Category Archives: Governmenrt

Bank Fraud Continued Cover Up From The White House

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Some call it a settlement, the effort by The White House and its’ resident Obama, to a wide-ranging state settlement with banks over dubious foreclosure practices.

Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal
Published: August 21, 2011

Eric T. Schneiderman, the attorney general of New York, has come under increasing pressure from the Obama administration to drop his opposition to a wide-ranging state settlement with banks over dubious foreclosure practices, according to people briefed on discussions about the deal.

In recent weeks, Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade the attorney general to support the settlement, said the people briefed on the talks.

Mr. Schneiderman and top prosecutors in some other states have objected to the proposed settlement with major banks, saying it would restrict their ability to investigate and prosecute wrongdoing in a variety of areas, including the bundling of loans in mortgage securities.

Basically, the banks want a “get out of jail free” card.  They do not want any investigations into any of their wrong doings causing our economic collapse while they profited personally and corporate wise.  They want immunity from prosecution.

Fortunately, there are some defenders of the public interest like Schneiderman of New York that will not go along with this.

Mr. Schneiderman began objecting a few months ago to the proposed releases barring future litigation, declining to participate as long as they were included.

“The attorney general remains concerned by any attempt at a global settlement that would shut down ongoing investigations of wrongdoing related to the mortgage crisis,” said Danny Kanner, the spokesman for Mr. Schneiderman. His office has opened several inquiries into mortgage practices during the credit boom.

Read all of Gretchen’s article in The New York Times…click here

In a related editorial in The New York Times,

It’s a Flawed Settlement – Published: August 22, 2011

The Obama administration has turned up the heat on Eric Schneiderman, New York’s attorney general, to go along with a proposed settlement with the nation’s largest banks over dubious foreclosure practices. Mr. Schneiderman should stand his ground in not supporting the deal. The administration says that a settlement would quickly deliver much needed relief to hard-pressed borrowers, but it’s doubtful it would provide redress on a par with the banks’ wrongdoing or borrowers’ needs.

The deal has been in the works for nearly a year, after the state attorneys general announced an investigation into a robo-signing scandal in which banks were found to have filed false foreclosure papers in state courts. It was widely believed that the scandal would lead to a broad inquiry into how banks inflated the housing bubble, profiting as it expanded.
Here again, with definite evidence of “wrong doing” or more correctly – illegal activity – nothing is being done.  In fact, our government is attempting to sweep it all under the rug – a cover up – leading us to believe it is in our best interest to do s0.
What is in our best interest is to prosecute those responsible for committing crimes.  The evidence is there, has been there and has been made public.  The banking industry is an organized criminal activity looking to use their economic hold over us to avoid prosecution and be allowed to continue their criminal activities for their own personal gain.

Shaun Donovan, the secretary of Housing and Urban Development, however, says that a settlement on the narrow issue of robo-signing would not preclude other investigations by individual attorneys general. But, clearly, once the robo-signing issue is off the table, investigators would lose leverage to pursue remedies for other possible illegalities in the packaging, marketing and transferring of mortgage securities.

But some AG’s like New York’s Schneiderman are not going along with it even though there may be some very real personal consequences for them.

Read the entire Editorial in the The New York Times…click here

It is important for all of us to wake up and realize that we are being duped at every junction in the road.  We are being lied to, deceived and set up for even greater misfortune while protecting and enriching those who have brought this misery upon us.

We must not only fight foreclosure but we must stand up for what is right and just.  We need justice.  We need to see this new breed of criminal do the time for their crimes.

While those in the White House may be following their predecessors in covering up and looking the other way, there are those in Congress not willing to let go and continue to push on to expose these criminals.

It is up to us to support those in Congress who – like us – would see justice done.  After all, the will of the people is greater then the greed of a few, be they Presidents of countries, bureaucrats, politicians or greedy, immoral corporate executives.

The fight for justice goes beyond the foreclosure court.  We must see those guilty punished.

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Homeowners Are Drowning…And So Is The Nation

To all of you who are facing or in foreclosure you are not alone.  In fact, you may be in the majority.  No this is not meant to make you feel better.  On the contrary, it is meant to possibly anger you so that you fight and speak out more.  What we need a vocal population verbalizing what is right and what is wrong.  A population that does not just sit by and let “them” take advantage.  Let’s get mad as hell and not take it anymore.

For those of you who are sitting back thinking that help is on the way and that as many are saying things are bottoming out and will begin to get better soon, read on.

With nearly half the mortgages in the U.S. expected to be under water when the recession ends, things look pretty bleak for mortgage servicers and investors, let alone consumers.

So begins the story by Glenn McCullom in National Mortgage News – a publication you may want to subscribe to.

Mr. McCullom refers to a report by Karen Weaver Ying Shen, an analysit in New York at Deutsche Bank.  McCullom says that in her report she says that “The percentage of “underwater” loans may rise to 48%, or 25 million homes, as prices drop through the first quarter of 2011…”

This is an interesting analysis and one which I believe.  There are those that aree saying that we have “bottomed out” to which I reply, I don’t think so.  If Ms. Ying Shen is correct then the worst has yet to come.  There can be no recovery without real estate recoverning and certainly not without unemployement decreasing.  Neither of these important factors are occurring or look like they will in the near future.

More of the negative impact to our economy – and us – is further told by Ms. Ying Shen’s report.  McCulom further says that according to Deutsche Bank the share of homes mortgaged for more then their value was 36% at the end of March.  he continues by

Further deterioration will depress consumer spending and boost defaults by borrowers who face unemployment, divorce, disability or other financial challenges, the securitization analysts said.

Even more frightening is his comment on seven real estate markets in the U.S. which had the “fastest appreciation during the five year housing boom”.  Those markets he says are, Fort Lauderdale , Miami, Merced and Modesto, CA and Las Vegas.  (I would have to assume that these markets cover the majority of the counties they are situated in).  He says that these markets my have as many as 90% of borrowers underwater according to the Deutsche Bank report.

It is important to note that the latter comment deals with borrowers who are underwater not the number of homes but it is safe to assume that the vast majority of homes purchased during the boom years were financed.

Already, servicers are grappling with a delinquency tsunami. According to figures compiled by National Mortgage News and the Quarterly Data Report, 34% of all subprime loans — or $320 billion worth of loans — are in some stage of delinquency.

It appears as if we are drowning economically and no rescue appears to be on the horizon.  I don’t even see a flotation device anywher in sight either.  We seem to be having an endless cycle of downturns which in turn feed more downturns which feed even more downturns.

As said earlier, without a recovery in real estate and employment – both of which feed on each other and continue the cycle – there can be little in the way of economic recovery on a national scale.

Help, as promised by the current and past administrations, have not come to the people.  The help that was made available – trillions of dollars – has certainly had a positive and lucrative affect on our “too big to fail” financial institutions.  They seem to be reporting profits and higher returns and increasing stock values.  All this while the general population is drowning.  Could it be that these “too big to fail” institutions that “you” have sent financial aid to own all the life vests and flotation devices and holding them instead of using them?  I think so.  These guys are living the good life, getting a better life – if that is possible with the money they already have – and don’t give a dam about the rest of us.

We are busy being distracted by conversation of health care reform – and it is only conversation at this point as there is no definitive proposals on the table yet.  This distraction, while a valid topic is purposeful to detract our attention from drowning.  Are the members of our Administration and Congress that stupid to believe that we think it is ok to drown knowing that maybe somewhere down the road a national health care program will bring us back to life?  We need a healthcare program but we need to eat to.  With no food, no health care program will benefit us.

I say to our Congressmen, you are all members of the human race and Americans.  You enjoy stable and high incomes, benefits and perks and THE BEST HEALTH CARE PROGRAM IN THE NATION.  In your comfort and as OUR representatives you should be working first and foremost on rescuing us from certain drowning.

To read the full article in National Mortage News…click here


Emergency Banking Act

Is another “Bank Holiday” coming to America? Frankly, few people – this writer included – never knew what a Bank Holiday meant until receiving an email referencing and quoting Bob Chapman’s THE INTERNATIONAL FORECASTER.

I never heard of Bob Chapman either so I looked him up. He seems like he knows what he is talking about and from his bio has many, many years of experience in investment banking specializing in gold. If you view his web site above you can read all about him.

I did find the article interesting but it required some research. First I needed to get the meaning of and the background of “Bank Holiday” since the post began…

Bank Holiday Coming? Prepare?

In my research I found this same article posted on several sites and blogs. I have just picked one that I have linked above since I found the comments very interesting.(you should read them). In addition, the article references Harry Schultz who also seems to have credibility so to make your research easy I have linked his name to the bing search engine page where you can read about him as well.

This blog’s effort is to uncover the truth and report it as well as offer my own thoughts and opinions, let’s be clear about one thing and that is that just because it is on the internet it is not necessarily so. However, I believe there can be validity to this as I feel – as does Bob Chapman and Harry Schultz – that the worst is yet to come. I base this on information, research and knowledge of the mortgage industry as it relates to the banking industry.

So I offer all this up to you and you can form your own opinion. To be well informed is a necessity for our survival in what I have always maintained will be the most disastrous economic times in the history of our country.

Now to the basis of this story. Take a moment and go to the link below which details the Emergency Banking Act established under President Franklin D. Roosevelt, who our current President holds in very high regard and partially models his administration after his.

Emergency Banking Act – Wikipedia, the free encyclopedia

Here is the beginning of the outline of this Act.

The Emergency Banking Act (the official title of which was the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. It was passed on March 9, 1933. The act allowed a plan that would close down insolvent banks and reorganize and reopen those banks strong enough to survive. In summary, the provisions of the act were as follows:

Title I, Section 1. To affirm any orders or regulations the President or Secretary of the Treasury had given since March 4, 1933.

Title I, Section 2. To give the President the ability to declare a national emergency and have absolute control over the national finances and foreign exchange of the United States in the event of such an emergency.

Title I, Section 3. To authorize the Secretary of the Treasury to order any individual or organization in the United States to deliver any gold that they possess or have custody of to the Treasury in return for “any other form of coin or currency coined or issued under the laws of the United States”.

Title I, Section 4. To make it illegal for a bank to do business during a national emergency (per section 2) without the approval of the President.

Title II. To enable the Comptroller of the Currency (a post in the US Treasury) to take complete control of and operate any bank in the United States or its territories and to establish the terms and conditions under which bank is administered.

Title III. To allow banks to disown their debts with the permission of the Comptroller of the Currency and a majority vote of their stockholders.

Title IV, Section 401. To allow Federal Reserve banks to convert any US debt obligation (such as a bond) into cash at par value and any check, draft, banker acceptance, etc, into cash at 90% of its apparent value.

To read complete summary of the ACT please go to the link above

Basically it allows the President to declare a “bank holiday”, close the banks nationwide and then determine which ones can or will reopen. It was also the

Act that enabled the Treasury to remove gold bullion held by citizens.

Armed with this brief explanation of a Bank Holiday here is the Bob Chapman story. You can also view this article on BBS RADIO/The Original TNT Bulletin Board.

Sunday, June 21, 2009

Bank Holiday Coming? Prepare?

From Harry Schultz:

Dear Bob:

Bob Chapman’s Int’l Forecaster newsletter revealed (5/20) this startling intelligence (from within US State Dept & embassies):

”Some US embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of US cash to purchase currencies from those govts, quietly. But not £’s. Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just that within 180 days, but could be 120-150 days.”

Bob quotes another source that “Panasonic has told their people to be back in Japan by Sept 09.”

Harry Schultz, dean of newsletter writers, has quoted the Chapman letter of May 30 regarding US embassies being sent large amounts of cash with which to buy local *currencies, to last them a year. Here is Harry’s remarkable take on the situation:

“My HSL suspicion is that the elite plan another FDR style “bank holiday” of indefinite length, perhaps very soon, to let the insiders sort-out the bank mess which is getting more out of their control every day.*Insiders want/need to impose new bank rules. Widespread nationalization could result, already under way. It could also lead to a formal US$ devaluation, as FDR did by revaluing gold (& then confiscating it). But devalue against what? The euro? Doubtful. Gold? Maybe. Or vs. the IMF basket of currencies (which seems more likely)—& much in the news recently. Any kind of bank holiday will push the US$ lower, which may be a bonus benefit to their ongoing scenario of letting the $ fall. Such a fall would get the devaluation they want without having to declare it. In sum, the insiders want more bank & system control, fewer banks & a lower US$. A bank holiday would suit all their needs.

Obviously, U can’t open safeboxes if the banks are closed, so plan accordingly. All this is speculation, but we have to go with what we’ve got, scraps of info that point to certain possibilities. In any case such a closure will, IMO, come sooner or later, as the worst of the embedded derivatives are still to be faced. We are years away from solving them because the controllers don’t want to; their fingerprints are all over them. ***

PS: during the FDR bank holiday, thousands of banks never reopened; it was a face-saving way of shutting them down. I would guess the same would occur today; thousands have little or no net value, loaded with debt, bad mortgages.

••• *PPS: A Bob Chapman subscriber reported overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to federalize the police across the US. They (govt) would be closing banks in late Aug, early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout would do.

I believe that our banks are still insolvent even though we are being told they are not. Wells Fargo and it new acquisition – Wachovia – are broke. CitiBank is broke, Fifth/Third Bank is broke, Bank of America is broke and the list goes on. We must ask the question concerning their solvency and we should get an answer.

If in fact, as Chqpman, Schultz and I believe, they are then it is iminent that the government will have to act to prevent a run on the banks. A run would certainly cause the demise of most banks as those banks do not have sufficient cash 0 nor are they required to have sufficient cash to cover everyone’s withdrawals. THE GOVERNMENT WOULD HAVE TO ACT which is what makes this story both believable and alarming.

Another reference to this letter I found intersting is the reference to PPS qupted from a Bob Chapman subscriber…

A Bob Chapman subscriber reported overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to federalize the police across the US. They (govt) would be closing banks in late Aug, early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout would do.

I find some believability to this even though there is no evidence to verify it. I can believe this because FEMA is a National Federal Police Agency not a disaster emergency aid agency. It is believed that they are prepared for any civil unrest with the ability to act quickly and swiftly to put down any mass public activity. In fact, they have already termed civil unrest as low level terrorism giving them the power to arrest in mass. Detention centers are already in place around the country in a program called REX 84. These detention centers – mainly abandoned military bases are manned and equipped. It is also believed that FEMA has a contract with Wackenhut to provide prison buses to cart these masses to these detention centers.

There is even a story (rumor?) that these buses are driving around Phoenix, AZ as a test and training.

Does all this seem outrageous? Perhaps it does. but on the other hand, if you really take a look at what is happening, the transfer of wealth, the diversionary tactics by the government to lead us to believe things are getting better, that we are going to get health care and that the recession is almost over. None of which are happening. Most independant economists will tell you the same.

Conditions are worseningn. Commercial credit is in default and can be the next “meltdown” like the mortgage meltdown that seems to have precipitated this economic crisis. Consumer credit is defaulting by leaps and bounds and foreclosures are increasing.

Unemployment will hit double digits and is already much higher then the 9.5% being reported. In fact, a recent report indicated that we have had more unemployed in the past 16 months then in the past 8 years – well over 5 million people including professionals, white collar and blue collar employees not to mention the millions of recent college grads looking for work and finding it difficult to do so which will lead to a massive amount of student loan defaults..another down for the economy.

Believe it or not, that is up to you. But we must all be aware and be cautioned for as I have said many times in the past two years, “fasten your seat belts, this is going to be a long, rough ride”.

Be aware and be prepared for the worst. You owe it to yourself and your families. If the worst never comes so much the better but if it just might come then better to have been prepared then not prepared at all.

Is another “Bank Holiday” coming to America?

Wake Up America…Smell The Wilted Roses

TheMortgageCornerFORUM Note: Mike Morgan is a leading financial advisor, author and realtor. He is as fed up with what is happening here in this country as I am and has the same cry you have heard from me…Wake Up America.

In his effort to expose the truth of what is happening here in this country and with our current economic crisis – which I believe was created by those very same institutions – (and our government) – he began publishing and very recently

I am currently a volunteer writer for both blogs as I believe they parallel this blogs views and concerns. You can learn more about Mike by visiting either of the above blogs or his investment blog at

My next post will provide more commentary on this post and Mike Morgan.

Here now is Mike’s post

The Healthcare Smoke Screen AND The Housewives of Goldman Sachs

Editor’s Note: I published the piece below on my Behind Enemy Lines financial blog earlier today. But I have received so many emails, that I thought it also belongs here on the Goldman Sachs blog. You see, the trouble we are in today, and the trouble that we can no longer dig out way out of, has been . . . for the most part created by one Evil Empire and their Evil Offspring that have infected banks and financial institutions throughout the world. But none as evil, coniving and detrimental to the world as King Henry.

Sadly, we have a President that is owned by Goldman Sachs. That’s not to say Bush 1 and Bush 2 were not also owned by Goldman Sachs. But Obama promised CHANGE. Unfortunately, this inexperienced and thoroughly arrogant President has decided to surround himself with Banksters and line his own pockets with millions from book deals prior to taking office.

So below is what I posted this morning on my financial blog . . .

The ObamaRamaLamas continue. While Goldman Sachs was slithering away with more than $12 billion out the back door, the ObamaRamaLama buffoons were busy stoking the flames about $165 million in AIG bonuses. We saw demonstrations throughout the country, as well as in Europe. All of this over $165 million while Goldman Sachs slithered out with 72 times that amount.

Wake Up America . . . Obama promised CHANGE and he is doing just that. He’s changing the very fabric of America . . . and it will be dark, ugly and violent.

Health Care – Just Another Smoke Screen – Instead of addressing the financial crisis from the roots, Obama and his team of merry banditos are once again throwing up a smoke screen. Do you really think the town meetings and all of the demonstrations are spontaneous? Do you really think the outrage over the pittance of AIG bonuses was spontaneous? Not a chance. If either of them were, than why are we not seeing the same outrage over the billions in bonuses being paid out or the $100 million bonus being paid to just one man that was most responsible for the oil bubble and world oil crisis last year. Crooks paying off crooks. That’s what Congress and the Regulators are all about?

Let’s take this from the very basic level. We are told that we need about a trillion dollars to make health care happen. What are we arguing about?

We gave Hank Paulson $700 billion based on a one page document and his “word” that the world was going to end. And what did he do with the $700 billion? First he put a 35 year old nobody in charge of it . . . because this nobody was a Goldman Sachs lieutenant. Then King Henry leveraged it up to almost $2 trillion with the help of Bernanke, Geithner, Bair, Dodd, Frank and others. And where is this money going? Into the deep pockets of King Henry’s Bankster Buddies . . . Goldman Sachs, JP Morgan, Morgan Stanley and the lesser princes like Fifth Third Bank, Suntrust, etc. Not to mention a myriad of buddies and blackmailers like insurance companies, auto companies and the likes..

If we had half the money that King Henry scammed from the American public, we could pay for health care. Unfortunately, paying for health care is one thing. Having enough doctors and nurses to provide the care, is another story. And we don’t have anywhere near enough doctors and nurses. That’s the problem in Canada.

But back to reality. King Henry himself made almost a billion dollars while he orchestrated the world’s biggest financial crisis. And he’s not alone. There are several thousand people that were unjustly rewarded at the expense of Americans and the world. If we only had the balls to go after these crooks and claw back the money they stole, we could pay for health care and still have enough left to cure cancer, autism, world hunger and a few other problems facing humanity.

But instead, we will allow men like King Henry, Lord Blankfein, Carney Frank, Desperado Dodd and our Pompous President continue to rape America. CHANGE is what Obama promised. And CHANGE is what he is giving you. He will turn this country upside down and leave it in chaos.

Health Care is a smoke screen. If he really wanted it, he could pay for it by going after the thieves. And he can start with King Henry and his band of evil thugs.

Final Thoughts – The other big smoke screen created by Goldman Sachs and he Banksters is the 50%+ run up in the stock market. All to make the public feel warm and cozy . . . until the Banksters decide to pull the plug and suck up all they can from pension funds and other fiduciary accounts they are loading up with stocks and assets at inflated prices.

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The Housewives of Goldman Sachs –

With all my talk lately about how Americans are hypnotized by the crap served up on Reality TV, it comes as no surprise that Goldman Sachs would get into the act. I think one of the most disgusting and useless reality shows is The Housewives of Atlanta, Orange County, New Jersey and New York City.

This is not reality for the majority of Americans. This series of crap is nothing more than the worst of America and it is what is being broadcast around the world. Is that really the image you want others to see you as? Week after week the world watches a group of ladies (monkeys) behave like spoiled brats . . . and they actually allow it to be filmed and broadcast. Talk about arrogance and being conceited, pampered, spoiled brats. And we let monkeys like this raise children?

Wake Up America!

It was only a matter of time. Yes, the New York Post just revealed the pilot for what promises to be the most watched Reality TV series of all time. Here’s an excerpt from the Post article . . .

Laura Blankfein and her friend Susan Friedman, wife of another Goldman honcho, Richard Friedman, caused a huge scene at Super Saturday in the Hamptons last weekend when they arrived at the event before the noon start time and balked at waiting in line with the other ticket-holders.

“Their behavior was obnoxious. They were screaming,” said one witness. Blankfein said she wouldn’t wait with “people who spend less money than me.” Another observer said the women were so impatient, it was as if they were waiting on line for a kidney transplant instead of a charitable designer clothing sale. Friedman shouted

at the event organizer, “You have lost so much money because of this . . . Why should we be treated like the $650 donors?”

Sources said Blankfein and Friedman had bought tables with blocks of tickets going for $833 apiece, as did many of the women who were waiting patiently in line, happy to raise $3.4 million for the Ovarian Cancer Research Fund.

Why should the wives be any differnent than the executives and associates at Goldman Sachs. This is just another example of how the Goldman Sachs Club operates.

There is no better way to say it then . . . Wake Up America

For the full New York Post article . . . Click Here

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Mike Morgan

Review-Journal resists subpoena for names of readers who posted views

Review-Journal resists subpoena for names of readers who posted views

Disclaimer: The Publisher does not necessarily endorse any comments or opinions made by others. The Publisher also does not endorse any other publication or media source or verity its’ integrity and correctness in reporting. The publisher may, however, share some beliefs and thoughts as published by others and by virtue of links and reprints here does believe there is some validity which warrants closer investigation by the public.

The article above from the Las Vegas Review Journal has a story I have not seen anywhere else. It should be a major headline for all of the major media. Is our freedom os speech being eliminated? A scary thought and a very important and interesting question.

I am reprinting the article by Joan Whitely below. At the bottom of her piece she posts her email address so that you can contact her directly. In addition, I suggest you go directly to the link so that you can read some of the very interesting comments made by other readers (uh oh, are they going to be in trouble?)

An interesting addition to this article is a piece written in
Survival News Network titled Defense Department sees protests as terrorism
Free speech collides with fair trial
said the following:

Antiterrorism training materials used by the Department of Defense teach that public protests should be regarded as “low-level terrorism,” according to a letter of complaint sent to the department by the American Civil Liberties Union of Northern California.
“Teaching employees that dissent on issues of public concern is something to be feared, rather than encouraged, is […]

Publisher’s Note: The link does not allow for a continuation of this story. Maybe you can figure out how to see the rest of it but I cannot and therefore cannot publish it.

Now to the story in the Review-Journal.

Free speech collides with fair trial. (emphasis by TMCForum)

Review-Journal readers who posted online their views about a federal criminal tax trial are the target of a sweeping federal grand jury subpoena asking for information so that authorities may identify who they are and where they live.

The Review-Journal plans to file later this week a motion to quash the subpoena, and the American Civil Liberties Union has posted its own online solicitation asking those who posted whether they would like the ACLU to legally represent them.

The newspaper received the subpoena on June 2, and Editor Thomas Mitchell revealed the existence of the subpoena in a June 7 column.

This past week the grand jury subpoena, which is separate from the ongoing trial but was signed by one of the prosecutors involved in the tax trial, was the topic of discussion between the trial judge and attorneys, revealing for the first time a possible motive for the subpoena.

The newspaper’s subpoena does not explain why the U.S. attorney’s office wants to know who commented on the case, but prosecutors told federal Judge David Ezra that they issued it out of concern for jurors’ safety, because some comments hinted at acts of violence.

Las Vegas business owner Robert Kahre and others face federal tax fraud charges for paying contractors with gold and silver U.S. coins based on the precious metal value of the coins but using the much lower face value of the coins for tax purposes.

As of 9 p.m. Monday, 173 comments were listed below the May 26 Review-Journal article about the trial. Many comments deal with the trial and its principal players. Others were posted after the subpoena arrived.

The subpoena bears the name of U.S. Assistant District Attorney J. Gregory Damm, who is part of the government team prosecuting Kahre and three others on charges that include tax evasion, fraud and criminal conspiracy.

Jury members, Damm and Christopher Maietta, another government attorney, are the subjects of online comments that might be construed as threats.

On Thursday, the ACLU of Nevada also posted below the article an offer to help people who feel threatened by the subpoena. Allen Lichtenstein, general counsel of the civil rights organization, said it has received “several” inquiries.

Mitchell said the paper is resisting the sweeping nature of the subpoena, noting that anonymous speech is “a fundamental and historic part of this country,” citing the Federalist and Anti-Federalist Papers that argued for passage and against passage of the nation’s Constitution as an example. All were written under pseudonyms. He said the paper would consider cooperating if specific crimes or real threats were presented.

Interest in the Kahre case appears to run counter to a remark that Ezra made during a hearing to prepare for jury selection. If “CSI: Tax” were a television crime show, it wouldn’t pull much audience, he said.

In the case, the government contends the defendants operated illegally, out of greed. The defense contends they had an honest but mistaken understanding of tax laws, and therefore had no criminal intent.

Many used the newspaper Web site to say the U.S. government has turned socialist, the nation’s monetary system encourages deficit spending and guarantees inflation, or the Internal Revenue Service has to be reformed or abolished.

In addition to requesting the names of people who posted, the subpoena also tells the newspaper to supply the writers’ gender, birth date, physical address, telephone number, Internet service provider, IP address, credit card numbers and more.

The reason for the subpoena came up in court, outside the jury’s presence, after an alternate juror sent a note to Ezra, explaining that his spouse had told him to avoid a certain talk radio station, which was discussing the trial. Ezra retained the alternate after he determined the man did not know any details of the broadcast.

Ezra said this past week in court that he would not be handling the subpoena. However, “anytime we get people writing … that if a particular verdict isn’t reached, that jurors ought to come to physical harm — that’s no good. And if somebody wants to investigate that, that’s their perfect right.”

One commentator said, “The sad thing is there are 12 dummies on the jury who will convict him. They should be hung along with the feds.”

Another writer suggested supporting Kahre with a public protest at the courthouse. A third writer advised moving it across the street from the courthouse, or to the local IRS office, to avoid court security officers.

Kahre has been gaining an opinionated Internet audience after an armed team from several law enforcement agencies raided several of his business locations — including his sister’s home office — in 2003 to collect evidence for the tax case.

Readers’ online feedback, mostly anonymous, is almost entirely pro-Kahre. Some comments personally attack Damm. One, for example, calls him a “socialist, fascist Mormon” and a “Nazi moron.”

David Heller, senior staff lawyer at the Media Law Resource Center in New York, characterized the subpoena as “heavy-handed” and “bizarre.”

“Federal prosecutors do have very wide latitude in investigating crimes,” he said. “Even so, their power isn’t unlimited.” Some of the online comments struck Heller as “loose slang and hyperbolic language” rather than authentic threats to juror safety.

To ensure safety but still allay the concern about violating writers’ First Amendment rights, the Justice Department could have avoided a blanket subpoena and sought instead only authors of specific comments, defense attorney Michael Kennedy said June 9 in court.

The subpoena might entail “mixed motives due to the personal animosity between the parties,” the New York media lawyer said after he heard a description of several court actions that have pitted Kahre against Damm, going back several years.

After the raid in 2003 — but before Kahre’s 2005 indictment — Kahre and several of his workers sued Damm, two IRS agents and others who had helped plan or execute it. That civil matter is on hold until after the criminal trial.

In February 2007, Kahre sued Damm and agents of the FBI and IRS, alleging they conducted themselves during the investigation in a way that constitutes a criminal pattern. Judge Ezra dismissed the complaint in December, but Kahre appealed and the 9th U.S. Circuit Court of Appeals heard oral arguments on Friday.

Kahre, his sister and a former assistant are standing trial for how they handled their own income taxes as well as their roles in Kahre’s unique payroll system. Kahre paid workers at his six trade-related businesses in $50 gold or silver dollar coins. Those minted after 1985 are allowed to circulate as money. He also allowed workers to immediately exchange the coins for paper currency, as determined by the coins’ investment value.

Two years ago, Damm prosecuted a similar tax case against nine defendants, including Kahre, on more than 160 counts. The trial ended with no convictions and four acquittals.

Five defendants were only partially acquitted, and two of them were dropped from the indictment that generated this trial.

Contact reporter Joan Whitely at or 702-383-0268.

TMCForum Commentary:

There appear to be things happening right here in our own country that look very much like countries and governments out of the past in different parts of the world. The direction this country has taken over the past decade plus, needs to be looked at very closely. While many have called my opinions and the opinions of others as unrealistic (actually they have said “crazy”) are now saying publically and out loud that there may be some truth to all this.

Glenn Beck is one of those people who on a recent report on the attempted smuggling of $134.5 billion in bearer bonds where the story whas not so much the smuggling of them but their authenticity and the purpose for which they were being smuggled in such a manner that would almost guarantee capture. This is an interesting story in itself leading to many quesitons such as who is behind this, who either legally obtained these bearer bonds (bearer bonds are almost immpossible to trace as possession is the only verification of ownership – hense “bearer” bonds – or forged them. If forged – and experts have said that the forgeries are almost perfect – then why smuggled in a very unprofessional manner? And one last BIG question, why was the amount of tese bonds – $134.54 billion – the EXACT amount of funds that are left from the Troubled Asset Relief Package (TARP) – the initial government bailout program of $700 billion? Coincidence or alternative use and motive?

In reference to the Survival News Network story above, there is a story going around about REX 84, an alleged systems of over 1,000 detention centers around the country to house detained civil protesters. You can google and research REX 84 on your own and draw your own conclusions but it certainly begins to tie into the the Survival News Network (who I know very little about).

Questions, we the American people, must be asking and must get answers to. Some things just don’t make sense. We certainly are seeing signs of that.

For those who are old enough to remember, or for those of us that remember our studies of world history (which may not have been accurate either), or for those of us who choose to research history now there are enough signs out there to indicate possible danger ahead in the future of this country.

Of course, these are just my opinions, I could be wrong. What do you think?

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