So I was on this blogging roll getting a post out on a somewhat regular basis, and what happens? My laptop gets stolen out of my luggage on a trip to Tampa. Transportation Security Administration (TSA) my ass!! All that garbage at the gates of our airport is Bull hockey. We are no more safe or secure at our airports than we were on September 10 2001.
TSA is a home for crooks and thieves. They now have a license to rifle through our luggage, touch our clothes and tolietries and steal whatever they want. It is such a known fact that no one and I mean no one will insure anything you check... So I had to buy a new laptop and I missed blogging the biggest story in US political history... Well I am back now, wiser about the garbage that is the TSA and I still hate air travel.
I know my libertarian friends will hate me for this but GO AMTRACK!!! Any dollar that the government takes from me to build high speed trains throughout this country is money well spent. At 200 mph We can go from NY to LA in about 24 hours (stopping in Philly, Cleveland Chicago Denver and Vegas)Sign me up!
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Showing posts with label Federal Budget. Show all posts
Showing posts with label Federal Budget. Show all posts
Saturday, November 08, 2008
Sunday, October 05, 2008
Craig's List is a Hotbed of Online Prostitution: So Who Knew??
This must be the week for Prostitution on blogs. Instapundit sites this article about the (sewer/treasure trove{?}) that Craig's List Erotic Service Section has become in the search for "sex on the run." I think the comments below the article are interesting however.
For example:
"Posted by whb on October 5, 2008 at 2:53 a.m.
It is illegal to pay to have sex, but it is legal to pay to watch people who are paid to have sex, i.e., a porno film.
As porno films are legal to buy and watch, they should therefore be legal to make (can't have one without the other).
So, all these professionals should advertise for a co-star in an upcoming film and set up a camera at the meeting location. This should legitimize the transaction, and the police can then focus their attention on something worthwhile."
I have had this thought myself a number of times. There are issues that the "service provider" would have to resolve but it is an interesting idea. (Let me know what you think in the comments section.)
Anyway, the comments to the article seem to indicate that even in "Bible Belt" Tenn. people get the idea that maybe law enforcement ought to be doing something other than chasing down randy adult men (and the adults who make money off of meeting their sex drive).
What these citizens do not realize (and I am surprised the Instapundit doesn't point out) is that these Prostitution stings are funded by good 'ole Uncle Sam. That's right, special funding is coming from the Justice Department (by way of The Trafficking Victims Protection Act of 2000, to local police departments that arrest these people. That puts cops off the street and takes local police department eyes off of the real crime in their cities and towns.
What's worse is The William Wilberforce Trafficking Victims Protection Reauthorization Act also known as HR.3887. This little baby wants to federalize the crime of prostitution. Can you imagine the increase in the US Justice Dept. budget if we did that?? Where will we get the personnel to deal with important stuff like Terrorist, Organized crime and Wall Street criminals? The scary thing is a version of the bill passed the House 405-02 in 2006! In fact the Justice Dept. opposes HR.3887
It is all part of the Neo-con game of keeping the Religious Right enraptured. No money expenditure is too large if it makes some televangelist happy...
Sunday, April 20, 2008
Sub-Prime Mess Leads to Mortgage Fraud Prosecutions: The Millionaires Play While the Homeowners Will Pay With Their Freedom
On Friday the FBI announced that the sub prime mortgage mess is going to lead to an uptick in mortgage fraud prosecutions.
Now what that translates to is that everyone who did something to help homeowners buy houses that they could not afford will be prosecuted, while the banks that profited all those years will pretend that they were unaware of the rampant fraud in the marketing of mortgages so that they can get as much of their money back while little players go to Federal prison.
I know that many of you are confused by the sub-prime mortgage mess. In a nutshell, the banks lent money to homeowners and buyers without requiring that they have any equity in the house. Now the mortgagor (the owner) can no longer afford the mortgage and has no equity (a reason to keep the house as an investment) in the home so he walks away from the debt leaving the bank holding the mortgage and the house.
Now why can't the bank just sell the house? Because it is worth less than the amount owed on it and so the bank will take a loss. Do that over and over again, and voile you got a mess of banks going belly up. The most recent failure was at Bear Sterns (hereinafter BS, for so many reasons).
Well, you may say, "sounds like they made bad investments. They should have to pay for using bad judgment." Yeah Right. They completely screwed up and yet you should see how they were rewarded before they went under. Lets look at some of the principal players at BS:
Alan Schwartz: is the CEO, President and basically the chief honcho.
Sam Molinaro Jr.: is the COO and the CFO and is basically the number 2 guy
Mike Minikes: is the treasurer of B/S
Mr. Michael S. Solender: is the attorney.
A fast review of their recent (last 6 months) trading of their options (which they received gratis as part of their "salaries") goes like this:
Schwartz made Six Million Dollars on the sale of his options of stock on Dec. 21 2007.
Molinaro made 2.5 Million Dollars on his sale the same day (he sold less).
Minikes made 2.3 Million Dollars on his sale.
Solender made 185 Thousand Dollars on his sale of options.
This is all in addition to multi Million Dollars salary and benefit packages they get!!
So the government is going to get these guys to give back the money right?? WRONG. They are going to get to keep the spoils of being horrible business people who cost their little shareholders millions.
So who is the government looking for? The favorite scapegoat... the little guys.
You see, BS is pretending that they never heard of inflating an income or an appraisal in their lives. ("I'm shocked, shocked to find that gambling is going on in (Casablanca)!)
For years BS (and others, I am not just picking on Bear Sterns they are just one example) made a fortune on the lies of brokers and homeowners. They knew of them, and allowed them to continue to lie about income and equity, until the bottom of the market hit like the end of a Ponzi scheme. Only difference is that the company was left holding the bag along with a lot of people who are or are going to be homeless.
You may be asking how this means homeowners are going to jail. Here is the answer:
Many (if not most) homeowners over the last 10-15 years have been playing a game that allows them to get the equity out of their homes and use the homes like an asset. By refinancing they recieved 100% equity and sometimes more. They used phony appraisals (which would "convince" the banks that the home was worth more than it was) and over estimated their incomes (to "convince" the bank they could pay the monthly payment.)
In other words, they lied on application documents. These banks have federal funding and insurance... Hence you have a federal case. Thanks to the advent of the US Sentencing Guidelines, prison is always an option. Now the government doesn't really want to put all that many people in prison. Just enough to scare the bejesus out of everyone so that they begin to tell on their partners in this venture, the appraisers and the mortgage brokers.
Now let's face it. When a homeowner went to the broker, he wanted more money than he had equity. The broker who could get the loan for him was going to get the business and make a commission. Now the broker didn't want the mortgagor to go bankrupt. He usually thought the homeowner could afford the mortgage. Why did he think that? Beause the Mortgagor was lying about his income. Usually not a big lie, often under 50 thousand dollars, just to make sure that they could qualify for the loan. After all a person can over-estimate a little, no?
So the Broker needs to find an appraiser who will fudge the numbers a little. It isn't hard. The appraiser wasn't making much for his work. So the Mortgage broker found a few who needed extra money and offered them a piece of any deal they helped get for the broker. Often the homeowner "tipped" the guy as well. After all a person can over estimate a little, no?
Then the broker goes to the hungry loan officer with a bunch of these loans and the loan officer sees a big commission check coming and he takes on a bunch of seemingly good loans and a few bad ones cause after all a person can be off a little, no?
Now to "get" the people who made money here, the government needs to make the case against them from the bottom up. First they will go to anybody who over-estimated their income and look to turn him against the broker and the appraiser.
It will work like this:
They will send an investigator to the door of some home in say Queens, Nassau or Suffolk County. He/she will ask if you are the homeowner and they will then question you without giving you Miranda rights. This is legal. You only get Miranda card readings when you are under arrest and questioned.
They won't tell you you need a lawyer, they will only tell you how much trouble you're in. They may even threaten to arrest you if you do not speak to them. DON'T DO IT. They are going to arrest you anyway.
Then they will offer to let you off easy if you will implicate the broker. After all you're not smart enough to over-estimate your income. The Broker told you what to write down RIGHT??
The Broker got the Appraiser right? The appraiser told you he could make the appraisal look good for you for a little "tip" right?
Now "tell them what they get for trying to own a home on Long Island Johnny." "Well Bob they get to hire a Criminal Defense Lawyer who is going to cost them 25 thousand dollars or more, AND they get to implicate the people who helped them afford a home in Queens, Nassau or Suffolk County, maybe even a relative or friend who was a mortgage broker or appraiser, and face a criminal fraud conviction and the possibility of Three year vacation in a Federal Prison!!!"
"Hold it! Hold it! Hold it" you say. "I am paying my mortgage. I have nothing to worry about."
WRONG. When the FBI gets the names of the brokers from the lenders, they will look to see what loans were generated by those guys. Did they use the same appraiser each time (usually they do)? Then they will look at those applications. Check the information in the apps against what they have on file for you (you know, your IRS Form where you tried to limit your income) IF (When) they find discrepancies, they will come for you too, to get the people who sold loans.
In fact, if you are still in your beautiful Long Island residence and haven't defaulted, you are easier to get. You don't already have a lawyer (so now there is none of that ugly "statement suppression" issue) and they know where to look for you (your not homeless yet.)
So you testify against your friend or loved one and then one of them turns on the others and in the end of the game you all have to pay "restitution" to the "defrauded" banks and the guys who knew all of this, and who profited from it the most, keep their millions. You on the other hand have a criminal record, have to hire a lawyer and lost your house and maybe met some new friend in prison named Bubba.
Don't let this happen to you. If you are a Mortgage Broker, Appraiser, or Homeowner/mortgagor, get to a Criminal Defense Lawyer now. Even if you are sure you will not be a target of an investigation, it is smart to get a lawyer and let him speak to whomever he thinks will help you to win the day. Let whoever comes knocking on your door from the federal government know that you have a lawyer on retainer. CALL YOUR LAWYER as soon as the investigators come to the door. Do not say anything to them without your lawyer being with you.
If you follow these simple steps you will be able to sleep through much of this crisis, and you will continue to enjoy the simple life of a homeowner on Long Island.
Although I focused on Long Island and specifically the counties of Queens NY, Nassau NY, and Suffolk NY, the scenerio and advice is good throughout the country.
You have been warned, heed the warning.
Hattip: ABA JOURNAL NEWS
For more information on Mortgage Fraud, see the FBI's Mortgage Fraud Page
Now what that translates to is that everyone who did something to help homeowners buy houses that they could not afford will be prosecuted, while the banks that profited all those years will pretend that they were unaware of the rampant fraud in the marketing of mortgages so that they can get as much of their money back while little players go to Federal prison.
I know that many of you are confused by the sub-prime mortgage mess. In a nutshell, the banks lent money to homeowners and buyers without requiring that they have any equity in the house. Now the mortgagor (the owner) can no longer afford the mortgage and has no equity (a reason to keep the house as an investment) in the home so he walks away from the debt leaving the bank holding the mortgage and the house.
Now why can't the bank just sell the house? Because it is worth less than the amount owed on it and so the bank will take a loss. Do that over and over again, and voile you got a mess of banks going belly up. The most recent failure was at Bear Sterns (hereinafter BS, for so many reasons).
Well, you may say, "sounds like they made bad investments. They should have to pay for using bad judgment." Yeah Right. They completely screwed up and yet you should see how they were rewarded before they went under. Lets look at some of the principal players at BS:
Alan Schwartz: is the CEO, President and basically the chief honcho.
Sam Molinaro Jr.: is the COO and the CFO and is basically the number 2 guy
Mike Minikes: is the treasurer of B/S
Mr. Michael S. Solender: is the attorney.
A fast review of their recent (last 6 months) trading of their options (which they received gratis as part of their "salaries") goes like this:
Schwartz made Six Million Dollars on the sale of his options of stock on Dec. 21 2007.
Molinaro made 2.5 Million Dollars on his sale the same day (he sold less).
Minikes made 2.3 Million Dollars on his sale.
Solender made 185 Thousand Dollars on his sale of options.
This is all in addition to multi Million Dollars salary and benefit packages they get!!
So the government is going to get these guys to give back the money right?? WRONG. They are going to get to keep the spoils of being horrible business people who cost their little shareholders millions.
So who is the government looking for? The favorite scapegoat... the little guys.
You see, BS is pretending that they never heard of inflating an income or an appraisal in their lives. ("I'm shocked, shocked to find that gambling is going on in (Casablanca)!)
For years BS (and others, I am not just picking on Bear Sterns they are just one example) made a fortune on the lies of brokers and homeowners. They knew of them, and allowed them to continue to lie about income and equity, until the bottom of the market hit like the end of a Ponzi scheme. Only difference is that the company was left holding the bag along with a lot of people who are or are going to be homeless.
You may be asking how this means homeowners are going to jail. Here is the answer:
Many (if not most) homeowners over the last 10-15 years have been playing a game that allows them to get the equity out of their homes and use the homes like an asset. By refinancing they recieved 100% equity and sometimes more. They used phony appraisals (which would "convince" the banks that the home was worth more than it was) and over estimated their incomes (to "convince" the bank they could pay the monthly payment.)
In other words, they lied on application documents. These banks have federal funding and insurance... Hence you have a federal case. Thanks to the advent of the US Sentencing Guidelines, prison is always an option. Now the government doesn't really want to put all that many people in prison. Just enough to scare the bejesus out of everyone so that they begin to tell on their partners in this venture, the appraisers and the mortgage brokers.
Now let's face it. When a homeowner went to the broker, he wanted more money than he had equity. The broker who could get the loan for him was going to get the business and make a commission. Now the broker didn't want the mortgagor to go bankrupt. He usually thought the homeowner could afford the mortgage. Why did he think that? Beause the Mortgagor was lying about his income. Usually not a big lie, often under 50 thousand dollars, just to make sure that they could qualify for the loan. After all a person can over-estimate a little, no?
So the Broker needs to find an appraiser who will fudge the numbers a little. It isn't hard. The appraiser wasn't making much for his work. So the Mortgage broker found a few who needed extra money and offered them a piece of any deal they helped get for the broker. Often the homeowner "tipped" the guy as well. After all a person can over estimate a little, no?
Then the broker goes to the hungry loan officer with a bunch of these loans and the loan officer sees a big commission check coming and he takes on a bunch of seemingly good loans and a few bad ones cause after all a person can be off a little, no?
Now to "get" the people who made money here, the government needs to make the case against them from the bottom up. First they will go to anybody who over-estimated their income and look to turn him against the broker and the appraiser.
It will work like this:
They will send an investigator to the door of some home in say Queens, Nassau or Suffolk County. He/she will ask if you are the homeowner and they will then question you without giving you Miranda rights. This is legal. You only get Miranda card readings when you are under arrest and questioned.
They won't tell you you need a lawyer, they will only tell you how much trouble you're in. They may even threaten to arrest you if you do not speak to them. DON'T DO IT. They are going to arrest you anyway.
Then they will offer to let you off easy if you will implicate the broker. After all you're not smart enough to over-estimate your income. The Broker told you what to write down RIGHT??
The Broker got the Appraiser right? The appraiser told you he could make the appraisal look good for you for a little "tip" right?
Now "tell them what they get for trying to own a home on Long Island Johnny." "Well Bob they get to hire a Criminal Defense Lawyer who is going to cost them 25 thousand dollars or more, AND they get to implicate the people who helped them afford a home in Queens, Nassau or Suffolk County, maybe even a relative or friend who was a mortgage broker or appraiser, and face a criminal fraud conviction and the possibility of Three year vacation in a Federal Prison!!!"
"Hold it! Hold it! Hold it" you say. "I am paying my mortgage. I have nothing to worry about."
WRONG. When the FBI gets the names of the brokers from the lenders, they will look to see what loans were generated by those guys. Did they use the same appraiser each time (usually they do)? Then they will look at those applications. Check the information in the apps against what they have on file for you (you know, your IRS Form where you tried to limit your income) IF (When) they find discrepancies, they will come for you too, to get the people who sold loans.
In fact, if you are still in your beautiful Long Island residence and haven't defaulted, you are easier to get. You don't already have a lawyer (so now there is none of that ugly "statement suppression" issue) and they know where to look for you (your not homeless yet.)
So you testify against your friend or loved one and then one of them turns on the others and in the end of the game you all have to pay "restitution" to the "defrauded" banks and the guys who knew all of this, and who profited from it the most, keep their millions. You on the other hand have a criminal record, have to hire a lawyer and lost your house and maybe met some new friend in prison named Bubba.
Don't let this happen to you. If you are a Mortgage Broker, Appraiser, or Homeowner/mortgagor, get to a Criminal Defense Lawyer now. Even if you are sure you will not be a target of an investigation, it is smart to get a lawyer and let him speak to whomever he thinks will help you to win the day. Let whoever comes knocking on your door from the federal government know that you have a lawyer on retainer. CALL YOUR LAWYER as soon as the investigators come to the door. Do not say anything to them without your lawyer being with you.
If you follow these simple steps you will be able to sleep through much of this crisis, and you will continue to enjoy the simple life of a homeowner on Long Island.
Although I focused on Long Island and specifically the counties of Queens NY, Nassau NY, and Suffolk NY, the scenerio and advice is good throughout the country.
You have been warned, heed the warning.
Hattip: ABA JOURNAL NEWS
For more information on Mortgage Fraud, see the FBI's Mortgage Fraud Page
Saturday, January 13, 2007
Justice Department Doesn't Need More Money, It Needs To Get It's Priorities Straight: That Lawyer Dude's Solution To Justice's Staffing Problem
Seems that budget problems in Washington D.C. are creating a hiring freeze of sort at the big three Law-enforcement agencies; The FBI, The DEA and ATFE (formerly ATF the guys that brought us WACO.) According to the Beltway Brains, the failure to increase the budget on these agencies is costing us in the crucial areas of fighting violent crime and terrorism. Their answer of course is to pass a spending bill that increases the budgets for these agencies instead of stop-gap spending bills that create an inability to plan and hire more "troops." Well far be it from me to suggest that Congress shouldn't do its job and pass a budget. As for increasing the budget for the Justice Department to squander... well lets just say I have a better idea.
How about we scale back the DOJ budget and get the Justice Department to stop trying to enforce laws that the states should be enforcing? Additionally, how about we stop using federal funds to look into things that are the pet peeves of the political elite... like say Pornography? Yeah, lets take the Forty or so agents (and their staffs) whose job it is to scour the internet for porn (not child porn mind you but adult porn) to look at dirty movies and put them to work fighting Al Qaeda? In fact we can use the porn tapes they've been buying to torture the Al Qaeda operatives we capture. Instead of Water-boarding, they have to watch Mary Carey movies until they break. Sure it's cruel, but then again, think of how much we will save on the cellophane. After all the movies are reusable. Believe it or not, after watching the porn, the agents need psychological help which our government then has to provide.
The Justice Department's budget is OUT OF CONTROL because the Neo-conservatives have a basic misunderstanding of the Tenth Amendment to the US Constitution. (They need to read this and study these.) Unfortunately, so do democrats and liberals. Hence the Democrat Senator Barbra Mikulski (who chairs a panel that oversees funding of the Justice Department) is saying stupid things like
We cannot afford to keep looking to Washington DC to fight every battle that someone thinks needs to be fought. If people in Pittsburgh think porn is a bad thing and should be fought, let them pay for that privilege. In NYC we have bigger things to worry about. Porn is not even on the first fifty pages of the list. Al Queda doesn't even know Pittsburgh exists. I wish I could say the same about Manhattan.
How about we scale back the DOJ budget and get the Justice Department to stop trying to enforce laws that the states should be enforcing? Additionally, how about we stop using federal funds to look into things that are the pet peeves of the political elite... like say Pornography? Yeah, lets take the Forty or so agents (and their staffs) whose job it is to scour the internet for porn (not child porn mind you but adult porn) to look at dirty movies and put them to work fighting Al Qaeda? In fact we can use the porn tapes they've been buying to torture the Al Qaeda operatives we capture. Instead of Water-boarding, they have to watch Mary Carey movies until they break. Sure it's cruel, but then again, think of how much we will save on the cellophane. After all the movies are reusable. Believe it or not, after watching the porn, the agents need psychological help which our government then has to provide.
The Justice Department's budget is OUT OF CONTROL because the Neo-conservatives have a basic misunderstanding of the Tenth Amendment to the US Constitution. (They need to read this and study these.) Unfortunately, so do democrats and liberals. Hence the Democrat Senator Barbra Mikulski (who chairs a panel that oversees funding of the Justice Department) is saying stupid things like
"Without a budget in place, "the FBI and DOJ will not be able to maintain the operations tempo they've achieved since Sept. 11."Instead of saying smart things like:
"Without a change in priorities the FBI and DOJ will not be able to maintain the operations tempo in fighting Terror and Violence that they achieved since 9-11."Talk about the fox guarding the hen house. Hey Barbra, instead of telling me how much money the Justice Department should get; first you do that "oversight thing" your supposed to do and find out what DOJ uses the money they are getting for, and then after evaluating that, you decide how much they should get for their next go around.
We cannot afford to keep looking to Washington DC to fight every battle that someone thinks needs to be fought. If people in Pittsburgh think porn is a bad thing and should be fought, let them pay for that privilege. In NYC we have bigger things to worry about. Porn is not even on the first fifty pages of the list. Al Queda doesn't even know Pittsburgh exists. I wish I could say the same about Manhattan.
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