Our detonation of the day (actually, two days running now) is DGW:
That's an impressive loss of value over the last year. The landsharks are circling as well:
NEW YORK--(BUSINESS WIRE)-- Levi & Korsinsky, LLP is investigating potential securities fraud claims against Duoyuan Global Water, Inc. (“DGW” or the “Company”) (NYSE:DGW - News) resulting from allegations that the Company may have issued materially inaccurate financial statements to the investing public between June 24, 2009 and April 4, 2011.
Good luck collecting, given that the company is based in China. How do you intend to get the money if you win? This, of course, assumes that the report issued by Muddy Waters (a known short-seller of these sorts of stocks) isn't accurate - if it is, there's nothing to get.
We allow this crap on our public exchanges exactly why, again?
One final question: Given that our so-called "regulators" who spend their time surfing porn rather than enforcing the law over at the SEC, and the refusal of our DOJ to prosecute even admitted frauds by various concerns, how long will it before the investing public decides, on their own initiative, that everything in the market is a scam and simply sells it all before they lose 90% or more of their investment for a third time in roughly a decade?
How much longer will you stand for these institutions robbing you?
FOR IMMEDIATE RELEASE
Belvidere, Illinois, United States of America (Free-Press-Release.com) April 1, 2011 --The investigation alleges that mortgage lenders such as Bank of America, Wells Fargo, PHH, Prospect Mortgage, Guaranteed Rate, Home State Bank, Key Financial Services, Platinum Mortgage, Integra Mortgage Inc. and various regional home builders have specific programs in place to compensate real estate brokers for steering business to their mortgage units.
This practice is illegal.
Madigan’s investigators are looking into consistent, widespread and obvious patterns of consumer fraud and manipulation. Month after month, these mortgage lenders get a substantial share of the mortgage market due to aggressive and defined kickback programs.
Kickbacks are against both State and Federal law.
It is not uncommon to see materials marketed to real estate agents with clear inducements of steep kickbacks or a split of the mortgage revenues that grossly inflate what consumers should pay for the mortgage or home they are purchasing. The Attorney’s office commenced the investigation when they looked into marketing material and a web site created by Integra Mortgage: www.af-usa.com. The promotional material claims that real estate agents can earn a commission by logging onto the web site and registering home loan consumers for mortgages. The mortgage company claims that once the registered loan transaction funds, the real estate broker or other interested taker would be given a portion of the mortgage revenue. When reviewed for accuracy the af-usa.com site noted rates two to three percentage points above fair market rates.
Screw the consumer and don't disclose it fairly and fully.
Other types of lenders rely on weak State regulatory oversight and legal loopholes to obfuscate revenue kickback schemes. Bank of America, Prospect Mortgage and Wells Fargo appear to be the most egregious at this form of pay-to-play. Common regional examples of tie-in schemes are: First Freedom Financial (Bank of America), a joint venture with Prudential Realty and Personal Mortgage Group/PMG (Wells Fargo), a joint venture with Remax Real Estate. It’s estimated that Bank of America and Wells Fargo by themselves utilize several hundred joint ventures across the U.S.
Nice scheme. The allegation is that cross-ownership winds up screwing people, because the loan origination winds up being steered by the broker in question, and the tie-in means that the consumer gets hosed through paying higher fees and costs, and those "profits" inure to the benefit of the tied company.
Joint ventures between real estate brokerage firms and banks are structured in many ways and usually work quietly behind the scenes. These ventures are typically negotiated at the upper levels of management between the banks and realty brokerage owners. The mortgage banks often funnel money to joint bank accounts of which the real estate brokerage owners draw off of as desired. Companies such as Guaranteed Rate have developed micro revenue kickback schemes for real estate agents specifically wherein the real estate agent can actually own a “share” of the company and is therefore entitled to mortgage company “profits”. Fraud is established from the first transaction because the kickback is not an even proration of Guaranteed Rate’s company revenue but rather based on the scope of the real estate agents referrals.
Wave your hands, scream and shout and then claim not only "too big to fail" but too big to jail as well! Remember, Wachovia did this with nearly $400 billion in money laundering for Mexican Drug gangs, and our wonderful "press", including the UK press, ignored the story until the "deferred prosecution agreement" expired, making sure that they'd get away with paying just a tiny fine amounting to less than two tenths of one percent of the amount they moved for these gangsters.
These mortgage bankers clearly understand that kickbacks are against Federal laws yet they continue to cook up elaborate go-arounds to Federal and State statutes. Their hopes are that the regulatory bodies are so ineffective that these kickback schemes will never be discovered.
No, their expectation and reasonable belief is that you won't do **** about it, and thus these banks literally whizz all over the front hedge of your alleged "office" in which you sit and post wild press releases claiming to be "protecting" consumers.
Consumers have good foundation for this belief. After all, you not only allowed the banks to screw people with subprime lending and failed to assert the State's 10th Amendment right to stop it, but you then went further and allowed an admitted 150,000 admitted bogus (and likely felonious and perjurous) documents to stand in your state courts and be used to foreclose on homeowners.
You've also allowed apparent wanton and outrageous false claims of ownership of these loans to be made at the time of foreclosure, when there is an incredible amount of evidence that many of these loans were never transferred into the trusts at all. Since the PSAs and NY Trust Law requires that this be done within (typically) 90 days of the closing date of the trust in question and the default and foreclosure happens months or years later these defects are incurable. This means that these institutions are standing before your judges and in your courtrooms demanding to evict people for paying a debt that is not owed to the bank in question!
Literal trillions of dollars worth of paper has been presented as "authentic" to your courtrooms that is in fact not authentic, lacks a documented chain of ownership as required by the PSA and law (because it does not exist) or has been buttressed by fabricated and back-dated paperwork that constitutes a separate and distinct fraud upon your courts. You have done nothing in the form of prosecuting these institutions for their conduct, even though fraud is typically a felony offense, perjury is typically a felony offense and defilement of the court system destroys the legitimacy of your governments, legal systems, the citizens fundamental liberty interest and the 14th Amendment right to equal protection under the law.
The alleged "AG Settlement negotiation" is a bad joke and yet another fraud upon the public, this one being yours. There is no criminal prosecution, no requirement to admit guilt and no recovery of the funds and properties stolen through these corrupt practices, most-especially fee-cramming and other acts designed to generate bogus defaults (including but not limited to banks telling homeowners to intentionally default so as to "qualify" for modifications they then fail to deliver.) To add insult to injury your proclaimed "settlement negotiation" permits balloon notes as "modifications" which we know from experience in the 1930s will simply result in the putative "owner" losing his house in the future - after the bank makes even more money through additional interest, fee and penalty charges.
You have, in fact, a documented decades-long record of not giving a damn about the people at all when it comes to these matters, deferring to these large institutions in virtually every case. In this regard you join Eric "Placeholder" as a gaggle of so-called "Attorneys General" who appear to have as your highest, best and only calling advocacy for and protection of those large financial institutions that screw the consumer.
The Attorney General’s office is making an effort to change that perception. Illinois and Federal laws prohibit non-mortgage licenses to earn a fee on the origination of residential mortgages. If you have information that may help the Attorney General’s Investigation or you feel that you’ve been taken advantage of please contact the States Attorney’s Office or the IDFPR at the offices below.
Attorney Genrals Chicago Main Office
100 West Randolph Street
Chicago, IL 60601
(312) 814-3000IDFPR: Professional Regulation
320 W. Washington
Springfield, IL 62786
Phone: (217) 785-0800
I will not believe a word of your claims until I see banksters locked up in prison for not only this alleged kickback scheme, but also for the admitted violations of the law that have already taken place.
this is not going to stop:
Prices in my local area hit $3.83 at the local station that is one of the best-price options around here that I have been monitoring. It was at $3.59 for quite a while, but took two hikes today. This is not good, considering that the present time is the weakest gasoline demand of the year.
What's the cause of this ramp? Don't believe "supply and demand" for a second. Cushing Oklahoma, which is where the NyMEX light sweet crude contract is delivered, is at historical highs for the amount of oil stored there - to the point that people are bypassing it as their tanks are full.
Notice when the ramp job started. Right when Bernanke started the latest round of his monetary games.
No, this is not "supply and demand." It's excessive liquidity in the market which is being created by Bernanke, on purpose, with the intention of driving asset prices higher.
The problem is that there's only two things that are going up: Commodities and stocks.
Among things definitely not going up are wages, houses and consumer sentiment - that is, the willingness to go out and spend.
Guess what else is going to go up? Groceries and other goods. Why? Because as I've reported since August, the increases in commodity prices started showing up in the PPI reports at that time, and once that goes into the pipe it will come out - either as crashed margins or higher prices. It cannot do otherwise.
Our economy will not "withstand" these oil and gas prices. Not without a massive contraction. I am already seeing it - again - on the roads around this area. Less traffic, fewer shoppers. The so-called "recovery" that was spiked through all of the monetary drugs by Ben has now resulted in loose-money drug poisoning, exactly as it did in 2008.
This same scheme was run in 07 and 08 and did not work. It will not work this time either. But we have blown an additional $4.5 trillion in government deficit spending between then and now, which is new debt that now has to be paid out of diminishing tax revenues. That in turn will eventually result in either Uncle Sam's credit card getting cut up or the rug will have to be pulled out from under this scheme by Bernanke before it happens.
The manipulation and attempt to get private debt additions going again has failed.
All that has happened is that speculation has gone through the roof and the corporate leverage index stands near all-time highs - higher than 2000 or 2007.
We're not going to get out of this in one piece folks, and there's nobody in Washington with a set of balls that will tie Bernanke to the mast and force him to stop this crap under penalty of The Fed being de-certified and thrown into the Potomac wholesale.
I hope you're prepared.
Intertwined subjects? You bet. And now that Libya is not just a "US shoot Tomahawk" zone, we have activity on the Ivory Coast. This is French - for now. The ECB is expected to raise rates this week, while Bernanke is supposed to speak this evening. What are the facts? It's all a farce, and we'll talk about it.
4:00 Central Today, Monday April 4th at http://blogtalkradio.com/marketticker
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