11-02-20 Exoneration of Countrywide’s Angelo Mozilo Signals Ongoing Integrity Crisis of the US Justice System // A gran escala contra el Fraude bancario en los Estados Unidos // 大型银行诈骗在美国

       

Countrywide's        US Attorney General     Bank of America's  
Angelo Mozilo;          Eric Holder                     Brian Moynihan

Exoneration of Countrywide's Angelo Mozilo Signals Ongoing Integrity Crisis of the US Justice System

Unless conduct of the US justice system is addressed, it is unlikely that socio-economic development and civil society conditions in the United States will improve anytime soon.

Los Angeles, February 20 -  News media have reported this week that US prosecutors dropped the criminal investigation of Angelo Mozilo, former Chairman of Countrywide Financial Corporation. [[i]]

In response, Dr Zernik of Human Rights Alert (NGO) issued a statement calling the decision "A clear signal of ongoing integrity crisis of the US justice system, and ongoing dysfunctional banking regulation in the United States."

Dr Zernik added: "Like the Great Depression a century ago, the current financial/economic crisis in its core is an integrity crisis of the US justice system. Unless conduct of the US justice system is addressed, it is unlikely that socio-economic development and civil society conditions in the United States will improve anytime soon."

Starting January 2007 Dr Zernik filed complaints with FBI, Office of Thrift Regulation, and Federal Trade Commission and SEC.  The complaints documented fraud in Countrywide operations as early as 2004:

• Fraud in Countrywide's underwriting monitoring system (EDGE), which enabled underwriting sub-prime loans with no underwriting at all.
• Fraud in fax transmission operations in Countrywide, which bypassed Countrywide's fax server system, and enabled the falsification of loan application (1003s) files.
• Dismantling of internal and external audit systems.
• Direct involvement of ANGELO MOZILO (then Chairman) and SANDOR SAMUELS (then Chief Legal Officer, today - Associate General Counsel of Bank of America) in such conduct.

The complaints alleged violations of banking regulations, wire fraud, large-scale financial institution fraud, and racketeering.  The complaints also projected liability to the US Treasury of hundreds of billions of US dollars through Countrywide's conduct.

US law enforcement and banking regulators refused to investigate the complaints.

Freedom of Information Act responses by SEC, Thrift Regulation, and Trade Commission later documented that the complaints were eliminated from US agencies records, although sufficient evidence was found in the responses that such complaints had existed.

• In January 2008 Countrywide collapsed, and the losses to the US Treasury were materialized.
• In early 2008 complaints were filed with FBI Director and US Attorney General, which documented tight links between Countrywide, and later, Bank of America and its President Brian Moynihan and corruption in the Los Angeles Superior Court, led by California Judge JACQUELINE CONNOR (best known for derailing the First Rampart Trial in 2000).
• In 2008, Fraud Expert, and FBI veteran JAMES WEDICK, who was decorated by US Congress, US Attorney General, and FBI Director, opined real estate fraud, perpetrated by Attorney DAVID PASTERNAK (former President of the Los Angeles County Bar Association), on behalf of Countrywide/Bank of America and the Los Angeles Superior Court. [[ii]]
• In 2008, the Fraud Expert also documented his discussion with FBI on the matter.  The Fraud Expert indicated that while FBI agreed with Dr Zernik's claims, FBI was not going to provide equal protection, since it would require exposing the widespread corruption of the Los Angeles Superior Court. [[iii]]
• In 2008, Congressional Inquiries were filed by Senator DIANNE FEINSTEIN and Congresswoman DIANE WATSON on FBI and US Attorney General: why US law enforcement would not investigate the complaints and the request for equal protection of the 10 million residents of Los Angeles County against alleged racketeering by judges of the Los Angeles Superior Court.
• In 2009, complaint was filed with the office of Inspector General of the US Department of Justice GLENN FINE, claiming fraud by senior US Department of Justice Officers on the US Congress.  The complaint pertained to responses of FBI Assistant Director KENNETH KAISER and then Director of US Attorneys Office KENNETH MELSON to the US Congress Inquiries in 2008.
• The office of US Department of Justice Inspector General refuses to investigate the complain to this date.
• In 2010 complaints were filed with Office of the US Controller of the Currency and SEC, documenting fraud by senior management in Bank of America corporation, including direct involvement of BRIAN MOYNIHAN. [[iv],[v],[vi]]  The US Controller of the Currency and SEC refuse to investigate the complaints to this date.
• In 2010, the civil litigation of SEC v Bank of America Corporation in the US District Court in New York, which was hailed by media as the hallmark of US banking regulation, was opined as fraud on the court by US Judge JED RAKOFF and Clerk RUBY KRAJICK. [[vii],[viii],[ix],[x],[xi]]

During the same period, senior US Department of Justice and banking regulation officers repeatedly provided testimonies before the US Congress, stating that there was no way to predict the sub-prime crisis, that no criminality was found in investigations of sub-prime lenders, and that US banking regulation was "shored up".

Such statements are claimed as fraud on the US Congress and on the people of the United States.

Conduct of the US government is also alleged as serious violation of the Human Rights and of the US government's duties and obligations as a good faith party to the international Basel Accords on banking regulation.

In 2010 Human Rights Alert's submitted a report to the United Nations Human Rights Council (HRC), as part of the first ever, 2010 Universal Periodic Review (UPR) of Human Rights in the United States.  The report documented a pattern of housing fraud by large financial institutions in collusion with judges of the Los Angeles Superior Court and large law firms, and the refusal of US Department of Justice to provide equal protection. 

The submission was later incorporated into the official Staff Report of the HRC, with reference to "Corruption of the courts and the legal profession and discrimination by law enforcement in California". [[xii]]

News reports during the current financial crisis documented similar conduct throughout the United States.

LINKS:
[i] 11-02-18 US Drops Criminal Probe of Former Country Wide Chief Angelo Mozilo - LATimes
http://www.scribd.com/doc/49151334/
[ii] 07-12-17 Samaan v Zernik (SC087400) David Pasternak: Grant Deeds in re: 320 South Peck Drive, Beverly Hills, CA 90212, opined as fraud by James Wedick
http://www.scribd.com/doc/24991238/
[iii] 08-08-21 Samaan v Zernik (SC087400) Email letter by highly decorated FBI veteran James Wedick regarding  FBI's refusal to provide Dr Zernik equal protection
http://www.scribd.com/doc/29713733/
[iv] 10-05-05 Countrywide Bank of America NYSE BAC and its President Brian Moynihan Compilation of Records Evidence of Racketeering
http://www.scribd.com/doc/30975368/
[v] 10-05-05 Chairs of US Congress Committees of the Judiciary and Banking Are Requested to Join Senator Feinstein's Inquiries on Comptroller of the Currency
http://www.scribd.com/doc/30979882/
[vi] 10-07-06 Complaint Filed with US Attorney Office Los Angeles Against Moynihan Bank of America [NYSE:BAC] Bryan Cave LLP Alleging Racketeering
http://www.scribd.com/doc/33971099/
[vii] Zernik, Joseph: Securities and Exchange Commission v Bank of America Corporation - Pretense Litigation and Pretense Banking Regulation in the United States (filed in support of Request No 1 for impeachment of US Judge JED RAKOFF and Clerk RUBY KRAJICK, US District Court, Southern District of New York)
http://www.scribd.com/doc/44663232/  
[viii] 10-12-08 RE: Securities and Exchange Commission v Bank of America Corporation(1:09-cv-06829) - Request No 1 for Investigation, Impeachment of RUBY KRAJICK, Clerk of the Court, US District Court, Southern District of New York
http://www.scribd.com/doc/44908376/
[ix] 10-12-19 RE: Securities and Exchange Commission v Bank of America Corporation (1:09-cv-06829) - Addendum to Request No 1 for Investigation-impeachment of Judge Rakoff and Clerk Krajick
http://www.scribd.com/doc/45644678/
[x] 11-01-10 Request No 1 for investigation/impeachment proceedings, in re: US Judge JED RAKOFF and Clerk RUBY KRAJICK, US District Court, Southern District of New York, Conduct of Securities and Exchange Committee v Bank of America Corporation (1:09-cv-06829)
http://www.scribd.com/doc/46616530/
[xi] 11-02-05 Request No 2 for Impeachment of Judge JED RAKOFF Clerk RUBY KRAJICK, US District Court, Southern District of New York, in Re Conduct of Lindner v Amex (1:10-cv-02228) s
http://www.scribd.com/doc/48244479/
[xii] 10-04-19 Human Rights Alert (NG0) submission to the  United Nations Human Rights Council  for the 2010 Review (UPR) of Human Rights in the United States as incorporated into the UPR staff report:
http://www.scribd.com/doc/38566837/