CORPORATE FRAUD RECOVERY AND TPP ARE THE TWO TOP ISSUES IN THIS ELECTION RACE. IF YOUR POL IS NOT MAKING THAT FRONT AND CENTER....THEY ARE NEO-LIBERALS WORKING FOR WEALTH AND PROFIT-----LOOK BELOW AT BERNIE SANDERS SHOUTING FRAUD NEEDS TO BE RECOVERED!!!!
Regarding the continued error in the phrase 'wealth inequity':
Again Basu tries to inform listeners of regional economic prosperity while failing to speak of the economic balance that will come when massive corporate fraud of tens of trillions of dollars comes back to government coffers and individual's pockets. Until that rebalancing occurs, we cannot know one region's economic health over another. Now, it so happens that the areas listed by Basu are indeed the areas front and center in these massive frauds along with the national corporate headquarters around Washington DC.
WE ARE TELLING PEOPLE REPORTING THAT THERE IS GREAT WEALTH INEQUITY THAT YOU DO NOT CLAIM A BANK ROBBER RICHER THAN THE BANK FROM WHICH HE STOLE THE MONEY.
If you listen to pundits or politically align media like neo-liberal MSNBC you will hear this mantra....WE HAVE TO REVERSE WEALTH INEQUITY and not once do they say IT'S RULE OF LAW THAT WILL DO IT! They are pretending we are back in the 1960s and simply need progressive policies as if the massive public wealth fraud never happened. Robert Reich is a neo-liberal economist who was part of the Clinton Administration as Labor Secretary when all the policy creating this third world status of our country to gain hold. Nafta and breaking Glass Steagall assured this massive wealth inequity and unaccountable global corporate rule would occur. Neo-liberals like Clinton, Reich, and Obama work to see that wealth consolidation indeed occurs in any way possible...ergo, suspension of Rule of Law.
IF A POLITICIAN OR PUNDIT IS SHOUTING THERE IS WEALTH INEQUITY WITHOUT SHOUTING FOR JUSTICE FROM MASSIVE CORPORATE FRAUD-----WHICH WILL ITSELF REVERSE THIS WEALTH INEQUITY----THEY ARE WORKING FOR THOSE COMMITTING THE FRAUD.
We know of course that New York City is ground zero for the frauds and therefor little of the wealth they claim is actually theirs......it is our home equity, retirement, pensions, health care, and public assets. WE OWN MUCH OF NYC WEALTH. San Francisco has legitimate wealth with the TECH industry although they are evading taxes. This area is ground zero for subprime mortgage, defense, and for-profit education industry frauds. So, when all of that wealth is taken from San Francisco's economy....they will be ranked differently in wealth inequity. Washington is of course ground zero for all of the Federal contract fraud in the trillions of dollars and with it are the headquarters of all of the global corporations fat with fraud. When those fraudulent gains come back to the citizens and government coffers, that area will be ranked differently. So, you can see that Basu's willingness to spout stats that have no basis in reality makes US media on par with the Romanian media in free press. FREE PRESS HOLDS POWER ACCOUNTABLE....IT DOES NOT PROPAGATE PROPAGANDA. If the people at the top think the American people are going to let the stealing of tens of trillions of dollars go------they are indeed out of touch!
Should the federal government being doing more to investigate fraud in the financial industry? Bloomberg Poll
Yes - 93% (4385 votes)
No - 7% (322 votes)
Total Votes: 4,707 Percentages may not add up to 100% due to rounding
The assets of the big banks mostly belong to the public as bringing back fraud and recovering damages would make these global banks into the regional banks we need them to be. There is not a bank executive known to play the most obvious roll in these massive frauds that is not back working in finance earning tons of money again. THIS IS SUSPENSION OF RULE OF LAW AND WHEN A GOVERNMENT SUSPENDS RULE OF LAW, IT SUSPENDS STATUTES OF LIMITATION.
Below you see only an example of the costs of damages to the American people.....there are tens of trillions in actual corporate frauds yet to be recovered. Imagine allowing rogue financial firms like Moody's and Standards and Poor (S & P)......tell government pension managers that pensions have to be cut because 1/2 their value was lost in financial fraud that has yet to be recovered.
THIS IS THIRD WORLD AND SHOWS WE HAVE A KLEPTOCRACY IN PLACE AND WE NEED TO SHAKE THESE BUGS FROM THE RUG. NEO-CONS AND NEO-LIBERALS ARE THE BUGS MOVING ALL WEALTH TO THESE GLOBAL CORPORATE COFFERS.
Now, we know as well that all that time writing the Financial Reform Bill and yet not implemented and enforced has the economy ready to collapse yet again. We know as well that neo-liberals took over from the neo-cons the oversight of corporate writing of TPP. TPP negates all of what the Financial Reform Bill does. Do you really think your pol did not know that ending US sovereignty with all the US Constitutional protections of WE THE PEOPLE AND BILL OF RIGHTS would of course make the Financial Reform Bill null and void? OF COURSE THEY KNEW AS THEY SPENT THE TIME SUSPENDING FRAUDULENT ACCOUNTABILITY. We will act as though we are doing something as we ignore that no justice in massive fraud occurs.
Five years ago today, Lehman Brothers went bankrupt.
Instantly and inevitably, the house of cards otherwise known as Wall Street collapsed.
But after getting bailed out by the American taxpayers, Wall Street is doing just fine.
The people of Main Street? Not so much.
Here are some numbers to think about this Sunday morning.
Amount the crash cost the U.S. economy: $22 trillion
How much everyone would get if that $22 trillion were divided equally among the U.S. populace: $69,478.88
Assets of the four biggest banks in America — JPMorgan Chase, Bank of America, Citigroup and Wachovia/Wells Fargo — when they were “too big to fail” in 2008: $6.4 trillion
Assets of those four banks today: $7.8 trillion
Of the 63 former Lehman Brothers employees identified by a bankruptcy examiner as being aware of an accounting scheme Lehman used to mask its true finances, number who are employed in senior financial services positions today: 47
Number of the 25 banks responsible for the bulk of risky subprime loans leading up to the crash that are back in the mortgage business: 25
Chances that an American voter thinks that regulating financial products and services is “important” or “very important”: 9 in 10
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BERNIE SANDERS IS THE ONLY NATIONAL POL THAT SHOUTS OUT RECOVERING CORPORATE FRAUD IS A MUST. WHETHER DEFENSE INDUSTRY FRAUD TO PROTECT VETERANS....WALL STREET FRAUD RECOVERY....OR THE FEDERAL RESERVE....GROUND ZERO FOR GREAT FRAUD-----
IF A POL IS NOT SHOUTING THIS---THEY ARE AIDING AND ABETTING.
See why saying there is wealth inequity in America before justice reverses much of this fraud is propaganda?
The Fed Audit
Thursday, July 21, 2011
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."
Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said.
The non-partisan, investigative arm of Congress also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.
For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.
In another disturbing finding, the GAO said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given bailout funds. One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it might have created the appearance of a conflict of interest.
To Sanders, the conclusion is simple. "No one who works for a firm receiving direct financial assistance from the Fed should be allowed to sit on the Fed's board of directors or be employed by the Fed," he said.
The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.
The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.
A more detailed GAO investigation into potential conflicts of interest at the Fed is due on Oct. 18, but Sanders said one thing already is abundantly clear. "The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street."
To read the GAO report, click here.
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Below is a good analysis of the problem in Europe which of course is the same as that in the US. This analysis has a second value because it shows that the same model of throwing Europe into sovereign debt crisis is now being used by US neo-liberals for the next Bain's Capital gutting of wealth assets from the public sector. Remember, it was Iceland that from the start simply allowed the banks to default from the fraud and their economy is well on its way to being healthy while the US and Europe are still held hostage by TROIKA and WALL STREET/FED. American academics have the same analyses showing direct cause and effect....proof of conspiracy to defraud. We have all the data needed to show all of this CDS policy was a planned conspiracy that can be easily tried in court and won.
WE NEED LABOR UNION LAWYERS TO START ACTING AS US JUSTICE DEPARTMENT IN TAKING ALL OF THIS TO COURT AND DECRYING THE JUSTICE DEPARTMENTS SUSPENSION OF RULE OF LAW!
Anyone as nerdish as I am will like this research and analysis of how the same financial scheme brought to us with the subprime mortgage loan fraud with trillions of dollars of fraudulent loans insured with Credit Default Swaps by mainly one large insurance agency.....AIG all the time knowing these loans were toxic and all would collapse. So, the Dodd Frank financial reform was to address this and of course nothing has been done and these same people are now thinking the subprime mortgage loan fraud was such a success as tens of trillions of dollars in fraud was left with the looters now think......let's do it again.
This time rather than the goal of capturing all of the nation's real estate holdings and consolidating land ownership to a few at the top.....this fraud has as its goal blowing up the public sector by super-sizing municipal debt and imploding the economy to make a crash that would create huge sovereign debt default. You can do that only if you again use the Credit Default Swap insurance so that as everyone else loses all their wealth, you have this insurance that protects the very people imploding the economy. None of this is legal as banks deliberately hid sovereign debt and municipal debt with financial instruments so more debt could be taken on.....ergo, the implosion we have in Europe in 2008.
This is important because the same thing is now happening in the US these few years of Obama's term as US state governors and mayors.....like O'Malley and Rawlings-Blake are doing to you and me what was done in the PIIGS nations in Europe. Loading up municipal debt while insuring it all with Credit Default Swaps. You know this is a plan as municipal bonds and public debt have never been allowed to use these CDS and now they are. So, as governors and mayors load our government coffers with tons of debt tied to Wall Street financial instruments, the investment firms are protecting themselves from loss when the economic crash comes while the public sector.......MECU and the State of Maryland/City of Baltimore will default on their terms and lose most of the investment.
AGAIN, THIS IS ALL PUBLIC MALFEASANCE....IT IS ILLEGAL AND ALL TERMS CAN BE VACATED BECAUSE INVESTMENT FIRMS KNOW THIS IS ALL FRAUDULENT.
This article below is great and it is very long so I could not copy it here.......go to the webpage to see it in its entirety to see how these 1% are working to steal all that is public!
Analysis of European Sovereign Credit Default Swap during theSovereign Debt Crisis in Portugal, Ireland, Italy and Spain.
byBerkay OrenA dissertation submitted in partial of theMSc Finance and InvestmentAtThe University of BrightonFaculty of Management and Information SciencesBrighton Business School(May 2013)
Abstract
This thesis has represented the determinants of sovereign CDS spreads during currentsovereign debt crisis in periphery countries namely Ireland, Italy, Portugal and Spain. The period of analysis is between 4 March 2008 and 3 May 2012. After the demise of LehmanBrothers, the sovereign CDS market has attached significant attention and the credit marketshave been issue to an unprecedented re-pricing of credit risk. Moreover, Lehman Brothersdevastated investor confidence and decrease in the availability of credit. Massive assistanceof the banks was heightened public sector deficit. Thus it has led to high level sovereign debt.This means that the risk of default of sovereign became real in periphery countries. Thisthesis has been classified three phases. Firstly an analysis of credit default swaps and their use in the financial World. Secondly development of the European periphery economy on amacro level in Portugal, Ireland, Italy and Spain. Finally the statistical approach of ordinaryleast square is to be analysed. Main purpose of this thesis will identify sovereign creditdefault swaps associated with the current sovereign debt crisis.
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We want to remember that the reason Clinton and Bush targeted the low-income mortgage market for the subprime mortgage frauds was first, they wanted to consolidate real estate ownership and second they used the Federal assistance for these loans over and over again....this is where a large part of the fraud fleecing government coffers came. They did it on purpose because they knew they would have someone in office that would suspend Rule of Law....if not Obama, Hillary, or Romney. Sending low-income people to higher education and placing them in homes.....under programs filled with fraud was only cover for this massive fraud. WE KNOW IF THE INTENT IS TO DO GOOD, YOU DO NOT ALLOW MASSIVE FRAUD OF THE PROGRAM TO OCCUR. The same is happening today in the GREEN industry as a good program is riddled with fraud allowing 1/2 of the green spending to be defrauded.
IF NO OVERSIGHT IS GIVEN AND NO JUSTICE IN PLACE....THE INTENT WAS INDEED TO DEFRAUD.
Below is a look at just the subprime mortgage fraud....we know that financial fraud was widespread and across corporate industries as well. So, the few hundreds of billions of dollars collected in 'settlements' does nothing for tens of trillions of dollars in fraud. THIS IS WHY ALL PUBLIC PROGRAMS, SERVICES, AND ASSETS ARE BEING HANDED TO PRIVATE ENTITIES UNDER THE GUISE OF STARVED GOVERNMENT BUDGETS.
Wall Street Bank Fraud Massive
Details
Written by Dan McGookey
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The New York Times reported this week that Wall Street is now predicting that its Banks will be anteing up over $50 Billion in settlement payouts with the government and others as a result of their massive fraud perpetrated through the securitized lending system during the first eight years of this Century. Even this astounding number doesn't begin to tell the story of how widespread that fraud was, or the toll it took on this Country's economy, however.
Consider the fact that tens of trillions of dollars of wealth changed hands from Main Street to Wall Street in less than a decade through the vehicle known as securitized lending. That is the process whereby a mortgage loan is magically transformed into a stock certificate or security simply by bundling it with thousands of others and then selling "mortgage-backed certificates" (or stock) in that pool of loans. The problem was that the Wall Street Bankers were able to sell the stock in the loan pool at 10-20 times the face value of the loans. And the reason we say that tens of trillions of dollars shifted from Main Street to Wall Street by virtue of the corrupt securitized lending system is because it was city and state governments, retirement funds, insurance companies and the like who were the suckers buying up the absurdly over-priced stock. In other words, the money was stolen out of the wallets and purses of all Americans.
Even through the estimated amount of the penalties is tantamount to a slap on the wrist for the Banks, it at least serves to highlight the significance of Wall Street's corruption. And the news reports of that corruption will no doubt keep coming with increasing frequency as the depth of the fraud continues to be exposed. All we can hope for is that as that happens, our own Government's complicity in the scandal will be exposed as well.
Reverse Bank Robbery
The Wall Street Banksters obviously never read or simply didn't take heed of the following preaching of Socrates:
"Rather fail with honor than succeed by fraud."
Avoiding the Foreclosure Trap
As a homeowner struggling for mortgage relief with your bank, don't forget to be mindful of the following time-honored sage advice; "Forewarned is forearmed". Realize that the fraud involved with your mortgage didn't end after your loan's origination. Because foreclosure is a profitable business, there is a very good chance the fraud is continuing, along with your victimization.
Kate Eyster and Lauren McGookey contributed to this article.
Copyright 2014 Daniel L. McGookey
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Let's look at one other corporate fraud...this one tax fraud that is wide-spread and easy to find. The IRS could pay down much of the national debt itself by recovering corporate tax fraud yet we are told by neo-liberals those bad republicans are defunding the IRS.....indeed, it is being starved. Yet, the financial settlements in the hundreds of billions requires that a percentage of all settlements go to rebuilding and strengthening fraud detection and prosecution......IT IS SELF-FUNDING. So, all we need are state pols that shout loudly that none of this is happening----IT IS THE VOICE OF PUBLIC OFFICIALS THAT WOULD FORCE THESE CROOKS TO DO THE RIGHT THING. IT IS THEIR SILENCE THAT IS DUPLICITOUS.
IN MARYLAND, IT WAS ALL OF THE CURRENT POLS IN OFFICE THAT ALLOWED THIS MASSIVE CORPORATE FRAUD TO HAPPEN AND INDEED MUCH WEALTH INEQUITY IN MARYLAND IS A RESULT OF THIS FRAUD AND LACK OF JUSTICE!
Joe Biden's Delaware and Harry REid's Nevada are the two states with the most international business geared to off-shoring and hiding wealth.
THIS BILL WAS PASSED IN 2006 JUST AS THE DISMANTLING OF OVERSIGHT AND DEFUNDING WAS AT ITS HEIGHT. REMEMEBER, THE RECOVERY OF FRAUD BY THE IRS SUPPORTS ALL THE OVERSIGHT AND ACTION NEEDED. THE IRS HAS PLENTY OF MONEY TO DO THE JOB WITHOUT CONGRESSIONAL FUNDING.
Trillions in fraud here....tens of trillions there.....makes for tons of lost revenue to the economy from corporate fraud at Federal, state, and local level. When people like Basu or Robert Reich speak of wealth inequity as needing legislation and not Rule of Law...THEY ARE WORKING FOR WEALTH AND PROFIT.
Illegal Offshore Account Tax Fraud and Transfer Price Schemes Are Two Forms of IRS Tax Fraud That Can Be the Basis Of An IRS Whistleblower Reward Lawsuit
by Illegal Offshore Account Tax Fraud Lawyer and Transfer Payment Tax Fraud Whistleblower Reward Lawyer Jason Coomer
Illegal Offshore Account Tax Fraud and Transfer Payment Tax Fraud are two forms of corporate tax fraud that are committed by large multinational corporations. The IRS is offering rewards and protections for IRS whistleblowers and IRS informants that work through Illegal Offshore Account Tax Fraud Whistleblower Lawyers, Multinational Corporate Tax Fraud Whistleblower Lawyers, and Transfer Payment Tax Fraud Whistleblower Lawyers to identify tax fraud schemes that cost the United States millions of dollars.
Illegal Offshore Account Tax Fraud Whistleblower Lawyer, Multinational Corporate Tax Fraud Whistleblower Lawyer, and Transfer Payment Tax Fraud Whistleblower Lawyer, Jason S. Coomer, works with corporate tax fraud whistleblowers, illegal offshore account tax fraud whistleblowers, transfer payment tax fraud whistleblowers, and other corporate tax fraud whistleblowers to expose corporate tax fraud and other forms of tax fraud. If you are the original source with special knowledge of tax fraud and are interested in learning more about a tax whistleblower lawsuit, please feel free to contact Illegal Offshore Account Tax Fraud Whistleblower Lawyer and Transfer Payment Corporate Tax Fraud Whistleblower Lawyer Jason Coomer via e-mail message.
Illegal Offshore Account Tax Fraud Lawsuit, Corporate Tax Fraud Whistleblower Reward Lawsuit, IRS Illegal Offshore Account Tax Fraud Whistleblower Reward Lawsuit, Transfer Price Scheme Tax Fraud Lawsuit, IRS Whistleblower Reward Lawsuit, & IRS Whistleblower Payment for Detection of Fraud Lawsuit Information
In 2006, the Tax Relief and Health Care Act that was signed into law included a whistleblower reward amendment that created mandatory reward language to the IRS to create a mandatory economic incentive to encourage tax fraud whistleblowers to step forward to help the government detect large scale fraudulent schemes. By offering large potential rewards for reporting multimillion tax fraud schemes, the IRS has received hundreds of tax fraud tips from tax fraud informants regarding taxpayer fraud and massive violations of the tax code costing taxpayers Billions of dollars. Many of the tips already received include fraud schemes of hundreds of millions and tens of millions of dollars. It is estimated that this programs will result in hundreds of billions of dollars or even Trillions of dollars in tax fraud being detected.
The economic incentives in the Tax Whistleblower Reward Programs are designed to encourage insider tax fraud informants and tax fraud whistleblowers with knowledge and evidence of large tax violations and tax fraud schemes to step forward and report the massive tax fraud. The IRS is hoping that there will be several tax fraud whistleblowers and tax fraud informants that will help them detect and collect on an estimated $3 Trillion in illegal offshore accounts as well as several other tax-avoidance schemes that have been perpetrated by billionaires and millionaires as well as large corporations.
The IRS Whistleblower Reward Amendment requires the Internal Revenue Service to pay rewards to whistleblowers who exposed large scale tax fraud and taxpayer fraud including major tax underpayments, violations of the Internal Revenue Code, or other fraudulent schemes to unlawfully not pay taxes. The IRS Whistleblower Reward Program is aimed at large multimillion dollar fraud schemes and tax violations in that the total amount of fraud or underpayment of taxes in dispute would have to exceed $2 millions.
The IRS will pay the tax fraud whistleblower or tax fraud informant if the information presented substantially contributes to the collection of money by the IRS. As such, the tax fraud whistleblower should have inside knowledge of and documentation of the tax fraud to be successful.
Illegal Offshore Account Tax Fraud Lawyer, Corporate Tax Fraud Whistleblower Reward Lawyer, IRS Illegal Offshore Account Tax Fraud Whistleblower Reward Lawyer, Transfer Price Scheme Tax Fraud Lawyer, and IRS Whistleblower Reward Lawyer
Transfer pricing schemes involve the overpricing of imports and/or the underpricing of exports between related companies in different countries for the purpose of transferring profits or revenue out of the United States in order to evade taxes. The profits and revenue end up in a country that has a lower corporate tax rate than the US. These fraudulent pricing schemes can be used both for stock manipulation and corporate tax fraud. For more information on Corporate Tax Fraud Whistleblower Actions, please go to the following: Tax Fraud Whistleblower Reward Lawsuit, IRS Tax Fraud Whistleblower Award Lawsuit, and Corporate Tax Fraud Lawsuit Information web page.
Illegal Offshore Account Tax Fraud Lawsuit, Corporate Tax Fraud Whistleblower Reward Lawsuit, IRS Illegal Offshore Account Tax Fraud Whistleblower Reward Lawsuit, Transfer Price Scheme Tax Fraud Lawsuit, IRS Whistleblower Reward Lawsuit, & IRS Whistleblower Payment for Detection of Fraud Lawsuit Information
To qualify for a whistleblower award under section 7623 (b), the information must:
Relate to a tax noncompliance matter in which tax, penalties, interest, additions to tax and additional amounts in dispute exceed $2,000,000.00
Relate to a taxpayer, and in the case of an individual taxpayer, one whose gross income exceeds $200,000.00 for at least one of the tax years in question
If the information meets the above criteria and substantially contributes to a decision by the IRS to take administrative or judicial action that results in the collection of tax, penalties, interest, additions in tax and additional amounts, then the IRS will pay an award of at least fifteen percent, but not more than thirty percent of what the IRS collects. 26 U.S.C. at 7623(b)(1).
The IRS has authority to reduce the award to ten percent if the claim is based upon specific allegations disclosed in certain public information (e.g. government audits) and determines that the whistleblower's information was not the original source of information. Further, the IRS also has the authority to reduce the award or not give an award if the whistleblower planned and initiated the actions that led to the tax underpayment.
The IRS Whistleblower Reward Program, Whistleblower Recovery Program, and IRS Corporate Tax Fraud Whistleblower Rewards
The Tax Relief and Health Care Act of 2006, signed into law on December 20, 2006 amended the Internal Revenue Code to provide rewards for turning in tax cheats including corporations and people that are committing tax fraud. According to the IRS, the primary purpose behind the Tax Relief and Health Care Act of 2006 "was to provide incentives for people with knowledge of significant tax non-compliance to provide that information to the IRS." The new program generally requires the IRS to pay rewards to whistleblowers if the information presented substantially contributes to the collection of money by the IRS. The law created the IRS Whistleblower Office to receive, evaluate, and determine whether to pay the whistleblower an award.
The IRS has funded a robust IRS Whistleblower Program. The new program focuses on large tax fraud and tax underpayment claims. To qualify for the rewards, $2 million of taxes, penalties, and interest must be involved. Individual taxpayers must have $200,000.00 of taxable income in any year. The reward is from fifteen to thirty percent of the tax collected, depending upon the extent to which the whistleblower contributed to the additional collection. If the IRS determines that the whistleblower's information was not the original source of information, but still contributes to the additional collection, the IRS can still award up to ten percent of the amount collected.
It is interesting to note that Congress passed the original tax whistleblower rewards law in March 1867 for people who reported tax crimes. The law was enacted prior to a federal income tax, but was not effective because payment of the tax whistleblower reward was voluntary and no rewards were paid out until the rewards became mandatory through the 2006 amendment.
SEC Violation Whistleblower Lawyer, Financial Fraud Whistleblower Bounty Lawyer, SEC Whistleblower Incentive Program Lawyer, SEC Violation Lawyer, and Securities Fraud Whistleblower Lawyer
As a Financial Fraud Whistleblower Lawyer and Securities Fraud Whistleblower Lawyer, Jason S. Coomer commonly works with other powerful financial fraud and securities fraud whistleblower lawyers to handle large Securities Fraud Whistleblower Lawsuits, Securities Fraud Bounty Actions, Commodity Fraud Bounty Claims, and other Financial Fraud Lawsuits. He also works on Medicare Fraud Whistleblower Lawsuits , Defense Contractor Fraud Whistleblower Lawsuits, Stimulus Fraud Whistleblower Lawsuits, Government Contractor Fraud Whistleblower Lawsuits, and other government fraud whistleblower lawsuits.
Illegal Offshore Account Tax Fraud Lawsuit, Corporate Tax Fraud Whistleblower Reward Lawsuit, IRS Illegal Offshore Account Tax Fraud Whistleblower Reward Lawsuit, Transfer Price Scheme Tax Fraud Lawsuit, & IRS Whistleblower Reward Lawsuit Information
by Illegal Offshore Account Tax Fraud Paid Informant Lawyer and Transfer Payment Tax Fraud Paid Informant Lawyer Jason Coomer
Illegal Offshore Account Tax Fraud Whistleblower Lawyer, Multinational Corporate Tax Fraud Whistleblower Lawyer, and Transfer Payment Tax Fraud Whistleblower Lawyer, Jason S. Coomer, works with corporate tax fraud whistleblowers, IRS tax fraud whistleblowers, and other tax fraud whistleblowers that are stepping up and blowing the whistle on IRS tax fraud, corporate tax fraud, IRS code violations, and other forms of tax fraud. If you are the original source with special knowledge of tax fraud and are interested in learning more about a tax whistleblower lawsuit, please feel free to contact Illegal Offshore Account Tax Fraud Whistleblower Lawyer and Transfer Payment Corporate Tax Fraud Whistleblower Lawyer Jason Coomer via e-mail message.
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Much of the wealth Basu speaks is tied to the Washington and San Franscisco, NYC is from this massive corporate fraud. it is not real wealth. Keep in mind that the defense industry budget is one of the largest. NSA can see all, yet they could not build accountability into these computer systems. Luckily, WIKILEAKS had a download of defense industry contracting and is now being reviewed by investigative journalists and international justice organizations.
JUST RECOVERING CORPORATE FRAUD WOULD PAY DOWN GOVERNMENT DEBT AT ALL LEVELS AND MAKE ALL PUBLIC TRUSTS AND PENSIONS FLUSH WITH MONEY! DO YOU HEAR YOUR POLS SHOUTING THIS?
Grand Theft Pentagon, Massive Waste and Fraud
Politics / US Military Nov 21, 2013 - 12:39 PM GMT
By: Stephen_Lendman
Politics
Longstanding Pentagon operations reflect a black hole of unaccountability. Reuters published a two-part report. In July, it discussed the Defense Department’s “payroll quagmire.”
It’s bureaucracy is stifling. It’s “unyielding,” said Reuters. Active duty and retired military personnel are routinely cheated. Pay errors are widespread.
Correcting “or just explaining them can test even the most persistent soldiers.” Weeks or months pass without resolution.
Some personnel are cheated on pay. Others are penalized for overpayments. Their earnings are “drastically cut” unfairly. Precise figures are impossible to calculate.
At issue is “the Defense Department’s jury-rigged network of mostly incompatible computer systems for payroll and accounting, many of them decades old, long obsolete, and unable to communicate with each other,” said Reuters.
“The Defense Finance and Accounting Services (DFAS) still uses a half-century-old computer language that is largely unable to communicate with the equally outmoded personnel management systems employed by each of the military services.”
A December 2012 Government Accountability Office (GAO) report revealed unaccountable accounting. No way exists to assure correct amounts are paid. Errors can’t be tracked.
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As neo-liberals now pretend that wealth inequity exists and not simply a failure of justice to occur in moving money back to government coffers and individual's pockets, WE THE PEOPLE MUST SHOUT LOUDLY THE TRUTH---THAT JUSTICE WILL BE SERVED!!!
Bill Black: How Elite Economic Hucksters Drive America’s Biggest Fraud Epidemics
Posted on June 6, 2013 by Yves Smith
This article is part of an ongoing AlterNet series, "The Age of Fraud."
What do you get when you throw together economic fraudsters, plutocrats and opportunistic criminals? A financial crisis, that’s what. If you look back over the massive frauds that have swept the country in recent decades, from the savings and loan crisis of the 1980s to the 2007-'08 financial crash, this deadly combination always appears.
A dangerous cycle begins when prominent economists pander to plutocrats and bought politicians, who reward them with top posts, where they promote the perverse economic policies that cause fraud epidemics. Crises develop, and millions of people are ripped off. Those who fight for truth are ignored or ruined. The criminals get wealthier, bolder and more politically powerful, and go on to hatch even more devastating cons.
The three most recent financial crises in U.S. history were driven by a special type of fraud called “control fraud” — cases where the officers who control what look like legitimate entities use them as “weapons” to commit crimes. Each time, Alan Greenspan, former chairman of the Federal Reserve, played a catastrophic role. First, his policies created the fraud-friendly (criminogenic) environment that produces epidemics of control fraud, then he failed to identify those epidemics and incipient crises, and finally, he failed to counter them.
At the heart of Greenspan’s failure lies an ethical void in the brand of economics that has dominated American universities and policy circles for the last several decades, a brand known as “free market fundamentalism” or the “neoclassical school.” (I call it “theoclassical economics” for its quasi-religious belief system.) Mainstream economists who follow this school assert a deeply flawed and controversial concept known as the “efficient market hypothesis,” which holds that financial markets magically regulate themselves (they automatically “self-correct”) and are thus immune to fraud. When an economist starts believing in that kind of fallacy, he is bound to become blind to reality. Let’s take a look at what blinded Greenspan:
Greenspan knew that markets were “efficient” because the efficient market hypothesis is the foundational pillar underlying modern finance theory.
Markets can’t be efficient if there is control fraud, so there must not be any.
Wait, there are control frauds! Tens of thousands of them.
Then control fraud must not really be harmful, or markets would not be efficient.
Control fraud, therefore, must not be immoral. As crime boss Emilio Barzini put it in The Godfather, “It’s just business.”
As delusional and immoral as this “logic” chain is, many elite economists believe it. This warped perspective has spawned policies so perverse that they turn the world of finance into the optimal environment for criminals. The upshot is that most of our elite financial leaders and professionals have thrown integrity out the window, and we end up with recurrent, intensifying financial crises, de facto immunity for our most elite criminals, and the rise of crony capitalism. Let’s do a little time travel to see exactly how this plays out.
How to Stoke a Savings and Loan Fiasco
The Lincoln Savings and Loan Association of Irvine, California was at the center of the famous crisis that rocked the financial world in the 1980s. A once prudently run company morphed into a casino when S&L associations became deregulated and started doing risky business with depositors’ money. Businessman, GOP darling, and anti-pornography crusader Charles Keating, ironically nicknamed “Mr. Clean,” took over Lincoln in 1984 and got the casino rolling. (It was a special kind of casino where the games were rigged – and not in favor of newlywed brides who were the subject of sexual extortion in Casablanca.) In a classic case of control fraud, Keating devoted himself to turning the company into a weapon of mass financial destruction and a source of wealth for his family. Keating’s “weapon of choice” for his frauds was accounting.
Keating went on a spree buying land, taking equity positions in real estate projects, and purchasing junk bonds. In 1985, the Federal Home Loan Bank Board (FHLBB), where I was the staffer leading the regulation efforts, grew alarmed at the new activities of savings associations like Lincoln. So we made a rule: S&Ls could not put more than 10 percent of company assets in "direct investments” – an activity that led to very large losses.
Alan Greenspan, chairman of an economic consulting firm at the time, urged us to permit Lincoln Savings to go full steam ahead. His memo supporting Lincoln’s application to make hundreds of millions of dollars in direct investments praised the company’s management (Keating) and claimed that Lincoln Savings “posed no foreseeable risk of loss.”
The FHLBB rejected Lincoln’s request to exceed the rule’s threshold because direct investments were a superb vehicle for accounting fraud – they made it easy to hide losses and to create fictional income. Nevertheless, Lincoln continued to violate the rule and created fictional (backdated) board consents with hundreds of forged signatures to make it appear that the investments were “grandfathered” under the rule. The hundreds of millions of dollars in unlawful direct investments were used for fraudulent purposes by Lincoln Savings’ controlling officers and caused enormous losses – many of them to elderly citizens who were conned into buying the junk bonds of Lincoln Savings’ holding company. The massive losses on Lincoln’s illegal direct investments were a major reason those bonds were worthless.
Hoping to use his political clout to continue the fraud, Keating hired Greenspan to lobby the senators who eventually became the known as the “Keating Five.” I remember well when these senators intervened at Keating’s request to try to prevent me and my colleagues from taking an enforcement action (or conservatorship) that would have saved over a billion dollars. (I took the notes of that meeting, which led to the Senate ethics investigation of the Keating Five.) The cronyism was so thick in Washington that William Weld, then a top Department of Justice official and later the Republican governor of Massachusetts, actually tried to gin up a criminal investigation of the regulators rather than Keating at the request of Lincoln’s lawyers who had just left the DOJ! Eventually, Keating and many of the senior managers of Lincoln Savings were convicted of felonies and Lincoln Savings became the most expensive failure of the S&L debacle.
When you look back on this expensive fiasco, you see that the work of respected professional economists was frequently called upon to support the fraudulent activities. One of the ways Greenspan tried to advance Keating’s effort to have the courts strike down the direct investment rule was to use a study conducted by a less famous economist, George Benston, who showed that S&Ls that violated the direct investment rule earned higher profits than those who didn’t. So he recommended the rule be dropped. Small problem: In less than two years all 33 of the companies Benston studied had failed. Most were accounting control frauds in which executives cooked the books to show fictional profits.
Keating had a talent for obtaining endorsements from prominent economists. He got Daniel Fischel to conduct a study that purported to show that Lincoln Savings was the best S&L in America. Fischel invoked the efficient market hypothesis to opine that our examiners provided no useful information because the markets had already perfectly taken into account any information to which we had access. In reality, of course, this was nonsense, and Lincoln Savings was the worst S&L in the country.
Economists who pander to plutocrats have a great advantage over scholars in other fields: There is no reputational penalty among your peers for being dead wrong. Benston got an endowed chair at Emory, Fischel was made dean of the Univerisity of Chicago’s Law School, and Greenspan was made Chairman of the Fed. Those who got control fraud right and fought the elite scams and their powerful political patrons – people like Edwin Gray, head of the FHLBB, and Joe Selby, head of supervision in Texas – saw their careers ended.
Consider what that perverse pattern indicates about how badly ethics have fallen in the both economics and government.
How to Create a Regulatory Black Hole
Alan Greenspan was Ayn Rand’s protégé, but he moved radically to the wacky side of Rand on the issue of financial fraud. And that, friends, is pretty wacky. Greenspan pushed the idea that preventing fraud was not a legitimate basis for regulation, and said so in a famous encounter with Commodities Futures Trading Commission (CFTC) Chair Brooksley Born. “I don’t think there is any need for a law against fraud,” Born recalls Greenspan telling her. Greenspan actually believed the market would sort itself out if any fraud occurred. Born knew she had a powerful foe on any regulation.
She was right. Greenspan, with the rabid support of the Rubin wing of the Clinton administration, along with Republican Chairman of the Senate Banking Committee Phil Gramm, crushed Born’s effort to regulate credit default swaps (CDS). The plutocrats and their political allies deliberately created what’s known as a regulatory black hole – a place where elite criminals could commit their crimes under the cover of perpetual night.
Greenspan chose another Fed economist, Patrick Parkinson, to testify on behalf of the bill to create the regulatory black hole for these dangerous financial instruments. Parkinson offered the old line that efficient markets easily excluded fraud — otherwise, they wouldn’t be efficient markets! (Parkinson would later tell the Financial Crisis Inquiry Commission in 2011 that the “whole concept” of a related financial instrument known as an “ABS CDO” had been an “abomination”). Greenspan’s successor richly rewarded Parkinson for being stunningly wrong in his belief: Ben Bernanke appointed Parkinson — who had no experience as a supervisor or examiner — as the Fed’s head of supervision.
Lynn Turner, former chief accountant of the SEC, told me of Greenspan’s infamous question to his group of senior officials who met at the Fed in late 1998 or early 1999 (roughly the same time as Greenspan’s conversation with Born): "Why does it matter if the banks are allowed to fudge their numbers a little bit?" What’s wrong with a “little bit” of fraud?
Conservatives often support the “broken windows” theory of criminal activity, which asserts that you stop serious blue-collar crime by cracking down on minor offenses. Yet mysteriously, they never apply the concept to white-collar financial crimes by elites. The little-bit-of fraud-is-ok concept got made into law in the Commodities Futures Modernization Act of 2000, which created the regulatory black hole for credit default swaps. That black hole was compounded by the Commodity Futures Trading Commission under the leadership of Wendy Gramm, spouse of Senator Phil Gramm.
Enron’s fraudulent leaders were delighted to exploit that black hole, because they were engaged in a massive control fraud. They appointed Wendy Gramm to their board of directors and proceeded to use derivatives to manipulate prices and aid their cartel in driving electricity prices far higher on the Pacific Coast. In a bizarre irony, the massive increase in prices led to the defeat of California Governor Gray Davis (the leading opponent of the cartel) and his replacement by Governor Schwarzenegger – a man who was part of the group that met secretly with Enron’s leadership to try to defeat Davis’s efforts to get the federal regulators to kill the cartel.
How damaging was Greenspan’s dogmatic and delusional defense of elite financial frauds in the case of Enron? If you look closely, you can see that Enron brought together all the critical elements of a financial crisis: big-time accounting control fraud, derivatives, cartels, and the use of off-balance sheet scams to inflate income and hide real losses and leverage. On top of all that, many of the world’s largest banks aided Enron and its extremely creative CFO Andrew Fastow to create frauds. The Fed could have responded by adopting and enforcing mandates to end the criminal practices that were driving the epidemic, but it didn’t. Instead, Greenspan and other Fed economists championed Enron’s leadership and cited the company as proof that regulation was unnecessary to prevent control fraud. They were so extreme that they attacked their own senior supervisors for daring to criticize the banks’ role in aiding and abetting Enron’s activities.
Later, when risky derivatives activities and control frauds at large financial institutions were pushing us toward the catastrophic crash of 2007-2008, the Fed took no meaningful action based on the lessons learned from Enron. Greenspan and the senior leadership of the Fed had learned absolutely nothing, which shows how disabling economic dogma is to regulators – making them worse than simply useless. They become harmful, again attacking their supervisors for criticizing the banks’ fraudulent “liar’s” loans. When Bernanke placed Patrick Parkinson (an economist blind to fraud by elite banksters) in a supervisory role at the Fed, he sealed the fate of millions of Americans whose financial well-being would be sucked right into that regulatory black hole – and removed the ability of the accursed supervisors to criticize the largest banks.
How to Protect Predatory Lenders
Finally, we come to the mortgage meltdown of 2008, when the entire housing industry went into freefall. Central to this crisis is the story of the liar's loan — mortgage-industry slang for a mortgage that a lender gives without checking tax returns, employment history, or anything else that might reliably indicate that the borrower can make the payments.
The Fed, and only the Fed, had authority under the Home Ownership and Equity Protection Act (HOEPA) to ban liar’s loans by all lenders. At a series of hearings mandated by Congress, dozens of witnesses representing home mortgage borrowers and state and local criminal investigators urged the Fed to do this. The testimony included a study that found a 90 percent incidence of fraud in liar’s loans.
What did Greenspan and Bernanke do? Exactly nothing. They consistently refused to act.
Greenspan went so far as to refuse pleas to send Fed examiners into bank holding company affiliates to find the facts and collect data on liar’s loans. Simultaneously, the Fed’s economists dismissed the warnings from progressives about fraudulent liar’s loans as “merely anecdotal.” In 2005, the desperate Fed regulators, blocked by Greenspan from sending in the examiners to get data from the banks, resorted to simply sending a letter to the largest banks requesting information. The Fed supervisor who received the banks’ response to that letter termed the data “very alarming.”
If you suspect that the banks would typically respond to such requests by understating their problem assets significantly, then you have the right instincts to be a financial regulator.
By 2003, loan quality was so bad that it could only be explained as the inevitable product of endemic accounting control fraud and it continued to collapse through 2007 until the bubble burst. By 2006, over two million fraudulent liar’s loans were originated annually. We know that it was overwhelmingly lenders and their agents who put the lies in liar’s loans. Liar’s loans make the perfect “natural experiment” because no governmental entity ever required a lender or a purchaser (and that includes Fannie and Freddie) to make or purchase a liar’s loan. Banks made, and purchased, trillions of dollars in liar’s loans because doing so lined the pockets of their controlling officers.
The Fed’s leadership, dominated by economists devoted to false theory, was enraged when the Fed’s supervisors presented evidence of endemic control fraud by the most elite lenders, particularly in the making of fraudulent liar’s loans. How dare the supervisors criticize our most reputable bank CEOs by showing that they were making hundreds of thousands through scams?
Bernanke finally acted under Congressional pressure on July 14, 2008 to ban liar’s loans. He cited evidence of endemic fraud available since early 2006 – evidence which would have been available way back in 2001 had Greenspan moved to require examiners to study liar’s loans. Even in the face of overwhelming evidence, Bernanke delayed the ban for 18 months — one would not wish to inconvenience a fraudulent lender, after all.
We did not have to suffer this crisis. Economists who were not blinded by neoclassical theory, like George Akerlof (who won the Nobel Prize in 2001) and Christina Romer (adviser to President Obama from 2008-2010), had warned their colleagues about accounting control fraud and liar’s loans, as did criminologists and regulators like me. But Greenspan (and Timothy Geithner) refused to see the obvious truth.
Alan Greenspan had no excuse for assuming fraud out of existence, and his exceptionally immoral position on fraud and regulation proved catastrophic to America and much of the world. We cannot afford the price, measured in many trillions of dollars, over 10 million jobs, and endless suffering, of unethical economists.
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