Tag: Law

5,000 Illegal Foreclosures On Military Families: Up Dated

US lenders review military foreclosures

By Shahien Nasiripour in New York

Ten leading US lenders may have unlawfully foreclosed on the mortgages of nearly 5,000 active-duty members of the US military in recent years, according to data released by a federal regulator.

JPMorgan Chase and Bank of America this year reached legal settlements in which they agreed to pay damages to nearly 200 service members who claimed that their homes had been improperly seized.

Data released last week by the Treasury’s Office of the Comptroller of the Currency, which regulates national banks, shows that 10 lenders – including BofA, but not JPMorgan, which was not part of the study – are reviewing nearly 5,000 foreclosures of homes belonging to service members and their families to see if they complied with the law.

Dishonorably Discharged, with Pat Garofalo

Pat Garofalo reported this at Think Progress:

Back in April, JPMorgan Chase, which was not one of the 10 banks that the OCC examined, agreed to a $56 million settlement over allegations that it had overcharged members of the military on their mortgages. Chase Bank has even auctioned off the home of a military member the very day that he returned from Iraq. Two other mortgage servicers agreed in May to settle charges of improperly foreclosing on servicemembers.

Even without the banks illegally foreclosing, military members have been hard hit by the foreclosure crisis. Last year alone, 20,000 members of the military faced foreclosure, a 32 percent increase over 2008. The newly created Consumer Financial Protection Bureau is tasked with ensuring that military members are treated fairly by financial services companies – a job that is obviously necessary – but Republicans in Congress have, so far, refused to confirm a director for the agency, leaving it unable to fulfill all of its responsibilities.

Up Date: New York State Attorney General Eric Schneiderman has launched an investigation into military foreclosures under a NY State consumer protection law, the Martin Act, that gives him broad powers to investigate fraud.

Also, Congress is getting on the bandwagon, Sen. Jack Reed (D-RI), a member of the Senate Banking Committee, will be requesting hearings. From David Dayen at FDL:

It looks like even Congress is getting involved, or at least a few of them, because systematic illegal foreclosures on everyday people can be ignored, but systematic foreclosures on members of the military cannot. Jack Reed, a member of the Senate Banking Committee, will request a hearing on the matter. Brad Miller, who has actually been great on this issue and who sees it as a lever to open up a host of inquiries on foreclosure fraud, had a great statement yesterday:

   It is hard to see this as anything except a flagrant disregard for a law that has been on the books continuously since the First World War. The Servicemembers Civil Relief Act is very clear: if you’re in harm’s way in our nation’s military, you can devote your whole energy to our nation’s service without worrying what’s happening in a courthouse back home. And if you have a claim against someone in our military, you can wait until they get home and can defend themselves.

   The SCRA is not some obscure legal technicality that might just have escaped the attention of mortgage servicers. Those servicers are all affiliates of the biggest banks, but they’re huge and specialized. Servicing mortgages is all they do, and they really don’t have that many laws to keep up with. They have got to have known what the law required, and consciously decided that they could just ignore it, the same way they apparently decided it was okay to file false affidavits in legal proceedings.

   The continued failure to pursue criminal charges in the face of flagrant violations of the criminal law is destroying Americans’ faith in their government and democracy. In a democracy, no one is too big to prosecute.

Schneiderman is doing the job that we would expect Eric Holder to be doing. Just where is Mr. Holder? We know where the president is, campaigning.

Nevada AG Indicts Title Company Officers

Nevada Attorney General Catherine Cotez Masto has filed a 606 count criminal indictment against two title company employees for for supervising the filing of tens of thousands of fraudulent documents in a robo-signing scheme. This is the statement from Masto’s office (pdf):

   The Office of the Nevada Attorney General announced today that the Clark County grand jury has returned a 606 count indictment against two title officers, Gary Trafford and Gerri Sheppard, who directed and supervised a robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008.

   According to the indictment, defendant Gary Trafford, a California resident, is charged with 102 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor). The indictment charges d efendant Gerri Sheppard, also a California resident, with 100 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor).

   “The grand jury found probable cause that there was a robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008,”said Chief Deputy Attorney General John Kelleher.

   The indictment alleges that both defendants directed the fraudulent notarization and filing of documents which were used to initiate foreclosure on local homeowners.

   The State alleges that these documents, referred to as Notices of Default, or “NODs”, were prepared locally. The State alleges that the defendants directed employees under their supervision, to forge their names on foreclosure documents, then notarize the signatures they just forged, thereby fraudulently attesting that the defendants actually signed the documents, which was untrue and in violation of State law. The defendants then allegedly directed the employees under their supervision to file the fraudulent documents with the Clark County Recorder’s office, to be used to start foreclosures on homes throughout the County.

   The indictment alleges that these crimes were done in secret in order to avoid detection. The fraudulent NODs were allegedly forged locally to allow them to be filed at the Clark County Recorder’s office on the same day they were prepared.

Although the two Lender Processing Services employees, Gary Trafford and Gerri Sheppard, are deemed to be little fish there is speculation the Ms. Masto is using this as a hook to an go after the whales. Yves Smith at naked capitalism:

   That strongly suggests that Masto is, as we suggested earlier, using these indictments as a wedge to go after much broader abuses in the servicing industry. LPS’s biggest business is its Default Services Group, which both managed the operations of foreclosure mills (people with knowledge of LPS charge that the firm even kicks out certain standard form documents for foreclosure mill attorneys to file) and also often acted as the arms and legs of servicers in other arenas (for instance, managing, or more accurately, mismanaging property seized in foreclosure).

   LPS has always taken the position that anything it did was at the direction of and with the full knowledge of the servicers. If Masto is shrewd, her objective will be to audit LPSs’ software, since that will demonstrate pattern and practice, and it will be impossible for servicers to deny that processes embodied in ongoing, routinized activities were unknown to them.

David Dayen at FDL agrees that this may well be the first step in getting the higher ups who made, and are still, making a fortune on foreclosures:

LPS hasn’t been indicted, but you can see where this is going. We know enough now to know that this casual forgery and document fraud was official policy for the company. Indictments of Trafford and Sheppard will almost certainly not end there. Everyone who worked for LPS in Nevada will be culpable. [..]

The fact that they are LPS employees also suggests this is just a first step. This could be a way to get at the software that LPS uses to create documents, which would prove pattern and practice. LPS was central to the entire robo-signing scheme across foreclosure mill law firms and mortgage servicers. And they consistently maintain that they worked at the direction of the servicers and with their full knowledge. So that ropes in the servicers as well.

This is a very important indictment, and it shows how methodical Masto has been about going after widespread industry abuse. It’s only just beginning, but bravo for her.

As has been reported, despite the meager attempts at an agreement to settle this and exonerate the banks of any wrong doing by several other Attorney Generals, the robo-signing continues:

   Reuters reviewed records of individual county clerk offices in five states — Florida, Massachusetts, New York, and North and South Carolina — with searchable online databases. Reuters also examined hundreds of documents from court case files, some obtained online and others provided by attorneys.

   The searches found more than 1,000 mortgage assignments that for multiple reasons appear questionable: promissory notes missing required endorsements or bearing faulty ones; and “complaints” (the legal documents that launch foreclosure suits) that appear to contain multiple incorrect facts.

   These are practices that the 14 banks and other loan servicers said had occurred only on a small scale and were halted more than six months ago. [..]

   Reuters reviewed records of individual county clerk offices in five states — Florida, Massachusetts, New York, and North and South Carolina — with searchable online databases. Reuters also examined hundreds of documents from court case files, some obtained online and others provided by attorneys.

   The searches found more than 1,000 mortgage assignments that for multiple reasons appear questionable: promissory notes missing required endorsements or bearing faulty ones; and “complaints” (the legal documents that launch foreclosure suits) that appear to contain multiple incorrect facts.

   These are practices that the 14 banks and other loan servicers said had occurred only on a small scale and were halted more than six months ago.

Meanwhile, as Yves Smith pointed out this Summer, the bankers continue to lie to congress that they have stopped the practice:

We’ve heard numerous bank executives swear piously before Congressional hearings that those “paperwork problems” that led major servicers to halt or slow foreclosures on a widespread basis last year were “mistakes”. That was already a really big lies, since “mistake” means the practice was not deliberate and was presumably isolated, when in fact robosigning was a widespread, institutionalized practice.

14 major servicers then swore in consent orders earlier this year that they’d stop doing all that bad stuff. But with compliance weak (the banks get to hire the overseers!), they appear to have decided they don’t need to change their ways all that much. Indeed, the record of consent orders is underwhelming; for instance, both Nevada and Arizona are suing Countrywide for violations of past agreements.

Meanwhile the Obama Justice Department continues to try to sweep this massive fraud under the rug.

Yes, bravo, Ms. Masto.

Nevada Robosigning Indicment 11-16-11

The Foreclosure Fraud Saga Continues

Some members of Congress have begun to make noise about the proposed settlement of foreclosure fraud by some state attorney generals that would give immunity to the banks. David Dayen at FDL reports:

Raul Grijalva and Keith Ellison, co-chairs of the Progressive Caucus, are the latest. It’s pretty hedged, however:

   “We applaud President Obama and the Justice Department for this effort to hold these banks accountable. However, a $25 billion settlement pales in comparison to the trillions of dollars in lost home equity, retirement savings and exploding public debt caused by these institutions,” Grijalva and Ellison said Friday in a joint statement.

   “Instead of immunity for Wall Street banks, let’s stand with the American people and demand a fair deal for homeowners.”

Dayen also makes a couple of salient points about the problems with this settlement and solutions:

The whole gambit just reinforces the randomness of the foreclosure crisis. Borrowers didn’t choose to get a bank-owned loan, or a loan sold to Fannie and Freddie, or a loan securitized and sold as part of a tranche of securities to a pension fund in Norway. But where their loan landed has a direct bearing on their outcomes. Who services their loan, another outcome under which they have no control, also matters. And what state you live in matters. If you’re in Nevada, for example, you may never face foreclosure no matter what your delinquency situation [..]

Just criminalizing the standard law governing foreclosures in Nevada has basically ended foreclosure starts. Lucky for Nevadans – but why are folks in the rest of the country in a different place? For all the talk of moral hazard, there’s nothing moral about the foreclosure process right now. If there were, there may also be something like justice or accountability.

The New York and Maryland Attorney Generals, Eric Schneiderman and Beau Biden lay out their strategy in dealing with what they see as a two pronged man-made mess, the housing market and the mortgage-backed securities market:

These two markets are inextricably linked. Any real effort to repair the damage caused by the collapse of the housing bubble must address the injury in both sectors. Tens of millions of homeowners and millions of investors – including retirees with money in pension and mutual funds – were devastated by this manmade catastrophe.

We recognized early this year that, though many public officials – including state attorneys general, members of Congress and the Obama administration – have delved into aspects of the bubble and crash, we needed a more comprehensive investigation before the financial institutions at the heart of the crisis are granted broad releases from liability.

We undertook such an inquiry, building on the work of many others. And we know time is of the essence. Homeowners and investors are suffering every day, and patterns of abuse and misconduct are continuing. We’re working hard to complete the first – and most critical – phase of our investigation before the end of 2011.

The key to our strategy to root out the conduct that triggered the biggest financial crisis since the Great Depression is recognizing that a comprehensive effort requires an attack from both sides – looking at harm both to borrowers and to investors. So we are investigating four distinct, but interdependent, areas of abuse. Only one of those areas is being discussed in the negotiations now under way among the banks, the administration and some of our colleagues.

These determined AG’s explain that they are investigating several areas:

  • misconduct by loan originators;
  • the aggregation, or pooling, of mortgages by major banks.
  • continuing abuses in the servicing of millions of mortgages
  • gross levels of misconduct during this process by a recording system called the Mortgage Electronic Registration Systems.
  • They conclude that while their AG colleagues “seek to settle these servicing-related issues, the financial institutions on the other side of the negotiating table have predictably sought releases that are as broad as possible from future liabilities, delaying the process.”

    Biden and Schneiderman state that they support the effort but they are not going to back down on the criminal investigation of securitization, origination and MERS:

    Reforming the servicing of mortgages is crucial. But these servicing abuses did not create the mortgage bubble. Robo-signing did not blow up the U.S. economy. Rather, these are symptoms of a more far-reaching and insidious problem.

    The American people deserve a full investigation and public exposure of the conduct that got us into the economic quagmire we face today. We must ensure that it never happens again. And we must restore public confidence that ours is a nation committed to the goal of equal justice for all.

    Every American deserves due process before their homes are taken form them that is just not happening for far too many. There is no excuse.

    Foreclosure Fraud: Business As Usual

    On of the biggest frauds that has been perpetrated in the housing collapse that has precipitated the foreclosure crisis has been robosigning especially done by MERS, Mortgage Electronic Registration Systems, a privately held company that operates an electronic registry designed to track servicing rights and ownership of mortgage loans in the United States. The current negotiations by the state attorney generals in conjunction with the Obama Justice Department will in all likelihood exonerate the banks of any criminal liability and allow them to continue using the fraudulent MERS to foreclose on homes that the banks may not legally own. Gretchen Morgensen wrote in the New York Times that “The deal being discussed now may also release the big banks that are members of MERS, the electronic mortgage registry, from the threat of some future legal liability for actions involving that organization.”  Matt Stoller and Mike Lux point to an even bigger issue, robosigning has not stopped:

    Why a Foreclosure Fraud Settlement is a RIDICULOUS Idea

    By Matt Stoller

    What makes these discussions so utterly absurd, so ridiculous, and farcical, is that robo-signing, an abuse the banks have admitted to and clam they’ve ceased, is still going on. The AP reported this in July; mortgage servicers in Nevada have stopped foreclosing because of a law explicitly criminalizing robo-signing. Yes, the banks are asking for a release of claims on acts, or perhaps crimes, that are ongoing. And these abuses are extensive: lying to investors about the quality of the mortgages; violating their own contracts by failing to convey mortgages properly to securitization trusts; charging fees that are impermissible under Federal law and the contracts; making a mess of property records and engaging in deceptive consumer practices through the use of MERS; and engaging in document forgeries and fabrications in foreclosures. All these people trying to give the banks “a settlement” are in fact immunizing banks against acts they are committing and will commit going forward. Only in the future, when a voter complains to his or her state AG, that official will have to explain to that voter that his/her rights have been given away.

    We’re talking about an ongoing case of criminal theft of private property by mortgage servicers charging illegal fees and then using fraudulent documents to foreclose. Now, a settlement implies that this practice is over, and that the banks are remediating past wrongs. It isn’t over, but the AGs and Federal regulators are treating it as if it is. Think about this incentive – why should a bank change its mortgage servicing once it has immunity for robo-signing, origination, pyramiding of fees, etc? The last consent decrees weren’t enforced, why would this one be enforced?

    Obama on Banking: The Worst Deal They Could Cut

    by Mike Lux

       A dozen banks would contribute a grand total of $3.5 to 5 billion toward the settlement, pocket change for massive companies that apparently approved their foreclosure mill law firms likely committing over 1,000,000 counts of perjury in the robo-signing process. The rest of the money, about $20 billion, would come in the form of “credits” banks essentially give themselves if they agree to reduce a certain amount of the principal owed on mortgages. We don’t know the details yet, but given that all banks in the home lending industry write down some mortgages, unless the details are tough on the banks (a phrase not generally heard of among regulators in this era), this will be giving banks credit for mortgages they would be writing down anyway. And if they don’t end up writing down as much as they project, they probably won’t end up being penalized for it given the history of programs like HAMP […]

       If the administration rams through this ultimate in Wall Street sweetheart deals – a laughably pocket change fine combined with “credit” for what they would have done anyway, at the expense for a get out of jail free card for 1 million counts of perjury and a wide range of other potential fraud – they will have zero credibility to run as the tough on Wall Street candidate. ZERO.

       This makes no sense. For example, for the Obama administration to be leaning so hard on California Attorney General Kamala Harris to sign off on this is truly politically suicidal, both for them and for her after she so strongly announced she was pulling out a couple of weeks ago. Yet they continue to push her. Why are they pushing so hard for this? It all boils down to Treasury Secretary Tim Geithner. It is apparent that Geithner believes the only thing that matters in terms of fixing the economy is to keep the big banks in good financial shape, which is ironic given that in public he claims that everything is fine with the banking sector now.

    Yves Smith at naked capitalism suggests we make some phone calls:

    It’s important to keep the pressure up, particularly on state AGs who might walk from a too bank friendly deal. States whose AGs might decamp include Oregon, Washington, Arizona, and Colorado. It’s also key to let the AGs in states who have left the talks and are under pressure to return that voters are watching and will be unhappy if they reverse themselves. Those states are New York, Delaware, Massachusetts, Kentucky, Nevada, Minnesota, and of course, California. You can find their phone numbers here.

    The Obama administration, congress and the state attorney generals who refuse to hold the banks to the letter of the law hold this country’s economic future. If this passes it will destroy the housing market and this economy for decades.

    The Apolitical Quest For Justice

    Who would have ever thought that these two would ever be on the same page.

    Did You Hear the One About the Bankers?

    by Thomas L. Friedman

    Our Congress today is a forum for legalized bribery. One consumer group using information from Opensecrets.org calculates that the financial services industry, including real estate, spent $2.3 billion on federal campaign contributions from 1990 to 2010, which was more than the health care, energy, defense, agriculture and transportation industries combined. Why are there 61 members on the House Committee on Financial Services? So many congressmen want to be in a position to sell votes to Wall Street.

    We can’t afford this any longer. We need to focus on four reforms that don’t require new bureaucracies to implement. 1) If a bank is too big to fail, it is too big and needs to be broken up. We can’t risk another trillion-dollar bailout. 2) If your bank’s deposits are federally insured by U.S. taxpayers, you can’t do any proprietary trading with those deposits – period. 3) Derivatives have to be traded on transparent exchanges where we can see if another A.I.G. is building up enormous risk. 4) Finally, an idea from the blogosphere: U.S. congressmen should have to dress like Nascar drivers and wear the logos of all the banks, investment banks, insurance companies and real estate firms that they’re taking money from. The public needs to know.

    Capitalism and free markets are the best engines for generating growth and relieving poverty – provided they are balanced with meaningful transparency, regulation and oversight. We lost that balance in the last decade. If we don’t get it back – and there is now a tidal wave of money resisting that – we will have another crisis. And, if that happens, the cry for justice could turn ugly. Free advice to the financial services industry: Stick to being bulls. Stop being pigs.

    Wall Street Isn’t Winning – It’s Cheating

    by Matt Taibbi

    Can anyone imagine a common thief being caught by police and sentenced to pay back half of what he took? Just one low-ranking individual in that case was charged (case pending), and no individual had to reach into his pocket to help cover the fine. The settlement Goldman paid to to the government was about 1/24th of what Goldman received from the government just in the AIG bailout. And that was the toughest “punishment” the government dished out to a bank in the wake of 2008.

    The point being: we have a massive police force in America that outside of lower Manhattan prosecutes crime and imprisons citizens with record-setting, factory-level efficiency, eclipsing the incarceration rates of most of history’s more notorious police states and communist countries.

    But the bankers on Wall Street don’t live in that heavily-policed country. There are maybe 1000 SEC agents policing that sector of the economy, plus a handful of FBI agents. There are nearly that many police officers stationed around the polite crowd at Zucotti park.

    These inequities are what drive the OWS protests. People don’t want handouts. It’s not a class uprising and they don’t want civil war — they want just the opposite. They want everyone to live in the same country, and live by the same rules. It’s amazing that some people think that that’s asking a lot.

    Wonders will never cease

    No Justice, No Peace

    The the tilt of the justice system that now favors the very elite took its sharpest turn with President Gerald Ford’s pardon of Richard Nixon. That pardon cost Ford his own term in the Oval Office and paved the way for future presidents to ignore the laws. In 2006, Americans infuriated with the corruption and crimes of the Bush administration, overwhelmingly threw out the Republicans from both houses of Congress. The electorate wanted the Bush cabal reigned in even if it meant the impeachment if both George W. Bush and his puppet master, Dick Cheney. They wanted the restoration of the balance of powers, the rules of law and the Constitution. So what did the Democratic leadership under House Speaker Nancy Pelosi and Majority Leader Sen. Harry Reid, do? They took impeachment off the table and paved the way for even more abuse of power by the executive branch, trampling of protected freedoms, and disregard for the law. President Barack Obama has refused to investigate the Bush administration crimes and has bent over backwards to continue to cover them up by hiding the evidence under the guise of national security. The current attempt by Obama and his Justice Department to exempt the banking industry from being held responsible for the fraud that brought this country to its economic knees, is a violation of his oath of office. The fact that the Americans are now fed up with our political system that has perpetuated this is now evident across this country with Occupy Wall Street. Our elected officials need to start listening, the message is clear, hold the criminals responsible whether it be Wall St., the banks or our elected representatives.

    Seeking an End to US “Too Big To Jail” Excuses

    Glenn Greenwald, contributing editor for Salon and author of the new book, “Liberty and Justice for Some”, talks with Rachel Maddow about how the justice system in the United States has become corrupted such that powerful people are not prosecuted for breaking the law.

    Book excerpt: With Liberty and Justice for Some

    As multiple episodes demonstrate, a belief that elite immunity is both necessary and justified became the prevailing ethos in the nation’s most influential circles. In countless instances over recent years, prominent political and media figures have insisted that serious crimes by the most powerful should be overlooked- either in the name of the common good, or in the name of a warped conception of fairness according to which those with the greatest power are the most entitled to deference and understanding.

    This is what makes the contemporary form of American lawlessness new and unprecedented. It is now perfectly common, and perfectly acceptable, to openly advocate elite immunity. And this advocacy has had its intended effect: the United States has become a nation that does not apply the rule of law to its elite class, which is another way of saying that the United States does not apply the rule of law. . . .

    If the threat of real punishment for criminality is removed, for many rational people there will be little incentive to abide by the law and much incentive to break it. Alexander Hamilton, in Federalist 15, explained why.

       “It is essential to the idea of a law, that it be attended with a sanction; or, in other words, a penalty or punishment for disobedience. If there be no penalty annexed to disobedience, the resolutions or commands which pretend to be laws will, in fact, amount to nothing more than advice or recommendation.”

    For the nation’s most powerful elites, the law has indeed been whittled down to “nothing more than advice or recommendation.” Although there have been episodes of unpunished elite malfeasance throughout American history, the explicit, systematic embrace of the notion that such malfeasance should be shielded from legal consequences begins with the Watergate scandal- one of the clearest cases of widespread, deliberate criminality at the highest level of the U.S. government.

    Awlaki’s Teenage Son Killed in Yemen Attack

    They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety. ~ Benjamin Franklin

    The US has killed the 16 year old son of Anwar Al-Awlaki who was killed in last month in an unmanned drone attack ordered by President Obama. The teenager had run away from home to find his father. On Friday, Abdulrahman al-Awlaki was killed in unmanned drone attack in southeastern Yemen. The Al-Awlaki family is speaking out about the killings.

    “To kill a teenager is just unbelievable, really, and they claim that he is an al-Qaeda militant. It’s nonsense,” said Nasser al-Awlaki, a former Yemeni agriculture minister who was Anwar al-Awlaki’s father and the boy’s grandfather, speaking in a phone interview from Sanaa on Monday. “They want to justify his killing, that’s all.”

    Former Justice Department attorney and whistleblower, Jesselyn Radack discusses how the US has gone further down a very slippery slope into “Wonderland”:

    In a still secret–yet described in detail in the New York Times–memo, the Justice Department justified assassinating American citizen al-Awlaki despite the myriad laws and the Constitution such a killing would violate. As New York Times journalist Charlie Savage pointed out, there exists

       an executive order banning assassinations, a federal law [that prohibits Americans from murdering other Americans abroad], protections in the Bill of Rights [the Fourth Amendment’s guarantee that a “person” cannot be seized by the government unreasonably, and the Fifth Amendment’s guarantee that the government may not deprive a person of life “without due process of law”], and various strictures of the international laws of war . . .

    The Justice Department has refused to release the secret memo despite calls from major media outlets and a FOIA request from my organization (the Government Accountability Project), but has assured us that the justification for killing an American was for al-Awlaki only, and did not set a precedent.  But now we are sliding down the slippery slope.  The U.S. killed American Samir Khan–the publisher of the controversial magazine Inspire (clearly First Amendment activity) along with al-Awlaki and now, the young Awlaki was the third American killed in Yemen in as many weeks.

    []

    But now we have taken to killing American teenagers without due process, an action the U.S. Supreme Court could not take even if al-Awlaki’s son had a full criminal trial. The Supreme Court held in Roper v. Simmons that even after a suspect receives due process in court–something al-Awlaki and his son were secretly and summarily denied–using the death penalty on juveniles is cruel and unusual punishment that violates the Constitution.

    Speaking of the Supreme Court, the Court weighed in on the rights of American citizens labeled “belligerents” and has held that they must receive some measure of due process. In Hamdi v. Rumsfeld, Justice Sandra Day O-Connor eloquently explained:

       . . . a state of war is not a blank check for the President when it comes to the rights of the Nation’s citizens . . .

    Many of us on the left and on the blogs were vociferously and adamantly opposed to the Bush regimes use of torture and we were truly dismayed when then House Speaker Nancy Pelosi took impeachment of both Bush and Cheney off the table. We were again disheartened when President Obama decided not to even investigate the criminality of Bush cabal. Now, one would think that there would be an outcry from the so called progressives on targeting American citizens for assassination and the use of unmanned drones which may well be a war crime but apparently not on the web site where Ms. Radack published her article. Those who were the loudest opposition to the Bush crimes and torture were out in force in comments with some of the most right wing rational for supporting Obama’s criminality:

    the son was collateral damage. Get the father into a court room, and the son gets to live. Then when daddy Awlaki is locked up in a federal prison, sonny Awlaki can become a terrorist leader on his own. Then various people here can cluck over him when he finds his way into US military crosshairs for his own evil deeds. Perhaps by that time he’ll have had some little Awlakis of his own, who we can cluck over even more.  See, this can keep going for a long darn time.

    Generations in fact.

    This was addressed directly to Ms. Radack:

    Because if there’s any right that’s sacred.. in the minds of most Americans, it’s the right to travel the back roads of Yemen as part of an organization proudly devoted to the destruction of the United States and the mass killing of its people.  After all, I’m pretty sure that’s all just idle bluster.

    This is where I try to set aside my own views and offer what I think is some strategically sound advice to you, and you can take it as you will.  Why not focus on torture, rendition, and other stuff where you enjoy some greater chance of success, and then leverage that success into this toughest of nuts?

    This comment was made by an African American lawyer

    I’ll save my tears for things worth crying about. Some 16 year old kid winning a Darwin Award doesn’t cut it.

    These are just a few of the degenerate, despicable comments that praised these killings and defended Obama. There were many responses that were horrified by such rhetoric. It makes one wonder just how far Obama cult of followers will sink before they realize their hero is not just very flawed but as evil as the last president if not worse.

    Apparently, Yes We Can

    Like his predecessor, George W. Bush, President Barack Obama went to his Office of Legal Council on how to circumvent an executive order banning assassinations, a federal law against murder, protections in the Bill of Rights and various strictures of the international laws of war to “legally” order and successfully carry out the assassination of American citizen Anwar al-Awlaki last month in Yemen. According to an article by reporter Charles Savage in the New York Times, the 50 page memorandum was completed in June of last year. It was written specifically in regard to only al-Awlaki and did not examine the evidence against him:

    The legal analysis, in essence, concluded that Mr. Awlaki could be legally killed, if it was not feasible to capture him, because intelligence agencies said he was taking part in the war between the United States and Al Qaeda and posed a significant threat to Americans, as well as because Yemeni authorities were unable or unwilling to stop him.

    The memorandum, which was written more than a year before Mr. Awlaki was killed, does not independently analyze the quality of the evidence against him.

    []

    It was principally drafted by David Barron and Martin Lederman, who were both lawyers in the Office of Legal Counsel at the time, and was signed by Mr. Barron. The office may have given oral approval for an attack on Mr. Awlaki before completing its detailed memorandum. Several news reports before June 2010 quoted anonymous counterterrorism officials as saying that Mr. Awlaki had been placed on a kill-or-capture list around the time of the attempted bombing of a Detroit-bound airliner on Dec. 25, 2009. Mr. Awlaki was accused of helping to recruit the attacker for that operation.

    []

    Other assertions about Mr. Awlaki included that he was a leader of the group, which had become a “cobelligerent” with Al Qaeda, and he was pushing it to focus on trying to attack the United States again. The lawyers were also told that capturing him alive among hostile armed allies might not be feasible if and when he were located.

    Based on those premises, the Justice Department concluded that Mr. Awlaki was covered by the authorization to use military force against Al Qaeda that Congress enacted shortly after the terrorist attacks of Sept. 11, 2001 – meaning that he was a lawful target in the armed conflict unless some other legal prohibition trumped that authority.

    Mr. Savage goes on to detail how each legal obstacle was  considered and rejected:

    The executive order the lawyers concluded only pertained to the assassination of political leaders outside of war;

    The statute that makes it illegal to murder of US nationals on foreign soil did apply “because it is not “murder” to kill a wartime enemy in compliance with the laws of war.”;

    It concluded that if the operator of the drone was a civilian of the CIA it wold not be a war crime and although it would violate the laws of Yemen, ti would be unlikely that Yemen would seek to prosecute;

    Last to be considered and dispensed with were those pesky amendments in the Bill of Rights that guarantee “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures” and the right to due process:

    The memo concluded that what was reasonable, and the process that was due, was different for Mr. Awlaki than for an ordinary criminal. It cited court cases allowing American citizens who had joined an enemy’s forces to be detained or prosecuted in a military court just like noncitizen enemies.

    It also cited several other Supreme Court precedents, like a 2007 case involving a high-speed chase and a 1985 case involving the shooting of a fleeing suspect, finding that it was constitutional for the police to take actions that put a suspect in serious risk of death in order to curtail an imminent risk to innocent people.

    The document’s authors argued that “imminent” risks could include those by an enemy leader who is in the business of attacking the United States whenever possible, even if he is not in the midst of launching an attack at the precise moment he is located.

    Despite the argument that will be made by the right wing Obama supporters that the memorandum is specific to al-Awlaki, all the arguments that were made to justify his assassination could easily be made against any US citizen anywhwere and may already have been:

       American militants like Anwar al-Awlaki are placed on a kill or capture list by a secretive panel of senior government officials, which then informs the president of its decisions . . . . There is no public record of the operations or decisions of the panel, which is a subset of the White House’s National Security Council . . . . Neither is there any law establishing its existence or setting out the rules by which it is supposed to operate. . . . The role of the president in ordering or ratifying a decision to target a citizen is fuzzy. White House spokesman Tommy Vietor declined to discuss anything about the process. . . .

    Glenn Greenwald at Salon in his excellent article considers that al-Awlaki won’t be the last victim:

    Officials in the Obama White House and then the President decreed in secret that Awlaki should die.  So the U.S. Government killed him.  Republicans who always cheer acts of violence against Muslims are joined by Democrats who reflexively cheer what this Democratic President does, and now this death panel for U.S. citizens – operating with no known rules, transparency, or oversight – is entrenched as bipartisan consensus and a permanent fixture of American political life.  I’m sure this will never be abused: unrestrained power exercised in secret has a very noble history in the U.S. (Reuters says that the only American they could confirm on the hit list is Awlaki, though Dana Priest reported last year that either three or four Americans were on a  hit list).

    Anyway, look over there: wasn’t it outrageous how George Bush imprisoned people without any due process and tried to seize unrestrained power, and isn’t it horrifying what a barbaric death cult Republicans are for favoring executions even when there’s doubt about guilt?  Even for those deeply cynical about American political culture: wouldn’t you have thought a few years ago that having the President create a White House panel to place Americans on a CIA hit list – in secret, without a shred of due process – would be a bridge too far?

    The tales of through the looking glass continue.

    “Are We Even Allowed To Do This?”

    Apparently, “Yes. We Can”

    If you told me at the beginning of the Obama presidency that his clearest legacy would involve not closing Gitmo or green jobs or manufacturing jobs – or any kind of jobs, really – but would in fact be his ability to rain targeted death from the sky … I mean, are we even allowed to do that?

    Now that President Barack Obama supporters, and many of his non-supporters, are righteously praising the the due process free assassination of Anwar al-Awlaki as justified because the Obama said so, why hasn’t the evidence that al-Awlaki was a threat been released? So far the only evidence we have that al-Awlaki was a “Very Bad Terrorist” is his rhetoric which is protected under the 1st Amendment. When confronted by ABC News‘ reporter, Jake Tapper, White House spokesperson Jay Carney declared that the evidence was still classified and not to be seen. Very nice that Tapper pushed back on this, but where was he when this order was revealed over a year ago? Are we now “Alice in the Wonderland” standing before the “Red Queen” demanding sentence first, verdict later>

    Why are so few of us questioning this rational that we so adamantly opposed in the voting booth just a mere 3 years ago? Are those who are cheering this even aware of the precedent and consequences of such a authoritarian action?

    Glenn Greenwald, who has been a vocal critic of the Bush and Obama administrations’ abuse of power and disregard for the rule of law, has this observation:

    That mentality – he’s a Terrorist because my Government said he’s one and I therefore don’t need evidence or trials to subject that evidence to scrutiny – also happens to be the purest definition of an authoritarian mentality, the exact opposite of the dynamic that was supposed to drive how the country functioned (Thomas Jefferson: “In questions of power, let no more be heard of confidence in men, but bind him down from mischief with the chains of the Constitution”).  I trust My President and don’t need to see evidence or have due process is the slavish mentality against which Jefferson warned; it’s also one of the most pervasive ones in much of the American citizenry, which explains a lot.

    Like the Bush administration’s justification for the use of torture and indefinite detention without due process, the Obama administration claims that they carefully consulted lawyers within the Justice Department who unanimously supported the president’s order.

    “The Justice Department wrote a secret memorandum authorizing the lethal targeting of Anwar al-Aulaqi, the American-born radical cleric who was killed by a U.S. drone strike Friday, according to administration officials,” the newspaper reported. “The document was produced following a review of the legal issues raised by striking a U.S. citizen and involved senior lawyers from across the administration. There was no dissent about the legality of killing Aulaqi, the officials said.”

    But we will never see that memo, it’s classified. So much for that transparency that was promised by Obama. I only hope that Eric Holder has as much success in finding a job after he leaves DOJ as Alberto Gonzales. I digress.

    Greenwald makes some important points that debunk other ignorant claims:

    (1) the most ignorant claim justifying the Awlaki killing is that he committed “treason” and thus gave up citizenship; there’s this document called the “Constitution” that lays out the steps the Government is required to take before punishing a citizen for “treason” (“No Person shall be convicted of Treason unless on the Testimony of two Witnesses to the same overt Act, or on Confession in open Court“); suffice to say, it’s not met by the President secretly declaring someone guilty backed up by leaked, anonymous accusations to the press;

    (2) a new U.S. military study today finds that Awlaki’s killing won’t impede Al Qaeda’s operational capabilities, so for those of you worried that this killing might impede Endless War, don’t worry: like the bin Laden killing, Endless War will march on unimpeded; that’s why it’s called Endless War.

    Some argue that al-Awlaki’s assassination will make us less safe and strengthen Al Qaeda’s resolve:

    Evidence shows that killing terrorist leaders – or “decapitating” terrorist organizations, in military parlance – rarely ends violence on its own and can actually have adverse consequences. Indeed, killing prominent leaders can motivate their followers to retaliate and increase sympathy for the militants’ cause among civilians.

    Simply focusing on the leadership of a terrorist organization rarely brings about the group’s demise. My study of approximately 300 cases of singling out the leadership of 96 terrorist organizations globally – including Al Qaeda and Hamas – between 1945 and 2004, shows that the likelihood of collapse actually declines for groups whose leaders have been arrested or killed.

    George Washington University law professor, Jonathan Turley, wrote is a column:

    While few people mourn the passing of figures such as al-Awlaki, who was accused of being a leader in al-Qaeda, they should mourn the passing of basic constitutional protections afforded to all citizens. So a president can now kill a citizen without publicly naming him as a target, stating the basis for his killing, or even acknowledging his own responsibility for the killing once it has been carried out. Even if one assumes citizens would be killed only outside the country, it would mean that a mere suspect’s life could become dispensable the minute he steps a foot over one of our borders.

    At the same time, the government has expanded the definition of terrorism and material support for terrorism, which in turn further expands the scope of possible targets. When confronted on the lack of knowledge of who is on this list and the basis for the killing, the Obama administration simply says citizens must trust their president. It is the very definition of authoritarian power – and Americans appear to have developed a taste for it.

    snip

    Notably, in the face of these extrajudicial killings, Democrats who claim to be civil libertarians, such as Sen. Dianne Feinstein of California, have cheered the president – creating a record for the next president to expand on these acquiesced powers.

    No republic can long stand if a president retains the unilateral authority to kill citizens whom he deems a danger to the country. What is left is a magnificent edifice of laws and values that, to quote Shakespeare’s Macbeth, is “full of sound and fury, signifying nothing.”

    Another Attorney General Exits Multi-State Mortgage Fraud Talks

    Last Friday California Attorney General,Kamala Harris, notified Iowa Attorney General Tom Miller and U.S. Associate Attorney General Thomas Perrelli that she would no longer be participating in the multi-state talks to settle the mortgage and foreclosure fraud by the nation’s largest banks.

    “Last week, I went to Washington, D.C., in hopes of moving our discussions forward,” Harris wrote. “But it became clear to me that California was being asked for a broader release of claims than we can accept and to excuse conduct that has not been adequately investigated.”

    “[T]his not the deal California homeowners have been waiting for,” Harris adds one line later.

    AG Harris joins the list of state attorney generals who have balked at letting the banks pay a mere $20 billion to settle their liability in the housing crisis they created without any real criminal investigations. In her letter (pdf), she states her plans:

       I intend to continue to investigate the mortgage practices that I believe have contributed to the growing housing crisis in my state. Months ago, I began California’s independent work in this respect by establishing a Mortgage Fraud Strike Force, and I have given the Strike Force attorneys a broad mandate to investigate all stages of the mortgage lending process, from origination to servicing and foreclosures to securitization of loans into investments in the secondary market. I am committed to doing as thorough an investigation as is needed – and to taking the time that is necessary – to set the stage for achieving appropriate accountability for misconduct.

       I will also push for additional legislation and regulations that enhance transparency and eliminate incentives to disregard borrower’s rights in foreclosure. Many of these reforms have been identified in the multistate talks, and I hope that in good faith the banks will adopt these reforms immediately.

    While David Dayen doesn’t think that the legislation have a chance. he does say that public pressure has had a huge impact in pushing Harris to make this decision. It could also impact on her career, since she was rumored to be a possible replacement for US AG Eric Holder. Pushing hard against the Obama administration’s support of this agreement could take her out of consideration.

    Dayen concludes, and I agree, that:

    As for Tom Miller, his dream of getting the banks off the hook for their crimes is dead and buried. Without California and New York, you’re not going to be able to have a settlement that means anything. He’s probably looking for a way out right now.

    The investigations have to be followed through. But this is a victory so far for accountability and against the whitewashes that have characterized the nation’s response to systemic fraud in an increasing and troubling fashion over the past several years.

    Considering the success that Nevada Attorney General Catherine Cortez Masto had in a settlement with Morgan Stanley over mortgage practices that essentially garnered about $57,000 for some 600 to 700 Nevada homeowners, AG Harris’ withdrawal from the negotiations is a wise choice for Californians.

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