William McCloskey worked for Ameriquest from November 2004 till March 2005. William was fired after he reported illegal activity behind the walls of his Ameriquest branch, which virtually mirrored all of the widespread reports about the company (to local detectives, the PA Attorney General, the S.E.C. and the F.B.I).
William sued Ameriquest Mortgage Company under the whistleblower provision of the Sarbanes Oxley Act of 2002. The act pertained to publicly traded companies and issuers of securities under Section 15(d) and 12h-3 of the Securities and Exchange Act of 1934. Ameriquest was the largest issuer of asset-backed securities in the world during the refinance boom.William articulated how Ameriquest originated, processed and loosely underwrote toxic mortgages and then securitized them through their own subsidiary (Ameriquest Mortgage Securities) before the Department of Labor and the S.E.C. in McCloskey vrs Ameriquest Mortgage Company (2005-SOX-093).
Unfortunately, William ultimately lost the suit because of a technicality (he did not file his initial complaint with OSHA within 90-days). However, William thoroughly articulated how Ameriquest perpetrated the largest securities fraud scheme in the history of the United States. The securities fraud scheme was one of the biggest contributors to the collapse of the nation's markets and economy in September 2008. All of the bad paper issued by Ameriquest Mortgage Securities made its way around the world as collateralized debt obligations.
All images below were part of the record for McCloskey vrs Ameriquest Mortgage Company (2005-SOX-093).
In McCloskey v. Ameriquest Mortgage Co.,ARB No. 08-123, ALJ No. 2005-SOX-93 (ARB Aug. 31, 2010), the
Complainant argued that his SOX whistleblower complaint should be
equitably construed as timely because the Respondent had a burden to
inform him of the existence of the SOX, and failed to do so. The
Complainant contended that the Respondent bore this burden based on the
requirement to certify financial reports under Section 302 of the SOX.
The ARB found that the Respondent did not have a burden to inform the
Complainant of the whistleblower provision of the SOX and its filing
deadlines, and that Section 302 was inapposite to the Complainant's
case.
The Administrative Law Judges got it wrong about Section 302. The is due to the fact that Sarbox was thrown together by Congress in the wake of the Arthur Anderson, Worldcom and Enron scandals. William's opinion (and the opinion of many securities attorneys) is that all Sarbox cases should be brought directly before the S.E.C. and not he Department of Labor because the ALJ's do not have a background in securities law. Further, all initial Sarbox whistleblower complaints are filed with OSHA - a government entity that was not designed to deal with complex financial and securities fraud. Employees of OSHA have as much education about securities fraud as your average United States postal worker.
WilliamMcCloskeyResponsetoBuchalterNemerAmeriquestonAppealin2006.pdf William was the actual author of the brief (William also cited all case law), which his then-attorney transcribed and submitted on appeal. William later fired his attorney because of his lack of knowledge of Sarbox and continued to represent himself pro se when the case was remanded back to the ALJ in 2008.
Laura Worsinger of Buchalter Nemer submitted a rambling diatribe after William accurately articulated that Ameriquest was the parent company of the largest issuer of asset-backed securities in the world (Ameriquest Mortgage Securities). Ms. Worsinger also made an incredibly emotional argument in response to tombstone ads from the Wall Street Journal, which clearly showed that Ameriquest Mortgage Securities was an issuer of asset-backed securities (which William later successfully argued against in his initial brief when the case was remanded). Laura Worsinger - Ms Worsinger is a labor attorney who probably did not have the slightest clue what she was actually arguing. However, if Ms. Worsinger did indeed know anything about securities law, she would have understood that her client was the parent of the largest issuer of asset-backed securities in the world and subject to Section 15(d) of The Securities and Exchange Act of 1934.
Richard Bowen describes how the loans that Citigroup purchased from subprime lenders(Citigroup purchased all of Ameriquest's toxic mortgages AmeriquestclosesCitigroupbuysmortgageassets_Reuters.pdf) did not meet any traditional underwriting standard: Mr. Bowen's findings were correct - Ameriquest did not have an underwriting department - the "underwriting" was done by the inexperienced Ameriquest loan officers, most of whom were selling shoes and cell phones at the local mall before they were hired, with a two-page underwriting sheet that was used in concert with the dummy-proofed origination software that was unique to Ameriquest: 2pageAmeriquestUnderwritingGuidelines.tif.pdf
2008 Financial Crisis And Citigroup (Citigroup acquired all of Ameriquest's Toxic Mortgages) Subprime Mortgages, Day 1, Panel 1 on C-Span: http://www.c-spanvideo.org/program/292886-2
60 Minutes on CBS News: Prosecuting Wall Street, pt. 2
Diane Tiberend of Ameriquest blatantly omits the fact that Ameriquest Mortgage Securities was an issuer of securities under Section 15(D) and 12h-3 of The Securities and Exchange Act of 1934: Tiberend.tif.pdf
Ms. Tiberend failed to mention (and quite possibly committed perjury) that Ameriquest Mortgage Company sent all of its toxic mortgages to Ameriquest's headquarters in California to be deposited into trusts and pooled as asset-backed securities by Ameriquest Mortgage Securities, the wholly owned subsidiary of Ameriquest Mortgage Company. All of the toxic mortgages were registered under Section 15(D) and/or 12h-3 of the Securities and Exchange Act of 1934
Ameriquest employees were ordered to dispose of all documentation when they shut their doors in 2007:
Ameriquest Awards Ceremony Tampa/St.Pete 2007. The event mirrors all Ameriquest award ceremonies across the country where their inexperienced loan officers were rewarded for doing 10-20 subprime loans a month, which was virtually impossible. Again, the goal was to originate, loosely process (by forgery) and barely underwrite (the loan officers were issued a 2-page underwriting sheet that was used at their desk, hence Ameriquest did not actually have an underwriting department) so they could be sent to Ameriquest headquarters in California to be securitized as asset-backed securities:
Steve Kroft of 60 Minutes questions why Wall Street Executives were not Prosecuted for Falsifying Sarbanes-Oxley 302 Certifications: Citigroup acquired all of the Ameriquest pools of asset-backed securities consisting of toxic Ameriquest mortgages in 2006.
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McCloskey v Ameriquest Mortgage Company
Richard Bowen describes how the loans that Citigroup purchased from subprime lenders(Citigroup purchased all of Ameriquest's toxic mortgages 
