THE EXPERT REPORT ON THE

QUESTIONED BAUSCH LOAN DOCUMENTS

AND AFFIDAVIT

BY

DR. JAMES MADISON KELLEY

March 13, 2015

1

The Affidavit

The Documents Examined

The Examination

The Equipment

Table of Contents

The Questioned Document Examination

Visual Inspection of the Documents

Examination of the Scan Files

Ink Color Measurements

Digital Examination Files

The Examiner's Opinion

Signature

Notary

List of Exhibits

Exhibit 1.0 Curriculum Vitae

Exhibit 2.0 Scanner Validation (Blank White Page)

Exhibit 3.0 Copy of the first page of the QARN

Exhibit 3.1 The questioned initials of BIB on the QARN

Exhibit 3 .2 Copy of the signature page of the QARN

Exhibit 3 .3 Copy of part of the BIB' s signature on on the QARN

Exhibit 3.4 Copy of the scan of questioned blank endorsement of Cynthia Prees

Exhibit 3.5 Copy of the scanned QATN

3

3

4

4

5

5

5

9

10

10

19

20

21

Exhibit 3.6 Copy of the questioned signature showing black ink pools on the QATN.

Exhibit 3.7 Part of the inner structure of the questioned signature on the QATN

Exhibit 3.8 First page of the QDOT

Exhibit 3.9 Copy of Page 1 of the Unquestioned Deed of Trust ("UDOT")

Exhibit 3.10 The numerals "48" showing black ink pool in the blue ink on the QDOT

Exhibit 3.11 A Part of the signature of Barbara Jean Bausch on the QDOT.

2

AFFIDAVIT OF JAMES M. KELLEY

I, James Madison Kelley, depose and declare the following:

1. I am a computer expert over the age of eighteen years, of sound mind, have never

been charged with any crime and am competent in all respects to make this Affidavit.

I have direct personal knowledge of the matters testified to herein, and if called to

testify to the same, I could and would competently testify thereto.

2. I have examined numerous forgeries made using computer programs and use

scientific methods of distinguishing computer generated signature and documents

from the original documents.

3. I am skilled in the use of Adobe Photoshop, Adobe Illustrator and printers used in the

realistic fabrication of loan documents.

4. My relevant Curriculum Vitae is incorporated herein by reference as Exhibit 1.

5. I was retained to examine the loans documents produced as evidence in the following

case: Superior Court of California, County of Orange, Case No. 30-2013-00651662-

CU-OR-CJC, May 23, 2013.

THE DOCUMENTS EXAMINED

The following questioned documents were examined at the law offices of Wright Finlay

& Zak, 4665 MacArthur Court, Suite 280, Newport Beach, CA 92660 on February 19,

2015:

1. The FIXED/ADJUSTABLE RATE NOTE INTEREST ONLY PERIOD (1-

Year LIBOR Index - Rate Caps) (Assumable after Initial Period) (10 Year

Interest Only Period) with a date indicated as MARCH 21, 2007 and an

indicated Loan# 125889737 ("QARN');

2. The 1-4 FAMILY RIDER (Assignment of Rents) with a date indicated as 21st

day of MARCH, 2007 and an indicated Loan Number: 125889737 ("1-4-FR");

3

3. The FIXED/ADJUSTABLE RATE RIDER INTEREST ONLY PERIOD (1-

Year LIBOR Index - Rate Caps) (Assumable after Initial Period) (10 Year

Interest Only Period) with a date indicated as 21st day of MARCH, 2007 and

an indicated loan# 125889737 ("QARR");

4. The DEED OF TRUST with an indicated date of MARCH 21, 2007 indicated

as recorded 03/29/07 as document number 2007000199691 ("QDOT"); and

5. The undated ALLONGE TO NOTE claimed to be "to that certain Note dated

March 21, 2007 and executed by Barbara Bausch in favor of PORCHLIGHT

DBA FAMILY TREI, INC. as payee" ("QA TN").

In attendance were: Joan C. Spaeder-Younkin, Esq. and Ronald H. Freshman, Esq. and

myself.

THE EXAMINATION

The Examination began with Mr. Freshman asking Ms. Spaeder-Y ounkin if the

documents presented for Examination were the original documents. Ms. Spaeder­

Y ounkin stated they were original documents.

The Equipment

Each page of the foregoing documents was scanned in resolutions from 400 to 4800

pixels per inch using an Epson V3 70 scanner in 48-bit RGB color mode. The higher

resolutions were used to capture high fidelity color images of the signatures and stamps.

Exhibit 2.0 is a scan of a new blank sheet of white paper that was scanned to make a

record of the scanner quality and fidelity prior to the examination.

The documents were also examined using the S-100 digital and Aven Near Infra red and

Ultraviolet Microscopes. The microscopes took snapshots of the signatures, stamps and

the forms. The documents were also inspected for staple-hole patterns that might indicate

page substitutions and any indentations that could have been made by stamps, signatures,

4

initials or dates. No indentations were observed. The staple-hole patterns were consistent.

Neither of the foregoing is probative of the originality of the questioned documents.

The snapshots, scan files and Notes form a permanent record of the documents examined

and provide form the underlying scientific basis of the examination by permitting

verification of the observations by an independent third party.

THE QUESTIONED DOCUMENTS EXAMINATION

Visual Inspection of the Documents

The first page of the QDOT was overwritten by some machine and is an anomaly. With

the exception of page 1 of the QDOT the paper was bright white as though new. The

paper used in QARN and QARR also appears to be new and show no signs of aging

despite being 8 years old.

Examination of the Scan Files

All scan file measurements are made using the Tagged Image File Format ("TIF') files in

Adobe Photoshop. The Exhibits which follow are Joint Photographic Experts Group

("JPEG") format compressed images pursuant to Portable Document Files ("PDF')

format standards. The exhibits are intended to be representative while the measurements

that are noted on the exhibits are actual measurements and are not in any way distorted by

the JPEG compression used in PDF files. The ultimate resolution of a TIF file is to the

pixel.

Exhibit 3.0 is a copy of the first page of the QARN. The QARN bears the date March 21,

2007. The Lender name is "PORCHLIGHT (DBA FAMILY TREI, INC.), A

CORPORATION." At the top right is written in pencil "Bausch 03/29 followed by the

Loan# 125889737. At the bottom right are the questioned initials "BJB."

Exhibit 3.1 shows the questioned initials ofBJB extracted in high fidelity at 4800 pixels

per inch in 48-bit ROB color. Exhibit 3 .1 is annotated to identify the features of interest

in the initials, i.e. the color of the ink and the inner structure of the initials.

5

The ink color is measured in Adobe Photoshop using the Lab color mode. This is done

because the Lab color mode has the broadest gamut and measurements made in Lab color

mode are the most accurate. The exhibit shows that the ink color is consistent.

However, the existence of seven parallel curved striations within the questioned initials is

an anomaly. There is no ballpoint pen that can produce more than two standard

striations. 1 In this case we see up to seven parallel curved striations. This evidence is

sufficient to state that the initials "BJB" were not made by a pen. 2

Exhibit 3.2 is a copy of the signature page of the QARN. It bears the questioned

signature of Barbara Jean Bausch ("BJB") and the purported blank Indorsement of

Cynthia Prees as Assistant Vice President of Indy Mac Bank, F.S.B. The page has two

sets of overlapping punch holes at the top center of the page and 8 staple holes at top left.

Exhibit 3.3 is a copy of part of the BJB's signature on the signature page of the QARN.

It was scanned at 4,800 Pixels per Inch ("PPI") to show the detail in the signature. The

bottom of the Loop near the letters "AR" again shows up to nine parallel curved striations

that are the primary anomalous characteristic on the signature of BJB on all the

questioned documents.

Exhibit 3.4 is a copy of the scan of questioned blank endorsement of Cynthia Prees at

2,400 PPI in 48-bit Red, Green and Blue ("RGB") color. The endorsement is comprised

of composite black ink and black ink as measured in Photoshop. Black in RGB is

described as containing color values of 0, 0, 0 whereas the color black in the Cyan,

Yellow, Magenta and Key (Key for black which comes from the last letter in "black")

scale ("C,Y,M,K") is described as containing color values of 75, 68, 67, 90. A printer

configured with K (or black) in all print cartridges (C,M,Y,K) = (K,K,K,K) will exactly

reproduce the questioned blank endorsement. 3 The lack of any stamp impression on the

paper is consistent with my opinion that the blank endorsement was made by a printer.

1 Striations are caused by the ink not flowing evenly off the tip of the ball. There is only one ball. Ordinarily there is only one a longitudinal striation at a time. Commonly, a longitudinal striation can be produced by the pressure on the tip squeezing the ink toward the edges of the stroke (the squeegee effect).

2 The multiplicity of striations seen here can be created in Adobe Photoshop.

6

Because the blank endorsement it not dated it is impossible to say when or who put the

endorsement on the questioned document without additional information or further

investigation.

Exhibit 3.5 is a copy of the scanned QA TN bears the questioned special endorsement to

the QARN that purportedly makes it payable to INDYMAC Banlc, FSB. It bears the

questioned signature of Scott Schang as president of POR.CHLAIGHT (OBA FAMILY

TREI, INC.). The majority of the ink is blue but embedded within the ink are pools of

black ink. The occurrence of black pools of ink within blue ink is an anomaly that cannot

be ignored. This can be caused by the substitution of a blue ink cartridge for a black ink

cartridge in a printer without cleaning the black ink channel or by the incorrect use of

Photoshop to recolor a black and white signature. The spotty texture of the ink within the

signature and printing is very unusual and atypical of a pen.

Exhibit 3.6 is a copy of the questioned signature greatly magnified that shows the

location of some of the black ink pools within the questioned signature on the QATN.

Ballpoint pens, roller ball pens, gel pens and the like use ink that is uniform in

composition because it is premixed at the factory. Missing from the questioned signature

are the features such as striations, goop, and the fibers of the paper are completely

covered by the composite quick drying ink. To cover the paper fibers the ink must flow

sufficiently before it dries.

Exhibit 3. 7 shows the part of the inner structure of the questioned signature in Exhibits

3.5 and 3.6 further magnified. The pool of black ink within the blue ink is unmistakable.

The foregoing Allonge anomalies are sufficient for me to state that the QA TN is a

fabrication and that it was not signed by Mr. Scott Schang.

Exhibit 3.8 is the first page of the QDOT. It shows a number of anomalies.

3 This configuration of cartridges makes the use of the inkjet undetectable by a microscope or high resolution scanner.

7

Exhibit 3.9 is a copy of page 1 of the proffered and purportedly unquestioned Deed of

Trust ("UDOT") that was recorded on 3/29/2007. This page was compared to page 1 of

the QDOT which has the following anomalies:

1. The most obvious anomaly is the overprinting of page 1 with another fainter

copy of the text. The text is vertically displaced by about 2 Y4 inches

downward;

2. The Recorder's markings at top right of the page do not match the Recorder's

version;

a. The Numbers are grossly out of alignment with the bar code. The Length

of "Recorded in official Records, Orange County" is 2. 72 inches

whereas the length of the recoded version is 2.46 inches;

b. The space between the end of the barcode and "69.00" is .063 inches

whereas the length on the Recorder's version is 0.38 inches;

c. The blue ink number" 125889737" and "69046" and "5-15-07" were

apparently later added to the document in May 15, 2007 and are not part

of the original recorded document;

d. On the left near the top of the page are the numerals "3262871" and

"048-061-11." The numerals are predominately blue ink but contain

small pools of pure black ink, which indicates that the numerals were

copied from the black and white scan and converted to blue ink in a

graphics program; and

e. There are other anomalies.

3. The gross nature of the QDOT anomalies is more than sufficient for my

opinion that the Questioned DOT is not the original but a poor quality

facsimile thereof

Exhibit 3.10 contains the numerals "48" and it shows the location of the black ink pool

in the blue ink numerals on the QDOT. The volume of black ink is 90% of the maximum

allowed by the printer (see 2.d. above).

8

Exhibit 3.11 shows a highly magnified part of the signature of Barbara Jean Bausch on

the signature page of the QDOT. The redlines point to the parallel curved striations

which are anomalies in the signature of Barbara Jean Bausch on the QDOT. This type

striation is not due to a pen following the fiber pattern of the paper. It is not a burr

striation due to the ball defects or an obstructed ball. The pattern is consistent with the

stroke texture being systematically created by Photoshop or a similar graphics program.

To complete the forgery a printer must be configured with blue spot color ink and the

signature printed at high quality setting over a reconstituted laser printed form. The

appearance of the paper as bright white is consistent with this procedure.

Ink Color Measurements

The color of Barbara Jean Bausch's signatures and initials on the examined documents

are the same when measured in Lab color mode in Photoshop. The colors of the

signatures of Andrea Lucas match each other. The colors of the signatures of Jack Lucas

match each other. Assuming that the loan documents were recreated in Adobe Photoshop

or Illustrator graphics programs or the like, the color of the respective signatures and

initials should match exactly and they do.

In fact, the measured colors of Andrea Lucas and Jack Lucas signatures match each other

and the color of Barbara Jean Bausch closely. However, none of the signatures look the

same because the texture of the strokes are each different. This is consistent with one

printer printing their signatures from graphically rendered signatures. In fact, Jack Lucas

signature on the QDOT could have easily been extracted and made from the signatures in

a scanned copy of the loan origination documents using graphics programs and a properly

configured printer.

Digital Examination Files

The digital files that comprise the data used in this examination are available for

independent verification of these findings in compliance with the scientific method used.

9

EXAMINER'S OPINION

It is this examiner' s opinion with a high degree of scientific certainty that:

l. The QARN is not the original but a copy thereof;

2. The QDOT is not the original but a copy thereof;

3. The QARR is not the original but a copy thereof;

4. The signatures of Barbara Jean Bausch, Andrea E. Lucas and Jack P. Lucas

were created from a black and white scan made at loan origination;

5. The Blank Endorsement on the QARN was made by a printer; and

6. The signature of "Scott Schang" on the QA TN was fabricated on a computer

printer.

I swear and affirm under penalty of perjury under the laws of the State of California that

to the best of my knowledge and belief, the information contained herein is true, correct

and complete.

This affidavit was executed on March 13, 2015.

James Madison Kelley, PhD j madisonkel ley@gmail.com 14390 Douglass Lane Saratoga, California 95070 (408) 402-1915

10

I

A No1a1J' Public or other officer completing this certificate verifies only the iden1i1y of the individual who signed the docu­ment to which this certificate is all ached, and not the truthfulness. accuracy, or validity of tlwt doc11111en1.

JU RAT

State of California

County of Santa Clara

Subscribed and sworn to (or affirmed) before me on this _13th_ day of March, 2015, by __ James Madison Kelley proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Sign~~,

....

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U ~~\ NICHELLE RUSSIEN::» I iri._ ,,... • ,. COMM.# 1982497 ;::,,

CJ '.t\~t-c;A~~W NOTARY PUi:lLIC · CALIFORNIA (,) ~ \~~~), SANTA CLARA COUNTY () 1 ,c. 'flli.~# COMM. EXPIRES .JULY 14 201G .J.

~~~--.....~

OPTIONAL INFORMATION

DESCRLPTION OF THE ATIACHED DOCUMENT The Expert Report on the Questioned Bausch Lean DocumRrats T d Affi~a~it 1t e or escnphon o a ached document)

~r-a~~·p11 1 1auacheddocument~ I O fr-_C9zr.n-Number of P sc.><1 cument Date ________ r, ,

(Additional Information)

INSTRUCTIONS FOR COMPLETING THIS FORM The wording of all Jura ts completed in Califomia after January I, 2015 must be in the form as set forth 111/hin this Jura/. There are no exceptions. If a Jura/ lo be completed does not folloll' this form, the notary must correct the verbiage by using a jural stamp conta1i1ing the correct wording or altaching a separate J'urat form such as this one which does contain proper wording. In addition, the notary must require an oath or affirmation from the document signer regarding the trothfulness of the contents of the document. The document must be signed after the oath or affirmation. If the document 1Yas previously signed, 11 must be re-signed in front of the notary pubh'c dun'ng the J'urat process.

Curriculum Vitae

EXHIBIT 1

James M. Kelley, Ph.D. Computer Forensic Examinations

14390 Douglass Lane Saratoga, CA 95070

jmadisonkelley@gmail.com (408) 402-1915

Dr. James Kelley has more 30 years experience in military and commercial computer systems development. He bas developed, manufactured and sold more than one hundred computer software, hardware and systems products.

He is currently applying his computer ski ll s to the detection of altered documents using scanner, microscopes, sophisticated computer programs and printers. Non-destructive methods are used.

It is easy to fabricate a mortgage document that accurately recreates an original document from archived digital images of the document. Mortgage loan origination files are scam1ed shortly after loan close and the resulting digital images are archived in an image database.4 If an accurate recreation of a promissory note is required, it can be recreated from the archival digital images using graphics software and computer printers.

The archival image database can be used to fabricate a complete set of loan documents.

Many forensic document examiners ("FDE") are not trained in the use of Adobe Photoshop, Illustrator, Acrobat, and other computer image processing packages. The FDEs are "handwriting experts" trained in comparing a questioned signature with reference signatures to identify the writer.5 This skill is useless where the source of the signature is an exact copy made from the original document.

FD Es frequently opine that if the ink is blue and looks like ballpoint pen ink that the document must be authentic. They are taught to distinguish ballpoint pen ink, from roller ball , gel and fiber tip ink.6 What they do not acknowledge is that ballpoint ink can be ordered from an ink manufacturer and applied by various other instruments such as an

4 For example, ACS Image Solutions Inc. ("ACS") had contracts with Washington Mutual Inc ("WMI") to scan mortgage documents in Juarez, Mexico unti l the end of 2008. The scanned images were stored on Fi leNet per contract for access by WMI. ACS also had contracts to destroy loan origination by shredding.

5 ASTM E2195-05. 6 ASTM standard E l422-05, Standard Guide for Test Methods for Forensic Writing

Ink Comparison, 2005.

1 I

Autopen or an inkjet printer. 7 The ASTM requires that all tests be used to identify altered documents not one or two tests.

Some FDEs mistakenly believe they can distinguish an inkjet printed signature from a ballpoint pen signature by the multicolored dots seen under a microscope. Ordinarily, an inkjet mixes the Cyan, Magenta, Yell ow and Black inks on the paper. An intelligent inkjet forger will use premixed ink in cartridges to avoid creating the telltale dot pattern characteristic of a forged signature. 8

Most loan origination documents are standard forms that were downloaded from a vendor and printed on a black ink laser printer. The forms can be easily recreated on another laser printer. The new form can then be signed in blue ink by an inkjet, an Autopen, or other instruments. The resulting documents will fool many FDEs.

Computer forgery has been identified in many foreclosure cases. The counterfeiting skill level varies. Some counterfeit documents are easily detected, others are nearly perfect. The number of tests that are performed on a document is largely determined by the skill level of the counterfeiter and by the client's budget.

There is almost no risk in counterfeiting loan documents and the reward can be millions of dollars per counterfeit.

Dr. Kelley is an independent consultant. He is paid for his work not for his opinion. Consulting opinions are by arrangement. A fee schedule is available upon request. A retainer agreement must be signed.

Relevant Experience:

Dr. Kelley worked for the Speech Communication Research Laboratory assisting in research into speech compression and voice recognition while at the University of California Santa Barbara.

Dr. Kelley took courses in digital signal processing and passed the PhD exam in that specialty at the University of California, Santa Barbara. He has also used Wavelet Transform processing in the creation of a digital radio at Litton.

Dr. Kelley uses computer graphics tools for the detection of anomalies in documents and signatures that indicate that they are altered documents.

Dr. Kelley has experience in the design of airborne radar and Electronic Countermeasures Systems at the following companies:

7 Specify the color formula, viscosity and drying time. The ink manufacturer can do the rest.

8 Spot color has been used for decades by the printing industry.

12

Raytheon Missile Systems Division Senior where he was Senior Engineer in charge of the computer program development for pulse doppler airborne phased array attack radar. The phased array system was successfully tested at Wright Patterson Air Force base.

Raytheon Electronic Countermeasures Systems where he invented a digital computer capable of collecting, sorting and processing high-density enemy radio emissions for the Advanced Manned Strategic Aircraft, inter alia. Dr. Kelley worked directly for the chief scientist of Raytheon.

At Litton Systems, Dr. Kelley developed and tested a signal processing method that increased the target detection range of a wideband receiver by a factor of 4. This permits early detection of enemy aircraft and ground-based threats by fighter jets.

Dr. Kelley also used image-processing hardware for the development of software to be used to identify shoulder-launched missiles.

As an Engineering Fellow at Chips and Technologies, Dr. Kelley solved disk controller data separation problems and produced a line of PC disk controllers for high volume manufacturing in Taiwan and Hong Kong.

Dr. Kelley has developed and applied cryptographic methods and software for password protection of computer programs and storage systems.

Dr. Kelley designed, manufactured and sold a line of microprocessor in circuit emulators and language translators to electrical engineers and programmers for the development of microprocessor based systems worldwide.

Dr. Kelley has three U.S. patents and is currently active in the design of novel cost effective scalable ultra high-speed database and networking architectures.

Dr. Kelley is familiar with state and federal court procedures. He has proffered testimony and been deposed in connection with various document examinations. Computer document forensics is a recognized research area in academia, the Association of Computing Machinery ("ACM") and the IEEE.

Dr. Kelley uses image-processing methods to test the authenticity of documents. Some of the images processing methods are mentioned in the "Scientific Examination of Questioned Documents" by Kelly and Lindblom ("SEQD") and in the Forensic Standards of the American Society of Testing Materials.

Unfortunately, the ASTM forensic procedures have not kept pace with advances in scanner, computer, printer, graphics software, and compression technology. The cutting edge in forgery research is now image processing. The Institute of Electrical and Electronic Engineers ("IEEE") is one of the leaders in detection of image forgery.

13

For expert witnesses, it is essential that the expert report document all relevant observations and methods. The scientific method requires that all observations and methods be reproducible by others. Unfortunately, this requirement is ignored in FDE expert reports.

Education:

Stanford Executive Institute Ph.D. University of California, Santa Barbara, Electrical and Computer Engineering M.S.E.E. University of California, Santa Barbara, Electrical Engineering B.A. in Mathematics San Jose State University

Societies:

Member of the Association of Computing Machinery Member of the Institute of Electronics and Electrical Engineering

Partial List Court Cases:

Jonson, et al vs. Northwest Trustee Services, Inc., et al 12-cv-00552-RSL US District Court, Western District of Washington at Seattle

Hollis and Linda Malin, et al. vs. JP Morgan Chase Bank, NA 3:1 l-cv-554 US District Court, Eastern District of Tennessee at Knoxville

James B. McDonald v. Onewest Bank, FSB, et al. 2: 10-cv-O 1952-RSL US District Court, Western District of Washington

Janet Reiner vs. Onewest Bank, FSB, et al. Superior Court of the 11-2-02029-8 State of Washington in and for the County of Thurston

Deutsche Bank National Trust Company vs. Mitchell P. Kass 09-09002 (04) SJ and Jacqueline D. Kass, Circuit Court of the Seventeenth Judicial Circuit in and for Broward County Florida

JP Morgan Chase Bank, N.A., vs. Christopher Ardern 12F000958 Lake County Court of Common Pleas, Ohio

Bank of America, NA vs. Marcia A. Wrick, et al. CV-12-775113 Cuyahoga County Court of Common Pleas of Common Pleas, Ohio

HSBC Mortgage Services INC. vs. Joseph longi, et al., in the Case No. 130202716 Circuit Court of the State of Oregon for the County of Multnomah.

14

Peter J. and Joanne E. Workum vs. Washington Mutual Bank, 2:12-ap-01418-SSC Deutsche Bank National Trust Co., DLJ Mortgage Capital, et al. 2:12-bk-08554-SSC US Bankruptcy Court for the District of Arizona

Bank of America, et al., v. Cynthia Black, Circuit Court Case No. 49-2009-CA-009062 of the 9th Judicial Circuit, Osceola County, September 2013

Bank of New York Mellon V. Ken Brown, et al., Case No. 1308458E2

Fairwinds Credit Union V. Victor Monroy, Verbal Opinion, Seminole County, FL 9/2012

Tn1stee Services of Carolina V. Kenneth Andresen, South Carolina, 3/2/2013

Jorge and Esther Romero, verbal opinion, Florida 5/21/2013

Pressler & Lehman Brothers, Bank FSB Verbal 7/2013

HSBC Mortgage Services INC. vs. Joseph longi, et al., case No. 130202716 in the Circuit Court of the State of Oregon for the County of Multnomah. 7/2013

Mark and Sheri Yeadaker v. Citi Mortgage, Inc., etc. al., California, 7/2013

Nation'> tar Mortgage LLC vs. Maria Perdomo, et al. in the Circuit Court of the Sixth Judicial district In and For Pinellas county, Florida, Case No. 20-CA-006266

Bank of America V. Octavio Pina Florida Case #8:13-bk-12037-ES, 9/ 2013

Donald Karleen v. Countrywide Home Loans, Hawaii, 9/2013

Gary Alexander and Diane Alexander V.Y. Capital One, N.A., et al. Case No. 13-2-27723-9 SEA, In the Superior Court of the State of Washington in and for the County of King. 2014

Bank of New York Mellon v. Diderick, Collier County,

Patents & Publications:

US PATENT 4,338,660 Relational Break Signal Generating Device

US PATENT 7,957,384 B2 Multiple Virtual Local Area Network Databases in a Switch with a Relational Lookup Engine.

US PATENT 8,335,780 B2 Scalable High Speed Relational Processor For databases and Networks.

9/1/2014

15

Case 12-003870-CA 9/ 2014

July 6, 1982

June 7, 2011

December 18, 2012

EXHIBIT 2.0 Blank Page Epson V370 Calibration Check

Loan# 125889737

FIXED/ADJUSTABLE RATE NOTE INTEREST ONLY PERIOD

(I-Year LIBOR Index - Rate Caps) (AMumable after Initial Period)

( 1 0 Year Interest Only Period)

11 ) • c·

THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY.

MARCH 21, 2007 [Date)

Orange [City)

CALIFORNIA (State)

312 MONTERO STREET, NEWPORT BEACH , CALIFORNIA 92661

[Property Address!

1. BORROWER'S PROMISE TO PAY

iv o f~ · I - . ,. .

In return for a loan that I have received, I promise to pay U.S.$ 1, 080, 000 . 00 (this amount is called "Principal"). plus interest, to the order of the Lender. The Lender is PORCHLIGHT (OBA FAMILY TREI, INC.), A CORPORATION I will make all payments under this Note in the form of cash, check or money order.

I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder."

2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly

rate of 6. 3 7 5 %. The interest rate I will pay will change in accordance with Section 4 of this Note. The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any

default described in Section 7(B) of this Note.

3. PAYMENTS (A) Time and Place of Payments I will make a payment every month on the first day of the month beginning on MAY 1 , 2 0 0 7

I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and if the payment consists of both prindpal and interest, it will be applied to interest before Principal. If. on APRIL 1, 2 03 7 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date."

Iwillmakemymonthlypaymentsat 1521 EAST KATELLA AVENUE, ORANGE, CALIFORNIA 92867

or at a different place if required by the Note Holder. (B) Amount of My Initial Monthly Payments Before the first fully amortizing principal and interest payment due date stated in subsection (C) below (the "First P&I

Payment Due Date"), my monthly payments will be only for the interest due on the unpaid principal of this Note. Each of my initial monthly payments will be in the amount of U.S. $ 5, 7 3 7 . 5 0 . This amount may change

in accordance with subsection (C) below.

FIMB

Fixed/Adjustable Rate Note· 1 Yr. Libor Index • Interest Only Period • Multistate

Page 1 ors

8480830 (0610) VMP Mortgage Solutions, Inc. (800)521·7291

EXHIBIT 3.0 Page 1 of the Questioned Note

There is no known pen that can produce five to seven or more parallel, curved striations.

e1ls:

Blue: L=23 a=56 b=-93

A "paint brush" can produce the curved parallel striations seen in the initials and signatures.

a=53 b=-87

Blue: L=27 a=56 b=-93

Seven parallel curved striations

EXHIBIT 3.1 The Initials on page 1 o f the Questioned Note

-,.-

WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED.

r:) J ~ (Seal)

-Borrower

---------------- (Seal) -Borrower

--------------- (Seal) -Borrower

(Seal) -Borrower

---------------- (Seal) -Borrower

----------------- (Seal) -Borrower

---------------- (Seal) -Borrower

----------------- (Seal)

c A.

-Borrower

/Sign Original Only/

8480830 (0610) Pago 5 of 5

Form 5600

10/06

EXHIBIT 3.2 The Signature Page of the Questioned Note

EXHIBIT 3.3 Striation Anomalies In Questioned Signature

on Note

Pay To ~f~~e Order Of

Without R2course lndyf\~ac Bank, F.S.B .. By:

Black Ink: Cyan=75% Magenta=68% Yellow=67% Black(K)=90%

EXHIBIT 3 4 Th . . e Questioned Blank Endorsement

ALLONGE TO NOTE

This Allonge to Note is to that certain Note dated March 21, 2007 and executed by

Barbara Bausch

in favor of PORCHLIGHT DBA FAMILY TREI, INC. as payee.

Loan No.: Loan Amount:

Pay To The Order of:

INDYMAC B~ F.S.B.

without recourse

PORCHLIGHT (DBA FAMILY TREI, INC.)

125889737 $1,080,000.00

Property Address: 312 Montero Street NEWPORT BEACH, CALlFORNIA 92661

A

EXHIBIT 3 . 5 The Questioned Allonge to the Questioned Note

. ---

• • >. ~ Exhibit3.6

-0 QJ

~ c O'> ro ~ QJ

O'> c .2 <( QJ .c ....... c 0

~ :J ....... ro c .Ql V)

-0 QJ c 0

·;:; V'l QJ :J a QJ .c I-

'° <Yi ;!:: :-9 .c x w

~ The internal structure of the signature is comprised of globules of different color ink. I The paper is completely coated with the composite black and blue ink. co -j w :...i -j ::::; <t> Lil ...+ ..... c (') ...+ c ..... <t> 0 ...., ...+ ::::; <t> 0 c <t> Vl ...+ 5· :::i <t> a.. Lil t.0• :::i OJ ...+ c ..... <t> 0 :::i ...+ ::::; <t> z 0 ...+ <t>

Dark Blue: L= 16 a= 48 b= -78

White: L=100 a=O b=O

Blue: L= 45

,,,__. 7' 1 Black: L=O a=O b=O

!The signature was not produced by a pen I !Exhibit 3.7 I

-ECORD~ FIEOU!:STEO 8Y

lRST AMERICAN TITLE coa.f'A."J'

This Document was electronically recorded by Zang Recording Services B

Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder

Recording Requested By:

PoRcHLIGHT ( osA FAMILY TREI, INc.) lllWllWIHllllll s9.oo 2007000199691 08:00am 03/29/07

119 59 011 22

And After Recording Return To: 0.00 0.00 0.00 0.00 63.00 0.00 0.00 0.00

INC.) PORCHLIGHT (DBA FAMI LY TREI, 1521 EAST KATELLA AVENUE ORANGE, CALIFORNIA 92867 Loan Number: 1 25889737

Recording Request by Zang recording Services on behalf of: FLA

\ l ~ 'i\~ 01 ~ 5 :1 (o ()~I (o

Rt~ l.' 1 l:(!Jng H-:·~~u, ~ted !-'? ·, : ~,

-·~-\~;;;_· ~ -'-t,.,.1~t-'1:±=' i..:...~.c..1

1_· -1--'-+.f_r_:'_·:_-: ._\_:~_,_'- :,_·: _~ i i;pa:~:~o~~ Th:s: ·~~~ ;or Recording Data] -----------­

()L\ <6 - 'OU. \ - \' DEED OF TRUST

o·EFrNftjo~s. r '.Lf ::; . . ~ ".- .'· : It. '1 T!< ' I • ~ ; ·· . ~ 1 ~ ~ L ' 1 • ·., ' : ;J. ~~ ~. : ~ --l. / •• c,· ~ , · ! ,. ,

~~~~:~i~~,~~~~1~ ~~hi:~r~jd~~ment are defmed below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16.

(A) "Security Instrument" means this document, which is dated MARCH 21 , 2 0 0 7 , together with all Riders to this document. (B) "ij.orr~wer" is

1 BARBARA JEAN BAUSCH , AN UNMARRIED WOMAN AND JACK P .

~UCAS"ANIY ANDREA E . L UCAS , HUSBAND AND WIFE ALL AS JOINT TENANTS 1r • : 1 • 1 • , , , • • • • 1, I : l / 1 1 • •

· - · · - - - - · ·- -· - - - - ~ '·1 : "J~ .:.· •\h\' 'C f !:r". 1 1r' C t Ui r~(.:t. ''fi"C'1 r1 :~ iJ~~u ·-· .. ···-- - . - - · . . •... . - . -

Borrower is the trustor under this Security .ln~tr\lmCpt.. . 1: - • ..,. '"lJ ~-:. . .• . (C) "Lender" is .. PQRCHI:IGHT ( 0.sF\. ~'"MMt '.U~ !J'R<E-I ,. .. , 'rNC . )

'· • j 0\ • • I : • : . I l ,.

{e\ilferlslaO·<!:l!>RPORATION . . organized and existi.qg tinder the laws of CALIFORNIA t~nder's.atr~ iS~'.l :·f~2il11;~~Srr U<>A'l'£·TuLA· 1AVEJNQE>, ·.', ORANGE•; 11• CAfu~tf'q)RNI1A'.•&2fH5?7. I l .

i .! i 1~ 2<, ,~~ ' !'!. 1 (1 •. t~ ' : ~ u , ... , ; · • t . ·.:P : ,1 ;· ,. \>~.·':t ' ' ' r·:· ;-1 \•\,,d : · ! ' '\ '.·>c-:· 1' '. : ; , , :.,, r . •·\!ti,:i f! , ',r< lion ::1 .. Lender is the beneficiary under this Security Instrument. (-J)) "'&usteeC is1· lcEliERST :1:AMERH?AN;.•ll'd'. 'I\I:iB :· ' ' :;,;11·1: :. ~ ..:. F . ..:H .. · 1 I .• • : · ' I

(Ti · ~: orrt,~ . , , r" : . ·.-~ : .- .:.-;._r~- -:._ l,.. • • •• • :' ' . ... ~: , , r .;~ · .. : ,..., ~- :.. .. , ~~,_,-. .. ... ; : ... ' .. 1.; •. '· t.: ••

(E) '!'Nole!'.mean5.the·promissory note.sign~ by Borr.ow.er and.dated . : . . MARCH 2 1·, 20,Q/ "~-- · · . The Note states that Borrower owes Lender ONE MILLION EIGHTY THOUSAND AND 00/100 .. . · · · ·• ,. · noUars(U.S. $ 1~080 , 000.00 ) plus>i.nterest rBorrower has'proinisedtn pay this:~bt.;in ~egular ~etjodic Payments and to pay the debt in full not later . ..... u .. 'An.n.[U' : '.I 203·7· - .. , · ~ ·•· ~ · 1 ~1; · " · ·-:,. ,,.. , . ... !, ·, . ... . ul4J1 r'lN' 1!1. 1 1 . !_ . !. , . ! ' '' ~""'°:- ··· -! . ": "' · ! 1 .... , , ~ r ... . _ . . !

(F). "Prop~rty" means the property that is described below under the heading "Transfer of Rights in the Property. ''. (0) f~l;OiD" means th-e:de6t ev'idenced by the Note, plus interest, any prepayment charges and late charges dus undet the'Note, :and all.sums Hue·uni:ler this .Securify ilnstrument, plus interest. ~ .. t'ht \.! ~ 0 :: · "·:"..~1 ' .~ . ~ . ~:~ ! .~ : .. ;;•\ 1: ,q·; 1· 1° l~J :!"~.! ... .. ..:. ; . :: : .· l ';:<:' ~~: i . .. :~ l> ·~ .:.\'/,\.! J ~J j'i l Lr.: ~ ~-· ··· ! ~f ~

' • I f ' ~ t" : : . • ~·1 1 4f( 1 ·. 1 ':. · IJ~·r .; · ' , ,; _ , , · ;l l · · · · - !~ 1 : 1 ~~t \, 0 1 l: .' lri·,.r ·:· n . ... , , ... , ., , .. .., ,IJ ' · L -' , , .... ,.,. ;~ . . • . 1 J • I.:•

•I , .·. ;

CALIFO~NIA;-Single FamilJ=Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Foim' 3°?5 .1 f01 r10/04/06) I: • . ' Page 1 of 14

., I ' . ' • ' 1 \

DocMeglc ~ IJ00.649-1362 www.docmagic.com

' ......... :~c· · · ~ ., . . ~: 1 ' 1.' 1

r .:1· ~~''· · i 1H·\ t l 1il! : :, . · . ... ·1i · . · , ·~· 1 ;··; ·,t, . , ·· ·.; ~ . ..: . ::: EXHIBIT 3.8 · P~ge lof DOT Is Overwritten J ) ,,' '..w;l ~ ~· . ·~ ·· , t'n· . . ·: 1 • •

µ?u~ 1 .... , rr · .. •. · }~ 1 trfh '\tr i~ t· t :..:r ·,m==' .. "li·t·"'- f- !.Y u:.-- ·h:Hl in 1 ... \· .. : ~ . 1 ~: >idL: , ~! ) : ~ -,., ~ :. :: ·~ i ft!! ' .: · 1, 1r ''t h1 i. ~ f:: f; 110· 1 '."\ '.Ii.Ir 'l.ri .~ ·:.r i 1 , .'>.) ~· .: · 1 • • ~ 1 •·

BY SIGNING BELOW. Borrower accepts and agrees to the terms and covenants c:oatained in dds Security Instrument and fn any Rider executed by Borrower and recorded with ft.

,,.q.---=..4-__.;;---1~~~~~~----<SeaO -Borrower

/ '1 ~. Vt ~MC &k~C4}=: ' OREA E • LUCAS -Bo~

----------- (Seal) -Borrower

Witness: Witness:

CALIFORNIA-Singe family-Fannie MaeJFreddte Mac UNIFORM INSTRUMENT Form 3005 1/01 {10/04/06) Page 13 of 14

Dor:Mef11t: ~ llDIUUfl.1382 MWW.doana,glc.cmn

Exhibit 3.9 The Signature Page of the Recorder's Copy of the DOT

Black ink: Cyan= 75% Magenta=68% Yellow=67% Black (K)=90%

Blue ink: Cyan= 89% Magenta= 78% Yellow=0% Black (K)=0%

Exhibit 3 .1 0 Anomalous Bla ck Ink found within the Blue Ink Stroke

Parallel curved striations

EXHIBIT 3.11 The Structure of the Signature on the Questioned DOT