09-12-20 Requesting SEC Chair- Mary Schapiro - to forward matter for review by SEC Inspector General

 

Date: Sun, 20 Dec 2009 19:47:32 -0800
To: "Schapiro, Mary L."
From: joseph zernik
Subject: Request for referral of investigation of SEC conduct relative to enforcement on Countrywide and BAC, or lack thereof -  to SEC Inspector General.
Bcc:

The favor of a response within 10 business days was requested.

To Ms Mary Schapiro, Chair, US SEC, by email.

Dear Ms Schapiro:

Thank you for acknowledging receipt of my message, including my previous three communications, all dated December 20, 2009, to Mr Brian Moynihan. 

Please accept this notice as a request that conduct of SEC in this matter in the past three years be forwarded for investigation by the SEC Inspector General.  Suffice is to say that in February 2009 I was communicating with Prof Joseph Grundfest, Stanford Law and Business School, and former Commissioner of the SEC.  He was curious how an individual with no qualifications at all, and with no investigational authority, could produce in January 2007 a detailed complaint to FBI regarding large-scale fraud by Countrywide on the US government - through the funding of extremely unworthy government-backed residential loans, and by March 2007 - produce initial estimate of liabilities - at hundreds of billions of dollars.  In contrast, the plethora of US regulators claimed and continue to claim to this date, that it was impossible to predict the crisis. Likewise,  FBI and US Dept of Justice, to this date, refused to see any evidence of criminality in the matter.

I also forwarded to Prof Joseph Grundfest at that time some of my records.  Although he did not review them all in detail, he found sufficient substance in my claims, that he informed me that he forwarded all my papers directly to the head of Enforcement, at that time - Ms Linda Thompson.  As usual - there was no evidence of any enforcement evidence as a result, and surely - SEC continued to this date to refuse to provide me Equal Protection under the law.

However, communication with SEC Attorney Samuel Bezek, and later with SEC Attorney Leslie M. Garner,[1] led me to believe that my repeated complaints to SEC since early 2007, pertaining to alleged criminality at Countrywide, were systematically eliminated from SEC records. 

Similar conduct was also found at Office of Thrift Supervision and Office of Federal Trade Commission.  Regarding the latter two offices, my evidence was conclusive - based on failure to retrieve my own complaints through Freedom of Information Act responses by these offices.[2]  Their responses included correspondence that was sufficient evidence that complaints had existed at some point, but the complaints themselves were nowhere to be found.

The problem noted herein - of questionable integrity of database systems of banking regulators highlights what was claimed to be the fundamental deficiency- failure of US government to establish by law process and procedures for publicly accountable validation (certified functional logic verification) of large database systems in government, in the courts, in correctional institutions, in public corporation, and in financial institutions. Evidence I produced demonstrated that such deficiency was not only an intolerable risk to the stability of financial markets, but was also the cause of serious Human Rights abuses on a large scale of the American people.

Therefore, I request that the whole matter be forwarded to the Inspector General of SEC for review of my claims that SEC deliberately refused to enforce the law regardless of overwhelming evidence of criminality at Countrywide, continued later on by the same individuals under the Bank of America Corporation name.

The substance of my complaints to SEC was best summarized in my affidavit, filed with Judge Jed Rakoff, in SEC v BAC (1:09-cv-06829) in early September 2009. [3][4]  Its focus was in (a) Alleged corruption of the Countrywide Legal Department headed by Sandor Samuels, today - Associate General Counsel of Bank of America Corporation, and (b) Alleged large-scale fraud centered in the design and operation of EDGE - Countrywide's underwriting case management system - today - Bank of America Home Loans' case management system. 

As far as I could tell, I was alone in my opposition to the settlement then proposed, and I was relieved to see that the court indeed disposed of that proposed settlement as inadequate, and contrary to public interest.

Respectfully,

Dated: December 20, 2009                
La Verne, County of Los Angeles, California                     Joseph H Zernik 
                                                        
                                                                By: ______________
                                                        JOSEPH H ZERNIK
                                                        PO Box 526, La Verne, CA 91750
                                                        Fax: 801 998 0917
                                                        Email

CC:
Basel Accords Committee
Fine, Glenn - US DOJ-IG
Kevin Bailey - OCC
Moynihan, Brian - BAC

Linked Records:
[1] Communications with SEC attorney Leslie M. Garner, where she repeatedly refused to state what were the dates of my complaints on file at SEC, after making initial claims that SEC maintained a comprehensive database of complaints.
http://inproperinla.com/09-10-11-sec-repeat-request-for-log-of-complaints.pdf
[2] To this date no Freedom of Information Act request was filed with SEC.
[3] Affidavit filed in opposition to the proposed settlement then pending, in SEC v BAC (1:09-cv-06829)
http://inproperinla.com/09-09-09-affidavit-joseph-zernik-in-sec-v-bac-s.pdf
[4] Appendices to Affidavit in SEC v BAC (1:09-cv-06829)
http://inproperinla.com/09-09-09-affidvait-joseph-zernik-in-sec-v-bac-appendices-s.pdf
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