Bankster Justice

February 6th, 2012

In the mid-1990s, the top mortgage insurers and service providers, along with Fannie Mae and Freddie Mac, the government entities that hold many of the country’s mortgages, created a database for tracking mortgage ownership called the Mortgage Electronic Registration System, or MERS. Since that time, more than 70 million mortgage loans, including millions of sub-prime loans, have been registered in the MERS system, rather than in local county clerks’ office.

Last Friday, Eric Schneiderman, New York Attorney General and co-chair of President Obama’s new crisis unit, sued Bank of America, Wells Fargo and JP Morgan, accusing them of deceptive and illegal practices in their use of the database, including falsifying documents in foreclosure proceedings.

Schneiderman contends that the database is inaccurate and that the mortgage industry created MERS so that financial institutions could avoid county recording fees and publicly recorded mortgage transfers, saving the banks two billion dollars in recording fees. The lawsuit seeks to stop the banks from filing foreclosure actions through MERS.

Too bad it’s taken the Obama administration, and Eric Holder in particular, so long to go after the banksters responsible for the country’s financial collapse. (How one wishes that Robert Kennedy were heading the Justice Department.) Instead, Holder tried to cut an incredibly bad deal that would have the banks pay $20-25 billion in fines and mortgage relief in exchange for protection from further liability.

But thanks to Schneiderman, California’s Kamala Harris, Martha Coakley of Massachusetts and Beau Biden of Delaware––and a series of court rulings that have blocked foreclosures because banks presented fraudulent robo-signed documents––the administration has been forced to seek much stiffer fines and prison sentences.

But beyond stiff fines and long prison sentences for the worst of the banksters, the economy and the real estate market will not fully recover until the millions of homeowners with upside down mortgages get some relief. It appears that the Obama administration has finally come to the conclusion that creating a crisis unit and appointing a bulldog like Schneiderman is in their––and the country’s best interest.

It was illegal behavior by the banks, and not the homebuyer, that caused the greatest financial collapse since the Great Depression. Now, finally, we may get a reckoning. It’s the banksters’ worst nightmare come true.

Success Without Honor

January 23rd, 2012

Joe Paterno won 409 football games during his coaching career, but he lost the two most important battles of his life.

He had little choice in his losing battle with lung cancer. By all accounts, he wasn’t a smoker. Some have suggested that radon might have caused the tumor in his lung. High levels of radon are found in the area in which he lived. But whether the tumor was caused by genetics or something in the environment, poor choices didn’t cause or contribute to his death at 85. But he did make a poor choice in his second losing battle, and it’s a choice he’ll always be remembered for.

While at Penn State, detractors claim that his players often received special treatment, and some feel he stayed on too long, simply because he wanted to win more games. But neither of those arguments diminishes the positive influence he had on many young men, and the large amounts of money he donated to improve the Penn State campus.

Yet, for 10 years, while preaching his credo of “Success With Honor,” Joe Paterno let his former assistant, Jerry Sandusky, have access to the football facilities and to more young boys, which Sandusky molested.

Paterno first learned of Sandusky’s sexual abuse in 2002, when graduate assistant Mike McQueary reported seeing Sandusky with a young boy in the showers of the football complex. Paterno waited a day before reporting the incident to his superiors and did not go to the police. And he never confronted his friend Sandusky––nor did he ban him from the facilities. While administrators at Penn State covered up the incident, the abuse continued, and Joe Paterno continued to look the other way.

In hindsight, it seems obvious that Paterno actually did more damage to his and to Penn State’s reputation, than he would have if he’d come forward with the allegations in 2002 and demanded accountability for Jerry Sandusky. But he didn’t.

A credo is only as good as the person behind it. Joe Paterno, despite all his victories and accomplishments, ignored what he preached to his players, and in so doing, he lost the most important battle of his life. And he should rightfully be remembered for it.

The Incredible Case Of Jakadrian Turner

January 6th, 2012

So let me see if I’ve got this straight.

A 14 year-old American girl named Jakadrian Turner, upset over her parents’ divorce and the recent death of her grandfather, runs away from her home in Dallas, Texas. She ends up in Houston, where she’s arrested on suspicion of theft. The fake name she gives to police, Tika Lanay Cortez, happens to be the name of a 22-year-old Colombian woman who has outstanding warrants, and is on a list for referral to immigration authorities as an illegal alien.

Turner claims to be Cortez throughout the criminal proceedings in Houston. She’s fingerprinted, but nothing turns up. A representative from the Colombian consulate interviews her, and the Colombian government issues her a travel document to enter Colombia. ICE, along with an American judge, deports her to Colombia. Once there, she’s given Colombian citizenship, and enrolled in the country’s “Welcome Home” program.

AND SHE DOESN’T SPEAK FRIGGIN SPANISH!!

That’s right. A 14-year-old African American girl, born in the U.S., who is not fluent in Spanish, is somehow mistaken for a 22 year-old native-born Colombian woman? And no one in the American justice system, ICE, or the Colombian consulate can figure that out?

It takes her grandmother and the Dallas Police nearly a year of searching to find her, and only because she had a Facebook page. Apparently, Jakadrian was issued a work card by the Colombian government, and has been working as a house cleaner ever since her arrival in Bogotá.

I think we can all rest easier tonight, knowing that those crackerjack officials at ICE and the Department of Homeland Security are keeping us safe.

Favorite Mystery/Crime Films of 2011

December 25th, 2011

It’s no wonder that fewer movie tickets will be sold in 2011 than in any year since 1995, given the preponderance of mind-numbing, computerized crap that Hollywood produces today; films lacking in suspense, characterization, and plot. Tune into just about any mystery/crime drama on cable today, and you’ll see better scripts and more tension. Thankfully, some good films managed to get made, some of them from novels. In no particular order, here are my favorites.

Daniel Craig is excellent, as is Rooney Mara in a role that was defined by Noomi Rapace. Thankfully, director David Fincher sticks pretty close to the book, something that Hollywood often has a tough time doing.

The Lincoln Lawyer: Based on the Michael Connelly novel, Matthew McConaughey gives a solid performance as maverick lawyer Mickey Haller in a very good courtroom drama––though it takes some license with the plot of the novel.

Margin Call: A very timely, riveting, and realistic drama given the country’s economic mess, it has great pacing and great performances by Kevin Spacey––let’s face it, the guy can flat out act––and Jeremy Irons, among others.

The Ides of March: An excellent political drama with a great script and wonderful acting, including a terrific performance from Ryan Gosling. A film that artfully portrays the evils of power and the corruption of integrity, something we see far too much of in today’s leaders and politics.

The Double Hour: If you’re a fan of Hitchcock or Polanski, than this Italian-made intelligent crime drama is just the ticket. A real puzzler of a film that often is really not what it seems. It’s always refreshing to sit through a film in which you actually have to pay attention.

Contagion: An excellent cast in a film that explores the very real possibility that a pandemic could wipe us all off the planet. Though certainly not a new premise, the movie has an excellent script and palpable tension, while avoiding many of the pitfalls of a typical disaster movie.

Point Blank: Leave it to the French to make a superbly crafted, electrifying crime drama. Great acting and a relentless pace will keep you on the edge of your seat until the final credits roll.

Tinker, Taylor, Soldier, Spy: Based on another very successful novel, the movie is set at the height of the Cold War, and is a classic example of how a good script and great actors can build tension through dialogue and details, rather than bullets, explosions, and computer-generated stunts.

Take Shelter: Michael Shannon gives a mesmerizing performance as a man who’s gradually losing his mind in this apocalyptic, suspense drama that won the top prize from film critics at the Cannes Film Festival.

Drive: Ryan Gosling gives another excellent performance that’s remindful of a young Steve McQueen in an intense, stylish and taut thriller. Nicolas Winding Refn won the Best Director award at the Cannes Film Festival.

Penn State Cover-Up

November 16th, 2011

As if college sports needed another black eye, now we have the Penn State sexual abuse scandal and the alleged cover-up, apparently orchestrated by deposed Penn State president, Graham Spanier.

Not only did Spanier fail to report the brutal rape of a child in the football locker room on Penn State’s campus in 2002, he then testified before the grand jury that he was told only that the boy was engaged in “harmless horseplay” in the shower with former Penn State defensive coordinator Jerry Sandusky. This claim was contradicted by the testimony of Mike McQueary, the graduate assistant who said he directly witnessed the child being raped and testified under oath before the grand jury that he told Penn State head football coach Joe Paterno as well as the athletic director, Tim Curley, and the vice president for business affairs, Gary Schultz, what he saw.

Now an email from McQueary has surfaced saying that he stopped the alleged attack in the team’s showers and went to police. So what version of McQueary’s story is correct, the one in the email, or the one he told the grand jury? And if he did report the sexual assault to the police, what did they do about it?

Head football coach Joe Paterno told the grand jury that he reported the incident to Spanier as a “sexual assault,” thereby calling into question Spanier’s testimony. The grand jury ultimately determined that Curley and Schultz committed perjury. But if Curley and Schultz lied, it seems apparent Spanier lied, too. So why hasn’t he been indicted for perjury? Also, Pennsylvania state law required Curley, Schultz and Paterno to report the charges to the police, which they didn’t.

The whole sordid affair also calls into question Joe Paterno’s judgment and responsibility or lack of it, since twenty of the current charges against Sandusky occurred while he was Paterno’s defense coordinator at Penn State. After McQueary reported the sexual assault, Curley and Schultz told Sandusky that he could no longer use Penn State football facilities while accompanied by children. Now that’s punishment benefiting the crime.

Yet, as late as 2009, Sandusky was on campus running a sleep-away camp for boys as young as nine years old. One alleged victim told the grand jury that Sandusky brought him to a Penn State preseason practice in 2007––a full five years after Paterno was made aware of the shower rape.

Spanier admitted approving the actions taken against Sandusky, including taking away his keys to the locker room. But if Sandusky was engaged in nothing but “horseplay” why was he forbidden to use the campus and its facilities? It strains credibility to assume Sandusky’s conduct was not sexual given previous reports of inappropriate sexual conduct with children, including the sexual exploitation of two boys in the Penn State locker room showers in 1998. In his testimony to the grand jury, Spanier claimed he knew nothing about the 1998 investigation, despite the fact that the incidents were investigated at length by outside law enforcement officials.

But the alleged lies and cover-up may go even higher than Spanier.

Current Pennsylvania Gov. Tom Corbett took the case on a referral from the Centre County district attorney in early 2009 while he was serving as attorney general. So why has the investigation taken nearly three years? Part of the problem may be that only one trooper was assigned to the case after the state took it over in 2009, according to a report in the Patriot-News of Harrisburg. After Corbett became governor early this year and his former investigations supervisor in the attorney general’s office, Frank Noonan, became state police commissioner, seven more investigators were assigned to the case, the newspaper said. Again, why the delay?

Some have suggested that the case was kept under wraps until after Joe Paterno broke Eddie Robinson’s record for victories by a Division I coach last October. Given this case’s shocking history and the win-at-all-costs-mentality that dominates sports today, I’m not surprised.

A Just Verdict

November 8th, 2011

Regardless of what one thought of Michael Jackson, yesterday’s verdict convicting his personal physician, cardiologist Conrad Murray, of involuntary manslaughter, was the right decision. The conviction calls for a sentence of up to four years, though it’s unlikely Murray will serve the full term because of a new state prison alignment law that allows early release for people convicted of nonviolent felonies. However, Murray will lose his medical license and will never practice medicine again.

The original Hippocratic Oath states that a physician should “do know harm,” and by any definition, Murray certainly did just that. The jury found that he acted with criminal negligence in administering a deadly dose of propofol to Jackson who was desperate to get some sleep so he could rehearse for his comeback tour in London.

According to testimony, Murray was accused of waiting more than twenty minutes before calling 911 for help after discovering Jackson lifeless on his bed, essentially ending any hope of reviving him. Murray then lied about using propofol – a powerful drug that is only supposed to be used in a hospital setting for general anesthesia and sedation.

Whether the jury determined that Murray actually administered the fatal dose of propofol was unclear, but one medical expert identified seventeen separate failures in the accepted standards of care in Murray’s treatment of Jackson. The LA District Attorney told the jury they needed to agree on just one life-threatening mistake to find him guilty and called Murray’s use of propofol to treat Jackson’s chronic insomnia an ‘obscene experiment’.

While Murray certainly was directly responsible for Jackson’s death, the rock-star and concert promoters were not without culpability, as Murray was under immense pressure to administer the drug. Jackson himself even threatened to cancel the tour if he couldn’t get enough sleep to rehearse.

It was a sad end for Michael Jackson and a career marked by brilliance and controversy. It was also a sad end for a physician whose greed overrode his medical ethics and training. One can only hope that Jackson’s death and Murray’s conviction serve as warnings to both celebrities and the physicians who are often paid exorbitant fees to cater to their dangerous wishes.

Robo Cop

October 26th, 2011

Robo-signing is back in the news, thanks in large part to the efforts of New York Attorney General Eric Schneiderman. Last August, Schneiderman was removed from a committee of state attorneys general investigating mortgage abuses. Schneiderman had the courage and integrity to state that he opposed any deal that gave participating banks a release from other litigation surrounding their mortgage activities, and that investigations should not be stopped until those responsible were held accountable.

Last month, Minnesota Attorney General Lori Swanson released a letter in which she supported Schneiderman and opposed the idea of giving a broad release to banks on foreclosure fraud in exchange for a quick settlement. She joins Delaware Attorney General Beau Biden, Massachusetts Attorney General Martha Coakly, and Nevada Attorney General Catherine Cortez Masto in voicing their concerns.

Robo-signing involves people signing documents and swearing to their accuracy without verifying any of the information. It’s a federal crime to sign someone else’s name to a legal document. It’s also illegal to sign your name to an affidavit if you have not verified the information you’re swearing to. Both are punishable by prison.

Last fall, the nation’s largest banks and mortgage lenders suspended foreclosures while they investigated the alleged robo-signing that was done to keep pace with the crush of foreclosure paperwork. The banks supposedly reviewed thousands of foreclosure filings, and where they found problems, they submitted new paperwork to courts handling the cases, with signatures they said were valid. The 14 biggest U.S. banks reached a settlement with federal regulators last April in which they promised to clean up their mistakes and pay restitution to homeowners who had been wrongly foreclosed upon. Then they resumed foreclosures.

However, there is new evidence that the practice continued and that banks and mortgage processors haven’t put an end to widespread document fraud in the industry. This can negatively impact sales in an industry that is still struggling to rebound after the recession. If robo-signed documents turn up in the property’s history, buying a home and trying to obtain title insurance becomes even more problematic because forged signatures call into question who actually owns the mortgage and the property.

Despite White House pressure in support of a settlement, Eric Schneiderman’s office has said it is conducting a banking probe that could lead to criminal charges against financial executives. I applaud him for his efforts.

So far, no individuals, lenders or paperwork processors have been charged with a crime over the robo-signed signatures found on documents.

How To Defeat Terrorism

October 11th, 2011

Saudi Arabian ambassador Adel Al-Jubeir

Some have argued over the last decade that the best and most cost-effective way to prevent terrorism in the U.S. is through good intelligence work rather than through lengthy wars in Muslim countries. The latest example supporting this line of thinking occurred today when it was revealed that an Iranian-backed plot to assassinate the Saudi ambassador to the United States was disrupted by the FBI and the Drug Enforcement Agency.

An Iranian American, Manssor Arbabsiar, 56, has been arrested in the case. Gholam Shakuri, an Iran-based member of the secret Quds Force unit of Iranian’s Revolutionary Guard, was also charged but is not in custody.

The two men were charged with conspiracy to murder a foreign official, conspiracy to use weapons of mass destruction, and conspiracy to commit an act of terrorism, among other counts. Arbabsiar has confessed to the charges and is cooperating with authorities in custody according to government officials. The men planned to detonate a bomb at a busy Washington restaurant, killing Adel Al-Jubeir, the Saudi Arabian ambassador to the U.S., and scores of innocent bystanders.

However, a DEA informant posing as a member of Los Zetas, a Mexican drug cartel, infiltrated the plot. The Zetas cartel was to be paid $1.5 million to carry out the attack, and two advance payments of nearly $50,000 each were wired to an FBI-controlled bank account in August.

Los Zetas, founded by a group of Mexican Army Special Forces deserters, began as the military wing and private mercenary army of the Gulf Cartel. Los Zetas took their name from the radio code used for top-level officers in the Mexican army. After the arrest of the Gulf Cartel’s leader, Osiel, Cárdenas Guillen, the Zetas began operating independently, which led to the bloody turf war that has engulfed Mexico. The DEA describes them as perhaps “the most technologically advanced, sophisticated and violent of the paramilitary enforcement groups.”

The DEA informant who helped crack the case, had been charged with a drug offense and agreed to cooperate in the investigation by posing as a member of the Zeta drug cartel in a meeting with the conspirators in May. Later meetings took place in the U.S. and Mexico.

FBI Director Robert Mueller told reporters today that the case “reads like the pages of a Hollywood script.” But I believe it reads more like a recipe for winning the war on terror.

ICE Shifts Tactics

September 29th, 2011

Wednesday in Minnesota, ICE agents arrested 37 criminal aliens as part of a nationwide sweep in which nearly 3,000 criminals were slated for deportation in an operation called “Cross-Check II.” More than 1600 had felony convictions ranging from attempted murder, manslaughter and kidnapping, to child abuse and sex crimes against minors. Of the 5,300 removed from this region this year, nearly 3,000––or 56%––had criminal records according to ICE data.

While illegal immigration continues to be a “hot-button” issue, especially among Republican presidential candidates, the Obama administration’s new emphasis on deporting aliens with serious felonies rather than those without proper documentation, who pose no threat to public safety or national security, is a welcome and much needed shift in focus.

The Department of Homeland Security and the Department of Justice can now review and clear out low-priority cases from 300,000 backlogged deportation proceedings. Those with no criminal records will be allowed to remain in the country and apply for a work permit. This shift in focus should also help the estimated two million young people who–– under the DREAM ACT––could have achieved citizenship by pursuing higher education or military service.

Those who continue to criticize the Obama administration often fail to report that as of September 2011, 1.06 million illegal immigrants have been sent home in 2 1/2 years — nearly equaling the 1.57 million that George W. Bush deported in two full presidential terms.

The Price of Fear

September 11th, 2011

The 10th anniversary of the 9/11 attacks is an appropriate time to reflect on the price this country has paid. Some of the costs for upgraded airline security and improved data sharing among law enforcement agencies were reasonable and necessary expenditures, though some of the billions spent on screening airline passengers were dubious at best, as evidenced by the government’s recent decision to allow passengers to keep their shoes on.

Other measures such as illegal wire-tapping of innocent Americans, torture –– euphemistically referred to as “enhanced interrogation”–– and two protracted wars that have resulted in the deaths of some 6,000 American soldiers and more than 100,000 civilians in Afghanistan, Iraq and Pakistan, were more the result of fear than necessity.
While we have weakened Al-Qaida by killing Osama Bin Laden and many of its leaders, these deaths were primarily the result of targeted attacks using SEAL teams and unmanned Drones rather than invading armies.

The cost of these wars has been estimated to be $4 trillion dollars, in addition to the hundreds of billions spent on homeland security. We’re also facing billions more in medical and psychological costs to treat soldiers suffering from the physical and emotional damages of war, as witnessed by the incredibly high suicide rate for soldiers returning from the battlefield.

Since that fateful September day, we’ve experienced two recessions, including the deepest one since the Great Depression, and seem to be on the verge of a third. Instead of paying for the wars, taxes were cut, and the Treasury lost an estimated $1.3 trillion in lost revenue over 10 years. The budge surplus became a huge deficit, and the total federal debt nearly doubled to $10 by 2008. Today it’s almost $15 trillion. The U.S. government now owes three times more than it did in 2001.

Unemployment is high, U.S. households are deeply in debt, and Americans have lost billions in the stock market, in the value of their homes and in their net worth. The country and its two main parties are divided along ideological lines, and Congress is as toxic as nuclear waste.

Wall Street and the banking industry––instead of working to help the country––responded with an unbelievable gluttony of greed and exotic financial products like derivatives that can be bundled and resold throughout the world, even though many were worthless.

Osama Bin Laden believed he could bankrupt America and bring it to its knees in much the same way as he and the Mujahideen bankrupted the Soviet Union. Bin Laden’s weapon of choice for America was fear.

He has yet to be proven wrong.