Daily Archives: June 23, 2016

Pittsburgh woman says she’s out $200,000 after attending Trump University

Trump University coach with criminal record steered her into Ponzi scheme, woman says

Action News:

Action News Investigates has learned a Pittsburgh woman’s allegation that she lost more than $200,000 after attending a seminar licensed by Trump University.

Melissa Norris of Franklin Park said she is still trying to recover from the huge financial hit she took.

In a promotional video, Trump said, “At Trump University we teach success. That’s what it’s all about. Success — it’s going to happen to you.”

Norris believed Trump.

“I felt this was somebody I could trust and I thought any curriculum he wrote would be beneficial to me,” she said.

In 2007, she spent $17,248 for a Trump University seminar in Florida.

The seminar was run by Prosper Learning, a company licensed by Trump University.

Her tuition covered a coach assigned to help her find real estate deals. Cary Beagley, of Utah, was her coach.

 She wanted to invest in Pittsburgh real estate, but she said Beagley tried to get her to buy properties in Spain.

“And that’s when I became very concerned,” Norris said.

Still, she trusted Beagley because of Trump, who at the time said of Trump University’s teachers:

“These are all people that are hand-picked by me.”

She said when Beagley told her to put her money into a company called Safevest, she did it. Eventually, she invested $230,000.

But just six months later, the SEC called Safevest a fraud and a Ponzi scheme and won a court order shutting it down.

Safevest ended up bankrupt, and Norris lost all her money.

“I lost a lot of money because I trusted this organization and I have nothing back. I will not get anything back,” she said.

Action News Investigates learned that when Beagley was coaching Norris he had a criminal record including convictions for theft, drug distribution and sex solicitation. In fact he was still on federal probation for the drug case while he was working for Trump University. Also, he had filed Chapter 7 bankruptcy.

Norris knew none of that until Action News Investigates told her.

BofA to Pay $415 Million Over Claims It Misused Client Funds

A drop in the bucket…

Bank of America Corp. admitted to wrongdoing in settling a U.S. regulator’s allegations that it misused billions of dollars in customer funds to finance trades that benefited the firm.

The bank will pay $415 million over claims that its Merrill Lynch unit engaged in complex transactions to reduce the amount of client funds that had to be set aside in reserve accounts, the Securities and Exchange Commission said in a statement Thursday. Had the firm failed, its customers would have been exposed to a “massive shortfall,” the regulator said.

The $356 million fine portion of Bank of America’s settlement is by far the largest for a firm accused of violating the SEC’s customer protection rule. The agency was assisted by multiple former Bank of America executives who reported wrongdoing and cooperated with the investigation, according to Jordan Thomas, an attorney at Labaton Sucharow who represents the whistle blowers.

Read on.

Plaintiffs’ attorney in Trump U lawsuit slams Trump as bombastic bully

SAN DIEGO (CN) – A plaintiffs’ attorney in the Trump University class action on Wednesday accused Donald Trump of tainting the jury pool “with dozens of nationally-publicized speeches denigrating the claims against him and championing his hollow defense.”
Attorney Jason Forge filed a motion in opposition to Trump’s attempt to suppress videotaped depositions he gave in December last year and January this year. In the 23-page motion filed in Federal Court on Wednesday, Forge accuses Trump of bombastic bullying and using the platform of a presidential race to try to undermine the fair procedure of the trial.
“When Donald J. Trump proclaimed that, ‘I love the poorly educated,’ what he really meant was, ‘I love the poorly informed,'” Forge wrote in the motion. “Ignorance is his greatest ally, and it is the linchpin of his unprecedented national campaign to condemn the integrity of these proceedings and cast himself as the victim of an ‘unfair’ case and process.”

Read on.

The parties are slated to argue the case in front of Curiel on July 13 in San Diego.

Here is the court document. Click here.

Ocwen to pay $30 million in settlement over alleged FHA, HAMP violations

Will pay $15 million to U.S., $15 million to consumers

Ocwen Financial disclosed Thursday morning that it will pay $30 million to settle a pair of lawsuits that accused the nonbank of falsely certifying that it was in compliance with Federal Housing Administration and Home Affordable Modification Program rules.

Ocwen revealed the settlement in a filing with the Securities and Exchange Commission.

In the filing, Ocwen stated that it reached an agreement in principle to settle two related cases, U.S. Ex rel. Fisher v. Homeward Residential, Inc., et al and U.S. Ex rel. Fisher v. Ocwen Loan Servicing, LLC, et al, which are referred to as the Fisher Cases.

Read on.

Chicken Little was right – “the sky IS falling”!

Remember Chicken Little and her warning, the sky is falling? I sometimes feel like a Chicken Little, with my repeated warnings that the sky is indeed falling and here’s another example.
Just last week I posted about my fellow Bank Whistlebowers United colleague Michael Winston’s interview with Gretchen Morgenson on the New York Times Facebook venue.
I’m still chilled by Michael’s description of Countrywide’s co-founder, former chairman of the board/CEO Angelo Mozilo’s funding strategy which Michael inadvertently stumbled upon after they had hired him to take their company to new heights. “Fund ’em” was the policy, regardless of their income (did they have any?), even if they had no assets. “Fund ’em” if they can fog a mirror.
Countrywide Financial Corp. wanted to be the “Goldman Sachs of the Pacific.” Instead their shoddy practices led to our 2008 financial meltdown and instead they became the face of risky lending practices, with Mozilo becoming the poster child for Wall Street greed.

Thursday’s brutal NY Daily News front page of Paul Ryan


Bernie Sanders’ letter as Vermont Mayor of proclamation to celebrate gay pride 31 years ago


A letter from Bernie Sanders, June 21, 1985

Source: Reddit