CASE FILE Nevada CRIMINAL False Filings_ EXCERPT_ Reporter's Transcript of Proceedings Nevada vs. Gary Trafford, Gerri Sheppard

8/3/2019 CASE FILE Nevada CRIMINAL False Filings_ EXCERPT_ Reporter's Transcript of Proceedings Nevada vs. Gary Trafford,

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"All For Our Country"


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EIGHTH JUDIC.ISl'lUCT COURT2 CLARK C0UN1Y, NEVADA34 BEFORE fHE GRANO JURY IMPANELED BY '(HE AFORESAIDS DISiRICT C 0 9 ~ r 6 ORIGINALHE STATE or NEVADA,B Plaintiff,

VS . No. llAGJ037AB10 GARY 'IRArroRD, GERR1 SHEPPARD, C}v1.:1EJfJ1 Defendants.121314 'i'aken at Las VegasJ NevadaIS tuesday, llovemer 15, 201116 8:44 a.m.17IS1920 REPORI'ER'S TRANSCRIPT OF PROCEEDIIlGS2122 VOLUIlE 223242S Reported by: Danette 1. Antonacci, C.C.R. No. 222

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tODD GROSZ5 DEBRA HA'i'KlNS

ItlDEX OF Wnm:SSES

6 JEffilIFER BWECKER7 TRACY LAijRENCE8 JOSEPH IiOEL9 JOHN SHAFFER

10 TARA N E h ~ E R R Y 11121314151617IS19202122232425

( C-11-217fi73-1: IRAN, Reporters TranscrIptj fl24 I

612225471Bl90

3

)

GIW1D JURO.&SEN? NOVEMBER 15, 201123 E'LORNA RAMSEY, Forepmon ""En I uS')"'1!Y4 CAROL DEGLHAN, ~ p u t y r O n ' ~ p e on 0 n de b r ~ r - ) S KiI'i'JlLEEII B R O ~ S O N , S e ~ r e t a r y 6 N::>RAlINE BRUMAGIII, A S S i S ~ ~ seletd:J7 DOIlALD BAIL", (Old not er te. : vllitFl1,MJ .}B DANn:!, COOK9 DENNIS DUNN Qfk .J .{10 RICHARD FAH . " ' ~ / J ( . " I , - , - ~

11 LAWRENCE fELDHAl:I CLEftX 0' rH,: ! ~ O U R r 12 FEIillANOO GARCIA13 BYRon GEORGE14 1W\10 G

INDEX or EXHIBIIS23 Grand JUry Exhibits Identified

1241 PROPOS8D 1NDIC'IMEN'i'5 18 - CAL-WESTERN RECOOVEYANCE CORP OOCIJMENTS6789

101112131415161118192021n232425

19 - QUALI'i'Y LOAN SERVICES CORP DOCu}!ENTS20 - 3 ARCH T R U S ! , ) . A N D ~ ~ E R l C A DEFAULT SERVICES,1I.$SB? FORECW)URE SERVICES INC &. 1i0'JSEKEYFInANCIAL CORP OOCtlXEN'iS22 - CHICAGO DEFAULT SERVICES DOCUMENIS23 - AGREEHEltl' TO COOPERAr&-'i'AACY LAHRENCE24 - AGREEMENI' '10 COOPERA'i'E-H8GItAN BLOECKE:R SHAW25 - AGREEMEN'i' '10 C O O P E R A ' i ' E ~ J E l ; l l I F E R BLOECKERLQ;I26 - AGREEMENT TO COOPRATE-JOSEPH NOEL27 - LOAll OOCU!


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Excerpt Of Record

Expert Testimony Regarding Toxic And Clouded Title

And Property Reversion To Wrongfully ForeclosedHomeowners

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If a free society cannot help the many who are poor, it cannot save the few who are rich."hn F. Kennedy, January 20, 1961


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19 The Concern there would be that a purchaser of a20 foreclosed property, if they basically purchased a21 lawsuit so to speak and tender a claim to their22 insurance on the title policy, the concern would be if23 there had developed any equity in the property above

24 that policy amount there's no coverage or protection for25 the owner. 'there's also the issue of litigation fees,

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1 that if the insurer simply decides to pay the full note,2 purchase price of the home, they're no longer under any3 duty to defend. So someone could put money down, get a4 purchase, you know, purchase policy amount, but be out a5 lot of money if that home was to appreciate.

6 Q. Can you kind of put that in laymen's terms7 for the Grand Jury so that they understand. I mean8 we've been talking a lot in terms of the policy and9 exclusions and all that. Basically what it would mean10 to a homeowner who purchases a foreclosed property.11 A. Most homeowner, if they ever know that12 they have title insurance or understand it, would13 believe that the insurance company would indemnify them,14 defend them, with regards to that marketability of15 title.16 In a situation where the foreclosure was17 done fraudulently or not correctly and there's a course18 where the land records would revert back to that

19 original owner, the new purchaser is left in a situation20 of only being able to collect the money damages.They21 can't get the actual property itself if there was a22 wrongdoing that happened prior to them being introdu23 to the chain of title. In light of that, if there was24 appreciation of the home that would translate to a loss25 to that homeowner


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1 Q. Is there a possibility that the homeowner2 that purchased the foreclosed property may not even have3 legal standing to bring those causes of action?4 A. That's correct. There's a possibility that5 if the foreclosure itself is deemed void as though it

6 has never happened and by operation of law it never7 happened. then that means they never were a landowner, a8 a titled landowner of that property. So there are9 instances where they, and there have been cases that10 have come up recently on this issue where judges have11 found that the purchaser of the foreclosed property12 doesn't even have standing to raise claims.13 Q. So somebody could purchase a foreclosed14 home, start making payments and then find out that they15 don't own the home.16 A. That's correct, And I actually have had17 clients come in that have purchased foreclosed property18 and usually within a couple months of that we do have

19 under the NRS if a home is foreclosed and the prior, the20 foreclosed homeowner believes that there was a wrongful21 act by the lender, they have a time period in which22 they're. able to file a wrongful foreclosure action even23 after the foreclosure has ended.24 So I've had clients come in that have gone25 and either purchased at the foreclosure sale or they've

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1 purchased from a bank who completed the foreclosure2 sale and they've been drug into a lawsuit where the3 homeowner has sued for wrongful foreclosure.4 O. One second.5 The State doesn't have anything else.

6 THE FOREPERSON: Jurors, do you have any7 questions?8 BY A JUROR:9 Q. I'd like to ask you, I'm trying to make10 sense of all this in laymen terms. So let me throw up a11 scenario to you and maybe you could advise me. You used12 the words fight a lawsuit. Suppose there has been a13 foreclosure and then it's deemed not correct because14 there is a forgery on the foreclosure and then the15 person, the individual being foreclosed on decides to16 sue or decides to get his property back. In the17 meantime someone else has purchased the property. Let's18 say they purchased it for cash and lets say they find

19 that all these actions were illegal. What happens to20 the individual that purchased the property with cash if21 he has no grounds to sue?22 A. It would depend on .... whether there .... is title23 insurance that would provide coverage for the lack of24 the marketability of the title. If there's no title25 insurance, and oftentimes if you are getting a loan


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1 policy it doesn't a1ways mean that there's an owner2 policy. Oftentimes you have to check an additional box3 on the request to the escrow officer. So there are4 instances where if you purchase a home and it's financed5 and the loan policy is issued, it doesn't mean that

6 there's an owner's policy. Without an owner's policy7 whether it's a cash buyer or a financed buyer, they're8 going to lose that money.9 Q. Now what if the Owner, the new owner,10 alleged new owner, buys from. say the bank, ... 'Wouldnt the11 bank be held responsible?12 A.It's possible. They would have, it depends13 on the transaction. There's lots of language. If it's14 a, if there's no warranties in the deed with regards to15 marketability and you're just taking it on the word of16 the person, then no, there wouldn't be a recourse. But17 if there are warranties and guarantees in that deed then18 yes they would be able to sue the lender for not being

19 able to produce what they guaranteed.20 Q. Let's say there's no lender, they just21 paying cash, but they do buy, there's a lot of property22 for sale by banks. So I guess don't they always get a23 warranty deed when they purchase a property?24 A, Not always. There are many different ways25 of structuring a deed.

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1 Q. Let's say they do get a warranty deed from2 the bank and it later turns out that the title is3 defective because there was a forgery. So wouldn't the4 bank that sold the property to these new buyers be held5 responsible?

6 A. If they're responsible for the bad, the7 forgery, the documents, yes then there ... could be a claim8 against then for you having, you know, if nothing else9 an unjust enrichment for having received the proceeds of10 the sale.11 Q. What if they're not responsible for the12 forgery?13 A. Then you would still have to kind of go14 through the train(chain?) because it depends on who knew the15 notice. These types of lawsuits are extremely complex16 Q. So it's possible the original person,17 individual foreclosed on, could wind up with the

18 property back?19 A. Yes.20 Q. And the person that purchased the property21 is out, completely out, he may not have any recourse?22 A. Correct that's a possibility.23 Q. Has that happened to your knowledge or24 based on your experience?25 A. I don't know here in the State of Nevada


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1 I have read cases from across the country where yes,2 that has happened.3 THE FOREPERSON: Additional questions?4. BY A JUROR:5 Q. Does this lawsuit clock in the thousands of

6 documents that were submitted and recorded, does that7 now deen(mean?) all of those deeds to have a cloud on the8 title; is it a clouded title then?9 A. I'm not sure. these are the only documents10 that 1 looked at that I discussed today so I don't know11 what the other documents are that you all have been12 presented with. That I can tell you is that clouded13 title isn't really something that's tangible. Clouded14 title is exactly just as simple as it sounds. It's15 fuzzy, it's not clear. It's not a clear day, there's16 clouds, somebody is obscuring, you know, what you're17 looking at. And so clouded title can just simply be18 that there's doubt. You know, clouded title exists when

19 the escrow officer forgets to cut a check to Republic20 Services for toe $30 lien for not paying trash. That',s21 a cloud on title. It's not a big deal. you can clean it22 up pretty easy and fix it. So clouded title is kind of23 a laymans term but it's not, it doesn't really cover24 the severity of the different things that can happen25 with regards to chain of title and the marketability of

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1 title. It's easy to go back and fix, you know, liens2 that were left out of the title search or some of those3 other types of small things that can be financially4 changed.5 With regards to, you know, forged

6 instruments that are recorded, there's going to be very1 far back in the chain potentially numerous purchasers of8 the home that if that sale is deemed void. and again a9 sale would be deemed void by a court, not the attorneys10 who have an opinion on their case, because you had said11 if, you know, as such as I think there is that cloud and12 as such as I might have the opinion that my client's13 rights in the property are tarnished by the cloud, it14 still takes going to a trier of fact, either a judge or15 a jury, to make that final determination with regards to16 whether or not the sale is void. And that's the11 hardship that I think and the risk in purchasing the18 foreclosed property is that you might have to endure one

19 of those litigations and even if it comes out in your20 favor, you can't sell, you can't do anything while it's21 pending, you're going to have potentially legal fees and22costs if you don't have the title policy coverage even23 if you're done nothing wrong.24 THE FOREPERSON: Additional questions?25


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1 BY A JUROR:2 Q. Yeah. 'There's a company named Chicago3 Title. I'm assuming that they have deep pockets. And4 if they're implicated in these forgeries simply because5 they worked with another company, could they be held

6 liable for all the damages suffered?7 A. In a civil sense, you know whenever there8 are these types of lawsuits you name everybody in the9 chain and then usually the defendants all point fingers10 at one another and try to figure out who really is at11 fault. In a civil context most of these cases settle12 which means you don't really know who's rea11y at fault,13 there is never really that determination. I've not14 taken any of these types of cases to trial. They don't15 go to trial.16 Q. Would you recommend anyone that has been17 foreclosed on to check their documents to see if it was18 perhaps improperly done:

19 A. Yes. You know there's always statutes of20 limitations that come into effect with regard to claims21 you can raise with regard to civil litigation. So, you22 know, if you had a foreclosure in the '80s, probably23 not, but anyone that has been foreclosed in the past24 four or five years, certainly.25 Q. Thank you.

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1 Seeing none, this matter is submitted for2 deliberation.3 THE FOREPERSON: Thank you.4 (At this time, all persons, other than5 voting members of the Grand Jury, exit the room at

6 2:26 pm and return at 3:16 pm.)7 THE FOREPERSON: Mr. and Madame District8 Attorney, by a vote of 12 or more grand jurors a true

9 bill has been returned against defendants Gary Trafford

10 and Gerri Sheppard, charging the crimes of notarizatio

11 of signature of person not in presence of notary public,

12 offering false instruments for filing or recording, and

13 false certification on certain instruments, in Grand

14 Jury Case Number llAGJ037A-B. We instruct you to

15 prepare an Indictment in conformance with the propose

l6 Indictment previously submitted to us.17 MR. KELLEHER: Ask the record to reflect18 that a copy of the Indictment has been given to the

19 foreperson and I'll be signing it now.20 THE FOREPERSON: Okay.2122 (Proceedings concluded.)

--ooOoo-~


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1 "d public record, to ,",u.L. are no letter of2 liens or cncunbrances or rights to property that are3 sti l l lingering out there that "''QuId cause the lender4 for the buyer to not issue a loan. 'Ihat's the purpose5 of a t i t le search is to nake SUfe that you can convey6 actual title to the property.1 Q. And can you tell us briefly what they ..:ere8 able to fino79 A. Their conclusion, which is on page 1021 in10 ite:n nu..'Wet 11/ is that they show no open deeds of trust

11 affecting the property described herein. 'lhe only deed12 affecting the land which was recorded within 24 hours of13 the date of this report was National Default Servicing14 Corporation as the grantor to grantee U.S. Bank llational15 Association as trustee for Credit Suisse First Soston.16 Recorded Novenber 8, 2001. 'rhe instnu::ent nwer was11 002258 and the boo}; nurher was 2001-1108 of official18 records,19 Q. So ilgain it 's referring to the property20 that thIs notice of default election to sell, Exhibit21 22122 A. Yes, that's correct. There's actually a23 legal description frequently titled Exhibit A that gives24 a assessor's parcel nunber of 16308612016/ and then i t25 gives the netes and bounds legal description of the

1 docUJr.ent12 A, Yes. Signing soneone else's nane and3 notarizing i t would cause this notice of default to not4 be valid and subsequently every action that happened5 after that point in th:e h'()uld not be valid. Including6 the transfer to Hr, Shaffer.

Q. And what do you base that opinion on?8 A. Yhe require:tent that recording such as a9 notice of default has to be without defect and without

10 fraud.11 Q. Have you reached any other conclusions with12 regard to the docunents?13 A. Yes. With regards to the t i t le policy that14 was issued, there is an o\ffler'g policy, there's15 different kinds of title insurance. Generally t i t le16 insurance when i t 's first taken out is for the loan17 itself/ i t 's called a loan policy. A loan policy only18 protects the lender, So the purchaser, i f you put money19 down on the hor-e and you don't get an oWtler's policy ar.d20 there's an issue with t i t le that cones along, you're not21 protected. In this instance Mr, Shaffer does have an22 owner's policy but there are several exclusions listed23 here that could cause hin to have potential exposure or24 have to filEl a lawsuit.25 Q. Can you refer us to the bate stanp that

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1 land. kid that ttatches the nolice of default that we2 just discussed,3 Q. After reviewing al l of the docunents were4 you able to forn any type of legal opinion with regard5 to this natter?6 A. It appears that the hOlleOlmer in this7 instance has obtained t i t le insurance and that there is8 a clear t i t le conveyed in accordance with. the t i t le9 report. HOioi'ever, after reviewing the docUlAents in this10 case and specifically the notice of default as well as

11 the substitutions and assignr:ents that occur between the12 notice of default and the tilte that Mr. Shaffer13 purchased the hO:le, it does raise issues as far as the14 question on whether or not that foreclosure was15 conpleted proper1 i,16 Q. Do you base that opinion on the fact that17 there fay be questions with regard to the notice of18 default itself?19 A. That and the fact that an assigMent20 oc(:urred much later fro:D the tillie of the notice of21 default and i t 's not clear uho the beneficiary was at22 the ti1.e that the notice of default was recorded.23 Q. Would your opinion be different i f you were24 told that with regard to Exhibit 22 that the notary had25 .signed the docunent and then also notarized the sane

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points out the exclusions?A. I can. I f }'OU turn to the beginning of the

actual policy itself that was issued, i t begins batesnunber 1127.Q.

A.Okay.'i'hat's the table of contents that begins

the policy. I f you turn to the second page, which is1128, there is a l ist of the covered t i t le r ish. Thispolicy covers the following t i t le risks if they affectyour t i t le on the policy date. S o ~ e o n e else OimS aninterest in your t i t le. A docu.ttent is not properlysi.gned, sealed, acknowledged or delivered. Forgery,fraud, duress, incompetency, incapacity oriJropersonation l or defective recording of any instrunent.'i'here's some other covered titled risks that are inthere but uhenever you read an insurance policy you haveto read whatls covered hut then you have to read theexclusions to figure out i f your particular situationwould raise that.

Q.A.Q.

And where are the exclusions?The exclusions are listed on 1129.At the top of the page?

A. Yes, i t talks about certain t i t le risksthat are excluded. then i t discusses the conditions.

Q. Yes. And what concerns do you have?

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A. >he concern ,! ave is that in the2 owners' policies occasionally toere's exclusions with3 regard to creditors' interest and when there arc4 It-ortgaqes that arc sold on the secondary narket, a5 mortgage backed security, there are usually creditor6 rights j endorsenents , that would cause, i f there1,s a7 fraudulent conveyance or s o ~ e t h i n g that would arise in a8 bankruptcy context with regards to how the doctments and9 the loans we-ra transferred, i t could cause there not tc10 be coverage i f it 's listed as an endorse:r.ent or

11 exclusion.12 In this instance, I don't have the loan13 policy, r only have the owner's policy, what protects14 the owner. So that would be part of the concern. The15 other concern is that i f you look at the next section16 which is conditions -- I'm sorry, 1'm on the wrong page.17 Q. $0 we're still on bate stamp 1129?18 A. Yes.1920

Q.A.

Okay.Yes, we're on 1129. I f you read that i t

21 gives instructions on how to oake a clain. I f you turn22 to the next page, JIB sorry, i t 's at the top of 1130.23 Q. Okay.24 A. Nunher 4 talks about our choices when you25 notify us of a elaie.

I that i f the insurer sinply decides to pay the full note,2 purchase price of the ho:r.e, they're no longer under any3 duty to defend. So s o ~ e o n e could put !:Oney down, get a4 purchase, you know, purchase policy anount, but be out a5 lo t of noney if that hO!Ie was to appreciate.6 Q. Can you t.ind of put that in lay.ten's terms7 for the Grand Jury so that they understand. I lIeanB we've been talking a lot in terns of the policy and9 exclusions and al l that. Basically what it would ![.ean

10 to a ~ I O l t e o w n e r who purchases a foreclosed property.11 A. Most hOl,:eowners, i f they ever know that12 they have title insurance or understand it , \or'Culd13 believe that the insurance co:tpany 1+Ould inde:mify thea,14 defend the:J:., with regards to that marketability of15 title.1& In a situation where the foreclosure was17 done fraudulently or not correctly and there's a courseHl where the land records i'o'Ould revert back to that19 original owner, the new purchaser is ieft in a situation20 of only being able to collect the F.!Oney damages. They21 can't get the actual property itself if there was a22 wrongdoing that happened prior to them being introduced23 to the chain of title. In light of that, i f there was24 appreciation of the hor-e that would translate to a less25 to that honeowner.

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1 Q. Yes.2 A. After lIe receive your clair!. notice or in3 any other way learn of a patter for which we're liable4 we can do one or rwre of the following.5 So the title insurer has the option to6 decide how to handle the claim. They can pay the claim7 against the title. 'ihey can negotiate a settle:r.ent.S They can prosecute and defend. 'fhey can pay the acount9 required by the policy. And the anount required by the10 policy is the purchase price of the hooe. 1n this

11 particular loan that was the tt..ount that was listed in12 the prelininary report and then the actual insurance.13 So the insurer only has to pay the a ~ o u n t required by14 the policy which the purchase price of this hone would15 be the Hoit thereof. 'they also have the ability to16 cancel the policy by paying the policy a:r.-Qunt then in11 force and only those costs, attorney fees and expenses18 incurred up to that time which they're obligated to pay.19 The Concern there would be that a purchaser of a20 foreclosed property, i f they basically purchased a21 lawsuit so to speak and tender a clain to their22 insurance on the title policy, the concern would be i f23 there had developed any equity in the property above24 that policy MOunt there's no covenge or protection for25 the owner. 'there's also the issue of litigation fees,

I Q. Is there a possibility that the h o : ; : e o ~ n e r 2 that purchased the foreclosed property not even have3 legal standing to bring those causes of action?4 A. 7hat 's correct. There's a possibUity that5 if the foreclosure itself is deer;ed void as though i t6 has never happened and by operation of law it never7 happened. then that neans they never were a landowner, aa titled landOlJner of that p r o ~ r t y . So there are9 instances where they, and there have been cases that

10 have cO:le up recently on this issue where judges have11 found that the purchaser of the foreclosed property12 doesn't even have standing to raise clail\!S.13 Q. So soltebody could purchase a foreclosed14 hone, start making paynents and then find out that they15 don't Oh'Tl the ho,1.e116 A. That's correct, And 1 actually have had17 clients cone in that have purchased foreclosed property18 and usually within a couple oonths of that we do have19 under the .1RS i f a hone is foreclosed and the prior, the20 foreclosed ho:r.Mliner believes that there was a wrongful21 act by the lender, they have a time period in which22 they're. able to file a wrongful foreclosure action even23 after the foreclosure has ended.24 So I've had clients coce in that have 'ilone25 and either purcllased at the foreclosure sale or they've

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1 purchased fron a ban); WhO . ompleted the foreclosure2 sale and they've been drug into a lawsuit where the3 hOSleowner has sued for wrongful foreclosure.4 O. One second.567 questions?8 BY A JUROR:9 Q.

'i'he State doesn J t nave anything else.'i'HE roREPERSo."I: Jurors, do yOu have any

I' d like to ask you, Jln trying to make10 sense of al l this in laynen terms. So le t It! throW' up a11 scenario to you ami rgaybe you could advise tle. You used12 the words fight a lawsuit. Suppose there has been a13 foreclosure and then i t 's d e e ~ e d not correct because14 there is a forgery on the foreclosure and then the15 person, the indIvIdual being foreclosed on decides to16 sue or decides to get his property back. In the17 E.eantiE::e SOl::eone else has purchased the property. Let's18 say they purchased i t for cash and letls say they find19 that al l these actions were illegal. l1hat happens tCl20 the individual that purchased the property with cash i f21 he has no grounds to sue?22 A. I t would depend on ....hether there ....as title23 insurance that would provide coverage for the lack of24 the marketability of the t i t le. I f there's no t i t le2S insurance, and oftentir::es i f you are getting a loan

Q. Let's say they do get a warranty deed fran2 the bank and i t later turns out that the title is3 defective because there was a forgery. So wouldn't the4 bank that sold the property to these new buyers be held.5 responsible?6 A. I f they're responsible for the had, the7 forgery, the docll:ll.ents, yeS t then there ...ould be a claIn8 against then for you having, you know, i f nothing else9 an unjust enricru:ent for havIng received the proceeds of

10 the sale.11 Q.12 forgery?13 A.

Khat if they're not responsible for theThen }'QU \''Ould sti l l have to kind of 90

14 through the train because i t depends on wno knew and the15 notice. These types of lawsuits ate extrenely coople:-:.16 Q. So i t 's possible the original person,17 individual foreclosed on t could wind up with the18 property bac}::?19 A. Yes.20 Q. And the person that purchased the property21 is out, cO!1pletelyout, he !tay not have any recourse?2223

A.Q.

Correctt that's a possibility.Has that happened to your knowledqe or

24 based on your experience?25 A. I don't know here in toe State of nevada.

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1 policy i t doesn't a111'aY5 reean that there's an o .ner2 policy. Oftenti[[es yOll have to check an additional box3 on the request to the escrow officer. So there are4 instances where if you purchase a ho"'e and i t 's financed5 and the loan policy is issued/ i t doesn't oean that6 there's an owner's policy. Without an owner's policYI1 whether i t 's a cash buyer or a financed buyer, they're8 going to lose that money.

Q. How what i f the ONner, the new owner,10 alleged new owner, buys fro:r. say the bank, ... Ouidn't the11 bank be held responsible?12 A. It 's possible. They would have t it depends13 on the transaction. There's lots of language. I f i t 's14 a, i f there's no warranties in the deed with regards to15 Jlarketabilityand youlre just taking i t on the word of16 the person, then no, there t1ouldn't be a recourse. But17 i f there are warranties and guarantees .in that dee

1 I have read cases fran across toe country where yes,2 that has happened.3 'fIl& FOREPERSON: Additional questions?4. BY A JUROR:5 Q. Does this lawsuit clock in the thousands of6 docUllents toat were sU/):1itted and recorded, does that7 now deen al l of those deeds to have a cloud on the8 t i t le; is it a clouded title then?9 A. I'm not sure. fhese are the only documents

10 that 1 looked at that I discussed today so I don't know11 what the other dOCIJ.nents are that you al l have been12 presented with. Khat I can tell you is that clouded13 t i t le isn ' t really something that's tangible. Clouded14 t i t le is exactly just as simple as it sounds. It 's15 fuz/:y, it 's not clear. It 's not a clear day, there's16 clouds, sOl!:ebody is obscurin9, you know, what you're17 looting at . And so clouded t i t le can just sinply beIS that there's doubt. You lila',!, clouded title exists when19 the escrow officer forgets to cut a check to Republic20 Services for toe $3(1 lien for not paying tra sh. That',s21 a cloud on t i t le. I t 's not a big deal. you can clean i t22 up pretty easy and fix it . So clouded title is kind of23 a laynan's teta but i t 's not, i t doesn't really cover24 the severity of the different things that can happen25 with regards to chain of title and the Earketability of

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t i t le. I t 's easy to go b.nd fix, you kno'd, liens2 that were let t out of the t i t le se1lrch or saxe of those3 other types of :mall things that can be financially4 changed.5 With regards to, you knw, forged6 instrur.ents that Bre recorded, there's going to be very1 rar back in the chain potentially nlll'terous purch1lsers of8 the hOille that if that sale is deaned void. and again a9 sale would be deexed void by a court, not the attorneys10 who have an opinion on their case, because you had said

11 if , you know, as Jliuch as 1 think there is that cloud and12 as Iluch as I might have the opinion that ray client's13 rights in the property are tarnished by the cloud, i t14 sti l l takes going to a trier of f

CASE FILE Nevada CRIMINAL False Filings_ EXCERPT_ Reporter's Transcript of Proceedings Nevada vs. Gary Trafford, Gerri Sheppard

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