Daily Archives: March 31, 2016

County mulls credit cards for homes in foreclosure

Otsego County officials are looking at new ways to help financially-distressed property owners keep the tax foreclosure wolf away from their doors.

The county’s annual tax auction in 2014 left county government mired in three lawsuits filed by property owners who objected to the fact their houses were sold under the gavel to the highest bidder, causing them to lose all equity and leave the county with the profit.

While the latest discussions do not involve extending the payment deadline up to the time of the auction, the plan under consideration would give all taxpayers a new option: paying their tax bills by credit card.

Under New York’s General Municipal Law, local governments are allowed to accept credit and debit card payments for fees, fines, taxes and other charges, according to the state Comptroller’s office in Albany.

Critics of the county’s firm adherence to deadlines for delinquent tax payments have contended that the goal of tax enforcement should be to simply get the tax bills collected — not to have the county reap a major profit at the expense of someone losing his or her house.

Read on.

U.S. judge rejects Lehman workers’ claims on stock awards

Former senior employees of Lehman Brothers Holdings Inc [LEHLO.UL] who once commanded seven-figure pay packages failed to persuade a federal judge to restore hundreds of millions of dollars of stock awards that become worthless after the Wall Street bank’s collapse.

In a decision made public on Thursday, U.S. District Judge Richard Sullivan said the awards should be classified as equity, subject to being wiped out, rather than as contract claims entitling the workers to cash payouts from Lehman’s estate.

The decision covers an estimated $200 million or more of restricted stock units (RSUs) that Lehman awarded as an incentive to perform well over the long-term, before its Sept. 15, 2008 bankruptcy helped trigger that year’s global financial crisis.

Read on.

SEC claims brothers targeted elderly with real estate Ponzi scheme

A pair of brothers ran a Ponzi scheme that defrauded dozens of senior citizens out of more than $2.7 million by promising “guaranteed monthly income” in exchange for investing in real estate, but delivered no such returns, the Securities and Exchange Commission said this week.

Instead of providing the approximately 30 “elderly and unsophisticated” investors with returns on their investments, Matthew and Daniel Rivera pocketed the investors’ money and used some it to pay back other investors, the SEC alleged.

Read on.

Fraud is the New Norm! So Where is the Outrage?

Well it looks as if I spoke too soon. In last week’s post, I was excited about the National Archives release of the first of many FCIC documents which had been sealed for five years, including my behind-closed-doors testimony (available here). I commented on the coincidence of this five year lockup period paralleling the statute of limitations.
And I was excited that the media had discovered and immediately jumped on the FCIC having made a referral to the DOJ for possible violations of law by Robert Rubin, quoting the March 13, Fortune Magazine article by Stephen Gandel about the referrals and Rubin’s and Citi’s involvement.
I thought this was huge, and I was particularly excited because I noted that the newly released documents that the FCIC also made a second Citigroup referral for possible violations of law, with this second referral based solely on my testimony and evidence provided to the Commission. And there was no doubt in my mind that the media would be all over this and finally justice would prevail.
Well, I was wrong.

Fraud Key Profit Center for Wall Street

BWU/NEP’s Bill Black is interviewed by Greg Hunter over at USAWatchdog.com. The topic is fraudulent banking. You can view the post here.