Daily Archives: August 26, 2016

EpiPen Uproar Highlights Company’s Family Ties to Congress

The Intercept:

Bresch, born Heather Manchin, started at Mylan in 1992. She was hired after her father, then a West Virginia state senator, told then-CEO Mike Puskar that she needed a job.

From working in the company’s basement, she moved through the ranks to become Mylan’s chief lobbyist in 2002. In that position, she contributed to the2003 Medicare prescription drug bill, which barred the federal insurance provider from bargaining with drug companies over prices. She was also key to the passage of the 2012 Generic Drug User Fee Act, which increased inspections of foreign facilities manufacturing drugs for the U.S. market. While it increased regulations at Mylan’s own sites outside the U.S., it also made it more difficult for foreign drugmakers to sell their products domestically, knocking out many of Mylan’s competitors.

The bill passed Congress easily, with her father among those providing yes votes.

Congress also passed a law in 2013 prioritizing grant money for schools to stock EpiPens in case of emergency, since children are most at risk for a severe allergy attack. Some states require EpiPens in their schools, including West Virginia, where Gayle Manchin, mother of Heather Bresch, was head of the Board of Education when the policy went into effect in 2013.

Manchin has spoken out against his daughter’s use of an inversion to renounce Mylan’s corporate citizenship, saying that such tax dodging should be illegal. He has not, however, made any public statement about EpiPens since the scandal came to light, and his office did not immediately respond to a request for comment from The Intercept.

Wells Fargo to pay homeowners $3.45 million over mailing error

A Wells Fargo & Co mortgage unit will pay $3.45 million to some customers because of a processing error that delayed the mailing of letters to almost 8,000 homeowners in bankruptcy and shortened their notice period about changes to monthly mortgage payment amounts, according to a court document.

The unit, called Wells Fargo Bank NA, agreed on the sum in a pact with the Department of Justice’s U.S. Trustee Program, which oversees the country’s bankruptcy system, according to a letter from the bank filed in U.S. Bankruptcy Court in Greenbelt, Maryland.

Wells Fargo agreed to fix the mailing error and give credits and refunds worth $3.45 million to affected homeowners.

Read on.

Sen. Joe Manchin, Whose Daughter Runs EpiPen Manufacturer, Breaks Silence On Drug’s Price Hike

Sen. Joe Manchin (D-W.Va.) has finally addressed the controversy involving his daughter, who runs a pharmaceutical company that dramatically hiked the prices of lifesaving EpiPens.

Manchin’s daughter, Heather Bresch, is the CEO of Mylan, which manufactures EpiPens. The company is under fierce criticism for raising the prices on the emergency allergy drug by 500 percent while giving raises to its executives, including Bresch.

Some of Manchin’s colleagues, including Sens. Chuck Grassley (R-Iowa) and Amy Klobuchar (D-Minn.), have demanded Mylan explain the price hike. Klobuchar has also called on the Senate’s Judiciary Committee to investigate the issue, which could prove uncomfortable for Manchin should his daughter be called to testify on Capitol Hill.

After declining to comment on the controversy for several days, Manchin released a short statement addressing the price hike. The statement includes no mention of his daughter.

“I am aware of the questions my colleagues and many parents are asking and frankly I share their concerns about the skyrocketing prices of prescription drugs,” Manchin said. “Today I heard Mylan’s initial response, and I am sure Mylan will have a more comprehensive and formal response to those questions. I look forward to reviewing their response in detail and working with my colleagues and all interested parties to lower the price of prescription drugs and to continue to improve our health care system.”

EpiPens allow people to easily inject themselves or others with a set amount of epinephrine if they are suffering from an allergic reaction. Since Mylan bought the rights to manufacture the drug in 2007, prices have soared from $100 for a pack of two devices to over $600.

Read on.

Trump Fears ‘Mini-Trials’ in Trump U. Class Action

SAN DIEGO (CN) — Donald Trump asked a federal judge to decertify one of two class actions against Trump University, saying proposed changes by the class would create a series of “mini-trials” that he wouldn’t have the opportunity to challenge.
In a 7-page document filed by Trump’s attorney Daniel Petrocelli on Wednesday, Trump says Sonny Low and the other plaintiffs in the six-year-old class action violated court rules when they didn’t submit their proposed order at the same time as they filed a motion to clarify or amend the court’s class certification orders. He also says the plaintiffs do not want to simply clarify the scope of the trial but in reality seek “a dramatic expansion” of the case.
The proposed order from Low and the other plaintiffs was filed Aug. 22 but is not publicly available.
Plaintiffs in the Low case accused Trump University of duping students into paying upwards of $30,000 for “insider” real estate information which turned out to be little more than an infomercial. Among the most egregious claims are that Trump University claimed it was an accredited “university” and that instructors were “handpicked” by Trump himself.
At a July 22 hearing, Low’s attorney Jason Forge asked U.S. District Judge Gonzalo Curiel to “clarify” the scope of class certification in terms of the “university” claim.
The plaintiffs seek to certify a theory of fraud, Trump argues, based on an allegation that the New York State Education Department had warned Trump it was unlawful to use the “university” title. But Trump says the class is essentially attempting to convert “a case certified on ‘common misrepresentations’ to one based on an alleged ‘omission.'”

Read on.

More Flip Flop? New Emails Reveal Trump Pushed For Pro-Immigrant Judge

Well, well, well………..


Trump has reportedly ‘softened’ his stance on immigration. And now, we are also learning that Trump pushed for Florida Governor Rick Scott to appoint a State judge who appears in conflict with Trump’s own stance on immigration. Jose Izquierdo, a Cuban-American, was a criminal defense attorney, who often represented immigrants. He was also very active in the Hispanic bar association, and worked hard advocating for minorities.

According to an email obtained by The New York Timeson May 10, Trump sent the Governor a letter:

“Dear Rick: A friend of mine recommended this gentleman for a judgeship in Broward County. From what I understand, he is very well-respected in the legal community. Thank you. Sincerely, Donald,

Attached to the letter was Izquierdo’s 2-page resume. Thirteen days after that correspondence, Scott appointed Izquierdo to the position. Scott has told other media outlets that the decision was not related to Trump’s letter.

Interestingly, about a month after Trump’s letter to the governor, he began his vicious attacks on another Hispanic judge, Gonzalo Curiel, who was overseeing the Trump University lawsuit.

Izquierdo has reportedly advocated in support of Hispanics and minorities holding higher judicial positions. He also represented the consolutates of Mexico and Honduras. According to The Times, Izquierdo mentioned in his job application that he tried to suppress a warrant used in a drug possession case. In private practice, he represented criminal immigrant defendants.

Throughout his campaign, Trump has advocated for the imm

Washington hits Ocwen with fine for using unlicensed offshore companies

Ocwen to pay $900,000; only use licensed entities to service Washington loans

Ocwen Financial will pay $900,000 to the state of Washington after an investigation conducted by the state found that Ocwen used unlicensed companies in India and the Philippines to service mortgage loans, the state’s financial regulator announced Thursday.

According to the Consumer Services Division of the Washington State Department of Financial Institutions, an investigation into Ocwen’s mortgage servicing activities found that Ocwen Loan Servicing, which is licensed to service mortgages in the state, used unlicensed affiliate offshore companies to “perform activities considered residential mortgage loan servicing under Washington law.”

Washington’s Consumer Loan Act specifically requires companies servicing residential mortgage loans in the state to be licensed as Consumer Loan Companies.

Read on.

$2.8 billion in Fannie Mae, Freddie Mac mortgage servicing rights up for sale

Mortgage servicers looking to get their hands on some Fannie Mae and Freddie Macmortgage servicing rights have that opportunity, as $2.8 billion in Fannie and Freddie MSRs just hit the market.

According to MountainView Servicing Group, which is acting as the exclusive sale advisor, the portfolio features the mortgage servicing rights on 12,713 loans with an average loan size of $223,765.

Read on.

HSBC yanks massive PHH mortgage servicing portfolio

It appears that PHH Corp. has a subservicing problem on its hands, as for the second time in four months, the company is about to lose a large portion of its mortgage subservicing portfolio.

PHH disclosed Thursday that it recently received notice from HSBC Bank that it plans to sell the mortgage servicing rights on approximately 139,000 mortgage loans currently subserviced by PHH Mortgage Corporation, a wholly-owned subsidiary of PHH, on behalf of HSBC.

In an 8-K filing with the Securities and Exchange Commission, PHH said that HSBC informed the company that the purchaser of the mortgage servicing rights does not plan to continue using PHH as a subservicer.

PHH said that the portfolio of loans it’s set to lose subservicing rights for represents approximately 29% of the company’s total subservicing portfolio units, as of June 30, 2016.

Read on.

Changing the World. One Student at a Time

The mission of the top ranked (#37 tied, U.S. News and World Report, 2017, #42 Bloomberg Businessweek, 2015) UT Dallas Jindal School full time MBA Program (FTMBA) is to develop cutting edge problem engineers who can think, plan and act strategically to solve complex business problems.
My mission, as their speaker this last week was to instill the criticalness of ethics in business, with the class then going on to formulate their own class code of ethics. No pressure, yet my hope was that I could inspire them to truly understand the fundamental bedrock a code of ethics is to a company.
The 50 students complete their MBA in a 16 month time frame, studying with renowned professors who are well known for their faculty research contributions. The semester starts with Lead Camp, a two week orientation of whirlwind activity which lays the foundation for the students’ career and academic journey. The school also has a connection to many of the Fortune 500 companies which are headquartered in the Dallas Metroplex, which accounts for their 90% placement rate.

In other words, the top achievers who will someday guide the reins of business in the Metroplex and elsewhere are our students.