‘US don’t want fascist takeover by Republican party’: McGovern vs Scott

Summary: A heated House hearing erupted as Rep. Jim McGovern and Rep. Austin Scott clashed over President Donald Trump's policies, the Republican agenda, and the upcoming November elections. McGovern accused Republicans of pushing a "fascist takeover," while Scott fired back in a tense exchange over the GOP's direction and voter sentiment. Watch the full confrontation and the biggest moments from this explosive congressional debate. 7/21/26
Showing posts with label conspiracy. Show all posts
Showing posts with label conspiracy. Show all posts

Anti-Globalism Conspiracy

 

Extremist Ideology Drives

Anti-Globalism, 

Christian Zionist Crusade



By Steve Rensberry 
Opinion / Analysis
_________________

   EDWARDSVILLE, Ill. - 11/9/2020 - Zionist, anti-globalist, and gun advocate Baruch Pletner is a man on a mission. Jewish, born in Russia, and fanatically pro-Israel, Pletner spent the first 10 years of his life in the Russian Federation before moving to Israel, according to an online bio, and served in the Israeli Air Force for a while, before making his way to Boston in 1973 as an engineer. In 2010 he immigrated to Canada, taking up residence in the province of Prince Edward Island. 


Dubbed the “High-Tech Traditionalist,” and a “scientist, entrepreneur and thinker,” Pletner speaks with a noticeable accent and the tone of an expert. He writes, blogs, participates in podcasts, tweets, and appears on talk radio and a handful of Youtube videos, most if not all catering to the views of America's far-right nationalists.

   The sad thing is that what Pletner embraces, in apostle-like fashion, is nothing but a regurgitation of old falsehoods, fears and prejudices. Pre-1990, it was the ominous “New World Order,” long a target of anti-government and fundamentalist Christian groups and a carry-over from the Cold War era, in which it was feared that a godless communism and collectivist world government would replace national sovereignty with totalitarian rule and a One World Government. Progressives, liberals, the United Nations, the welfare-state, international institutions and alliances, all can be seen as building blocks of the beastly globalism trend.

   Books such as the 1903 work, The Protocols of the Elders of Zion (described as an antisemitic canard), H.G. Well's 1940 book, The New World Order, and the work of neo-theosophical occultist Alice Bailey -- a founder of the so-called New Age movement – and other literary works and figures have invigorated the anti-globalism conspiratorial mindset.

   In lockstep with our lame-duck president and others on the right, Pletner defines the Democratic Party as fundamentally evil and its supporters as criminals without honor, with a goal of complete destruction. The “Deep State,” always capitalized, figures prominently in his writing. Ironically, he fears that his enemies will completely destroy people like him if they win, yet nearly in the same breath he states that if they win, Trump will deal his enemies “a final crushing blow, a blow from which they will never recover.” He continues, echoing a belief that the existing establishment must be wiped clean or demolished entirely in order to rebuild the kind of nation they really want. “Yes, this will involve the destruction and rebuilding of many if not most of America's most cherished institutions, but it is the only way that America can be saved, the only way in which this first battle can also be the last one.”    

   That's some iron-clad, black-and-white thinking.

    Pletner writes about a coming civil war, about annihilating liberals, and about the collapse of nations -- a good thing in his mind, it seems, necessary to rid the world of bad people and to set things right. He may be educated in engineering and have experience abroad, but his essays lean heavily on exaggeration, misrepresentation, and inflammatory language. It is us vs them, and everything is on the table.

   “The globalist world order is in full collapse. Nobody is buying the wares that it is peddling. Extreme secularism, acceptance and glorification of LGBTx , extreme feminism, and 'wokeness,' are all being rejected in favor of nationalism, traditionalism, and renewed religiosity. There is and yet will be a lot of screaming at the sky, but this reality is undeniable. And so are its consequences,” Pletner writes. See: up for grabs

   In his last column before the election, Pletner called the Bidens a crime family with less honor even than the Cosa Nostra (Sicilian Mafia), and a worse choice for elected office than Al Capone or Meyer Lansky would have been. “These men may have been gangsters, but they loved America,” he says. Loyalty and allegiance are, apparently, Value No. 1. Morals and characer are somewhere further down the list.

   Former Utah Congressional candidate Debbie Aldrich has interviewed Pletner on her YouTube channel and radio show “Freedom Voice Radio.” Aldrich, meanwhile, is listed as an “On Air Talent/Roving Reporter on the CDMedia staff page, as well as author for the Center for Security Policy (CSP) – an organization categorized by the Southern Poverty Law Center (SPLC) as a hate group, primarily anti-Muslim. 

   As stated in the SPLC report: “Frank Gaffney, Jr. founded the neo-conservative-turned-anti-Muslim think tank CSP in 1988, following his tenure as deputy assistant secretary of defense for Nuclear Forces and Arms Control Policy in the Ronald Reagan administration. From the late '80s to the mid-2000s, CSP was seen as a mainstream though hawkish organization that favored the so-called 'peace through strength' doctrine popularized by President Reagan. Following the collapse of the Soviet Union, the CSP never left its Cold War mentality, and instead shifted its focus from battling Communism to fighting Islam.”

   In a 2018 article posted on myfintale.com about former Arizona state Sen. Kelli Ward, Aldrich was described thus: “Ward has done three interviews with Debbie Aldrich, a conservative pundit who made a failed bid to fill the seat of retiring Rep. Jason Chaffetz (R-Utah) in a special election last year. On her Twitter feed, Aldrich falsely called Obama a Muslim and promoted the Pizzagate conspiracy theory. She blamed Obama and 'all his anti-white hate mongers' for 'inciting race riots,' and said he gave 'these #Black Thugs #BLM Carte Blanche to DESTROY AMERICA.'” 

   You might surmise that both Pletner and Aldrich are supporters of our lame-duck president Donald Trump, along with being big contributors to the broader far-right and conservative media networks that support him, and you would be right. Of note:

  • In addition to YouTube interviews and podcasts, Pletner and Aldrich are both contributors to CDMedia, a site run by far-right writer and conspiracy publicist L. Todd Wood. In addition to his own site, Wood's articles reach the Washington Times, Washington Examiner, New York Post, and a long list of other right-wing sites. 

  • Wood is featured on a podcast hosted by Steve Bannon (Breitbart, Trump admin), Raheem Kassam (former editor-in-chief of Breitbart) and Jack Maxey.

  • Wood hails from the financial industry as a bond trader (Cantor), Bannon as an investment banker (Goldman Sacs), as does another person on Wood's contributor list, Peter Cecchini (Cantor). See also: L. Todd Wood

  • Wood has a connection to some degree with the anti-Iranian M.E.K. group, which was once listed as a terrorist organization before rebranding itself and earning U.S. support, including from Newt Gingrich and Rudy Giuliani, both of whom were in attendance at a 2012 rally in Paris for the M.E.K. Also in attendance: Pennsylvania Gov. Ed Rendell, former State Department spokesman P.J. Crowley, and former Bush U.N. Ambassador John R. Bolton. “The M.E.K.'s political arm, the National Council of Resistance of Iran, has its headquarters in Paris.” See: Iranian terrorist group

  • Bannon's writing and reputation outpaces Wood's, but both make wide use of many of the same techniques. Bannon was heavily involved with the alt-right news site Breitbart and recently had his account suspended on Twitter after calling for the beheading of Dr. Anthony Fauci. Bannon also faced arrest in August in a case involving the suspected misuse of fundraising dollars. Wood's account was suspended, as well, for spreading fake news and misinformation related to the Bidens.

  • Bannon was VP of the Board of Cambridge Analytics, “a data-analytics firm which allegedly used illegal tactics to target American voters in the 2016 election and is owned largely by the Mercer family, the family that also co-owns Breitbart News.” He was appointed chief executive of Trump's presidential campaign 88 days before the 2016 election, but the two appeared to part ways under public pressure. See Bannon.

  • Bannon has described himself as an economic nationalist and “proud Christian Zionist.” He has also been described as an admirer of paleoconservative commentator Pat Buchanan, with an ideology that “is substantially similar to that of Stephen Miller, Tucker Carlson, Benny Johnson, Raheem Kassam and Matthew Boyle, the latter two having been protégés of Bannon at Breitbart.”  

   While there is widespread ideological agreement among each of these players, Pletner, interestingly, accuses Bannon in one of his articles of conducting a “counter-coup resting on rotten foundations of residual white bigotry, real and imagined white oppression, and white nostalgia for what never was and never will be,” while fully sharing Bannon's Zionist, Democratic-hating, anti-globalist world view. Both men, however, have been apologists, and publicists, for our 45th president. 

   As for the split between Bannon and Trump, read this paragraph from an article by “author and political analyst” Ava Armstrong. The article, titled, Is There a Secret Strategy to the Trump and Bannon Division and Feud?, was posted on the America Out Loud site after Bannon was given the boot from the White House early in Trump's presidency.

   “Consider this, Donald Trump is a very unconventional individual in his thinking and his tactics, a strategist, an asymmetric schemer and out-right pretty clever man,” Armstrong writes. “I believe this was by design, contrived by Trump and Bannon as a tactic of presenting an overt separation between the two – providing an appearance of severing of their political and perhaps ideological ties. But here’s the deception, nothing has really changed as they are clandestinely maintaining a covert dual track strategy designed to destroy the Establishment and the Swamp. This new tiff, albeit artificial and maybe made for politics and the media, perhaps is just part of the perception designed to provide the cover to create the illusion of a severing and separation between Bannon and Trump. The cover story so to speak, to all of this presents the belief that Trump no longer answers to Bannon … and no longer does Bannon have any association or influence with Trump." 

   This may only be one person's opinion, that of Armstrong's, but the attacks on established institutions and norms we've witnessed over the past four years would seem to bear it out, as well as from things Trump himself has said.

   If there's one thing that Pletner, Aldrich, Bannon, Wood, and all the rest seem fixated on it's destruction. They want to destroy their opponents, not merely win or beat them at the polls. They want to destroy the establishment, not merely improve it, build on it, or reform it, or even replace it. Concepts like diplomacy and compromise are rarely mentioned. And they assure themselves, without evidence, that their enemies want to destroy them in return.

   This is not a sign of healthy minds, nor of good intentions with respect to the future of our country and the world.

   On Nov. 7, 2020, Biden accepted the election results as president-elect of the United States, as the world awaits final certification of the results, as well as the results of various court challenges the Trump campaign has filed. Given the depth and history of the anti-globalist conspiracy, and the sheer number of voters who remained loyal to the president in his re-election bid, such fanaticism could very well intensify.

For further reading: 

Contract Conspiracy Brings Prison Sentence

   ALEXANDRIA, Va. – 10/27/2016 - Kenneth Apple, 65, of Beaverton, Oregon, was sentenced to 50 months in prison on October 14 for his role in awarding $2 million in micro-dairy contracts from the U.S. government for use in Iraq. The court also ordered Apple to serve three years of supervised release, pay approximately $1.9 million in restitution, and forfeit $551,838.73.
   According to the court documents and evidence presented at trial, Apple, a former employee with the U.S. Department of State, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest. However, Jonathan Apple and his partner had no technical experience in the industry. Kenneth Apple conspired to use his official position to pass on non-public information to his son in order to fraudulently award and administer government contracts. The conspirators further provided false information to, and concealed material details from the U.S. government.
   According to the court documents and evidence presented at trial, Kenneth Apple provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government. In addition, Kenneth Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects. For example, Kenneth Apple directed a conspirator to keep Jonathan Apple’s name off the company’s website and any ownership documents. When federal law enforcement agents confronted Kenneth Apple about the scheme, he made false statements, including that he could not recall the owner of the company that won the micro-dairy contracts and that he did not receive any money from the contracts.
   Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong are prosecuting the case.
   Source: Financial Fraud Enforcement Task Force  (October 14, 2016)

Real Estate Investors to Admit To Rigging Bids

   WASHINGTON – 10/27/2011 - Eight Northern California real estate investors have agreed to plead guilty today for their roles in two separate conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
   Charges were filed on October 27 in U.S. District Court for the Northern District of California in San Francisco against Gary Anderson of Saratoga, Calif.; Patrick Campion of San Francisco; James Doherty of Hillsborough, Calif.; Keith Goodman of San Francisco; Troy Kent of San Mateo, Calif.; Craig Lipton of San Francisco; Henry Pessah of Burlingame, Calif.; and Laith Salma of San Francisco.
   According to the felony charges, the real estate investors participated in a conspiracy to rig bids by agreeing to refrain from bidding against one another at public real estate foreclosure auctions in San Francisco County and San Mateo County. Doherty, Goodman and Lipton participated in the conspiracy in San Francisco, and Anderson, Campion, Kent, Pessah and Salma participated in the conspiracy in San Mateo.
   “The collusion taking place at these auctions allowed the conspirators to line their pockets with funds that otherwise would have gone to lenders and, at times, financially distressed homeowners,” said Sharis Pozen, acting assistant attorney general in charge of the Department of Justice’s Antitrust Division. “The investigation into collusion at these foreclosure auction markets is ongoing, and the Antitrust Division will continue to pursue the perpetrators of these fraudulent schemes until they are brought to justice.”
   The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Francisco County and San Mateo County public foreclosure auctions at noncompetitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.
   According to court documents, the eight real estate investors conspired with others not to bid against one another at public real estate foreclosure auctions in Northern California, participating in a conspiracy for various lengths of time between November 2008 and January 2011. The real estate investors were also charged with conspiracies to use the mail to carry out a fraudulent scheme to make payoffs to obtain title to selected real estate at fraudulently suppressed prices, to receive payoffs and to divert money to co-conspirators and away from mortgage holders and others with a legal interest in these properties.
   Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. Each count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than the $1 million statutory maximum.
   The charges are the latest cases filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. To date, as a result of the investigation, 18 individuals have agreed to plead guilty.
   The ongoing investigation into fraud and bid rigging at certain real estate foreclosure auctions in Northern California is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.
   Source: U.S. Department of Justice release

Former CEO Pleads Guilty to $1.5 Billion Scheme

   WASHINGTON – 4/3/2011 - Paul Allen, the former chief executive officer at Taylor, Bean & Whitaker (TBW), pleaded guilty on April 1 to making false statements and conspiring to commit bank and wire fraud for his role in a $1.5 billion fraud scheme that contributed to the failure of TBW.
    Allen, 55, of Oakton, Va., pleaded guilty to a two-count criminal information before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia. Allen faces a maximum penalty of five years in prison for each count when he is sentenced on June 21.
   According to a statement of facts submitted with his plea agreement, Allen joined TBW in 2003 as its CEO and reported directly to its chairman. He admitted in court that from 2005 through August 2009, he and other co-conspirators engaged in a scheme to defraud financial institutions that had invested in a wholly-owned lending facility called Ocala Funding. Ocala Funding raised money by selling asset-backed commercial paper to financial institutions, including Deutsche Bank and BNP Paribas , and used the money to purchase TBW mortgages. The facility was managed by TBW and had no employees of its own.
   According to court records, shortly after Ocala Funding was established, Allen learned there were inadequate assets backing its commercial paper, a deficiency referred to internally at TBW as a “hole” in Ocala Funding. Allen admitted that in an effort to cover up the hole and to mislead investors, he told a co-conspirator to produce reports that concealed the hole. He also admitted that he knew that these misleading reports were sent to Ocala Funding investors and other third parties.  
   Allen also admitted in court that he kept the chairman of TBW informed of the collateral shortfall, and that in the fall of 2008, Allen was told that the hole had been moved from Ocala Funding to Colonial Bank. At the time that TBW ceased operations, the hole was approximately $1.5 billion. According to court documents, as a result of the Ocala Funding fraud scheme, Freddie Mac, Colonial Bank and Ocala Funding investors believed they had an undivided ownership interest in thousands of the same mortgage loans.
   Court records state that in March 2009, Allen was directed to approach a private equity investor to secure capital to meet a $300 million private capital requirement the U.S. Department of Treasury set for Colonial Bank to receive $553 million from the Troubled Assets Relief Program (TARP).  Although Allen failed to secure the funding from the investor, he admitted in court that the TBW chairman represented to others that the investor was a $50 million participant and that the chairman diverted $5 million from Ocala Funding to an escrow account in the investor’s name.  This deception caused Colonial Bank to falsely announce publicly it had met its $300 million capital raise contingency and to send a letter to the FDIC that all investors had met a 10 percent escrow deposit requirement. Colonial Bank never received any TARP funds.
   In court April 1, Allen also admitted to making false statements in a letter he sent to the U.S. Department of Housing and Urban Development, through Ginnie Mae, regarding TBW’s audited financial statements for the fiscal year ending on March 31, 2009.  In this letter, Allen omitted that the delay in submitting the financial data was attributed to concerns its independent auditor had raised about the financing relationship between TBW and Colonial Bank.  Instead, Allen falsely attributed the delay to a new acquisition and TBW’s switch to a compressed 11-month fiscal year.
   To date, five other individuals have pleaded guilty for their roles in this and related fraud schemes.  
   The case is being prosecuted by Deputy Chief Patrick Stokes and Trial Attorney Robert Zink of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Connolly and Paul Nathanson of the Eastern District of Virginia.  It was investigated by SIGTARP, FBI’s Washington Field Office, FDIC-OIG, HUD-OIG, FHFA-OIG and the IRS Criminal Investigation. The Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury also provided support in the investigation.   
   The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; Acting Special Inspector General Christy Romero for the Troubled Asset Relief Program (SIGTARP); Assistant Director in Charge James W. McJunkin of the FBI’s Washington Field Office; Michael P. Stephens, Inspector General of the Department of Housing and Urban Development (HUD-OIG); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); Steve A. Linick, Inspector General of the Federal Housing Finance Agency (FHFA-OIG); and Victor F. O. Song, Chief of the Internal Revenue Service (IRS) Criminal Investigation.
   Source: U.S. Department of Justice (4/1/11)

Investment Advisor Pleads Guilty in Scheme

   NEW YORK – 1/10/2011 - A registered investment advisor pleaded guilty on Jan. 7 to conspiracy and securities fraud charges in connection with his participation in an insider trading scheme, announced U.S. Attorney for the Southern District of New York Preet Bharara.
   Alexei P. Koval, aka “Aleksey Koval,” admitted that he obtained inside information from his co-conspirator, Igor Poteroba, a former investment banker in the Healthcare Group of UBS Securities LLC, and then traded on that information.
   The information related to six mergers and acquisitions that certain UBS clients were contemplating. Koval pleaded guilty in Manhattan federal court before U.S. District Judge Paul A. Crotty.
   “Alexei Koval flagrantly violated the securities laws to make a quick profit, and now he will pay for his crimes,” Bharara said. “Insider trading undermines faith in the market and cheats honest investors. It will not be tolerated. Together with our law enforcement partners, we will continue to prosecute and punish those who use their access to inside information to break the law.”
   According to documents previously filed in Manhattan federal court, from May 2006 through at least 2009 Koval was a registered investment adviser. During approximately the same time period, Poteroba served as an executive director at UBS. In that capacity, Poteroba obtained material, non-public information regarding certain mergers and acquisitions involving the following six publicly traded healthcare companies: Guilford Pharmaceuticals Inc., Molecular Devices Corporations, PharmaNet Development Group Inc., Via Cell Inc., Millennium Pharmaceuticals Inc. and Indevus Pharmaceuticals Inc.
   In violation of his duties of trust and confidence, Poteroba then disclosed the UBS inside information to Koval, who in turn disclosed the UBS inside information to another co-conspirator (CC-1).
   As part of the scheme, Koval typically received tips from Poteroba by telephone in advance of a public announcement about certain mergers and acquisitions. Shortly after receiving a tip from Poteroba, Koval and CC-1 purchased securities in one of the healthcare companies on the basis of the UBS inside information.
   Following the public announcement of the acquisition, Koval and CC-1 quickly sold the securities they had purchased. Koval and CC-1 executed dozens of securities transactions based on UBS inside information provided by Poteroba. Koval then paid a portion of the profits to Poteroba.
   Koval pleaded guilty to three counts of securities fraud and one count of conspiracy to commit securities fraud. The securities fraud counts each carry a maximum sentence of 20 years in prison and a maximum fine of $5 million.
   The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. Koval agreed as part of his plea agreement to forfeit at least $1,414,290, representing the amount of proceeds obtained as a result of the securities fraud offenses.
   Koval, 36, of Chicago, and Pasadena, Calif., will surrender to federal authorities on Jan. 14, 2011, and is scheduled to be sentenced by Judge Crotty on April 12, 2011, at 2:30 p.m.
   Poteroba, 37, of Darien, Conn., pleaded guilty to similar charges before Judge Crotty on Dec. 21, 2010. He is scheduled to be sentenced on March 16, 2011.
  This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. The case is being handled by the U.S. Attorney Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Marissa Molé is in charge of the prosecution.
  Note: Original release date was Jan. 7, 2011. Source: Financial Fraud Enforcement Task Force

Public Company Insiders Face Conspiracy Charges

   NEW YORK – 12/17/10 - An executive for an “expert-networking” firm was arrested on Dec. 13 on wire fraud and conspiracy charges, announced Preet Bharara, U.S. Attorney for the Southern District of New York, and Janice K. Fedarcyk, Assistant Director-in-Charge of the New York Office of the FBI.
   James Fleishman was arrested for conspiring to provide confidential information, including material, non-public information to the firm’s clients, including hedge funds. Daniel Devore, formerly a global supply manager for Dell Inc., who worked as a consultant for the firm, previously pleaded guilty on Dec. 10, 2010, to an information charging him with wire fraud and conspiracy to commit wire fraud and securities fraud.
   U.S. Attorney Bharara and Assistant Director-in-Charge Fedarcyk also announced the arrests on the mornign of Dec. 13 of public company employees Mark Anthony Longoria, Walter Shimoon and Manosha Karunatilaka on wire fraud and conspiracy to commit securities fraud and wire fraud charges in connection with their employment as consultants for the firm.
   According to the complaint and information unsealed on Dec. 13 in federal court in Manhattan:
The Firm and Fleishman’s Employment
   The firm advertised itself as an “independent investment research firm that provides institutional money managers and analysts with market intelligence,” through a “Global Advisory Team of Experts.”
   The firm advertised that its team of consultants “have real-world experience in industries such as healthcare, technology, media, telecommunications, retail, manufacturing, energy and aerospace.”
   The firm stated that its consultants “speak one-on-one with [firm] clients to provide up-to-the-minute intelligence on trends, issues, regulations and dynamics affecting a particular company, product or industry.”
   Consultants who became part of the firm’s expert network can earn hundreds of dollars per hour or per call from the firm for their consultations with firm clients. Firm clients, which included hedge funds, often paid the firm tens of thousands of dollars annually for access to the firm’s consultant network and services.
Fleishman, 41, of Santa Clara, Calif., served as a sales manager for the firm responsible for attracting new clients and ensuring service to existing clients. Fleishman promoted the firm’s consultation services by arranging for clients, including hedge funds, to speak with consultants knowing that consultants would provide confidential information, including inside information, to clients.
Devore Provided Confidential Information
About Dell and Dell’s Suppliers, Including Inside Information
   Devore was employed by Dell Inc. (Dell), as a global supply manager. While employed at Dell, Devore provided confidential information about Dell and Dell’s suppliers, including Inside Information, to clients of the    Firm, including hedge funds. Between late 2007 through August 2010, the firm paid Devore approximately $145,750 for providing information, including inside information, to the firm and, directly and indirectly, to firm clients.
   Longoria Allegedly Provided AMD Confidential Information,
Including Inside Information
   Longoria, 44, of Round Rock, Texas, was employed by Advanced Micro Devices Inc. (AMD), as a supply chain manager in Round Rock. As part of his employment with AMD, Longoria executed an employment agreement with AMD that restricted the disclosure of AMD confidential information.
   While employed at AMD, Longoria engaged in consultation calls with firm clients. During the consultation calls, Longoria allegedly provided confidential AMD information, including inside information. For example, during telephone calls with cooperating witnesses in July 2009, Longoria provided AMD revenue information, average sales prices, product sales figures and gross margin information. Between January 2008 and March 2010, the firm paid Longoria more than $200,000 for consultation services he provided.
Shimoon Provided Flextronics and Apple Confidential Information,
Including Inside Information
   Shimoon, 39, of San Diego was employed by Flextronics International Ltd. (Flextronics), as a senior director of business development in San Diego. During the relevant time period, Flextronics had a business relationship with Apple Inc. pursuant to which Flextronics supplied certain electronic components to Apple, including specifically-engineered camera and charger components to Apple for its “iPhone” cellular telephones and “iPod” portable media players.
   As part of this business relationship, Flextronics and certain Flextronics employees were provided with information and forecasts regarding Apple purchase or shipping orders regarding certain Flextronics components, as well as information regarding alternative suppliers for Apple products. The confidentiality of this kind of information was governed by non-disclosure agreements executed between Flextronics and Apple. In addition, Apple often shared information with Flextronics about future Apple products under development.
  The confidentiality of this information was governed by a separate non-disclosure agreement executed between Flextronics and Apple. For example, in or about 2009, Apple informed Flextronics about a highly secretive project being developed that ultimately resulted in the public product launch of the “iPad” tablet computer.
   Shimoon also signed an employment agreement with Flextronics that restricted the disclosure of Flextronics confidential information and prohibited any business activity that competed with Flextronics’ business.
   While employed at Flextronics, Shimoon allegedly engaged in consultation calls with firm clients, during which he provided confidential Flextronics and Apple information, including Inside Information. For example, Shimoon provided highly confidential sales forecast information and new product features for Apple’s forthcoming “iPhone” cellular telephone. Between January 2008 and June 2010, the firm paid Shimoon more than $22,000 for consultation services he provided.
Karunatilaka Provided TSMC Confidential Information,
Including Inside Information
   Karunatilaka, 37, of Marlborough, Mass., was employed by Taiwan Semiconductor Manufacturing Company Inc. (TSMC) as an account manager. As part of his employment with TSMC, Karunatilaka executed an employment agreement with TSMC that restricted the disclosure of confidential information and prohibited any outside employment.
   While employed at TSMC, Karunatilaka engaged in consultation calls with firm clients, during which he allegedly provided confidential TSMC information, including inside information such as TSMC product sales and shipping information. Between January 2008 and June 2010, the firm paid Karunatilaka more than $35,000 for consultation services he provided.
   “Today’s charges allege that a corrupt network of insiders at some of the world’s leading technology companies served as so-called ‘consultants’ who sold out their employers by stealing and then peddling their valuable inside information,” U.S. Attorney Preet Bharara said. “The detailed allegations in the complaint, along with the guilty plea unsealed today, describe criminal conduct that went well beyond any legitimate information-sharing or good faith business practice. Over the next many months and beyond, we will continue to enforce the law, police the market, and protect honest businesses and their shareholders by working methodically with the FBI and Securities and Exchange Commission (SEC) to root out corporate corruption and insider trading.”
   “The information trafficked by the four ‘consultants’ went way beyond permissible market research; it was insider information,” FBI Assistant Director-in-Charge Janice K. Fedarcyk said. “And the fifth defendant was directly involved in the transfer of inside information from the consultants to hedge funds and other end users.
   The more than $400,000 the firm paid the four ‘consultants,’ merely to participate in phone calls with firm clients, is an indication of the value placed on the information. This wasn’t market research. What the defendants did was purchase and sell insider information. Our investigation is most assuredly continuing.”
   U.S. Attorney Bharara praised the investigative work of the FBI. He thanked the SEC for its assistance in this matter. He also thanked Apple, Flextronics, AMD, TSMC and Dell for their assistance in the investigation.
   U.S. Attorney Bharara noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group.
   The case is being handled by the U.S. Attorney’s Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Reed Brodsky, Antonia Apps and David Leibowitz, and Special Assistant U.S. Attorney Andrew Michaelson are in charge of the prosecution.
  Source: http://www.stopfraud.gov/

Consumer Mortgage Fraud Conspiracy Alleged

Government lawsuit cites 15 complaints against 14 defendants
    NEW YORK - 12/16/10 - The United States government has filed a civil fraud lawsuit against 14 defendants  – including sellers, lenders and appraisers - alleged to have engaged in an elaborate conspiracy to commit mortgage fraud in New York that caused at least 17 home buyers to default on their mortgages and face foreclosure.  The complaint also requests the court to bar what the government alleges to be an on-going mortgage fraud by a number of the defendants.
   The lawsuit was announced today by Preet Bharara, U.S. Attorney for the Southern District of New York; Dave Stevens, Commissioner of the Federal Housing Administration (FHA); and Rene Febles, Special Agent-in-Charge of the Department of Housing and Urban Development Office of the Inspector General (HUD-OIG) New York Field Office.
   According to the allegations in the complaint filed today in Manhattan federal court, the sellers, lenders and appraisers allegedly conspired to commit mortgage fraud in connection with the sale of 17 residential properties in New York.  The sellers purchased the 17 homes and promptly re-sold, or “flipped,” them - without substantial improvement - to inexperienced, low-income buyers, duping them into buying properties they could not afford at falsely inflated prices. 
   The appraiser defendants then fraudulently overstated the value of these homes in their appraisal reports so that the buyers would take out home mortgage loans far in excess of the property’s true value.  Cambridge Home Capital LLC, a mortgage lender, then allegedly underwrote mortgages for the buyers knowing that the properties were not accurately appraised, and knowing that the buyers could not afford the mortgage payments.
   All 17 loans, which were insured by HUD, defaulted, often within just a few months after the closing, exposing HUD to millions of dollars in losses.  In addition to the losses to HUD, the fraud also left the buyers facing foreclosure and eviction from their homes.  The fraud affected two financial institutions, Citibank N.A. and Countrywide Bank FSB, whose bank affiliates purchased these mortgage loans from Cambridge on the secondary market.
   Mitchell Cohen acquired homes for his flip sales through three entities that he controlled: defendants Buy–A-Home LLC, Metropolitan Housing LLC and Gramercy Funding Group LTD.  Once Cohen duped these buyers into purchasing his properties at inflated prices, he steered these buyers to Cambridge, which was authorized to underwrite loans insured by HUD, to underwrite the mortgage. 
   Through its owners and senior officers, Cambridge underwrote these loans to finance Cohen’s flip sales, even though Cambridge and its principals knew - in each case - that the transaction, the home-buyers or both failed to meet HUD’s underwriting requirements. 
   Cambridge then falsely certified that the transactions met HUD’s requirements, knowing that they did not.
Cambridge also created false records to make the buyers appear more credit-worthy than they were, either by overstating their income or by understating their debts. 
  In one instance, Cambridge fraudulently revised a buyer’s loan application to change the buyer’s occupation from “security guard” to “head chef” at a restaurant, falsely overstating that buyer’s income by 50 percent. 
   Cohen and Cambridge conspired to make the buyers appear more credit-worthy in some cases by paying off the buyers’ personal debts, while concealing those side payments from HUD.
   The mortgage fraud conspiracy included the participation of several appraisers who allegedly submitted false appraisal reports that “hit the numbers” for Cohen or Cambridge, valuing the homes Cohen was selling at or about the inflated prices set by Cohen.
   “Schemes like the one alleged here helped contribute to the home mortgage crisis,” said U.S. Attorney Preet Bharara.  “In this particular case, not only did the alleged fraud victimize the home buyers themselves, who were duped into buying homes they couldn't afford and who now face foreclosure and eviction, but also the government, which insured these bad loans.  This office will use every weapon in its arsenal to fight mortgage fraud, including its powerful civil remedies, and will hold those who participate in and profit from these schemes accountable for their actions.”
   “Lenders that engage in the sort of activities outlined in this lawsuit not only pose a particular risk to FHA but to families struggling to do the right thing,” said FHA Commissioner Stevens.  “The vast majority of the lenders we work with are part of the solution to our nation’s housing crisis and we simply can’t do business with those who are so clearly part of the problem.”
   “It is very important that the HUD-OIG aggressively investigate allegations pertaining to mortgage fraud,” said HUD-OIG Special Agent-in-Charge Rene Febles.  “It is equally important that we identify instances where the integrity of the FHA program is compromised and ensure that those committing such acts are brought to the attention of the U.S. Attorney’s Office so that victims and the American taxpayer are protected.”
   The complaint seeks civil penalties pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), a statute enacted in the 1980s as a tool to address the savings and loan crisis.
   FIRREA authorizes the United States to seek millions of dollars in civil penalties for violations of, and conspiracies to violate, certain predicate criminal statutes involving financial fraud, including mail and wire fraud In this case, the complaint alleges 15 separate FIRREA violations against 14 separate defendants. 
   The defendants charged are: Buy-A-Home LLC; Metropolitan Housing LLC; Gramercy Funding Group LTD; Mitchell Cohen; Cambridge Home Capital LLC; Seth Kramer; Craig Hyman; Seth Lapidus; Jacqueline Derrell; Cambridge Funding Group, LTD.; James J. Goldberg, dba JJG Real Estate Appraisal Services; Premier Appraisal Service; William Buckley; and Robert Micheline, dba P&M Appraisals.
   The complaint also seeks both damages and civil penalties according to the False Claims Act (FCA), which imposes liability on any person who knowingly submits, or causes to be submitted, a false or fraudulent claim for payment to the United States.  In this case, the United States alleges that two of the 17 loans at issue involve false or fraudulent claims to HUD for mortgage insurance and therefore give rise to civil penalties and damages under the FCA.  
   The complaint seeks not only penalties and damages for past fraud, but also a court order enjoining on-going fraud by defendants Cohen and Buy-A-Home.  According to the complaint, these defendants are continuing to engage in fraudulent flip sales of properties at the expense of HUD.  This year alone, Cohen, through Buy-A-Home, has allegedly consummated more than 20 flip sales, typically pricing the homes at 60 percent to 160 percent more than what he had paid for them just weeks or months earlier.
U.S. Attorney Bharara thanked HUD-OIG for their assistance.
   The case is being handled by the U.S. Attorney’s Office’s Civil Frauds Unit.  U.S. Attorney Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating financial fraud, including mortgage fraud. 
Assistant U.S. Attorneys Li Yu and Cristine Irvin Phillips of the U.S. Attorney’s Office’s Civil Division are in charge of the case.
   Source: http://www.stopfraud.gov/