Pilant's Business Ethics

Business Ethics Blog

Tag: securities fraud

JOIN NOW! 200,000 SIGNATURE DRIVE FOR ELIZABETH WARREN RECESS APPOINTMENT (via Livinglies’s Weblog)

JOIN NOW! 200,000 SIGNATURE DRIVE FOR ELIZABETH WARREN RECESS APPOINTMENT (via Livinglies’s Weblog)

Let’s get in there and put pressure on Obama to get this nomination done. The banks and the special interests have allied to block it. They are trying to kill the agency before any work can be done. Their crimes and unethical behavior will not be brought into the light without the agency.

Please go sign the petition. Elizabeth Warren will make a difference.

James Pilant

JOIN NOW! 200,000 SIGNATURE DRIVE FOR ELIZABETH WARREN RECESS APPOINTMENT GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE EDITOR’S NOTE:  A recess appointment is one in which the President appoints someone during a congressional recess. I’m no expert on the details but I know that recess appointments have been extensively used, particularly by the Bush administration to get around the requirement of getting congressional approval. If Congress is not in session, the President makes the appointment because the p … Read More

via Livinglies’s Weblog

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Who will make them pay? (via Livinglies's Weblog)

Let’s saddle up! The Wall Street Banks absorb every kind of benefit from being in this nation including taxpayer dollars. Yet, when it comes to taking any responsibility as citizens, they are notably absent. Is there a kind of vicious hypocrisy in absorbing benefits but paying none of the costs?

Let’s make these people know that we know they have failed to act in accord with basic patriotism.

James Pilant

My thanks to Livinglies’s Weblog.

Who will make them pay? You will. Yesterday, in six cities across Illinois, people stood together and demanded Wall Street banks like JPMorgan Chase pay their fair share to end the revenue crisis, create jobs, and stop illegal foreclosures. In New York City, thousands marched on Wall Street demanding that Millionaires and Big Banks pay their fair share. In North Carolina, community leaders made sure the shareholders of Bank of America faced up to … Read More

via Livinglies’s Weblog

Another Successful Foreclosure Fraud Happy Hour (via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge)

These are some great people. They took up a public fight on a major issue before the media or the government recognized the problem. In fact, the government and the press denied there was a problem. These people are heroes, using the power of the internet as visionaries have hoped.

I wish them well!!

James Pilant

Another Successful Foreclosure Fraud Happy Hour Picture of some of the guests at our latest happy hour. Had another great time. We all wore “Hello My Name Is” stickers. Funny thing, almost everybody there was named Linda Green! It really confused the bartenders, they didn’t know which tab to ring the drinks under… Over the weekend I will be posting the history of all of our happy hours and how you can get them going in your town. I want to see this happen in every city every month until the … Read More

via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge

Fraudclosures | Federal Reserve: They Broke The Law (via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge)

For about seven months now, I have argued over and over again that lying to the courts with false affidavits and actions amounting to fraud were prosecutable. I have used the word, crimes, and I meant it.

Why is it that if one of my students breaks the law by stealing a few dollars that he will go to jail and these banks can commit these acts and reap huge profits without fear of prosecution?

I want these law-breakers, these greedy well placed fraudsters, to go to jail, to do the perp walk, to pay enormous fines, and to serve as a warning to every Armani clad crook haunting the board rooms of our great investments banks.

James Pilant

My thanks to “Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge.”

Fraudclosures | Federal Reserve: They Broke The Law The Market Ticker – Federal Reserve: They Broke The Law but nobody cares…. (including us) The reviews found critical weaknesses in servicers’ foreclosure governance processes, foreclosure document preparation processes, and oversight and monitoring of third-party vendors, including foreclosure attorneys.While it is important to note that findings varied across institutions, the weaknesses at each servicer, individually or collectively, resulted … Read More

via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge

Nobody Goes To Jail?

Matt Taibbi has it right –

Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world’s wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.

The rest of them, all of them, got off. Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted. Their names by now are familiar to even the most casual Middle American news consumer: companies like AIG, Goldman Sachs, Lehman Brothers, JP Morgan Chase, Bank of America and Morgan Stanley. Most of these firms were directly involved in elaborate fraud and theft. Lehman Brothers hid billions in loans from its investors. Bank of America lied about billions in bonuses. Goldman Sachs failed to tell clients how it put together the born-to-lose toxic mortgage deals it was selling. What’s more, many of these companies had corporate chieftains whose actions cost investors billions — from AIG derivatives chief Joe Cassano, who assured investors they would not lose even “one dollar” just months before his unit imploded, to the $263 million in compensation that former Lehman chief Dick “The Gorilla” Fuld conveniently failed to disclose. Yet not one of them has faced time behind bars.

Two kinds of justice? Is there one for you and I, and another for the great financial elites? Let’s say that I steal $100,000 dollars from my employer, if they press charges would I go to jail? Quite likely. What if I work for a giant investment bank and I commit fraud and other security violations to the tune of several hundred million dollars? Will I go to jail then? No.

What is going on here? This isn’t fair.

Why do we put people in jail or prison? To punish them and discourage others from committing the same offenses.

What message does this “two-tiered” system of “justice” send? It says that wrongdoing is okay if you are properly placed in the economy. If you are not placed in the right industry with the right friends and the right “law enforcement,” you can expect to be penalized when you commit crimes. The impact is clear, if you work in the financial industry you will not be punished for your financial crimes.

Do I have to tell you that giving sectors of the economy the right to commit crimes at will is bad policy? They will continue to do it.

In 2007, these crimes almost brought down the world economy. The damage done did through us into the Great Recession.

They walk free even after this.

What can be done?

James Pilant

Guest Post | Stay Calm, Remain in Your Homes (via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge)

We have many crises going on all at once. Why?

A convergence point has been reached. The foreclosure crisis is one element in a series of development.s In the United States, the critical development has been the continuous conversion of the economy from manufacturing to finance. Everything else flows from that.We make and less actual products each year. Our primary source of income as a nation is financial innovation.

Manufacturing requires large capable work forces to function. Finance requires a handful of people.

A huge financial sector demands several policies. 1. Free trade, in particular, the free movement of money and credit across national borders. 2. Relentless inflation control, this involves suppressing wage pressure and allowing economic growth only in a controlled manner. 3. As little taxation or no taxation on anything related to their operations. The people of the United States bear the principal burden of taxation. The financial sector has incredible profits while other parts of the economy flounder. Yet the tax burden does not shift to follow the money. 4. A intertwining of the government and the financial sector. More and more the government appears to be an arm of investment banking. The government insures the great financial houses of protection from failure. The government provide inexpensive loans for these companies. The government works with frantic intensity to control inflation. 5. Diminished public spending and the rigorous control of all social programs from education to unemployment insurance. This is to justify continuous cuts in taxes and to shift the burdens of a civilization from organizations to individuals. 6. This is a characteristic no often mentioned, but I kept finding it in report after report. A frantic, bizarre mania for numbers indicating a perception of higher form of reality, the music of the spheres. 6. Natural resources, in particular, basic human needs like water are to be divided for use by the private sector. 7. All endeavors from the military to the public schools must be converted from the public to the private, regardless of the outcomes. 8. An almost religious determination to follow the markets wherever they lead, cheaper workforces, better purchasers. 8. A visceral contempt for Americans under a certain income level. The “lower” classes are considered to be lazy, self-indulgent, burdens upon the elite producers. This is indicated by the absence of influence by the middle class on any policy decisions and the continuous development pf the doctrine of personal responsibility demonstrated by such changes policies as bankruptcy “reform” to student loan collections.

The change is focus from producing things to manipulating money might seem to be the most significant change here, but it is not. There is one overriding change that anchors and justifies all the others. The most important change over the past fifty years has been the development of a philosophy justifying profit taking over all other values.

When one part of society did something to damage the social order there were countervailing ideas. We can see this in the Progressive movement, the New Deal, the Fair Deal and the Great Society. Other ideas of how things should work. We as a society called upon a variety of intertwining values to make decisions. But these are no longer considered valid. In the past, there could have been calls to patriotism. These are irrelevant in modern business philosophy. There could have been calls to God and religion. These are irrelevant in modern business philosophy. There could have been calls to the great philosophical systems of history. These are irrelevant in modern business philosophy. There could have been a call to righteousness or ethics. There could have been a call to the rule of law. These are all irrelevant.

For a single nation, only Kafka could explain the motives and values of the financial class. But for international business, the logic is clear.

Here is a posting about these changes beginning with the foreclosure crisis.

George Mantor writes this piece. He has his own web site at Keepin’ it real.

Stay Calm, Remain in Your Homes This is standard advice in times of emergency.  The principle is simple and logical. Authorities are dealing with limited resources in a critical environment wheGuest Post | Stay Calm, Remain in Your Homesre every second counts.  The fewer events and people they need to deal with, the more effective they can be. If you know me, you know that I am upbeat and positive by temperament and challenges don’t faze me.  I’m pretty level-headed, and I do my own thinki … Read More

via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge

NJ | Sheriff’s Officers Accused Of Emptying Wrong Home In Botched Foreclosure (via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge)

There are few assaults upon our dignity as crushing as the theft of all of our possessions. It is not so much the large items like refrigerators and televisions that are missed. Humans attach value to the strangest things. Instead of the microwave they lament the loss of their wedding pictures. When logic would dictate the loss of the computer should be the first cause of regret, they think of the old worn chair that has sat in the living room for years. Considering the great value placed upon personal privacy and possessions, would it not seem logical and prudent that those entrusted with the safety of the public should investigate and seek to punish the guilty. But the investigators would only need a mirror to discover the perpetrator of this crime, law enforcement itself.

It seems unfair that the bank never has to worry about these mistakes in judgment. It seems unfair that the bank, should use so many public resources to serve its interests.

The victim is asking $500,000 dollars in damages.

That seems fair, first, to recompense her for damages and second, to discourage the sheriff and his deputies from any more random home raids.

James Pilant

NJ | Sheriff’s Officers Accused Of Emptying Wrong Home In Botched Foreclosure Sheriff’s Officers Accused Of Emptying Wrong Home In Botched Foreclosure HILLSIDE – A 76-year-old Hillside woman has filed a claim for damages against Union County, alleging that officers of the county sheriff’s department illegally entered her home and removed the entire contents because they had the wrong address of a foreclosure. In the document, obtained by Tina Renna of The County Watchers, Ozzie Leak claims that Union County Sheriff Ralph F … Read More

via Foreclosure Fraud – Fighting Foreclosure Fraud by Sharing the Knowledge

Corporate Criminals Talk About Going To Prison

This is a little about four and half minute video where “white collar” criminals, really corporate criminals, talk about the experience of going to prison. There isn’t really much for me to say. The film speaks for itself.

From around the web.

From the web site, The PPJG Gazette.

http://ppjg.me/2010/12/26/america%E2%80%99s-prison-system-corporate-organized-crime-runs-the-system-of-human-trafficking-for-profit/

This is our so-called justice system.  The system has been largely privatized and Wall Street is selling the labor of human beings as a commodity.  Although there is no doubt that violent criminals should be incarcerated, it is estimated that 60% of those in the prison system are there for non-violent crimes and much of that are for crimes in which there was no victim: no injured party. 

For us there seems to be a glaring issue with the state or federal government levying the charges, adjudicating the crime, mandating incarceration and the wholesale selling of human prisoners to private corporations and allowing them to profit from what is nothing less than human slavery.

From the web site, Corporate Crime Daily.

http://corporatecrime.wordpress.com/2010/01/25/is-that-a-bomb-detctor-in-your-pocket-or-are-you-just-happy-to-see-me/

British police have arrested Jim McCormick, a former cop and director of a British company that sold at least $85 million of phony bomb detectors to Iraq. An audit showed Iraq paid between $40,000 and $60,000 for each device, essentially a dowsing rod
for bombs (and more, keep reading). Iraqi has purchased more than 1500
of the devices at the inflated price, although the useless device was
sold elsewhere at a bargain basement rate of $16,000.  

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