MMI or credit counseling agencies that MMI has taken over. If you feel you have been victimized by subprime credit "counseling," please contact us at TAKE ACTION to explore your legal rights.
   
• Bank Trust Fees
  As part of a class action lawsuit filed on August 31, 2005, Cotchett, Pitre & McCarthy currently is investigating allegations that Wells Fargo Bank has improperly profited from its administration of trusts. Wells Fargo is accused of collecting tens if not hundreds of millions of dollars in improper and undisclosed payments, to the detriment of trust clients, dating back to 1980. As trustee, Wells Fargo is precluded from investing trust assets in any manner that results in a benefit to itself or any affiliated party. However, according to the lawsuit, the bank "has engaged in a pattern and practice of investing trust assets in such a way as to produce substantial additional and undisclosed payments for Wells Fargo and/or its affiliates." If you have a trust with Wells Fargo, please contact us at TAKE ACTION to explore your legal rights. 
   
• Natural Gas Litigation
  A major Cotchett, Pitre & McCarthy investigation is focused on the widespread manipulation of retail natural gas prices in California as part of the firm's representation of both public and private entities in lawsuits against the country's major gas providers accusing them of gouging consumers out of billions of dollars. The suits allege that a number of producers, marketers, traders, transporters, distributors and/or sellers of retail natural gas caused California gas prices to escalate to about six times the national average because of the gas providers' "unfair and deceptive conduct" during the state's energy crisis. The Cotchett, Pitre & McCarthy investigation is focusing on the artificial inflation of natural gas retail prices resulting from the reporting of false sales to the publishers of the industry's natural gas price indices. As a result the indices published false information, driving up the price for natural gas. Other schemes under investigation involve "churning" and "wash trades." Churning involves the rapid buying and selling of natural gas to inflate its price. In wash trades, gas providers entered into sham transactions for the simultaneous purchase and sale of the same amount of natural gas for the same price to create the illusion of high demand and increased prices. Cotchett, Pitre & McCarthy has filed suits on behalf of City and County of San Francisco, Santa Clara County, and San Diego County and is finalizing its investigation on behalf of other entities. For information, contact us at TAKE ACTION concerning public entities and large businesses victimized by manipulated natural gas prices.

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